Question

In: Accounting

If unethical or illegal behavior occurs within a business enterprise, how can employees bring about change...

If unethical or illegal behavior occurs within a business enterprise, how can employees bring about change when initial reports are ignored? What actions can senior managers take to repair the damaged reputations of their organizations after scandals become publicly known?  


Solutions

Expert Solution

In case any unethical or illegal behavior occurs in an business enterprise and being the first time such activity has taken place, the management can ignore the first reporting. This action by the management will be lesson for the indulge / culprit employees to change their path. The “First time ignorance” doctrine can only be undertaken, if the management is confident that employees would correct their activities and would not repeat the unethical / illegal behavior.

The management or the senior managers can take following steps to repair the damaged reputations of the concern when scandals gets public :

  1. Job rotation / Portfolio-change will change the employees group and they mend their behavior.
  2. The ill and anti-social employees should be thrown out of the concern.
  3. Will deny any such incidence or rectification of the situation can be assured to the public in general.
  4. Can declare benefits for the good behavior on the part of employees in future.
  5. Can initiate negative benefits against any repeat activity.

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