Question

Discuss one or two examples of unethical practices that Sell company did to maximize value and profits. And How it affected the company positively or negatively? Also How the company revenues\ profits\ image has been affected by this unethical practices?

Answer 1

A company's ultimate goal is to increase profits. While many companies grow profits ethically, others maximize profits unethically via marketing, slashing employee expenses, lowering product quality or impacting the environment negatively. Unethical business practices can lead to smeared public relations and a loss of trust and respect on the part of the consumer.

EXAMPLE:

1) Employees

One of the fastest ways to maximize profit and reduce costs is to slash employee expenses. In many industries, payroll makes up a large percentage of overall costs for a company. Employee pay for restaurants, for example, routinely hovers around 20 to 25 percent of total costs, according to Forbes. Slashing employee expenses and removing benefits is an unethical issue that can cause poor morale in the workplace. Poor morale in a small-business workplace can lead to devastating results, particularly if the business only employs a handful of people. It's unethical in many people's eyes to cut employee pay and benefits in an attempt to pad the profit numbers, but many companies opt for such a strategy because it's quick, proven and effective. But it effect company negativily. Company can reduce its cost by doing this but company can't run without human resources. so it badly effect the business moreover revenue and profit of company

2) Quality

The cost of goods is usually one of the highest expenses a company deals with. Companies can reduce the quality of the goods and still sell the goods at the same price to maximize profit. By doing so, however, they cross the line into an unethical business practice. The danger of reducing quality to maximize profit is damage to the company's brand name and a loss of both consumer respect and trust. As small businesses rely on consumer respect and trust, the loss of both can have significant repercussions that slow growth and lead to reduced revenue.