ETHICS, What Is Expected In Business

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ETHICS, What Is Expected In Business

Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

I just read a thread where an "investor" suggested that someone way the risk and if the down side could be covered, afford to suffer, to take the less ethical route.

Another thread was suggesting that investors just ignore laws and regulations and just go make money, that the chances of getting caught was slim.

I'm not really the Mr. Law and Order of RE that many may think, but I do hold ethical conduct in business in high regards. Following the rules is the least expected and actually, ethical conduct is to a higher standard.

Here is an interesting short version addressing ethics and law that everyone should look at, if for no other reason, as a reminder of what the public and other RE professionals expect.

http://definitions.uslegal.com/c/code-of-ethics/

Should you have a Code of Ethics on your web site? Should your business display such a public statement? What if you put your company Code of Ethics on the back of your business cards?

How do you communicate to others that you deal ethically? Or, do you?

Some may call it Karma. :)

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Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
13y
Originally posted by Bill Gulley:

Most here I doubt ever think about or realize how you will be viewed by other in your community or give much of a care about your reputation. When you figure out that philanthropy doesn't really buy you your reputation and that money can't change opinions, you will probably wish you had done things differently.

Hey Bill -

Just wondering what you meant by this? Did you mean in your town when you said "here"? Or did you mean on this thread? Or did you mean on Bigger Pockets? I love so many of your responses, but this one threw me for a loop. I couldn't figure out how you were able to determine that most don't care about how they are viewed or their reputation. Maybe I just like to hand around or communicate with different people, but many people that I have connected with on BP seem to be concerned about their business practices, the longevity of their business and definitely the way they are viewed by their clients and their peers. I haven't met too many on here who are not. Then again, it is a big site.

I was also wondering which posts that Mark Ferguson is reading to say that he is surprised at how many suggest unethical or illegal activities and then say that it is ok because you probably won't get caught. Granted, I do not read every post and this forum site has gotten so big that I am only seeing a fraction of it now, but I have rarely seen advice that is illegal or unethical. When I have, I have seen some great posters on the forums jump right in and let them know the mistakes they are making or how bad their advice is.

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  • Bill Gulley
    OP
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    LOL, I guess so, but I don't know them. That matter touches on several levels, one being what happens when you don't get involved with what you know or suspect. Good point!

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    13y
    Originally posted by Bill Gulley:
    Chris, I'm only saying that usually, IMO, based on my years, that younger people don't think much about what thier reputation will be when they leave this world. I'd say, most BP members are on the younger side of the working/investing population. I know when I was starting out I was not clear on what was ethically and professionally acceptable except to the point of knowingly pulling a fast one, there was a moral foundation, but certainly not a professional level of ethics as I was not a "professional" starting out, no one is.

    Then, if one did trash thier reputation and has money from ill gotten gains, you can't buy your way out really. I knew a very wealthy guy, about as unethical as you could get, tried for killing his competition (murder). His family would have nothing to do with him. He gave money to the college and has his name engraved in stone, people spit on it and deface it. Everywhere he went he had body guards. In my mind, he was no winner. Just saying when the reputation is gone it's hard to get it back, even if you can. People have very long memories. While his kids have money, they also put up with being the son and daughter of so-and-so, I bet they wish they had a little less money and had thier father held in higher esteem. :)

    Specifically, I think most everyone on BP are good folks, some very good but I have noticed a few that I suspect as bad apples, but that is expected in anything. I think there are many that are simply unaware, not that they want to do something wrong, they just haven't found out yet...we have all been there at one time or another. :)

    I appreciate your points. You have probably already said it, but there are no shortcuts in anything you do especially not when it comes to your morals and ethics. I'm going to be the last person to judge others on here, but I do understand your point now. In just about every life endeavor I run across people I would rather not associate with and then I have come across people that I know I need to associate with.

    I want to be remembered not for what I have but rather for the effect I may have had on other people no matter how small. And as for your original post, that is what I EXPECT from other in business.

    As always - all the best to you -

    Chris

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  • Bill Gulley
    OP
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Thanks Chris, as it is said, hate the sin, not the sinner.

    I don't recall who said this or something close, but what we do for ourselves goes with us, what we do for others remains as our legacy.

    We have a responsibility to care for ourselves and provide for our family, beyond that a moral obligation to assist others and especially those who can not care for themselves. There is a balance in accomplishing your responsibilities and obligations in society.

    Those in RE really need to understand that your ethical conduct has much to do with those you have the opportunities to associate with, birds of a feather stick together. A successful person who has money to invest will usually be known in the community and most will never risk thier reputation associating with someone who is identified as having questionable ethics.

    And again, in RE, education is critical to knowing if you are acting lawfully and ethically. Gross negligence is an area where one may become liable to others for damages. In any transaction if one is held to have significantly more knowledge than another person, there are first ethical conduct issues and such may become a legal matter.

    For anyone to think that they are an ethical person, say based on thier religious followings, they can easily be involved in an illegal practice unknowingly or devise unethical practices due to the lack of specific and prudent expectations they may be held to. Putting this into RE, for example, the lack of fianancing knowledge of a client/customer and putting them in a position where they are damaged financially. Putting someone in a Rent-To-Own contract with a down payment and not properly qualifying that person is unethical conduct and is a professional liability matter.

    While your contracts may be lawful, how you use them or how you engage them may not be ethical and thereby a cause of action against you legally. :)

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  • Victor Belman
    Ontario, CA · Member since 2013 · 48 posts · 2 votes
    13y

    To ensure we conduct business honestly and with integrity, all business employees are expected to understand and follow code of ethics and apply when it demands.

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