Business Ethics

Business Ethics is a vast topic of study

Business Ethics is a vast topic of study. A lot of researches have been done and thesis written about various business ethics, their feature, importance and limitations.

Let us today understand the ethical value attached to sale/purchase of a going concern business which may attribute to buyer, seller, broker or any other individual or firm involved in the deal.

It is in your benefit to be fair and just in your activities and commitments.

Seller

Mere decision of sale of your business doesnt mean it has been sold. There is a lot that goes in before the actual transfer of ownership of business.

So, while the tedious process of sale is going on, it is your duty to concentrate on the business operations and profit earning till the very end of your ownership.

You have to think about your employees. They shouldnt be handed over a termination letter by the new owner for no reason. You should have solid proofs and documents about all the nitty gritty details of your business.

The legal requirements must be met with fairly. You must not harm the buyer by hiding anything from him. All strengths and weaknesses must be put before him properly.

Business brokers

Brokers should understand the ethical behavior expected out of them. They should help the seller in finding out all the required information about the market.

Valuation should be done through the best method and true figures must be communicated. Other things like advertising the business must be properly done so as to help the seller get a potential buyer soon.

The commission asked for should be according to the market trend that is worth the services to offer and not to extract as much as possible from the seller. No false practices should be adopted because such things dont pay well in the long run. Once you are caught your professionalism remains, skills and knowledge are of no use.

Buyer

Buyers should not torture the seller to disclose or present unnecessary details about irrelevant issues.

Payments must be fairly made. This is really important to avoid any problems later on.

You must understand the sellers point of view and just dont do too much negotiation regarding the price of the business. No seller can demand a high price since he would then not be able to sell the business.

Employees

Employees should provide support to not just their ex-owner who is the seller in the case but also the new owner( the buyer) in the process of sale and purchase of business organization.

The new owner would definitely need co-operation and consideration from all the employees irrespective of their stature or type of work they do. So, employees should understand the seriousness of the situation and offer help accordingly.

Business Ethics help an organization to function properly, develop effective communication among the people and also cater to social responsibility of a business. Thus, my advice to all the people in the business world is to spread a word about business ethics to one and all.

by: Fiona

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