Five unethical companies | Ethical Consumer (2024)

FAQs

What is an example of an unethical company? ›

Nestle is subject to the world's longest running boycott for the irresponsible marketing of baby milk to mothers in the developing world. The company has also been criticised for a number of other businesses practices including the use of unsustainable palm oil and genetically modified ingredients in its foods.

Hoarding, cheating, corruption, profiteering and engaging in dishonest acts are some of the manifold aspects of unethical customer behaviour (UCB). Such behaviours demand attention as they damage firms, harm their employees and deprive other customers from positive shopping experiences.

Companies such as Google, Amazon, Nestle, Tesco, Coca-Cola, the Big Four accounting firms, Facebook, Nike, and McDonald's have all faced scrutiny for their actions across various ethical dimensions, including tax avoidance, worker exploitation, irresponsible marketing, and environmental damage.

Most problems arise from (1) ethical failures in data sourcing, (2) using data for purposes other than those initially communicated, (3) lack of security in storing it, (4) how it is anonymized, and (5) how it's prepared for use.

Nike is a dubious company in terms of financial ethics and political activities. In 2023, Nike's highest paid Executive Officer received an astonishing $32,789,885 – around almost £26,000,000. The company has also been criticised for tax avoidance and received 0/100 in Ethical Consumer's tax conduct rating.

Our research highlights several ethical issues with Nestlé, including political activities, anti-social finance, likely use of tax avoidance strategies, animal testing, animal rights abuses, a poor approach to climate change and more.

Familiar examples include the harms involved in the extraction and trade of conflict minerals (for example, coltan and diamonds), the acquisition and import of produce (for example, coffee, chocolate, bananas, rice), and the manufacture of goods in sweatshops (for example, clothing and sporting equipment).

Some examples of unethical advertising include false advertising, where a product's capabilities are exaggerated or completely fabricated, and bait and switch tactics, where customers are drawn in with the promise of a discounted product only to find it's either sold out or not as described.

People practice it by buying ethically made products that support small-scale manufacturers or local artisans and protect animals and the environment, while boycotting products that exploit children as workers, are tested on animals, or damage the environment.

The key ethical scandals of the Coca-Cola company with respect to its stakeholders has been found to involve plastic waste (pollution), channel stuffing, depletion of water resources, racial discrimination, impact on health, disputes with distributors, and contamination scare.

Is shein unethical? ›

One of the most frequent criticisms of Shein and Temu involves allegations of stealing designs from small businesses and independent artists. Numerous reports and lawsuits suggest that these companies copy designs without permission, selling them at a fraction of the price.

Amazon is known for its shameless tax avoidance, workers' rights abuses, environmental impacts and much more. The company has been the subject of an Ethical Consumer global boycott call since 2012. We've summarised the key ethical issues to consider when it comes to Amazon.

Misuse of Company Time

Misusing company time, whether for covering up for a person who arrived late at the workplace or modifying the attendance log, is usually the most significant unethical behavior example. It also comprises knowing a co-worker managing their business during work hours.

Unethical actions such as fraud, dishonesty, or unfair treatment can create doubt and skepticism among customers, leading to a loss of reputation, and ultimately, sales. Employees may also become demoralized and disengaged in such an environment, affecting productivity and loyalty.

International Business Ethics: Changes and Challenges

The rise of globalization since World War II has created moral dilemmas for businesses in five specific areas: labor standards, environmental standards, human rights, cultural diversity, and corruption.

Deliberate Dishonesty in the Workplace

Asking for recognition for someone else's job, calling in sick to go to the hill station, sabotaging someone else's work, and, in sales, falsifying the product or service to fulfill the target are all examples of unethical behavior in the workplace.

Enron's downfall and the imprisonment of several members of its leadership group were among the most shocking and widely reported ethics violations at the time.

Misleading ads exaggerate a business's ability, and in most cases, they can lead to disappointment from unsuspecting clients. Although false advertising isn't taken as a criminal offense, any business charged with it is likely to lose customer trust, which can result in lower sales and eventually business failure.