An organization, whether a business or a government agency, is first & Foremost human society. If an employer does not take steps to create a work environment where the employees have a clear, common understanding of what is right & wrong & free feel to discuss & ask questions about ethical issues & reports violations, significant problems could arise which are as follows:-
ü D- Diminished reputations in the industry & community
ü U- Increased risk of employees making Unethical decisions
ü S- Significant legal exposure & loss of competitive advantage in market place
ü T- Increased Tendency of employees to report violations to outside regulatory authorities because they lack on adequate internal forum.
ü E- In the long run, Effect of this would be that it would render the company unprofitable & the company would go into liquidation.
ü R- Inability to Recruit & Retain top people.