Ethical Misconduct in FINANCE

After reading this article, you will come to know about an unethical practices in finance and investment decisions.

Talking about money, excessive greed, aggression, acquisitiveness and lack of concern for those affected seems to be characteristics increasingly in evidence in financial dealings.

The unethical practices done in accounting are more in proprietary, partnership, and usually found in private limited companies.
Scope of this is very few in public limited companies and MNC's.

Unethical practices in financing and according are as under:-

* Wages are delayed, interest to financiers, incentive, bonus to employees.
* Purposely holding up bills of vendors on silly reason and ultimately buying from others to avoid payment to earlier vendors.
* Opening different current bank accounts to avoid adjustments against loans by earlier banker.
* Cheating employees about their dues towards medical expenses, and other incentives like leave travel assistance, children education fees etc.
* Quick payments are firstly done to known or adjustment parties and delaying payment to others.

Unethical decisions done in investment decisions:-

We know that business and industries they do need money. Now the need or requirement of funds may be long term, medium term and short term.
Public is miss lead by catchy advertisement which draw a bright picture for investment in undeserving companies.

There have been several financial scandals for decades like Enron, World com, AIG and Wells Fargo.
Hence, ethical behavior is so important because finance involves the management of other people's capital.

Ethical Misconduct in MARKETING

What's ethical and unethical in marketing?
Ethical marketing always makes an honest claim and satisfies the needs and wants of potential and existing customers. This in turn boosts trust for the product and builds loyalty and attract and increases customer retention and in turn customers too help in spreading the information about your products and services about which you are marketing.

Unethical marketing can lead the wrong signals about your products and services and in turn destroys your brands reputation which can lead to legal problems.
Hence we should avoid all illegal and unethical behavior. But the question is how? So according to me the first step towards ensuring to avoid unethical marketing practices is to recognize those practices of course, you can only avoid something when you can identify it.

Examples of unethical marketing practices:
1. Making false claim: To attract and to bring attention of lots of customers to buy their products or services, some of the marketers use false statement. I would like to give an example where most of us can relate on this issue. This is common in the weight loss industry where marketers convince number of buyers that a particular product can help them to loose wait and get a slim-trim body in just two weeks without even exercise and dieting.

2. Demeaning references to nationality, religion, sex: There should not be any kind of discrimination in marketing field especially. For example- when Amazon started selling rug on which the picture of Gods and Goddess was made which is definitely crossing the boundary of ethical marketing for Indian citizens.

3. Distortion of facts to confuse potential buyers: Again this is another and common unethical marketing. An example for this- when a food processing company claims that it's product is sugar free and calorie free but though they contain sugar and calories. This can be dangerous to diabetic patient as it can harm their health too and can be life-taking too.

4. Hiding the dark-sides or side-effects of products or services: Here the marketers of natural remedies industry, hide their cons. As nowadays people are more conscious about their skin and  their health so sometimes the marketers take this as their opportunity to increase their business without thinking of the effect which their customers will experience.

 While doing such unethical means, why don't we realise that it can attract a pool of customers just once, not everytime!