ASSIGNMENT

ON

“ETHICAL AND UNETHICAL PRACTICES

OF
RETAIL INDUSTRY”

SUBMITTED BY: SUBMITTED TO:

Kunwar Irfanul Haque MRS. LEENA NANADANWAR
MBA RETAIL(09029)
 ETHICAL PRACTICES OF RETAIL INDUSTRY

The evolution of ethics chronicles a long history of problems related to the use (and misuse) of
power, money and emotions. Some businesses create conflict in the process of making money,
while others create a peaceful environment in which a business can grow and prosper. Being
ethical means having fewer problems, less stress and more respect from the buying public.
Respect and acceptance in a community derives certain rare "nectars of civilization" that can
make the business experience rewarding beyond monetary considerations. A fundamental choice
business people must make is whether to focus on short-terms gains or the long-term stability
and growth an ethical business produces. The object of an ethical business is to build a stable
environment that minimizes unexpected problems and maximize peace, prosperity and
productivity.

Philosophical ethics is a world away from the practical ethics of business. Ethical rules have
evolved (in real-time, not in theory) from the effects of bad management, greed, immaturity and
inefficient actions. Business ethics are a function of experience, of what works and what does
not. Real-time circumstances sometimes force a businessperson to bend the rules in order to
survive. There are demands on the businessperson other than raw survival that shape business
ethics. The term "flow" for example is a consideration in the practical ethics of business. If a
defect is discovered on an assembly line that degrades a product, though not seriously, one does
not simply shut down production so that the product can meet the ideal.

There are many intervening problems in day-to-day business that prevent business people from
being totally ethical, consistent and fair. The idea of ethics is a dynamic concept, so it is difficult
to determine in the moment what is ethical and what is not. What is more important to know
from an ethical standpoint is whether a deviation from the ideal is temporary, frequently repeated
or a permanent business strategy.

It must be remembered business ethics is about the human qualities of a businessperson — not
the angelic qualities. As such, when a businessperson is overwhelmed, one must expect the
possibility that ethical rules will be temporarily bent. For example, you are overwhelmed with
work, your child is sick and you need to get home right away … but you must finish billing out
some work you performed for a customer in order to receive the check. You do not know exactly
how much they owe you, but it would be un-businesslike to simply let the client leave and collect
later. So, you pick a high number that covers all the possibilities. The bill technically is not
consistent with your reputation for fairness and price, but it is prices you simply must charge to
plow through you work and get on to more important tasks. This is known as an "ethical lapse"
— a short-term and rare occurrence in your business experience. This is to say, ethics for a
businessperson is not about some philosophical idea of the mind. Rather, it is about trying to
attain a reasonable balance between the need to survive (and make a profit) and meeting the ideal
of ethical action.

ETHICAL BUSINESS PRACTICES

Here are a few ethical business practices that should be followed to build a honest reputation and
ensure smooth running of any organization.

• Investors: Ensuring safety of their money and timely payment of interest.

• Employees: Provision of fair opportunities in promotions and training, good working
environment and timely payment of salaries.
• Customer: Complete information of the service and product should be made available.
Personal information of the customers should not be used for personal gain.
• Competition: Unscrupulous tactics, competitor bashing and wrong methods should be
avoided while handling competitors.
• Government: Rules and regulations regarding taxes, duties, restrictive and monopolistic
trade practices and unlawful activities like corruption and bribing should be adhered to.
• Environment: Polluting industries should ensure compliance with the government norms
regarding air, water and noise pollution.
 UNETHICAL PRACTICES OF RETAIL INDUSTRY
In many companies are using ethical business practices, rather than trying to solve the problem,
try to hide. They even go so far as a lot of money to pay for advertising and public relations to
try to hide problems. Again, this is an immoral business practice and should be avoided. If
mistakes are made, address them clear to apologize, do better and move forward. The community
as a whole, is much more respect for them than it is if you do nothing, or trying to hide a
problem, only to be found later.

Business ethical problems arise often have little to do with work, but much with the product
being sold to do. Could it be that there are dangers with the product that was only recently
discovered? If you practice ethical business practices, you will see the public register of these
risks, and depending on the level of risk, you may need to recall a product – even if you lose a bit
'of money, and lose some business areas in the future. To resolve the problem and recall the
product, and will allow you to avoid losing your good reputation and litigation. If you remember
a product, the press, but why did you take the appropriate action to be ethical, it is not so bad.
Press

Placing blame is another matter. In case of problems, it seems that a company seeking first
instinct to blame someone, rather than the responsibility for the problem itself. This is not only
immoral, it is almost childlike in nature, and does little to convey the confidence of the public,
employees or suppliers. If the problem arose because of an error, an employee, depending on the
severity of the problem, the employee may be fired, but it is unethical for the employees of the
company that bears this name. In the public eye, 'is the company that employees made a mistake,
and not one.

Again, there are many ethical business practices that appear in the workplace on a day to day.
For your specific business, it is important to constantly monitor you and your staff to ensure that
you have an operating system on board, and that ethical business practices are dealt with
immediately the best way possible.

UNETHICAL BUSINESS PRACTICES

Following are some of the activities that come under the ambit of unethical practice.

• Resorting to dishonesty, trickery or deception.

• Distortion of facts to mislead or confuse.
• Manipulating people emotionally by exploiting their vulnerabilities.
• Greed to amass excessive profit.
• Creation of false documents to show increased profits.
• Avoiding penalty or compensation for unlawful act.
• Lack of transparency and resistance to investigation.
• Harming the environment by exceeding the government prescribed norms for pollution.
 • Invasion of privacy used as leverage, for obtaining personal or professional gains.

Business houses that comply with ethics to determine their conduct are shrinking in number. The
lack of business ethics in the market is the reason the world economy is presently in crisis.
Organizations now recognize the positive effects and outcomes of being ethical, humane and
considerate. They have a competitive edge in the market, because of the honesty they show in
their services. Their morally upright reputation attracts better staff and helps in retention. Though
ethics are legally binding in most cases, self-monitoring, transparency and accountability will go
a long way in establishing trust of the people. Besides this, it makes sense to change, before you
are penalized.