In the competitive business world, maintaining ethics and integrity is the key to long-term success. Although the pressure to achieve significant profits may tempt entrepreneurs to cross ethical boundaries, there is no valid reason to ignore the principles that govern proper business conduct.
This article will discuss five business ethics violations that must be firmly avoided. By being aware of and avoiding unethical behavior, companies can build a strong reputation, gain customer trust, and create a healthy and sustainable business environment.
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Stealing Business Ideas
Stealing business ideas is a serious violation often committed by competitors. This action can have severe repercussions, and the risks involved are substantial if legal action is taken by the affected party.
Those who steal business ideas may face criminal sanctions under Article 17, paragraph (1) of Law Number 30 of 2000 concerning Trade Secrets. The article states that: “Anyone who intentionally and without the right uses the Trade Secrets of others or performs acts as referred to in articles 13 or 14 shall be punished by imprisonment for a maximum of 2 (two) years and/or a fine of up to Rp.300,000,000.00 (three hundred million rupiahs).”
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Engaging in Fraud
Honesty in transactions is crucial in business. In some online transactions, sellers may not be transparent with consumers, being dishonest about the conditions of the offered goods and not fully granting consumer rights related to purchased products. This situation can lead to disappointment for consumers, who may then seek product returns or file complaints that could impact the online store’s rating.
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Spamming and Random Tagging on Social Media Posts
Apart from spamming in the form of comments, businesses often engage in random tagging of potential customers. While tagging may expose individuals to the products or services offered, it can have negative consequences.
Potential customers may find this practice intrusive and may ultimately remove the business from their social media network. Entrepreneurs should avoid losing potential customers due to such practices and consider more effective methods like Facebook ads, Instagram ads, or other approaches to ensure their posts reach the target audience.
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Using Someone Else’s Product Photos
What if a product purchased online does not match the displayed image? This situation can be highly disappointing and often occurs when businesses use someone else’s product photos on their social media.
To avoid losing customers rapidly, businesses are advised against such practices. It’s crucial to remember that the continuity of a business depends significantly on the number of repeat customers. Therefore, prioritize honesty in business, especially regarding product quality, to ensure ongoing growth and development.
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Violating Agreements
One common violation involves business agreements or Memoranda of Understanding (MOUs), official agreements between two parties collaborating in business. Violations occur when one party fails to adhere to previously agreed-upon terms.
If an agreement cannot continue due to issues on one side, leading to the creation of a new agreement with another party, mediation or negotiation between conflicting parties can be a solution to resolve this issue.
In running a business, upholding ethics is essential. Violations such as idea theft, manipulation, transactional dishonesty, discrimination, and conflicts of interest must be strictly avoided.
Strong business ethics are the foundation for building trust and a positive reputation with customers, business partners, and the community as a whole. By steering clear of questionable practices, companies can achieve long-term success supported by integrity, social responsibility, and ethical values.
Moreover, the implementation of good business ethics will bring long-term benefits for business continuity and sustainability in the future.
