Unethical business practices operate in different countries to varying degrees and participate in economic processes.
For many entities, market participants, business partners and consumers, they generate additional costs.
They can also be a source of gray economy growth, including avoiding paying taxes.
Thus, there are social costs for individual entities and financial for the entire economy.
On the capital markets, one of unethical business practices is, for example, insider trading, ie the use of confidential information by decision-makers with access to confidential information used to conduct transactions to purchase or sell financial instruments, including securities or other securities or other capital markets.
In individual countries, there are various instruments to combat the use of unethical business practices, the shadow economy, etc.
The effectiveness of individual normative solutions, the scale of restrictions applied, and the business mentality of market participants, entrepreneurs and businessmen are different.
Another mentality is related to the level of awareness regarding corporate social responsibility.
In individual countries, social campaigns are carried out suggesting the legitimacy of developing concepts based on corporate social responsibility.
In view of the above, please answer the following question: Is unethical business practices a negative external effect of non-ideal market structures or imperfection of the social market economy?
Please, answer, comments. I invite you to the discussion.
Dear Dariusz
It's true absolutely there is no doubt, unethical business practices a negative external effect of non ideal market structures or imperfection of social economy....
To solve this the entrepreneur must analyze the business and how it affect the countries economy
The government must come forward to reduce tax and provide many subsides to regular prompt tax payers
The perfect good cooperation between entrepreneur and government is essential to solve this problem
By providing all facilities to regular tax payers in loan sanction to certain limit on seeing their credit worthiness it may be extended
All the very best for good question
Regards
Dr.Nanda Gopal L
Sometimes unethical business practices foster or catalyses the development of ideal market structures. Knowing about the unethical practices, structures are developed to withstand them leading to perfecting the structures
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