#1 – Ethical Issues in Business
Whenever there is an unethical action discovered by a company that is brought to light in the public eye, from both a economic and consumer standpoint, I believe there would be significant impacts that would affect the economic and fiscal activities of the organization.
On the question of “Are ethical issues more likely to occur in one market type rather than another market type”, I believe that it is not so much a particular market as it is the proper conditions in which unethical actions are fostered. Bigger businesses in comparison of small “mom and pop” shops have greater tendencies because of the scale of operations they undertake. However any business, regardless of size, is capable of unethical activities.
An example that I encountered personally as a consumer: I once frequented a local fast food restaurant close by my work. This place had good quality food and was a short drive away from several large companies, allowing for it to draw a large amount of business. Next to the cash register was a “fuel fund” bucket for customers to ‘donate’ money to a fund to help employees with the rising gas costs at that time. When using a debit/credit card, patrons could also add a tip. It was discovered that patrons who were not leaving tips and instead leaving the field blank were being charged an average of $2-$6 per transaction by the restaurant, without the consent or knowledge of the customer. Once discovered, the patronage of the restaurant all but evaporated, legal action was brought against them, and they were forced to close their doors. T
This is obviously an example of dishonest, fraud, and abuse of trust. The susceptibility in the this industry, not only for small shops like the one mentioned above, but for any food service company is lack of documentation. If there is no proof of the actions then it becomes incredibly