Question

What unethical sales practices have been identified in the Caribbean and globally and how are these being addressed by regulators and financial institutions?

Answer 1

What unethical sales practices (by financial institutions) have been identified and how are these being addressed by regulators and financial institutions?

Sales department is one of the key role playing department where the organization profits and growths are measured.Its very important part for any organization because all organization needs to sell their goods and services through sales.The entire organization goals are depends on sales.

Most of the organization one or the other way do a unethical sales practices,which is not considered as fair business as per business rules and policies.But still few organizations follow these methods to increase sales in a different way.The following are the unethical sales practices by financial intitutions that are identified are :

• Sales are the most priority based works in an industry,the unethical process in the sales departments are giving false promises to customers.

• False commitments and promises are the major unethical practice by any organization commonly follows.

• Not following the contract policies and skipping contract commitment are also one of the reason.

• Not giving the complete information about the products pricing changes to customers which is considered as fooling the customer.

• Misrepresenting products and promotions to close a deal with a prospective customer.

• Unethical occurs when the product fails to deliver customer demands than these practices comes in to picture.Where sales department follows unethical procedures to meet their targets.

• Especially these issues occurs when the financial department fails to provide proper support to the sales team.There is no extra perks for the performers like bonus,allowance and awards etc.

• The first thing that can be considered as the payments delays for all departments which will have a lot of affect for future relation with them like dealers,vendors and promotion costs.

• The financial department is the most priority department where all operations are carried through it.It plays a various tricks to hold bills and payments with them for no reason.

• Delaying payments for employees considered as one of the most common unethical practice in almost all organizations

• Not forwarding the payments for insurance companies,not paying tax at regular times and other bills related to organization.

• There are other expenses which are delayed by the financial departments are travel allowance,medical bills,phone bills

These kind of issues are related to the financial institutions they are responsible for the unethical practices that are going in any organization.They are considered as responsible people needs to monitor and address these issues.If they are doing any unethical business in these departments.Than the higher level management will take a call on these.Because these are the very sensitive issues which needs to be finally address by the top management like managers and head of the organization.

As we see most of the companies ceo's take responsibility of these issues and apology on these if we can see the top companies.They themselves considered as their mistake of not auditing and monitoring the details.

• These issues can be addressed by close monitoring of sales.The basic thing is to check each and every sales that are carried by the department will control the unethical behaviours.

• The promotions and ads needs to be analysed closely to avoid the fake or false promises to customers and vendors

• Needs to bring the fair sales policy and conduct assessments on these to follow the ethical sales structure.

• Technology needs to bring for each and every sale to enter and report on regular basis.

• All the payments and bills needs to be entered in the systems for better practice of ethical sales and avoid unethical practices.