Ethics and moral responsibility have been an issue for centuries. People and companies have sometimes hard to distinguish what should be done vs. what should be done. From a business aspect, the management has a higher degree of responsibility to maintain the ethics and morality when handling your business and communicate with employees, shareholders, investors, or anyone else who has a stake in the company. Sometimes, state and government agencies to step in and mandate ethics that should occur in the economy.
Ethics in the corporate world is becoming a widespread issue. With all the corruption in business today and the lack of morality, people distract and lose fortunes of their income to greedy business owners. All too often we hear or read about a company that is accused of corruption and a massive amount of money they have wrongly received from the public. Since all the recent corruption in business in recent years, new legislation has been to control how companies manage accounting firm. With all of the financial analysis tools that are available today, auditors and management are able to produce Financial explanations and give detailed plans for the investment firm.
Some ways to prevent deceptive trading strategies can be accomplished by keeping the business account separate from your personal account. Escrow accounts should be used to separate client money individuals money the owner or responsible for the finances of the company. This will prevent the commingling of funds. Having a checks and balances system in place can also reduce the risk of commingling of funds in the organization. If one person is to manage finances, have that person report to a higher authority. They should be able to produce on demand a detailed accounting for the funds of the company.
Misleading customers is also deceptive business tactics. Some business owners intentionally or unintentionally mislead customers. Over promising and under delivering can harm any organization. It is important to be up front and honest with your customers to ensure that you have the same common goal in mind. Managing expectations should be a priority of any business. The customer should be aware of all the possibilities that could arise from the state. They should know that past performance is not a guarantee of future success. Giving the customer worst may be the best option. This way, the customer will not be blind sided in the end and wonder why you did not warn them of what could happen.
Misleading business ethics do not pay off. When caught the company or person may lose his job, financial stability, and respect of the community. Companies that have a deliberate wrong doing their will by a tarnished reputation that can not be restored. In some cases, companies will even face criminal prosecution for unethical business processes that they have made. Take the necessary measures and precautions to protect yourself and your business from deceptive business ethics.