Operations that are translucent build trust with stakeholders while maintaining confidentiality. Transparency encourages leaders to live by example. We strive to be completely open and honest about our processes, contracts, and just our business in general. For example, see the excerpt below from our Bennett Bits Blog “Business Ethics-What is your process?” by CFO, Chris Bennett.
This past month we did an audit of our prepaid contracts. Customers make upfront payments and receive a discount for prepaying. Certainly common place in the business world for service companies like Bennett Office Technologies. What is different in our industry is that technical people generally do not communicate well with their accounting departments. Either accounts payable expenses the prepaid contract or expects the technical person to track the balance. We rarely get questions pertaining to our prepaid contracts. However, we must be prepared and constantly monitor billing times and invoicing pertaining to these contracts. During my audit, I found for whatever reason, a balance existed on some of these contracts. At this point, some companies would slip in expiration dates or dissolve the contract.
I decided to ask the question of what to do with these funds to my management team, and I intentionally gave a justification for why we should be keeping this credit. Every time the answer came back that we should either apply the credit to other invoices or write a check. I can’t tell you how proud I was of our people and the company. It was a true test of our company ethics and we chose what was right and fair.
Read more from this blog post here.