Ethics and moral responsibilities have been an issue for centuries. People as well as businesses sometimes have a hard time distinguishing what should be done vs. what ought to be done. From a business aspect, managers have a higher degree of responsibility to uphold ethics and morals when handling company business and dealings with employees, shareholders, investors, or anyone else that has a stake in the company. At times, state and government agencies have to step in and mandate the ethics that should be taking place in the workforce.
Ethics in the corporate world is becoming a widespread issue. With all of the corruption in business today and lack of ethics, people are being misled and a losing a fortune of their income to the greedy business owners. Far too often we hear or read about a company that is accused of corruption and the enormous amount of money that they have wrongfully taken from the public. Since all of the recent corruption in business in the last few years, new legislation has come about to govern how companies handle the financial reporting of a company. With all of the financial analysis tools that are available today, accountants and management are able to produce financial disclosures and give accurate projections of a company’s finances.
Some ways to avoid deceptive business tactics can be accomplished by keeping your business account separate from your personal account. Escrow accounts should be used to separate the client’s money from the personal money of the owner or person in charge of the company finances. This will eliminate the commingling of funds. Having a checks and balances system in place can also reduce the risk of comingling funds in an organization. If one person is managing the finances, have that person report to a higher authority. They should be able to produce on demand an accurate financial accounting of the company’s funds.
Misleading clients is also a deceptive business tactic. Some business owners intentionally or unintentionally mislead their clients. Over promising and under delivering can hurt any organization. It is important to be up front and honest with your clients to ensure that you have the same common goals in mind. Managing expectations should be the priority of any business. The client should be made aware of all of the possibilities that could arise from the situation. They should know that past success is not a guarantee of future success. Giving the client the worst case scenario can be the best option. This way, the client will not be blindsided in the end, and wonder why you did not warn them of what could happen.
Deceptive business ethics do not pay off. When caught, the company or person can lose their job, financial stability, and respect of the community. Businesses that are exposed for their willful wrong doing will be left with a tarnished reputation that cannot be rebuilt. In some instances, businesses will even face criminal prosecution for the unethical business tactics that they have performed. Take the necessary steps and precautions to protect yourself and your business from deceptive business ethics.