Ethics for the Credit Manager

Companies need to understand the ethical implications of how they do business. The credit manager is not exempt from this process. Ethics dictates standards of conduct and pertains to obligations that employees have in dealing with others in their professional lives. Companies need to understand the implications of how their activities are perceived and accepted, including their impact where they are transacting business, whether it be in the U.S. or overseas.

Financial management, credit management, human resource policies, information systems all relate to the world at large, both in terms of the seller's performance and its relationship to customers. Many businesses have established a "Standard of Business Conduct" that covers obligations an employee has to his/her own company, customers, competitors, vendors and shareholders.

The word "ethics" should bring to mind words like morality, noble conformity to judgments, and standards of human conduct. Business credit - commercial ethics - should emphasize justice, equity, confidence, cooperation, integrity, dignity and honor.  Some basic ethical guidelines for the workplace include:

1. Always make decisions that are in the best interest of your company
2. Never allow yourself to be put into a situation in which your ability to follow guideline #1 might be compromised
3. For example, never accept gifts from a vendor or salesperson or customer that might result in biased or questionable decisions
4. Report inappropriate, unethical or unlawful behavior when you observe it to your manager, to an ethics hotline, or to any member of the management team if you are not comfortable with either of the first two options

Edited by Michael C. Dennis, author of "1001 Collection Tools and Tips."