Toxic Business Culture, Corporate Scandals, Business Ethics

What happens when corporations put profits before customers? With all the corporate scandals happening these days, we all know the answer that question. And someone needs to act.

I am still not over the footage i watched where a passenger was forcibly dragged out United Airlines just because he refused to give up his seat. To be honest, the details of the story are shameful, horrific and sickening to the core. ( You can read all about it on Fortune and CNBC )

I also can’t get over what United C.E.O. Oscar Munoz said in a statement on Monday …“I apologize for having for having to re-accommodate these customers…” Really? That statement got me thinking. The passenger was literally singled out, dragged, humiliated and thrown off the plane. And they call that ‘re-accommodate‘? What is going on?

No need to apply communication and PR skills to sugarcoat this matter! They need to address the issue of overbooking their flights and avoid disappointing their paying customers.

Wells Fargo is still plagued by scandals. Last year, it admitted that a large number of employees had set up sham accounts to meet sales quotas. The company was ordered to pay $185 million in penalties.(Washington post)  The Consumer Financial Protection Bureau (CFPB) fined Wells Fargo Bank about  $100 million for the widespread illegal practice. The bank was also expected to pay an additional $35 million penalty to the Office of the Comptroller of the Currency, and another $50 million to the City and County of Los Angeles. (Consumer Finance) Well now those scandals over fake accounts have continued to hurt its business. (More on CFO and Fortune)

Turmoil sweeping Uber- The startup has suffered scandals in the last few days. There has been reports and accusations about bad work place culture, legal threats and sexual harrassment( more at Yahoo.Finance and susanjfowler.com)  The company was also recently accused of using secret program to track rival LYFT drivers. (More at Newsweek)

In other news, from fake news to fake investment news –Fake Investment News Could Be Here to Stay. The SEC is prosecuting online stock fraud (More on Barrons.com)

With all the pressures facing corporations, there has never been a better time for business leaders with ethics and values.  I came across an article on BW Disrupt about the importance of business ethics and why it holds the key to lasting success for any organisation. The author writes “There is no greater satisfaction than achieving success by following the righteous path, even if it means choosing the longer and harder road, because while doing so, you build a solid and unshakeable foundation for the company that guarantees long lasting success.” Read more BW Disrupt .

 

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