Code of conduct, work ethics and third party relations: Business, as we generally refer to, is a complex network of individual companies and market acions, decisions made by the company affect or impact the network. A company does not exist as signular grain or exist isolated on its own island. Comopanies often only exist because of the network around them and it is vital to respect these third party relations, applying applying the aprpriate code of conduct and work ethics at all time. Example: your work for Carlos Cosmetics. Carlos owns a car, the only asset of the company. All merchandise is owned by bank as they finance the purchase. In our case Caarlos does not have access to financing via banks but is provided with the merchandise by the supplier Roberto cosmetics. Roberto Cosmetics borrows the merchandise to Carlos cosmetics and only with that Carlos is able to exist, rent the storage for car and merchandise. Carlos and any staff must respect this third party relation to Roberto Cosmetics. Whatever title CArlos claims to have is completely irrelevant, Carlos is owned and controlled by its creditor, a bank or here roberto cosmetics. Roberto cosmetics receives financing from a bank, using money from an investment firm. their underlying client is rice farmer in thailand. Carlos Cosmetics is related and impacted by the rice farmer in thailand and anyone in between. The rice farmer is practically the owner of carlos cosmetics. Dsirespecting this fact is The fastest way for Carlos to destroy his business oportunity. Roberto cosmetics finds out Carlos is not acting in the best interest of their relation, Carlos is ignoring legal business requirements, lacks professinal management, has insufficient financial transparency, business actions that atr possibly harmfull or illegal are some reasons for instand terminaton but termination does not require any justifaction. Roberto Cosmetics had enough and pulls out. The merchandise goes back to them as it is not paid yet. Roberto cosmetics seizes the car to cover the money owned from merchandise already sold but not paid yet. Without car and without merchandise Carlos does not need to rent a place neigher does he have the money. Roberto Cosmetics takes the place, the car and everything inside to recover the momey owned and Roberto is in full control to sell, buy, rent, franchise, sublet the business. A lot of the merchandise was damaged so the sale so expected profits were lower as expected. Carlos could stil owe money even though eveything was sold. During the entire existince of his business Carlos effectively owned nothing, while arrogantly presenting himself as business owner. Owner is a title, often complex structures of investments and completely irrelevant in daily operations and asking to talk to the owner will get you the address of the rice farmer in thailand. Whenever we interact we do this in a certain role that changes depending on situation and person itneracting with. the role defines responsibilities more than authority and privileges. Carlos claims to be the boss and with that has some authority over certain processess but need to be carried out in full compliance with any applicable law. Carlos doesnt accept that he has a long list of legally required obligations. Carlos believes he can act as he pleases, he insults workers, gives unclear instructions, demands people to adjust personal opinion and to fully adhere to his words at any time and threatens with immediate termination in case anyone dares to obejct and underlines the fact that they have no work contract. Carloa got away wuthout paying IVA,SAT, IMSs and the long list of other requireemtns. The worker fired recently, the workers makes an official complaint against the business. Now with a legal case it becomes known thaat there is eemployment and insantly all requirements to business fully apply. He now must pay everything he was able to avoid in the past. As he hass no records of banking, transactions, employee records and estimate is used and estimates always are at the upper end of scale. He needs to pay bonus, agunaldo, IMSS for all employees inclduing the emplpyee he fired. Oncet all requirements are met the case of the fired employee proceeds. With no contract employee is reqarded a full employee with all benefits and provisions Carlos didnt termiate in writing, didnt have a contructive conversatiomn with the worker trying to resolve conflict. The termiantion was not presented in writing. Therefore the termination is irregular. Carlos reecives a legalfome, the worker can decided if he wants his job back or be paid a compnesation. The worker chooses compensation and with that the fiancial situation of the companty collapses: unable to pay and unable to get credit from banks. as the company cant pay the compensation the former worker now is a shareholder in the company. Carlos made himself an employee in his own company. The worker first took Carlos Money and then bought what belongd to Carlos. These situations are common daily routing in business. You can replace Carlos with any other name or business. Dont replace Carlos with your own name.
