30 Unethical But Very Common Tactics In Business As Pointed Out By Folks In This Online Group
Anyone who’s been in business knows that it’s near impossible to stay ethical. The cutthroat nature of the entrepreneur world conditions every businessman to cut corners and push the limits of what’s allowed (at the very least) just to stay afloat.
Now, most of it stays behind the curtains, but some of it does surface, and then everyone sees it, and then many are surprised this is actually common practice.
Reddit has been discussing this very thing: unethical business practices that are surprisingly common in the business world after user u/Elaus asked the r/AskReddit section of the social medium about this.
The post has managed to garner over 52,200 upvotes, engaging the audience that left over 31,000 comments.
Scroll down to find some of the best responses to the AskReddit question, and while you’re at it, vote and comment on the submissions you like the most, and why not share some of your unethical business practice ideas in the comment section at the end of the article!
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It’s shady to give dedicated, long-term employees a measly 2-3% annual raise (if any at all), while hiring less experienced people for the same (or higher) salary, than the experienced employee.
It essentially punishes loyal employees.
I'm the old guy on my team (software development) and I've regularly told newer, especially younger employees that their pay will always be determined by the salary that they negotiated when they were first hired by the company. If they give you a promotion and raise, guess what? It's a raise based on your previous salary. It's not based on what it would cost the company to hire someone from the outside to fill the same position. Spoiler - it would cost the company a lot more to fill it from the outside than promote from within. I also tell them to keep up on salary data for their position and every few years bring it up at review/raise time. Sometimes they will bring you up to average, most times you have to find a new job to get up to "average".
Not including wage info in the job posting. At least post the range or minimum for the position.
This! WHY WASTE YOUR OWN TIME AND INTERVIEWEES TIME? tell me what you pay and if it's too low I'll save you the time of reviewing my resume and interviewing me- common sense!
Cutting peoples hours just enough to not be considered full time so they don't have to give you benefits. Those bosses are true pieces of s@#t and I happen to know a few of them.
Doing illegal s@#t to make $20million then getting caught and paying a $5million fine.
Planned obsolescence.
Giving a set amount of PTO, then refusing to let employees actually use it, or shaming them for doing so.
Or asking them when they want to take it and them saying “no” to their request. I use to work at BOA and this always happened to me
Consistently making salaried exempt employees work 10+ hours overtime a week in order to avoid hiring more staff.
I worked in DoD for years. I was ALWAYS Salaried, OT Exempt. So, I had to keep a timecard and account for every hour I worked, and use time off if I worked fewer than 40 hours, but if I worked over 40 hours I did not get OT...
No auto-cancel on recurring payments.
Companies could very easily add the feature but won't hoping you forget and pay them more.
Using a previous salary against you.
"Oh, you make $40,000? Well, we'll offer you $50,000. That's a 25% increase in pay!"
Your salary shouldn't be relative, it should be what the market value of the position is. If a job pays $75,000, don't pay me only $50,000 because I only currently make $40,000.
Signing people up for s@#t as addons to an existing bill and hoping they don't notice the extra charges.
Paying invoices late, especially BIG companies that pay a few months late. It kills small business, and seems to be quite normal here in the UK.
Making you pay more for printing your own damn tickets at home.
StubHub, ticketmaster etc.
Hire young people who are prepared and motivated and enjoy the work.
Give them 50 hours a week of work, no special overtime pay, tell them it'll be back to normal at then end of the month when the regular crunch is over.
Repeat until near a deadline.
Give them 80 hours a week, 7 days a week of crunch to meet the deadline.
Continue past deadline a little while then return to "regular" hours of 50 hours.
Repeat until your employees hate life. Refuse to give references when they quit "to protect yourself legally". Normalize across the industry so nobody can complain too much and sound credible.
Literally anything a corporation does that they can be fined for is taken into account as a business expense. If it's cheaper to pay an illegal dumping fine than it is to change the way they process waste nothing will be done to stop the illegal dumping.
Congress is immune to insider trading.
This isn't true. At least one sitting Congressman is currently under investigation for just that...profiting from information that was made available to Congress but not to the public.
Posting a job announcement and conducting interviews for a job you already know who you're going to hire.
Apparently that's an HR requirement, at least at the company where I work. If someone knows exactly who they want to hire for a specific position, the company rules (and possibly state, local, or federal laws) require them to post the position and interview all applicants. It's bullshit that benefits nobody.
Working when you are sick. I have heard stories of bosses forcing people to come in despite being extremely ill.
Also I just wish that it would be mandatory schedule length of at least two weeks if the hours are not the same every day. Mine changes weekly, and it's hard to plan anything.
Calling in sick people is simply illegal here. As it should be everywhere.
Careful (deceptive) wording.
"Up to 100mbps internet speeds!" means you get 5-6mbps, and "up to" 100 for a moment here and there.
"Made with 100% Chicken" simply means that real chicken was utilized as an ingredient at some point. It's like saying a bottle of wine is "made with" 100% organic cork.
"Sugar free!" means "Less sugar per serving than the minimum we have to report"
"The top rated____" usually followed by the specific study that ranked it best. Did you know you can pay a company to perform a study for you that's guaranteed to determine you're the best?
Did you know that the Hans Institute in a recent study showed that Hans is the most popular commenter on BP? They found his comments to be "100% genuine" and "bad jokes free". He types in a organic way, and his wording is vegan-friendly, gluten-free and free-ranged. All of his comments, save for the negative ones, are positive. Reading his comments may reduce your heartburn by up to 100%.
Using your employment as leverage to keep your mouth shut.
For example. A temp agency i worked through tried to deduct the cost of ppe from my paycheck. I told them that legally, employers need to provide ppe to their employees. Not sell it to them. They threatened to fire me. I reported them to OSHA. They got fined and had to reimburse everyone their $15 deduction for ppe.
Temp agencies are f!@#$%g scams.
EDIT: PPE: "Personal Protective Equipment." Hard hat, safety glasses, gloves, steel tipped boots, etc.
On the other hand, temp agencies can be a help. Temp work has tided me over between permanent gigs. Don't write it off entirely. The temp system could still use some improvement, though.
Companies that stifle competition/innovation by buying smaller companies just to stop what the smaller company is doing.
Letting an employee go/easing them out instead of addressing a situation they brought up.
I've seen so many to name just one. Here's the worse I've seen.
So, PCB are highly toxic, highly carcinogenic stuff used mainly as coolant in power transformers. Heavy industries often have their own transformers, usually on the roof of their building. When these transformers get old, they need to be replaced, and the PCB need to be destroyed properly. However, doing this properly is very costly.
So, a solution is to wait for a rainy day, then pour the PCB in the gutters on the roof of the heavy industry's building (where the power transformers typically are). This way they disperse on the ground and noone is the wiser.
Well, since then, laws were changed to make sure that all power transformers are labelled and tracked by the government, to ensure their proper disposal. Still, sometimes a few older units get overlooked. And this is how I learned of this trick... the heavy industry's building is in the middle of a large city, with kids playing nearby and all. F these f-ers.
I think they should be sued into the dirt before they Bhopal the place.
A company having a business model that relies on charging fees for breaking its own rules without justification for them.
Looking at you CreditOne.
- Has a late payment fee but refuses to add any kind of auto-payment. In 2017.
- Takes 5 days to clear a normal payment. Pay 4 days before your bill is due? That's a late payment fee. Want your payment to clear earlier to avoid that fee? Pay an express payment fee! Its the same fee amount? Lordy! What a coincidence!
Holy s**t is that predatory. The fact that an entire company accepts this as best practice shows that it is all rigged against us. squeeze every cent out of us, hook or crook.
Rocketing the price of stuff and putting a "sale."
Not unlike the companies that give a 50% coupon only off items not on sale, yet 99% of their stock is on sale. -looking at you big craft stores.
Ok so this is becoming really common in my neck of the woods. Basically a company need someone to fill a role. Instead of giving them a job and all the perks like paid holidays etc they instead hire you as a contractor. This means you still have to play by their rules as to when they want you in but you get non of the perks besides your wage. No sick days, no holidays nothing.
I'm not referring to high paying jobs where a lot of the time being a contractor is the way to go. This system has been implemented over her for retail/service jobs. You end up making less since you get paid the same as permanent workers but you are entitled to no bonuses, paid holiday or sick days. When you're working a minimal wage job this is nasty.
Public school teacher here. My school has started to deduct vacation/sick hours if teachers forget to swipe in. We’re basically there all the time anyways and don’t get paid overtime so clocking in is pretty easy to forget. What ends up happening is teachers get their accumulated vacay/sick hours deducted WHILE actively teaching, all because of a forgotten swipe. The admin and district people didn’t seem to see how absolutely unethical this practice is and I never got back 4 days of vacay hours from missed swipes.
You have to actually swipe in? Holy cow, what kind of school corp do you teach in? Damn!
Refusing to pay overtime for overtime. I saw it happen all the time. I didn't complain. I got promoted a bunch.
Taking advantage of recent grads/bad market to take in people who will accept s@#$%y conditions, then kicking them out if/when they complain and getting more new faces.
In Australia, Subway claimed "Foot Long" was a trade marked name, and not a suggestion of sizing, after many people pointed out their subs were well under a foot long.
Some degree of false advertising. My food never looks like it does on the menu. My internet is never as fast as advertised. The contractor never finishes when he says he will.
Using unpaid intern as worker. They have the exact same tasks has everyone else, they work the same hours, even more because they think that if they work more they will be noticed and hired (they won't), and it's rare that their supervisor take the time to teach them anything. They have to figure out things by themselves. Of course most struggle, and it's use as an excuse to not hire them.
Aaaaand again .. you guessed it... illegal. Unpaid interns may only be unpaid if their internship is educational. If they do actual work, they must be paid the national minimum wage of, I guess, 9,60€.
People give no f@#$s about your luggage or parcel, they get dropped, thrown around everyday behind the close door, especially heavy items.
And then you have to pay for insurance or careful handling fees if you want the couriers to actually do their f*****g jobs. What other industry do you have to give someone extra money to compensate them in case they decide to lose or destroy your stuff!?
Car salesman. Almost no other product has someone who makes money selling you a product you already want. That the price for the product is negotiable. Some people can haggle a few thousand off the price while little old ladies get taken for as much as possible. And that there are laws requiring you to buy them through dealers instead of direct from the manufacturer if you know what you want.
Comcast's pricing strategy where they raise the price an absurd amount from one month to the next and just hope customers aren't paying attention or too passive to complain.
Online stores advertise their products at attractively lower prices but you will never really be able to get the product for that price because they will add extra charges somehow.
Fake promotions. There's a role you can apply for that doesn't have any extra pay or benefits, in which you do the same work as the role above that (which is higher paid) in the hopes that eventually you'll be the next in line to actually be given that next position. Except you won't.
Government contracting. Building a thing to "specs" but not entirely up to full functionality. Knowing the issues that can/will arise, doing nothing about it, and then make the government cut a whole different (and very profitable) contract to fix said problems.
There was a post about 'things your employer don't want the public to know', and I was amazed to see people say how common it was for a woman to be hired (in the tech industry mainly) basically to flirt with potential male business clients.
The aim was to make them nervous/uncomfortable so the company would have the upper hand in negotiations.
Wouldn't exactly call that ethical.
Nominal weights and measures that don't match actual weights and measures. My company sells by the each but each item has a nominal weight. We intentionally produce our product approximately 10% light to save raw material costs.
None of these are legal where I am, so I'm guessing once again this is about the USA.
Some comments specifically said it was a problem in the UK. Don’t know where you are but you might want to broaden your mind.
Load More Replies...I think that ethics have nothing to do with business. It's unfortunate, but it's like that. Morality and law are two different things. Sometimes they converge, though. But it has to be vastly improved.
Very true. Bussines are driven by greed, not by goodnes of the heart
Load More Replies...I didn't read but I'm guessing it's about working conditions in the USA again?
Some comments said it occurs in the UK as well. Maybe read next time before commenting.
Load More Replies...None of these are legal where I am, so I'm guessing once again this is about the USA.
Some comments specifically said it was a problem in the UK. Don’t know where you are but you might want to broaden your mind.
Load More Replies...I think that ethics have nothing to do with business. It's unfortunate, but it's like that. Morality and law are two different things. Sometimes they converge, though. But it has to be vastly improved.
Very true. Bussines are driven by greed, not by goodnes of the heart
Load More Replies...I didn't read but I'm guessing it's about working conditions in the USA again?
Some comments said it occurs in the UK as well. Maybe read next time before commenting.
Load More Replies...