ETHICAL AND UNETHICAL ISSUES IN FINANCE

UNETHICAL ISSUES IN FINANCE:

The unethical practices in accounting are more in proprietary, partnership and private limited companies. It is at lower levels in public limited companies and  MNCs.

  

UNETHICAL PRACTICES IN FINANCE

• Deliberate abnormal delays in payments to (a) Vendors, (b) Dealers commissions and promotions costs. 

• Delays in playing wages, interest to financiers, incentive, bonus to employees. 

• Holding up bills of vendors on silly reasons and ultimately buying from others to avoid payment to earlier vendors.  

• Not prompt in statutory payments of ESI, PF, Sales Tax and Excise Duties.

• Cheating employees of their dues towards medical expenses, leave travel assistance, children education fees etc.

• Opening of current accounts in different banks to avoid adjustments against loans by earlier bankers.

• Creating bogus bills of purchase to show higher costs and hence losses to avoid bonus payment to employees.

• Collecting loans from private financiers at higher rate of interest to help kith and kin and to get kick-backs. 

• Quick release of payments to known or adjustment parties and delaying payment to others.

• Taking private finance only from those who are ready to do personal favours to the finance department head.