So, what constitutes ethical real estate business practices in real time? I can’t cover all facets of ethical business conduct here; some pertain to clients, others to employee conduct and yet others to Government authorities. However, it is the way in which one deals with clients that makes or breaks vital business relationships. To be brief, I’ll focus on this aspect here.
Among other things, a ethical real estate company ensures that all business information is honestly and accurately recorded and reported in compliance with applicable laws. It also has strict rules against bribes, kickbacks and bartering arrangements, or any other incentives offered to obtain or retain business. In addition, it scrupulously avoids all improprieties or conflicts of interests, and has a strong policy against insider trading.
Ethical business practice also means that a real estate company does not separate the purchaser and the buyer to create additional business advantages. Likewise, it will not attempt to pressure a client into making a decision, or provide any kind of misleading information to prompt a desired decision.
I think it’s clear that this narrows down the field quite a bit – such parameters, when adopted and enforced, certainly eliminate a lot of options for unscrupulous profiteering.
However, ethics must often go beyond the requirements of clients. After all, there are always elements that seek to recruit professional help in exploiting the immense potential of Indian real estate without necessarily adhering to ethical business standards. I would be the last to deny that, even with the new spate of guidelines and legislative amendments in place, there are enough loopholes and inconsistencies in the system to make that possible. In such cases, it pays to keep in mind the telling words of the redoubtable American businessman John Mackey:
“I do not believe maximizing profits for the investors is the only acceptable justification for all corporate actions. The investors are not the only people who matter. Corporations can exist for purposes other than simply maximizing profits.”
A real estate company does not only have a responsibility to its clients – it is also accountable for the state of the market it operates in. Is this important? For long-term players with a clear view of the future, it certainly is. After all, unethical business practices contaminate and weaken the market, and in the long run harm business for everyone.
Source :Anuj Puri - Chairman & Country Head, Jones Lang LaSalle India
Popularity: 1% [?]
