Business Ethics

If business ethics is an issue in any industry it would be the MLM industry. The aspects that you have to consider are the MLM company itself and the independent rep.

The primary goal of your MLM company is to make a profit. However, in making that profit it may affect the independent reps negatively. It may involve paying less commission or having the company put a stop on making certain products.

That's where the problem comes in. When you want (or need) to make a profit but find that it is difficult at that present time, you may be tempted.

The "higher ups" may make a few decisions on the side or change the accounting books to make things seem to appear a certain way. Remember the story about Enron? Eventually the business will falter under bad decision making.

That's why most companies follow business ethics because the consequences of not being ethical can lead to them losing a license reputation or have very high fines. The company may even go bankrupt.

Another issue with MLM business ethics is the number of MLM representatives that are trusted to tell the truth when representing the company. Unfortunately there will always be a rep somewhere that will slip a 'little lie" in their representation.

This is done because of greed for the money and reputation. When these prospects are given a presentation most are sold on the financial freedom aspect of the business.

Therefore they start thinking in terms of CEO's (even though they somewhat ARE owners of their business when they sign up).

The company has rules set in place for reps that break the rules or code of conduct just like the government has rules set in place for these business or companies.

It pays in the long run to be honest and have integrity. You'll build a strong reputation and reputable business.