Providers & Administrators, 1st Qtr 2019

1ST QTR 2019 P A 23 5 4 TERRENCE J OLOUGHLIN JD MBA IS THE DIRECTOR OF COMPLIANCE AT THE REYNOLDS AND REYNOLDS CO ative publicity since the regulator will consider these attempts at ethical dealing It can improve customer evaluations Consumers who think that they have been treated ethically will report that experience It can improve morale Employees of a dealership which is attempting to operate honorably will be happier working in that environment Good morale at any business only improves performance and profits What Is Ethics The U S Marine Corps maxim summarizes ethics in eight words Do the right thing for the right reason Economist Milton Friedman added to this maxim when he said There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game which is to say engage in open and free competition without deception or fraud Ethics are moral principles which govern a dealers behavior and should produce the greatest benefit for the greatest number of people and quite importantly the dealer himself Codes of Ethics Every profession has a code of ethics The NADA has drafted one which is an excellent exemplar as to how dealers should discharge their responsibilities NADA Code of Ethics Particulars Operate this business in accord with the highest standards of ethical conduct Treat each customer in a fair open and honest manner and fully comply with all laws that prohibit discrimination Meet the transportation needs of our customers in a knowledgeable and professional manner Represent our products clearly and factually standing fully behind our warranties direct and implied and in all other ways justifying the customers respect and confidence Advertise our products in a positive factual and informative manner Detail charges to assist our customers in understanding repair work and provide written estimates of any service work to be performed upon request or as required by law Resolve customer concerns promptly and courteously Put our promises in writing and stand behind them If dealers implemented this code of ethics much would be improved and as a profession dealers would significantly move up the Gallup rankings profit more and reduce their potential for liability Every dealer should adopt such a code post it where consumers can see it and every dealer employee should sign it Furthermore Dealers should mandate ethics and compliance training Training and testing should be done routinely and periodically Training should be documented and attendance should be mandatory Pay plans should be reasonable and dealership personnel should not have to resort to unethical tactics to achieve incentives Potential employees should be screened for ethical challenges in their employment histories Unethical employees may yield early results but they will create havoc and liability eventually Dedicate a telephone line or some other option where employees may report unethical behavior be sure reports are anonymous and accessible only by the compliance officer Dedicate another telephone line for consumer complaints that goes directly to the compliance officer Address all complaints promptly Rogue employees should be disciplined and dismissed There should be stated penalties for violating company policies including dismissal Beware of payment packing and other common deceptive practices Reward employees who follow rules Maintain product pricing variance reports Maintain menu log Maintain rate matrix of credit scores and interest rates Require a signed menu of the final transaction New employee orientation and training should include an ethics module and new employees should sign a commitment to ethical behavior An ethics program should simply be part of the business plan of a well managed dealership The cost of an ethics program is minimal and its benefits greatly outweigh its implementation Ethics is good business Govern yourselves accordingly