Firstly, when some of the leaders of FORMOSA commit unethical actions while the remaining ones do not, it may lead to the internal conflicts among management since the business benefits and ethical business criteria do not come along together. As a definite result, those disagreements will break the cohesion of management, therefore lead to the difficulties of running the business.
Secondly, the head of business or the managers can face up with losing respect of their employees when they are found out to commit unethical activities. It is difficult to have a successful business without well-respected leaders as FORMOSA staffs and employees may not comply with the commands, directions, or requests of their managers.
Thirdly, …show more content…
The conflicts among managers themselves, as mentioned above, can ruin their business while they cannot reach the consistency and unification in running the company. Besides, since the business relations cannot be maintained and is broken down, lack of managers’ ethics may have negative effects on employee performance. By misleading and losing trust on their leaders, FORMOSA employees and staffs may commit the feeling of guilty by the way their company has done to the environment and their community, which leads to psychological traumas, poor productivity and job giving up. Moreover, unethical behavior in the workplace also has the potential to lead to a lack of trust among employees, which is detrimental to a business that relies on collaboration and a sense of community. Therefore, productivity reduction as well as downward company performance is unavoidable. Leaking critical information of the corporation because of the increasing in misbehavior and internal conflict is also another considerable problem. Furthermore, a lack of ethical behavior can also cause tension among employees, with some employees resenting those who do not play by the rules and still manage to get …show more content…
FORMOSA has damaged their credibility very badly and might lose a large portion of their key customers since their leaders was engaged into many unethical behaviors such as bribing Vietnamese government, destroying Vietnam’s environment (the most obvious case is mass fish death in Vietnam)... All those things can have a large impact on their business position such as decreasing the value of the company, increasing the risk of doing business and the possibility of bankruptcy, severely damaging company brand and image. As a result, the business will be slowed down, less profitability, higher debt; and soon or later, the corporation will declare