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 wage, 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 travels  assistance, children education fees etc. 
• Opening of current accounts in different banks to avoid adjusting against loans by earlier bankers.
• Creating bogus bills of purchases to show higher costs and hence losses to avoid bonus payments to employees.
• Collecting loans from private financiers at higher rate of  interest to help kith and kin and to get kick banks.
• Quick release of payments to known or adjusting parties and delaying payment to others. 
• Taking private finance only from those who are ready to do personal favours to the finance department head.