A survey found that 56% of employees have seen or experienced some form of unethical behavior at work. That’s more than half of us dealing with actions that can hurt trust, morale, and even the company itself.

You are at work and overhear a coworker lie to the boss about completing a project. Or you notice a manager favors friends for promotions instead of deserving employees. These are unethical actions examples at the workplace that occur more often than expected.

Unethical behavior at workplace is not just a small issue. It can tear apart teams, ruin reputations, and lead to financial losses. This blog will cover examples of unethical behaviour, why it happens, and steps for reporting unethical behavior in the workplace.

What is Unethical Behavior?

Unethical behavior means actions that are not right, fair, or professional. It violates moral rules, company policies, and laws. Furthermore, this behavior harms everyone, including individuals, teams, and the entire company.

Examples of unethical conduct in the workplace include taking credit for someone else’s work or stealing company funds. However, not all unethical actions are illegal. For example, gossiping about a coworker is not illegal but it can harm them and create a toxic work environment. 

10 Most Common Unethical Behavior in the Workplace

Unethical behavior comes in many forms, and it’s not always obvious. However, this immoral behavior can range from small actions to major betrayals within the workplace. Hence, even a small problem can add up and cause big issues over time.

Below are just some examples of unethical behaviour by employees in the workplace:

1. Dishonesty

Lying about work, like saying you finished a task when you didn’t, or faking numbers on a report to make yourself look better. For example, an employee might claim they worked overtime to get extra pay, even if they left early.

2. Sexual Harassment

Making unwanted sexual advances, comments, or gestures that make someone feel uncomfortable or unsafe. It includes inappropriate jokes, touching without consent, or pressuring for sexual favors. This is one of the most common unethical acts in the workplace, affecting both men and women.

3. Discrimination

Treating someone unfairly because of their race, gender, age, religion, or other traits. For example, passing over a qualified candidate for a promotion because of their ethnicity is unethical and often illegal. This is one of the most common unethical practices all around the world.

4. Stealing or Misusing Resources

Taking office supplies for personal use. Such as using company money for personal expenses, or wasting work time on personal tasks (like browsing social media all day).

5. Favoritism

When a manager gives better projects, raises, or promotions to friends or family instead of those who earn them. It creates a sense of unfairness and hurts team morale. It is one of the most common unethical behaviors in the workplace.

6. Breaking Confidentiality

It is unethical to share private company information, like client details or sales secrets, without permission. This includes gossip about sensitive workplace issues, such as a coworker's problems. Although these actions appear minor, they accumulate over time and decrease trust and professionalism.

7. Bullying

Intimidating or humiliating coworkers through insults, yelling, or exclusion. For example, mocking someone’s work in front of the team to embarrass them. This most commonly happens, and the hiring authority did not even know about it until something big happened.

8. Taking Credit for Others’ Work

Claiming someone else's ideas or contributions as your own to gain recognition or rewards is common. Some team members take credit for others' work while contributing little themselves. This unprofessional behavior in the workplace is very common and often overlooked.

9. Ignoring Safety Rules

Skipping safety protocols to save time or money, like not wearing protective gear or avoiding equipment checks, puts everyone at risk. These actions can cause accidents or injuries, creating a dangerous workplace and harming trust in leadership and team morale. Over time, this negligence can lead to expensive legal problems and a loss of employee trust.

10. Abusing

Using a position of authority to manipulate or mistreat others. For example, a supervisor demanding personal favors or punishing employees who disagree with them. 

What Causes Unethical Behavior in the Workplace?

People at work act unethically, not always because they are “bad”. But other deeper reasons push someone to make the wrong choice. 

Understanding these causes helps us see that unethical behavior is not always about one person. However, it’s often about the systems and pressures around them. That’s why fixing the problem takes effort from everyone, not just the person who messed up.

Here are some common causes of unethical behavior in workplace:

1. Pressure to Perform

If someone believes they have to meet impossible goals, they may cut corners. For example, a salesperson may lie to a manager about the client just to meet the goal, or it is impossible to meet the goal in the given time frame.

As a result, it is critical to understand that strict deadlines and unrealistic quotas cause stress. Employees may prioritize results over ethics to avoid consequences. This pressure is frequently caused by a culture that values output over integrity.

2. Lack of Clear Rules

Lack of rules creates unethical behavior in the workplace. When a business lacks clear guidelines for what is acceptable and unacceptable in the workplace. Employees may not be aware of the boundary in that case, and they may make poor choices if they are not guided.

Thus, unclear expectations give rise to miscommunications. If they are not corrected, employees might believe that unethical behavior is acceptable. If a new joinee joins the team, they will follow the same, considering it is okay. For example, coming late every day willingly.

3. Poor Leadership

If managers act unethically, like ignoring complaints or showing favoritism, it sets a bad example. Employees might think, “If the boss does it, why shouldn’t I?”

Leaders who disregard rules normalize bad behavior. Their actions indicate that ethics do not matter. Furthermore, ineffective leadership undermines trust and encourages others to follow similarly.

4. Personal Gain

People frequently act unethically because they think it will help their professions. To win over a manager, for instance, someone might claim credit for a coworker's idea. Hence, a strong desire to succeed can make wrong choices seem right.

As a result, the pressure to perform well may cause workers to prioritize short-term gains over long-term effects. This kind of thinking is especially common in environments that are highly competitive or working under pressure.

5. Toxic Workplace Culture

Toxic workplace culture is very common in every other place. The company here cares about the results and goals achieved .They intentionally ignore how employees are handling things, how managers are working, etc.

For example, a sales manager sets a task for 80% sales in one month and pressures employees to meet it, regardless of time. The upper management is unaware of it, leading to a toxic team environment. A negative workplace culture allows unethical behavior, which persists until leaders intervene to address it.

Impacts of Unethical Behavior in the Workplace

Unethical behavior not only affects one person, but it can harm everyone in the workplace. The consequences of unethical behavior highlight the importance of identifying and dealing with it early on. Ignoring it only makes matters worse.

Here are the impacts of unethical acts in businesses:

1. On Employees

Seeing or dealing with unethical behavior can make workers feel stressed, angry, or helpless. It lowers morale and makes people dread coming to work.

Employees may feel unsafe or undervalued in such environments. This stress can lead to burnout or health issues. A study showed that 40% of employees who saw unethical behavior felt less motivated and thought about leaving their jobs.

2. On Teams

Unethical actions break trust in teams. If a coworker lies or takes credit for your work, it’s hard to collaborate with them. Further, all this mixing up led teams to stop working well together, and the projects suffered.

A team having a high amount of trust reports 74% less stress. Whereas, distrust creates tension and reduces communication. Team members may withhold ideas to protect themselves which results in poor results.

3. On the Company

Unethical practices in workplace can lead to lawsuits, lost customers, or a damaged reputation. For example, Nestle has faced the world's longest boycott due to its unethical marketing practices. It is one of the big example of an unethical business practice.

Therefore, never neglect any issue. Even small issues, like high employee turnover or neglecting safety terms, can be costly to fix. In legal matters, the financial losses pile up from fees and fixes. A bad reputation will take years to rebuild that image again.

4. On Workplace Culture

Over time, unethical behavior creates a toxic environment where no one feels safe or valued. People stop speaking up, and the workplace becomes a place of fear instead of teamwork.  According to a survey, 62% of employees leave their jobs due to poor workplace culture.

Silent employees enable unethical behavior to flourish as they feel alone and disconnected, harming growth.

How to Address Unethical Behavior in the Workplace?

In today's society, unethical actions are increasing day by day, whether your workplace is a startup or even an MNC. However, the good news is that unethical behavior can be prevented and fixed with the right steps.

Here are 7 steps you can take to solve unethical behaviors in the workplace:

Step 1.  Establish a Strong Code of Conduct

Every company should have a code of conduct that explains what’s okay and what’s not. This should cover things like honesty, fairness, and respect. Make sure every employee knows these rules when they start.

A clear code reduces confusion about expectations. New hires grasp ethical standards from day one. Furthermore, regular updates keep policies relevant and effective.

Step 2. Conduct Ongoing Ethics Training

Regular training sessions can teach employees how to deal with difficult situations ethically. For example, role-playing scenarios can help people practice saying "no" to unethical requests.

Workshops increase confidence in ethical decision-making. Real-world examples make lessons more practical, and ongoing sessions emphasize the value of integrity.

Step 3. Promote Safe and Open Reporting Channels

Establish a safe channel for employees to report unethical behavior, such as an anonymous hotline or message board. Ensure that employees are protected from punishment.

Confidential systems encourage honest feedback, and protection increases trust in the reporting process. Quick responses demonstrate to employees that their concerns are taken seriously.

Step 4. Demonstrate Ethical Leadership

Managers and leaders need to show ethical behavior every day. If they are honest, fair, and respectful, employees are more likely to follow the same.

Leaders inspire trust and loyalty among the team members. Their actions set the tone for the workplace, and employees easily mirror the values they see in management.

Step 5. Perform Regular Ethical Audits

Companies should audit things like expense reports or project updates to catch problems early. This also shows employees that unethical behavior does not go unnoticed.

The benefits of routine checks are that they can detect potential misconduct and prevent small issues from growing. Moreover, if there is transparency in audits, it can build accountability.

Step 6.  Respond Promptly and Fairly to Violations

If someone reports unethical behavior, investigate it right away. If the claims are true, take fair action, like warnings or firing the person responsible. This shows everyone that the company takes ethics seriously.

Quick action strengthens zero tolerance for unethical behavior. Fair consequences promote trust in leadership. Whereas delays can lower morale and lead to further problems.

Step 7. Build a Positive and Rewarding Work Culture

Create a workplace that prioritizes honesty, respect, and collaboration over competition and shortcuts. Recognize ethical behavior with praise or rewards to help reinforce good habits. Motivate employees by doing everyday activities like games, recognition, group meetings, etc.

Companies that create an ethical workplace can prevent unethical behavior from occurring and keep the environment healthy for all. In a positive workplace, employees feel valued and motivated to do the right thing.

How to Respond if You Encounter Unethical Behavior?

Always remember that taking action can be difficult, but it is necessary for keeping the workplace fair and safe. You are not just helping yourself, you are also helping everyone in the workplace.

Here are the 6 solutions to address employees unethical behavior in the workplace:

1. Stay Calm and Gather Facts

When you first notice unethical behavior, avoid reacting emotionally. Instead, observe the situation and take note of the facts. Write down what exactly occurred, who was involved, where and when it happened, and if anyone else witnessed it.

Having clear, factual details will help you stay objective and present a strong case if you choose to report the issue.

2. Review Your Company’s Rules and Ethics Policy

Before taking any further action, review your company’s policy or code of conduct. These documents usually outline what constitutes unethical behavior and provide steps on how to report unethical behavior at work.

Knowing the official policy ensures you are following the correct procedure and helps protect your rights as an employee.

3. Address the Person Privately (If Appropriate)

If the unethical act is not severe or dangerous, it might be worth addressing the person directly. Approach them respectfully and explain what you noticed and why that act was inappropriate.

There are some times when people are not aware that their actions are inappropriate. Therefore, a simple, calm conversation can sometimes resolve the issue without further conflict or escalation.

4. Report the Incident to HR or the Head

For serious issues like sexual harassment, discrimination, or theft, report them to your supervisor or the HR department. If an anonymous complaint system is available, you can also use it.

Be specific and provide any evidence or witnesses that support your claim. A formal report not only addresses the issue but also creates a record in case if it happens again.

5. Ensure Your Safety and Confidentiality

In some cases, speaking up can result in revenge. To avoid this, ask HR how your identity will be safeguarded, and request confidentiality.

Additionally, maintain a personal record of all communications and documents related to your report. This can be used as proof if you need to defend yourself in the future.

6. Track the Outcome and Take Further Steps if Needed

After reporting, don’t assume everything is being handled. Follow up with HR or your manager to check on progress. If you feel your concern is being ignored or poorly managed, escalate it to a higher authority within the company.

Besides this, for serious or unresolved issues, seek legal advice to protect your rights. It will ensure that proper action is taken against that person or people.

Summary: How to Stop Unethical Behavior in the Workplace?

Dealing with unethical behavior at work is difficult, as it involves ongoing mental stress, a toxic culture, and pressure. It is a serious issue that we can address together. Actions like lying, stealing, harassment, and favoritism cause harm to employees and companies.

Understanding what these behaviors are, why they occur, and their impact can help us find ways to stop them. Companies should set clear rules, train employees, and respond quickly to issues. However, you, as an individual, have power too. If you see something wrong, don’t stay silent, speak up, and follow the right steps.

So, take a moment to think: Have you seen unethical behavior at work? What can you do to make things better? Share this blog with your coworkers or start a conversation about ethics in your workplace. Together, we can build a future where everyone feels respected and valued at work.

Frequently Asked Questions

1. What are the five unethical behaviors in the workplace?

5 common unethical behaviors are: 1. Dishonesty, 2. Harassment, 3. Favoritism, 4. Discrimination, and 5. Misuse of resources. These actions create a toxic work environment, harm team trust, and reduce productivity.

2. What is an example of unethical behavior in the workplace?

Taking credit for a coworker’s idea to impress a manager is a clear example of unethical behavior. It breaks trust, causes resentment, and discourages teamwork.

3. What is unethical behaviour in HR?

Unethical HR behavior includes biased hiring, ignoring harassment complaints, or leaking confidential information. It harms employee safety and fairness.

4. What are two types of unethical behavior exhibited by employees?

1. Lying about completing tasks and 2. Misusing work hours for personal activities are two common unethical behavior. Both reduce overall efficiency and accountability.

5. How to report unethical behavior in the workplace?

Report unethical behavior by documenting details and contacting your manager, HR. You can also use the anonymous reporting system if available.