Unethical Business Practices and Policy Recommendation

Introduction

Unethical activities that people engage in while doing business transactions include lying, stealing, false impression, engaging in conflict of interest, unfair advantage, improper personal behavior, hiding information, allowing abuse, and condoning unethical actions. In most cases, people resolve to go contrary to their moral expectations when in dilemmas. However, any form of organizational malpractice violates the principle of justice, utilitarianism, individual rights, and the obligation to adhere to commitments and duties relevant to the company (Gitman et al., 2018). For instance, the CityAM newspaper published an article on how Nvidia hides crypto mining during sales. The company was giving a false impression and taking advantage of its clients. Although Nvidia was guilty of understanding commercial practice, it is possible to make amends to uphold the integrity of the business.

Summary of the Unethical Practice

The main issue with Nvidia was that it concealed some vital information to give a wrong impression. Particularly, Nvidia failed to reveal to the investors that the revenue it obtained from the gaming business was high because, in 2018, it sold the graphics processing units (GPUs) to the crypto miners (Russell, 2022). In turn, the financiers of the company did not have vital information about the actual performance of the company. In the consecutive months, the value of crypto assets was increasing value the GPS was in high demand for mining which made its gaming department violate the cryptocurrency market.

Policy Changes for Ethical Practice

One of the changes required to improve the business practice is to ensure that a representative of the investors is selected as a board member. The person will have access to all the accounting and auditor’s reports to ensure transparency in the business process. There will also be external auditors to ensure that there is no cheating in the company’s financial reports. The other policy is that there will be regular meetings of all stakeholders, including the shareholders, employees, owners, partners, and suppliers, where any developments in the company are discussed. Moreover, the people will have an opportunity to ask questions and seek clarifications about the organization.

Policy Alignment with Utilitarianism

The NVidia company is an organization comprising of many internal and external interested parties whose interests must be taken into account when making choices. Relatedly, the philosophy of utilitarianism which aims at the results of an action taken by organizations or individuals (Gitman et al., 2018). For example, the decision to withhold information about the source of revenue was inconsiderate to the majority of investors who saw gaming as a lucrative opportunity. The policy change to have external auditors check the financial records, have a representative for the shareholders, and engage stakeholders in regular meetings will go a long way in ensuring that the Nvidia actions are not self-centered. Thus, whatever choices will be made in the future will be for the greater good of the majority.

Conclusion

In summary, business is supposed to uphold integrity by promoting just, utilitarian actions and showing the duty to the organization. However, companies still engage in unethical practices to safeguard their image or earn profit through corrupt means. The reports about Nvidia are examples of a company hiding pertinent information to mislead its investors. The solution is to involve all stakeholders in critical decisions to ensure that the interest of the majority is safeguarded.

References

Gitman, L. J., McDaniel, C., & Shah, A. (2018). Introduction to business. OpenStax.

Russell, L. J. (2022). Nvidia fined by US watchdog for hiding impact of crypto mining on sales. CityAM.

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StudyCorgi. 2023. "Unethical Business Practices and Policy Recommendation." April 28, 2023. https://studycorgi.com/unethical-business-practices-and-policy-recommendation/.

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