Misconduct is wrongful, improper, or unlawful conduct motivated by premeditated or intentional purpose or by obstinate indifference to the consequences of one's acts. It is an act which is forbidden or a failure to do that which is required. Misconduct may involve harm to another person's health or well-being.
Misconduct is of particular importance in professional settings (e.g. lawyers, doctors, military personnel), in the workplace and various institutions (e.g. schools, prisons). Two categories of misconduct are
sexual misconduct
Sexual misconduct is misconduct of a sexual nature which exists on a spectrum that may include a broad range of sexual behaviors considered unwelcome. This includes conduct considered inappropriate on an individual or societal basis of morality, s ...
and
official misconduct. In connection with school discipline, "misconduct" is generally understood to be student behavior that is unacceptable to school officials but does not violate criminal statutes, including
absenteeism, tardiness,
bullying
Bullying is the use of force, coercion, hurtful teasing or threat, to abuse, aggressively dominate or intimidate. The behavior is often repeated and habitual. One essential prerequisite is the perception (by the bully or by others) of an i ...
, and inappropriate language.
Misconduct in the workplace generally falls under two categories. Minor misconduct is seen as unacceptable but is not a criminal offense (e.g. being late, faking qualifications). Gross misconduct can lead to immediate dismissal because it is serious enough and possibly criminal, e.g.
stealing or
sexual harassment.
Organizational
Organization and management scholars have paid much attention to the causes, forms, modes of development, and consequences of misconduct within or among organizations. They have studied different types of misconduct, such as
white-collar crimes,
insider trading, or deceptive accounting.
Financial misconduct became prominent after the
financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
that revealed how financial organizations can operate profitable illicit activities over decades.
Organizational misconduct can involve many organizations that collaborate, such as the case of
cartels where firms reduce competition by agreeing on production or pricing, then conceal their actions together and maintain collective secret.
Financial
The failure to understand and manage
ethical
Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of morality, right and wrong action (philosophy), behavior".''Internet Encyclopedia of Philosophy'' The field of ethics, alo ...
risks played a significant role in the financial crisis. The difference between bad business decisions and
business misconduct can be hard to determine, and there is a thin line between the ethics of using only financial incentives to gauge performance and the use of holistic measures that include ethics, transparency and responsibility of
stakeholder
Stakeholder may refer to:
*Stakeholder (corporate), a group, corporate, organization, member, or system that affects or can be affected by an organization's actions
*Project stakeholder, a person, group, or organization with an interest in a proje ...
s. From CEO's to traders and brokers, all-too-tempting lucrative financial incentives existed for performance in the financial industry.
The past widespread financial misconduct led to a call for financial reform. The
Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 to increase accountability and transparency in the financial industry and protect consumers from deceptive financial practices.
[Ferrell, Fraedrich: ''Business Ethics'', ''eleventh edition'' Ethical Decision Making and Case, Sexual Harassment in Workplace. February 17, 2017. p. 80]
References
Further reading
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External links
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{{abuse
Legal terminology