Ethics Reviews are a Worthwhile Investment
By Glen W. Hahn
Except for those who are truly diabolical, words such as fraud, statutory fraud, securities fraud, breech of contract, promissory estoppel and unjust enrichment are not found in the written or verbal description of a modern business plan. When describing a business model, the model and people running the model are referred to as ethical, honest, with characteristics of integrity and a history of quality delivery with an impeccable track record.
Each set of words are well defined; the group — including the three references to fraud — are words that challenge business owners, their clients and vendors, juries, judges and the general public. These words also stand to help skilled trial attorneys capitalize on those who have gotten tangled in the web of the words and their consequences.
On the other hand, ethics, integrity and honesty are words not usually fought over and only the world of continuing education educators seem to capitalize on the definition of their use.
The real issue, unfortunately, is not the words, but the practices of individuals, corporations and governments that have failed to practice the process of ethical behavior with integrity. This is so important that continuing education in ethics for real estate professionals licensed in Texas is a mandatory requirement. For the licenses we have, there is a requirement to post in a conspicuous place our code of ethics and inform all employees of our policy.
Recently, I was challenged as to whether the critical procedures involved with our company's delivery methods were posted for all employees to see and utilize. While not specifically posted, our policies are routinely reviewed as we prepare from proposals all the way to the final delivery to our client's project. As with the state of Texas' mandated ethics refresher courses, we need to also review our processes and delivery methods.
Without a constant refresher, it can be very easy to wander from the straight line of ethical behavior. The bottom line of ethics with integrity comes down to:
Honest communication with your employees and clients; Sincere and thorough efforts to deliver on your promises; Follow up on your process to assure success in the eyes of the client; Admission of your shortcomings, regardless of the consequences to yourself, and Practice of ethics and review of your position at all times in every situation.
It also is important for you to verify that the people you are working with, around you and for you have the same approach to ethical behavior. Beware of the deceiver who tells one story and delivers another or fails to deliver on his promises. Fraud is a bad word with bad consequences and no available insurances. Review your ethics; you will find it worth your time.
Glen W. Hahn is the President and CEO of Innovative Developers, Inc. (IDI), which creates value in real estate for owners, investors and transaction-oriented clients. IDI was recognized in 2009 with the Greater Tarrant Business Ethics Award. He can be reached by calling (817) 335-4500 x 122 or by emailing
Glen@idi-tx.com. For more information about Innovative Developers, Inc., go to
www.idi-tx.com
Recommended Reading
“Crash Boom!: Make a Fortune in Today's Volatile Real Estate Market” by Greg Rand is a book about independence, courage, resourcefulness, entrepreneurship, and success. Rand offers interesting insight to the media's role in spreading consumer doubt, which in turn causes reaction and eventually makes dour economic predictions a reality. He calls our recent challenge The Great Recession, comparing it to history's Great Depression. Rand calls the housing crisis today is a once-in-a-generation opportunity, if you know how to play the market right.
www.crashboom.com
10 GREATER DFW METROPLEX BUILDING SAVVY MAGAZINE Vol 4 2011
SAVVY BUSINESS
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