Impact of unethical issues in multinational business that influences brand recognition
1.1 Background of research topic- 4
1.3 Justification of the research 7
Chapter 2: literature review 10
2.2 Unethical practices in the workplace 10
2.3 Unethical business practices in the retail industry- 12
2.4 Impact of unethical challenges on the different multinational businesses- 12
2.5 Impact of unethical practices on brand recognition- 14
2.6 Factors influencing the generation of unethical practices 15
2.7 strategic approaches for reducing the occurrence of unethical challenges- 16
2.8 Aaker’s brand equity model- 18
Chapter 3: research methodology- 20
3.2 methodological considerations 20
3.2.1 Justification for the selected paradigm and methodology 21
3.2.2 Rejected methodologies and methods 22
Chapter 4: Data Analysis and Interpretation 26
Chapter 1: Introduction-
1.1 Background of research topic-
Brand recognition is the extent to which the customers recognise the product or service by the name, logo, etc. brand recognition and awareness help in developing trust in the brand. There are different strategies that businesses use for increasing brand awareness and improving brand recognition (Zia et al., 2021). The companies use different marketing activities for connecting with the customers and increasing brand awareness and recognition. Global companies often conduct market research for identifying the success of the different brand recognition strategies used by them. Large companies are often considered successful when the customers recognise the brand by the logo, packaging, slogans, name etc. (Zia et al., 2021).
There are different factors that also affect the brand image of the company and it reduces the trust of the customers in the brand. For example, the unethical activities conducted by businesses highly impact their brand image and brand recognition. It is important for businesses to conduct their business activities ethically for developing a positive brand image and developing and maintaining trust among the customers. Conducting the business operations ethically helps in increasing customer retention; increases brand loyalty and helps in spreading positive word of mouth (De Cremer and Vandekerckhove, 2017). The unethical activities that the businesses conduct are hidden terms and conditions in the agreements, unethical accounting, false product claims, etc. it supports the businesses in enhancing the business profitability and promotes short term business growth. When the customers get aware of the unethical business practices of the company it negatively impacts brand recognition. Unethical business practices can impact business profitability and impacts customer loyalty. It creates a negative brand image and creates various challenges for businesses (Askew et al., 2015).
The research will focus on identifying the impact of unethical business practices on the brand recognition of multinational companies in the retail industry of the UK. The researcher will focus on identifying the factors that cause unethical practices. Through the research, it will identify how the unethical business activities conducted by the companies create challenges for the business and it will help in identifying its impact on the business. Through the research, the strategies will be identified that the businesses can use for reducing the chances of unethical challenges that the company could need to face. The researcher will mainly focus on identifying the impact of unethical business practices on multinational businesses in the retail industry of the UK. The research will mainly focus on the retail industry and will include examples of different retail businesses in the country. The research will focus on identifying the impact of unethical businesses activities on the retail businesses of the UK. The report includes the recent examples of the Marks and Spencer Company, Gap, and Primark. Etc. that has recently faced challenges due to unethical business activities conducted by them. The research will help in identifying the strategies that multinational businesses can use for reducing the occurrence of unethical business practices. The details of different concepts related to the research are-
Business ethics- business ethics are the values of the company that the company follows while conducting operational activities. The common ethical considerations in the business include the environment, anti-corruption laws, human rights, etc. the companies make a commitment to following some specific moral practices and ethical standards based on the industry to which the company belongs. It also shows the values that the business wants to promote. It shows the corporate culture of the company and helps in developing trust among the customers (Brenkert, 2016).
Unethical business practices- unethical business practices are the practices conducted by businesses that are below the minimum standards for the business code of conduct. The activities are considered behaviours that are morally wrong and may lead to mistreatment of the environment, humans and animals. Some examples of unethical business practices are discrimination among the employees, providing defective products etc. (Kabeyi, 2018).
Brand recognition- brand recognition is the ability of customers to identify a specific brand by different attributes like brand name, logo, tagline, packaging etc. it is a concept used in marketing where the companies use different strategies for increasing brand awareness and brand recognition. A brand is considered successful when the customers recognise the brand by the different attributes associated with the brand (Zia et al., 2021).
Brand image- brand image is the perception of customers of the brand. The customers develop a perception regarding the brand through their experience and interactions. It is the aggregate of ideas, impressions, beliefs and perceptions that the customers have for the brand. Different customers have different brand images and a positive brand image helps in attracting customers. The companies use different strategies for developing a positive brand image and it requires time and effort for developing a different brand image in the market (Zhang, 2015).
Marketing- marketing includes the different practices and activities that businesses undertake for the promotion of their products and services. Marketing activities help in increasing awareness among the customers and help in providing information to the customers regarding the product or services. The companies use different tools for the promotion of their services and products according to the target customers (Zhang, 2015).
1.2 Research question
What are the implications of unethical practices on the different multinational businesses in the retail sector?
Research aims and objectives-
Aim:
The primary aim of the research is to gather knowledge and analyse the “impact of unethical challenges witnessed by different multinational businesses in the retail sector upon their brand recognition”
Research objectives:
To identify the impact of unethical challenges on the different multinational businesses in the retail sector.
To highlight the implications of unethical practices upon sustaining brand recognition of different multinational businesses
To illustrate the factors that influence the generation of unethical practices at multinational businesses
To identify the strategic approaches that can serve beneficial to minimise unethical challenges at multinational businesses
1.3 Justification of the research
Brand recognition includes the different factors through which the customers identify the business. It includes packaging of the product, logo, tagline etc. that makes the brand recognisable to the customers. A brand is considered successful when the customers identify the brand through different factors. Brand recognition is essential for the success of the business. Positive brand recognition helps in attracting more customers (Zia et al., 2021).
Conducting unethical business activities may create various challenges for the businesses and it is essential to understand and identify the impact of unethical activities on the brand reputation. There are various unethical activities that are conducted in the workplace like ineffective working conditions, discrimination among the employees, etc. the unethical activities create various challenges for businesses and it is important for the companies to conduct their business operations ethically (Hegarty and Moccia, 2018). The unethical business activities are conducted due to ineffective policies of the company, lack of knowledge and awareness among the employees etc. The research will focus on identifying the challenges that businesses may face due to unethical business activities. It will help in identifying the factors that influence the generation of unethical practices (Hegarty and Moccia, 2018).
The research will focus on identifying the strategies that businesses can use for reducing the occurrence of unethical practices in the organisation. It will help in reducing the challenges for the business and will help in developing and maintaining a positive brand image. Through the different sources, the information will be collected for identifying the impact of unethical practices on different multinational businesses. The research will focus on identifying the impact of unethical business practices on the different multinational businesses in the UK. The research will mainly focus on the retail industry and will include the examples of different multinational organisations from the retail industry. It will help in identifying the different challenges that the companies face due to unethical business activities and will help in developing strategies for reducing the challenges for the business. With the increasing awareness among the customers, it is important for companies to conduct their business activities ethically to fulfilling customer expectations. It helps in developing and maintaining trust among the customers and provides a competitive advantage to the business (De Cremer and Vandekerckhove, 2017). Consumer behaviour includes the study of organisations, groups or individuals that is used for identifying how they select the products and services. It helps in studying the behaviour of the customers and helps in identifying the factors that motivate the customers to buy the products or services (Kostadinova, 2016).
1.4 Methodology outline
The research methodology is based on the details of the procedures used by the researcher for identifying, selecting, collecting and analysing the information for the research topic. The methodology chapter includes details regarding the tools and methods used for data analysis and collection by the researcher. The methodology chapter provides the details of the research philosophy and the research design used for conducting the research. The data for the research will be collected from secondary sources (Mohajan, 2018). The researcher will collect the data from different sources that will help in collecting relevant information for the research. The secondary data will be available easily and collecting data through the secondary method will be less time-consuming. The data collected through different sources will be analysed through the thematic analysis method. It will help in getting relevant information from the data collected. The thematic analysis method will make the data analysis process easier for the researcher and will help in getting relevant information for achieving the research objectives.
1.5 Outline the chapters
There are five different chapters included in the report. The first chapter of the report is the introduction it includes the background of the research and the aims and objectives for conducting the research. The chapter provides the details of the importance of conducting the research. The second chapter of the research is the literature review. The literature review includes the data collected from the different sources for the research topic. The literature review includes a detailed analysis of the different topics related to the research. It helped in understanding the different concepts effectively and helped in achieving the research objectives. The third chapter of the report is a research methodology that provides the details of the research design and methods and includes the selected paradigm of the research. It includes the methods and procedures used for data analysis and collection and includes ethical considerations related to the research. The fourth chapter of the research is research analysis and findings it includes the research findings and includes the discussion of the research questions. The fifth chapter of the research is interpretation and conclusion which includes the conclusions for the research objectives and research questions. The chapter provides the limitations of the research and opportunities for conducting further research.
1.6 Summary
Unethical business activities highly influence the brand image and recognition and it is important for businesses to conduct the business ethically the reduce the challenges. The research will help in collecting information related to the impact of unethical business practices on the business and its brand recognition. The next chapter of the research is a literature review that will help in collecting the information from the different sources related to the research topic. The research will be based on the multinational businesses in the retail industry of the UK.
Chapter 2: literature review
2.1 Introduction
The literature review focuses on collecting information related to the impacts of unethical issues on businesses and their influence on brand recognition. The chapter helps in identifying the factors that influence the generations of unethical practices at the workplace. It will identify the challenges that the companies may face due to unethical activities and it will help in developing strategies that the businesses can use for reducing the occurrence of unethical activities in the company. The chapter will help in collecting data for the different topics in the research and will promote a better understanding of the different topics.
2.2 Unethical practices in the workplace
Based on the information provided by Aleassa and Megdadi (2014) there are different unethical practices that employees face at the workplace. There are different activities that the employees are not aware of and they face challenges due to that. An ineffective system for reporting the practices and fear among the employees restricts them from reporting the challenges facing them. According to Edralin, (2015), abusive behaviour, discrimination among the employees, not paying enough wages to the employees etc. are some of the common unethical practices in the workplace. The employees mostly face abusive behaviour at the organisation by their managers and supervisors. Due to power and high position in the organisation, the managers mistreat the employees and disrespect them. The disrespect and negative behaviour cause dissatisfaction among the employees.
For example: according to the information provided by Glassclothing (2020), in the retail industry in the UK there are different companies that have been using unethical practices in the workplace. Marks and Spencer is one of the multinational companies that is using unethical practices in the company in different countries. It has been identified that the company is abusing the employees and forcing them to work overtime. In the report of Glassclothing (2020), it is mentioned that the employees are not paid properly in the countries like Bangladesh and India. Some of the workers in the Marks and Spencer Company in Bangladesh and India have said that they are not being paid even half of the legal overtime rate. The workers were also told that if they refused to work overtime they were told to find new jobs. After the issue was raised against the company it has taken action against its suppliers and ordered them to reduce their working time and pay according to the legal guidelines of the country. The issue highly impacted the brand image of the company and created challenges for the business. Based on the report of Impactful (2021), not only Marks and Spencer but the other retail companies were also identified for the unethical practices conducted by them. The Primark Company and Gap also forced their employees to work overtime and paid less to their workers working in India. After the issue was raised the companies developed different strategies for avoiding unethical practices at the organisations in different countries and ensured that the problem will not be repeated. Marks and Spencer Company took strict actions for dealing with the problem and the representative of the company said that is important for the suppliers of the company to follow the code of conduct and conduct the business operations ethically.
Based on the study of Aleassa and Megdadi (2014), mainly in developing countries the workers are not educated properly and are not aware of their rights. They do not have proper awareness and knowledge regarding their rights and due to that, they face challenges in the organisation. Due to a lack of employment opportunities and education, they are forced to work overtime and low wages. According to Govindan et al (2021), companies should take strong actions against unethical activities for reducing the challenges for the business. The companies should develop a specific code of conduct for the suppliers that they need to follow for doing business with the company. Global organisations also employees face challenges and when the issue is identified it creates various challenges for the businesses. It impacts the brand image in the local and international markets and influences the profitability of the company.
Through the information provided and examples, it can be identified that the different companies in the retail industry were providing low wages to their workers, forcing them to work overtime and were conducting various unethical practices in the different countries where they were operating. The unethical practices created challenges for the businesses and highly impacted the brand image.
2.3 Unethical business practices in the retail industry-
According to the information provided by Lambert (2014), unethical business practices in the retail industry include making commitments and promises to the customers but not fulfilling the commitments. Providing defective or false products to the customers is also unethical, the companies provide low quality or defective products to the customers in order to enhance the business profitability. Based on the analysis of McMurrian and Matulich (2016), it provides short term advantages for the business but impacts customer trust and loyalty. The negative feedback of the customers regarding the defective or low-quality products impacts the purchasing decisions of the customers and impacts the brand image and recognition of the company. The ineffective or false marketing of the products and services also creates challenges for the business. The false promotions attract customers to buy the product but due to bad quality, it creates dissatisfaction among the customers and impacts customer loyalty.
According to LeBaron (2014), in the internal organisation also retail businesses conduct unethical practices for reducing business expenses. The management of the company conducts discrimination among the employees, forces employees to work overtime, pay low wages to the workers etc. internal unethical practices impact the performance of employees and the organisation and create challenges for the company. There are different unethical activities that are conducted in the retail industry by the businesses that create challenges in long term for the companies.
2.4 Impact of unethical challenges on the different multinational businesses-
According to Lawrence and Kacmar (2017), unethical activities include discrimination among the employees, ineffective working conditions; health and safety at the workplace, false product claims etc. conducting unethical business activities provides short term benefits to the companies and it creates major challenges in long term. The unethical activities highly influence the brand image and recognition and impact customer trust and loyalty. For developing and maintaining a strong position in the market it is essential for businesses to conduct their business activities ethically. Global organisations need to follow different rules and regulations according to different countries and failing to do that causes various challenges for the business.
Darwish and Abdeldayem (2019), identified that unethical business activities create challenges and concern for the businesses and it negatively impact the business. The unethical activities create a lack of trust among the employees and the customers. It impacts the sales and profitability of the business and creates long term challenges for the business. Due to unethical business practices, the company may need to pay fines that may cause financial loss for the business.
According to Saxena et al (2020), ethical business activities provide various advantages to the business it helps in developing a positive brand image, increase the loyalty of employees and the customers, increase employee satisfaction, enhance the performance of the employees etc. There are different challenges that multinational businesses face due to unethical business practices. The unethical business activities create various issues for the businesses that have a long term impact. The unethical activities highly impact the brand reputation and recognition of the company. For multinational companies, unethical activities impact the brand image and recognition of the company in the local and international markets. Unethical business practices at the workplace impact the performance and productivity of the employees and it impacts the business performance.
Ogbari et al (2016), in their study, identified that discrimination among the employees; low salary etc. leads to dissatisfaction among the employees and impacts their performance. It creates high employee turnover in the organisation and the management of the company faces challenges in recruiting new employees in the organisation. The negative review of the employees on the employment conditions of the company will challenge the human resource managers to recruit experienced professionals in the organisation. The poor work environment causes a downfall in the productivity of the employees and it impacts the productivity of the company. The companies should have clear policies and should focus on creating awareness among the employees regarding ethical practices.
According to Stöber et al (2019), companies providing false or defective products, or hidden terms and conditions etc. also face challenges as it creates dissatisfaction among the customers and impacts customer loyalty. The customers post negative reviews and feedback regarding the product or services provided by the company and it highly impacts the brand image. It impacts the purchasing decisions of the other customers and impacts the sales and profitability of the business. It spreads negative word of mouth and impacts customer relationships. The companies should provide good quality products and services to the customers and should provide proper information and guidelines for the product. For example: according to the information provided by Glassclothing (2020), recently the Marks and Spencer Sweatshop scandal highly impacted the brand image and reputation of the company in the domestic and international market and it created various challenges for the business. The companies should take immediate action for the issues faced by the company to reduce the challenges for the business.
Kaptein (2017), mentioned in their study that for unethical business activities the companies may also need to pay fines that may cause a financial loss in the business and impact business profitability. Sometimes due to the impact of the false products on the customer’s health, the companies also lose their license. The company also face legal actions for the unethical business activities. It enhances the expenses of the business and impacts the brand image. Unethical business practices impact the investment in the business. It impacts the share prices of the company and reduces the interest of investors and stakeholders in the business. The lack of investment impacts the growth opportunities for the business and reduces the opportunity for business expansion.
Through the views of different authors, it has been identified that unethical business activities create various challenges for the business. The practices impact the brand image of the company and influence the purchase decisions of the customers. The practices impact the performance of the employees and influence the organisation's performance and productivity. It is important for businesses to conduct business activities ethically for reducing the challenges for the business and develop a positive brand image in the market. The companies should have specific policies and codes of conduct for reducing the chances of unethical practices in the organisation.
2.5 Impact of unethical practices on brand recognition-
Through the research conducted by Hemsley-Brown and Alnawas (2016), it has been identified that unethical practices are increasing in businesses and it is creating major challenges for businesses. The unethical activities are increasing concern among managers and companies are developing different strategies for promoting ethical behaviour in the organisation. The increasing awareness among the customers is also encouraging businesses to promote ethical behaviour in the organisation. Ethical behaviour helps in developing trust among the customers and improves customer relationships. The ethical behaviour of the businesses creates a positive image of the company and has positive effects on the perception of the customers towards the brand. The unethical activities influence the trust and loyalty of the customers. The unethical practices of the business impact the brand image of the company and it influences the purchasing decisions of the customers. Unethical practices have a negative impact on the brand's reputation and it changes the perception of the customers towards the brand. The change in the perception of the customers has a long term impact on their purchasing decisions of the customers and it impacts the sales and profitability of the business. For example: based on the report of Glassclothing (2020), the unethical practices conducted by Marks and Spencer, Primark. And Gap highly impacted their brand image and recognition and changes the perception of the customers towards the brand. The companies faced legal challenges; it impacted their brand image and reputation and influenced the sales and profitability of the company.
According to Boerman and van Reijmersdal (2016), the occurrence of unethical practices impacts the brand image and recognition of the company in the local and global market and creates long term challenges for the business. With the increasing awareness among the customers and increasing use of social media the issue of unethical business activities is becoming more important. Social media helps in rapidly spreading awareness among the customers regarding the unethical business activities of the company and it creates challenges for the business. It impacts the position of the company in the market and impacts the investment in the business. Investors get attracted to investing in the business when the company has a positive brand reputation and image and a negative image impacts the investment in the company that impacts the business growth opportunities.
2.6 Factors influencing the generation of unethical practices
According to Boda and Zsolnai (2016), there are different factors that influence the generation of unethical practices are poor leadership in the organisation. Poor leadership in the company is one of the major causes of the generation of unethical practices. The leaders do not communicate the policies and fail to follow the code of conduct and guidelines of the company that create unethical practices in the organisation.
Based on the information provided by Lašáková and Remišová (2015), the leaders and managers also do discrimination against the employees and disrespect them increasing employee dissatisfaction and impacting the business performance. The ineffective management in the organisation also creates unethical practices in the company. Ineffective development of policies by the company is also one of the major reasons for the generation of unethical practices. The management of the company should focus on developing specific policies and should communicate the strategies effectively for reducing the challenges for the business. The managers of the company should take strict action against the unethical practices at the workplace for reducing the chances of generation of practices again.
According to Singh and Vasudeva (2014), the ineffective policies create challenges for the business. The ineffective system in the company for reporting unethical practices also increases the causes of unethical practices in the organisation. Due to an ineffective reporting system, the employees are unable to report unethical practices and it increases the unethical practices in the organisation. The management of the company also encourages unethical practices for short term financial benefits. Forcing the employees to work overtime and pay low wages to the employees reduces the expenses of the company and provides short term financial benefits to the organisation. The lack of knowledge among the employees also promotes unethical practices in the company. The employees are not aware of their rights and it promotes unethical behaviour in the organisation. For example, according to Glassclothing (2020), the employees of Marks and Spencer Company in different countries were not aware of their rights and policies and it promoted unethical behaviour in the organisation. it provided short term benefits to the company but in long term, it creates various challenges for the company and impacted its brand image of the company.
There are different factors that encourage unethical practices in the organisation and create challenges for the business. The lack of awareness among the employees, short term financial benefits, and poor leadership and management are some of the major causes of the generation of unethical practices in the organisation.
2.7 strategic approaches for reducing the occurrence of unethical challenges-
According to Popa and Salanta (2014), it is essential for global businesses to develop strategies for reducing unethical challenges in the workplace. The strategies support reducing the challenges for the business and help in maintaining a positive brand image in the market. The managers of the company should focus on developing the strategies at the time of developing the annual budget. The management of the company should communicate the policies and strategies effectively to the employees for making them aware.
According to information provided by Arend et al (2017), the organisation should have a specific code of conduct and straightforward guidelines for reducing unethical activities in the organisation. The guidelines of the company should be understood easily by everyone. The guideline should include the expectations of the company with the employees for promoting ethical behaviour at work. Developing specific guidelines will help in reducing the chances of the occurrence of unethical practices in the organisation.
According to Crifo and Forget (2015), companies should communicate the code of conduct and policies of the company to employees effectively. The management of the company should provide ethics training to the new hires and should communicate the policies for making them aware of the code of conduct of the company. The companies should also communicate the policies to the existing employees. It helps in making the employees aware and through that, they can respond immediately when they find any misconduct in the organisation. The management of the company should provide tools to the employees where they can report violations and misconduct in the organisation. There should be a specific reporting system where the employees can report for the violence or misconduct faced by them. The customers should also have a system where they can report false products or any other issues faced by them.
According to the analysis of Welter and Smallbone (2017), the management of the company should be proactive in solving the unethical issues faced in the company. The management of the company should take strong action against unethical activities and should ensure that the problem cannot be repeated in the future. Taking strong action against unethical practices will help in developing trust among the employees and customers and will reduce the chances of reoccurrence.
Based on the information provided by Fung (2014), the companies should monitor the activities in the organisation regularly for ensuring that there is no unethical practice conducted in the company. Taking regular feedback from the employees and communicating with the employees regularly will help in ensuring that there is no unethical practice conducted in the organisation. According to Gonin (2015), the management of the company should regularly interact with the employees for identifying if the employees are facing any challenges in the organisation. Conducting the business activities and operations ethically helps in making the employees and customers more loyal to the company and increasing employee and customer satisfaction. It helps in spreading positive word of mouth and reduces the challenges for the business.
Using the strategies will support the multinational companies in the retail sector of the UK to reduce the occurrence of unethical challenges for the business. Implementing the strategies will support the business in reducing the challenges for the business in the local and international market and will help in developing a positive brand image. The people will recognise the brand with its values and it will have a positive influence on the brand. Implementing the strategies will help in making the employees aware and it will help them to report for the issues faced them. Taking regular feedback from the employees will help in ensuring that the code of conduct and policies of the organisation are followed effectively and it will reduce the challenges for the business.
2.8 Aaker’s brand equity model-
Figure 1- Aaker’s brand equity model
Source- (Farjam and Hongyi, 2015)
According to the model mentioned in the study by Farjam and Hongyi (2015), brand equity is the combination of brand loyalty, awareness and quality. It helps the company in increasing the value of its products and services and helps in influencing the purchase decisions of the customers. It increases customer satisfaction and loyalty and provides various advantages to the business. There are different components of the model like brand awareness which shows the familiarity of the customers with the brand. Brand awareness helps in increasing the familiarity of the customers with the brand and helps in attracting the customers to purchase the brand.
According to Ogunnaike et al (2017), the next component is brand loyalty it helps in reducing the marketing activities of the company and provides a competitive advantage to the business. The third component is perceived quality, the quality of the products or service also influences the trust of the customers. The fourth component of the model is proprietary assets that include the intangible assets of the brand like copyrights, intellectual property rights etc. the assets provide a competitive advantage to the business. The last component of the model is brand associations it includes the information regarding the brand that the customers collect through different sources like advertisements, the website of the company etc. it has a positive influence on the brand and encourages the customers to buy the product or service.
It is important for businesses to have a positive brand image for attracting customers to buy the product or service and develop trust among the customers. It provides a competitive advantage to the company and increases customer loyalty.
2.9 Summary
Through the literature review, the information regarding the different concepts of the research topic has been collected to improve the understanding of the research topic. The information collected through the literature review will help in achieving the research objectives and promote successful competition of the research. The information in the literature review was collected from different sources like articles, journals, books, online websites etc. the use of different sources helped in collecting a large quantity of data and helped in collecting relevant data for the research.
Chapter 3: research methodology-
3.1 Introduction
The research methodology is an analysis of how the researcher systematically designs the study for ensuring that the research results are reliable and valid. It includes the details of the research philosophy, method, approach and research design chosen by the research. The chapter provides the details of the research design, data collection method and data analysis methods used in the research. There are various tools and techniques used in the research and it is essential for the researcher to select the most appropriate method for getting relevant research results. It includes the ethical considerations for the research.
3.2 methodological considerations
Research philosophy-
The research philosophy deals with the source and nature of knowledge. It guides the researcher in the way in which the data for the research should be collected, analysed and used. It is used for identifying which data regarding a phenomenon should be collected, used and analysed. It helps in identifying the most relevant research approach that can be used according to the requirements of the research. It helps in getting detailed insights of the research problem and it helps in dealing with the sources and development of knowledge (O’Gorman and MacIntosh, 2016).
The researcher will use an interpretivism research philosophy for the research. It is mainly used for the qualitative research and helps in understanding the concept more effectively. It helps in identifying the different aspects of the research problem and supports the researcher in studying the research concept in detail (O’Gorman and MacIntosh, 2016). It is used for a detailed understanding of the research problem for getting relevant and accurate research results. It helps in getting a meaningful understanding of the research problem and supports the researcher in analysing the different concepts related to the research topic effectively (O’Gorman and MacIntosh, 2016).
Research approach
The research approach includes the broad assumptions for detailed methods of data collection, data analysis and interpretation used in the research. It is selected according to the research problem being addressed. In the research, inductive and deductive approaches are used (Teherani et al., 2015). A deductive approach will be used in the current research. The deductive approach includes identifying the research questions first and then collecting data according to the need of the research. It helps in collecting relevant data for the research and supports in achieving the research objectives. The researcher can collect the data according to the requirement for the research and it supports the researcher in analysing the problem from the root (Teherani et al., 2015). The research is conducted for identifying the impact of unethical challenges on the different multinational businesses in the retail sector. The researcher will collect the data for the research from different sources that will help in collecting relevant data for the research. It will help in effectively understanding the research topic (Teherani et al., 2015).
3.2.1 Justification for the selected paradigm and methodology
The research philosophy selected for the research is interpretivism. For the research, it was important to collect genuine knowledge and for that, the researcher has used interpretivism research philosophy. It helps in testing the validity and reliability of data. The philosophy will help in identifying the causal relationships between the different elements (Snyder, 2019). It is the most relevant philosophy for the research and it will help in achieving the research objectives. It will help in understanding the different elements related to the research problem effectively and will help in getting relevant results. The researcher will collect qualitative data for the research and the interpretivism research philosophy is mainly used for the qualitative method (Snyder, 2019).
The research aims to identify the impact of unethical challenges on the different multinational businesses in the retail sector. For the research, it is essential to collect detailed data and for that, the qualitative method will be used by the researcher. The research focuses the multinational businesses in the retail industry of the UK (Snyder, 2019). The qualitative method will help in promoting a detailed and effective understanding of the research topic and will help in achieving the relevant research results. The qualitative approach will help in understanding the different concepts related to the research topic effectively and will help in meeting the research objectives. It will help in identifying the impact of unethical business practices on the different businesses in the retail industry of the UK (Snyder, 2019).
3.2.2 Rejected methodologies and methods
The researcher has not used the quantitative method because for the research detailed information needs to be collected and the quantitative method is not effective for the research. The quantitative method is used for collecting large quantities of data and includes collecting numerical and statistical data. The method is used for collecting a large quantity of data for the research and do not support in collecting detailed information related to the research topic (Mohajan, 2018).
The mixed method is not used in the research because the research will require collecting large quantity of data and it will require collecting detailed information for the research. The research objectives can be achieved only by using qualitative research and it is relevant for the current research. For the research, detailed information needs to be collected and for that, the qualitative method is selected (Mohajan, 2018). The researcher will use secondary sources for collecting the data for the research. The researcher has not used the primary method because collecting data through primary sources is a complex and time consuming process. The information regarding the impact of unethical business practices on brand recognition is available and the data for the research can be collected through secondary sources (Mohajan, 2018).
3.3 Research design
The research design is the framework that the researcher uses for conducting the research effectively. It includes the methods and techniques chosen by the researcher for conducting the research. The researcher focuses on identifying the most relevant methods according to the requirements of the research for getting relevant results. The researcher will use a qualitative research method for conducting the research (Wright et al., 2016). It will help in understanding the research topic more effectively in detail and will support getting relevant research results. The method is used when the research problem is known by the researcher. It helps in getting reliable and valid research results and supports in carefully analysing the data. It helps in collecting a large quantity of data related to the research for understanding the research problem effectively and getting relevant conclusions for the research. The researcher will collect qualitative data for the research through secondary sources (Wright et al., 2016).
3.4 Research methods
The research method includes the particular tools and procedures used by the researcher for collecting data for the research and analysing it. It helps in identifying the most appropriate methods that can be used by the researcher for data analysis and collection according to the research topic (Hammarberg et al., 2016). The research methods are selected according to the research design, purpose of research and nature of research. There are three different methods used in the research they are quantitative, qualitative and mixed method. In the quantitative research, the data is represented in numerical and statistical form. It is mainly used when the research is conducted on large scale. The qualitative research focuses on collecting detailed information for a particular topic. It helps in understanding the topic in detail (Hammarberg et al., 2016). In the mixed method, both qualitative and quantitative methods are used for conducting the research. The current research will be based on qualitative research. The researcher will collect qualitative data from different sources. The research aims to identify the impact of unethical challenges on the different multinational businesses in the retail sector. Qualitative research will help in understanding the topic in detail and will help in getting relevant research results (Hammarberg et al., 2016).
Data collection-
There are different sources through which the researcher can collect data for the research. The primary and secondary methods are used for collecting the data. The primary method is used for collecting data directly from the first-hand sources. It is a complex and time consuming process. The secondary method includes collecting data from existing sources. It helps in collecting the data easily and conveniently. The secondary data is collected from the existing sources that reduce the efforts and time required for collecting data for the research (Clark and Vealé, 2018).
For the current research, the researcher will collect the data from secondary sources. it is the most suitable method for collecting data for the research. it will support the researcher in collecting the data for the research through different sources and will help in understanding the research topic effectively. For the research, it was important to understand the different concepts related to the research in detail and for that, the researcher will collect data from secondary sources (Mayer, 2015). The secondary data will be available easily and it will reduce the challenges for the researcher to conduct the research. It is the most convenient method for data collection and it will help in achieving the relevant research results. It will help in understanding the impact of unethical business practices on the different businesses in the retail industry and will help in getting relevant conclusions. It will reduce the complexities of conducting the research and will support the researcher in collecting accurate data for the research (Mayer, 2015).
Data analysis-
The data collected through secondary sources will be analysed through the thematic analysis method. It is the most effective and relevant method for data analysis for the current research. It will help in analysing the large quantity of data collected through different sources and will help in achieving the research objectives (Ngulube, 2015). In this method, the researcher will read the entire data collected for the research and will identify common patterns in the data that help in developing themes. By developing themes the different concepts related to the research problem will be analysed for getting accurate and relevant research results. It makes the data analysis process easy for the researcher and helps in identifying the relevant information from the large amount of data collected (Almalki, 2016).
3.5 Ethical considerations
The researcher will conduct the research ethically and will follow all the regulations. The researcher will collect secondary data for the research and will include all the sources from where the data is selected. The references and in-text citations will be included in the research for providing credit to the actual authors. The personally identifiable data will not be collected. The personally identifiable data will be kept confidential. The researcher will ensure that the work is free from plagiarism or any research misconduct. The researcher will ensure to maintain the credibility of the sources used for collecting the data for the research (Hancock et al., 2020).
3.6 Summary
The chapter includes the analysis of the different methods and techniques used by the researcher for conducting the research successfully. It helps in identifying the different methods that will support analysing and collecting relevant data according to the requirements of the research. The researcher will collect qualitative data for the research. The data for the research will be collected through secondary sources. It will help in collecting the data through different sources and will help in achieving the research objectives. The researcher will analyse the data through the thematic analysis method. The selection of effective methods and techniques will support the researcher in collecting data according to the requirements of the research and will help in getting relevant research results.
Chapter 4: Data Analysis and Interpretation
4.1 Introduction
Through the data analysis, the main information will be identified from the data collected. It will help in understanding the different concepts effectively and will support in achieving the research objectives. The chapter will help in identifying the key information from the data collected and will help in getting relevant research results. The data analysis will be done through a thematic analysis method that will help in analysing the qualitative data effectively.
4.2 Data analysis
The impact of unethical challenges on the different multinational businesses in the retail sector-
According to the research, the different unethical business activities identified in the business are false product claims, poor health and safety at the workplace, discrimination among the employees, providing low wages to the employees etc. the unethical business practices highly impact the brand image and recognition and reduces the trust of the customers on the brand (Lawrence and Kacmar, 2017). The activities impact the purchasing decisions of the customers and increase long term challenges for the business. For multinational companies, it is important to conduct business activities ethically for maintaining a positive brand image in the market. There are various laws and regulations in different countries that multinational companies need to follow for conducting business activities successfully. The companies that fail to follow the regulation face various challenges globally that impact the brand image of the business (Darwish and Abdeldayem, 2019).
The businesses conducting unethical business practices face various legal challenges and it impacts the company financially. It impacts the customer's and employees' trust and loyalty and increases the challenges for the businesses. It impacts the business growth, sales and profitability and impacts the position of the business in the market (Darwish and Abdeldayem, 2019). It impacts the performance of the business and increases employee dissatisfaction. The unethical business practices highly influence the position of the company in the market and impact business growth. The practices increase employee turnover at the organisation and the management face challenges in attracting potential and skilled candidates to the organisation (Kaptein, 2017). The defective products provided by the business impact customer trust and loyalty. The false claims made by the company impact the brand image and increases negative reviews and feedback from the customers. It creates challenges in attracting new customers and retaining existing ones (Stöber et al., 2019). It impacts the investments in the business and increases legal challenges for the business globally. For example, the sweatshop scandal of Marks and Spencer impacted the brand image of the business and it will create a long term impact on the business growth. The brand reputation of the business was impacted on the global and domestic level and it may impact the business profitability (Glassclothing, 2020).
Conducting the business ethically supports improving customer trust and satisfaction and helps in developing a positive brand image. It improves the customer's trust and loyalty and supports increasing the sales and profitability of the business (Saxena et al., 2020). The companies should develop specific guidelines and policies that should be followed by everyone in the organisation for reducing unethical practices. The managers should communicate the strategies and should track the different activities for ensuring that there is no unethical business practice conducted in the organisation (Ogbari et al., 2016).
The implications of unethical practices upon sustaining brand recognition of different multinational businesses-
According to the research conducted and data collected the unethical practices increase various challenges for multinational businesses and impact the brand recognition of the company. It is challenging for the management of the multinational companies to reduce the unethical business practices (Hemsley-Brown and Alnawas, 2016). The increasing awareness among the customers is also increasing the challenges for the multinational businesses. The management of the companies is developing different strategies and policies for reducing the occurrence of unethical businesses practices in the organisation. It is becoming essential for the businesses to promote ethical behaviour in the organisation for improving the brand image and developing trust among the customers (Hemsley-Brown and Alnawas, 2016). Conducting the business activities ethically helps in increasing customer trust and loyalty. It promotes better customer relationship management and helps in maintaining a positive brand image in the global market. It is very essential for the multinational companies to conduct their business activities ethically for reducing the challenges for the business and improve their brand image. It helps in improving the perception of the customers toward the brand and provides a competitive advantage to the business (Hemsley-Brown and Alnawas, 2016).
The unethical business practices highly impact brand recognition and reputation and it influences the purchasing power of the customers. It changes the perception of the customers towards the brand and impacts their purchasing decisions. It impacts the brand image of the company globally and creates a long term impact on the brand image of the business. The changes in the perception of customers impact their purchasing decisions and it may also impact the sales of the company (Boerman and van Reijmersdal, 2016).
Through the research, the different companies in the retail industry in the UK have been identified that conducted unethical business practices that highly impacted the brand image of the company. The companies faced various challenges globally due to unethical business practices. The companies like Primark, Marks and Spencer were found conducting unethical business practices in different countries and it impacted the brand image and recognition of the businesses (Glassclothing, 2020). The companies faced legal challenges due to the practices and it created a long term impact on the brand image of the businesses. The company faced challenges globally due to unethical business practices and it created a long term impact on the business. These practices change the buying behaviour of the customers and they impacted the business sales and profitability (Glassclothing, 2020). With the increasing use of social media, the information related to the use of unethical business practices in the company spread rapidly and impacts the brand image of the company globally. The impact on the brand image of the company also impacts investments in the business. A positive brand image helps in attracting high investment that provides opportunities to the companies for business growth. The impact on the brand image of the business impacts the decisions of the investors for investing in the business (Boerman and van Reijmersdal, 2016).
The factors that influence the generation of unethical practices at multinational businesses-
Through the secondary research different factors are identified that influences the generation of unethical practices in the workplace. The major factor that influences the generation of unethical practices in the workplace is poor leadership and management in the organisation (Boda and Zsolnai, 2016). The leaders and managers of the company do not communicate the code and conduct and policies to the employees properly which reduces the awareness among the employees and promotes unethical practices in the workplace. The leaders do not focus on providing ethics training to the employees and it also influences the generation of unethical practices in multinational businesses (Boda and Zsolnai, 2016). The leaders and managers disrespect the employees and do discriminate among the employees. Through discrimination and other factors, the leaders contribute to unethical business practices in the workplace (Lašáková and Remišová, 2015).
The leaders fail to take strict actions against unethical practices at the workplace and it also influences the generation of unethical practices at the workplace. It reduces the fear among the employees and promotes unethical practices in the workplace. The management of the company should take proper actions against unethical practices at the workplace for reducing the chances of occurrence of the unethical practices in the future (Lašáková and Remišová, 2015). The organisations that do not have proper policies and specific code of conduct face challenges related to unethical business practices. The ineffective development of policies by the management of the company creates challenges and increases the chances of the occurrence of unethical business practices at the workplace. The employees in the companies are not aware of their rights and the lack of information among the employees also promotes unethical practices in the workplace (Singh and Vasudeva, 2014).
The organisation does not have a proper reporting system where the employees can report unethical business practices or any challenge that they faced in the organisation and it also influences the generation of unethical practices in the organisation (Singh and Vasudeva, 2014). For example: through secondary research, it was identified that in Marks and Spencer and other retail companies in the UK the employees were not aware of their rights and it increased unethical business practices in the organisation. For financial benefits, the company was providing low wages to the employees (Glassclothing, 2020). The employees were paid below the minimum wage rate but due to a lack of awareness and the employees were not aware of it. The sweatshop scandal of Marks and Spencer highly impacted the brand image of the company. There are different factors that influence the generation of unethical practices at the workplace and create challenges for the businesses in the long term (Glassclothing, 2020).
The strategic approaches that can serve beneficial to minimise unethical challenges at multinational businesses-
Though the secondary research was conducted it is identified that there are various strategic approaches for minimising the unethical challenges in the workplace. The strategies will support the multinational companies in the retail industry in minimising the unethical challenges and it will help in maintaining a positive brand image (Popa and Salanta, 2014). While developing the annual budget in the company the management should focus on developing strategies for minimising the unethical challenges at the workplace. There should be specific guidelines and policies in the organisation for reducing the unethical practices in the workplace (Popa and Salanta, 2014).
The guidelines should be easily understandable by everyone and the management of the company should ensure that everyone follows the guidelines and policies in the organisation. The policies should be communicated to the employees effectively for making them aware of the policies of the company (Arend et al., 2017). When the new employees join the organisation the management should communicate the guidelines for informing them about the policies of the company. The management of the company should communicate the expectations of the business to the employees for behaving ethically in the workplace (Crifo and Forget, 2015). The code of conduct of the company should be specific and the company should take strict actions against the employees violating the policies for reducing the chances of occurrence of unethical practices at the workplace. Developing and communicating the specific policies will support the multinational companies in the retail industry of the UK in reducing the chances of occurrence of unethical practices in the workplace (Crifo and Forget 2015).
The company can provide ethics training to the new hires for enabling the employees to identify how to deal with the ethical problems faced by them at the workplace. It helps in increasing awareness among the employees regarding the code of conduct of the company, organisational culture, etc. (Welter and Smallbone, 2017). It helps in increasing awareness among the employees of how to work more harmoniously and effectively with their co-workers and helps in reducing the chances of occurrence of unethical practices at the workplace. It helps in maintaining a positive corporate culture and will reduce unethical practices in the workplace (Welter and Smallbone, 2017). There should be a proper system in the organisation where the employees can complain if they face any issues. The employees should be aware of the reporting system in the organisation where they can inform about any ethical misconduct at the workplace. The customers should also have a reporting system for reporting any ethical misconduct (Fung, 2014).
The management of the company should take strong actions against the unethical practice in the workplace. Businesses should develop effective strategies for ensuring that the practices cannot be repeated in the future. Taking strict actions can help in reducing the chances of the occurrence of unethical practices in the workplace (Gonin, 2015). It helps in developing trust among the employees and customers. It improves the brand image of the company and reduces challenges for the businesses. Businesses need to collect feedback from the employees regularly and should monitor the activities in the organisation for ensuring that no unethical practices are conducted in the organisation (Gonin, 2015).
4.3 Findings
The research aims to identify the impact of unethical business practices on the brand recognition of the different multinational businesses in the retail industry of the UK. The research focused on identifying the implications of unethical practices on the different multinational businesses in the retail sector. The data for the research was collected through different sources that helped in collecting relevant information according to the needs of the research.
There are different unethical business practices conducted by multinational companies they are providing low wages to the workers, false product claims, providing low quality products etc. (Lawrence and Kacmar, 2017). The practices impact the brand image and create long term challenges for the business. The multinational companies operate in different countries and the companies need to follow all the laws and legislation. The companies failing to follow the regulations face various legal challenges and the businesses need to pay huge fines (Darwish and Abdeldayem, 2019).
Conducting unethical business practices increases the challenges for the businesses and it impacts the brand image of the business in the domestic and international markets. It impacts customer satisfaction and loyalty and impacts the growth and profitability of the businesses (Kaptein, 2017). False product claims, and providing low quality products to the customers increase negative reviews from the customers and impact the brand image. It impacts the purchasing decisions of the customers and impacts the business sales and profitability (Stöber et al., 2019).
The unethical business practices impact employee satisfaction and loyalty and create challenges in attracting potential candidates to the organisation. Through the example of Marks and Spencer, it is identified that unethical practices highly impact the brand image of the business and impact the position of the company in the market. The sweatshop scandals of the company highly impacted the business brand image in the international and domestic markets (Glassclothing, 2020).
The unethical business practices impact the brand recognition of the company and impact the perception of the customers towards the brand. The activities highly influence the purchasing decisions of the customers and it impacts the business profitability and sales. The unethical business practices have a long term impact on the business and impact the brand position in the global market (Hemsley-Brown and Alnawas, 2016). With the increasing awareness among the customers, businesses face various challenges due to the unethical business practices. The customers are becoming more aware of their rights and it is increasing the challenges for businesses. With the increasing competition in the market, it is important for the multinational companies in the retail industry of the UK to conduct their business activities ethically for maintaining a positive brand image in the global market (Hemsley-Brown and Alnawas, 2016).
The social media supports in spreading the information related to the use of unethical business practices in the workplace. Social media helps in spreading information globally that highly impacts the brand image of the business. It creates challenges for the companies to handle the negative reviews of the customers. The customers rapidly share the information that increases the negative feedback and reviews on the business and impacts the brand image globally (Boerman and van Reijmersdal, 2016). Through the example of Marks and Spencer, it was identified how rapidly the social media helped in increasing the news related to the sweatshop scandal at the company that impacted the brand image of the company globally. The unethical business practices highly impacted the brand reputations of the business on the global level and it impacted the business performance and growth (Glassclothing, 2020). The companies have to face various legal issues and challenges. The unethical practices impact the business growth and financial performance and increase the challenges for the business. It reduces the growth opportunities for the business and impacts the long term growth of the business (Crifo and Forget, 2015).
There are various causes that increase the unethical practices at the workplace like the ineffective management and leadership, lack of support from the superiors, the improper system for reporting for the issues, lack of awareness among the employees, ineffective policies and guidelines etc. it promotes unethical practices at the workplace and creates long term impact on the business (Crifo and Forget, 2015).
Conducting the business practices ethically supports the business in enhancing the brand image and reputation of the company. It helps in attracting more investors to invest in the business and contributes to business growth. It helps in enhancing customer satisfaction and loyalty and supports enhancing the profitability and sales of the products of the business (Saxena et al., 2020). It is essential for the company to develop effective strategies and guidelines for reducing the chances of occurrence of unethical practices at the workplace. The management of the company should monitor the different business activities closely for ensuring that the business activities are conducted ethically in the organisation (Ogbari et al., 2016).
4.4 Summary
The qualitative data collected through secondary research is analysed through the thematic analysis method. It helped in analysing the data collected effectively and helped in getting relevant information from the data collected. The data analysis helped n effectively analysing the data and support in getting accurate research results. The researcher developed different themes for analysing the data collected. It helped in getting relevant information from the entire data collected and supported the researcher in easily analysing the large quantity of data collected.
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