Business Ethics

(Originally published Summer 1996. V2, I1)

The Oxymoron of oxymorons.

Businesses and people today can no longer differentiate between that which is ethical and that which is legal.  Any business transaction that is legal is not necessarily ethical.

In the not so distant past, the intent of an agreement was more important than the words written.  Today the word takes precedent over the intent.  Unfortunately, most people who go into a business deal believe all parties are ethical.  For a small number of people this trust has resulted in them being able to take advantage of the new-comer.  Remember that in business-speak, “Trust me.” sometimes translate to “Let me rake you over the coals”.

When entering into any business arrangement there are a few things that you should do:

1.      Carefully read AND understand exactly that to which you are agreeing,

2.      Be sure that the written words convey the intent verbalized between all parties.

3.      Know the people with whom you are contracting.

Keep in mind what you have agreed to in writing, in most likelihood, will be that with which you will have to live.  While you may have an understanding with the person with whom you originally negotiated, that person may not be in the picture in the future.  They may have passed on their duties to others, they may have been replaced or they may have sold their interest to others, or, worse, they may have passed on.  The written agreement now becomes the only source for resolving any misunderstandings.

If you deal with someone who is unethical, don’t be surprised to find that their dealings are probably always legal.

If you find that the other side likes to be “efficient” and not waste time writing because a telephone call can clear things up immediately, confirm your discussion with them in writing.  This obviously does two things: 1) Allows the other side to respond if your understanding of the conversation differs from theirs, and 2) Creates a paper trail for future discussions if a problem resurfaces.  Keep any such correspondence with the original contract.

At one time business deals were made with a handshake.  Today that is partially true.  If the person with whom you are dealing is ethical and honest, you do not need any contracts.  If, on the other hand, this person is unethical and dishonest, all the contracts in the world will probably not protect your interests.

It is always a good idea to have someone else read your contracts and then have them tell you what they think the agreement says.

 A good contract is one that is good for both sides.  A contract that is unfair to one party or the other is generally headed for disaster from the day it is signed.

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Ready for CyberSpace?

Do you feel that you hear the World Wide Web (WWW) calling and you are missing out by not being on the WWW?  Look closely before you leap.  Some recent reports of cost estimates for a company to be on the Web range from $15,000 to $600,000.  The high numbers reflect interactive connections (order placing, customer service, etc.) with the customer.

If your operation normally sends price lists, product information, company information, or special offers to anyone who asks, you might want to set up a “home page” that would allow anyone to download or print this information without your intervention.  This page could provide numbers for telephoning or faxing.  It could give the names and addresses of people to contact for more information.

Two very important factors to be considered when looking into the WWW are security and content.  Presently, security on the Web is a problem.  Credit card numbers or checking account information should not be sent over the Web unless you have some sort of ciphering system in place.  Anything sent on the Web is like sending a postcard, a lot of people may read it.  The other problem is forgetting that you have information on the Web.  If you do not keep the information current, you may antagonize more customers than you get.