The principle of equity requires that “No man should be executed in his work or alienated through his work” Hence, if an employer / enterprise does not take steps to create a work environment where the employees have a clear, common understanding of what is right and wrong, and feel free to discuss and ask questions about ethical issues and report violations, the following problems could arise-
1. Risk of employees making unethical decisions.
2. Tendency of employees to report violations to outside regulatory authorities because they lack an adequate internal forum.
3. Inability to recruit and retain efficient people.
4. Loss of competitive advantage in the marketplace.
5. Loss of reputation and goodwill in the industry and the community.
6. Higher exposure to legal battles in Courts of Law.
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