Economic development of a nation is strongly pegged on the growth of business and trade. Business world is therefore an integral part of development in the society. To begin with, business operations have over the year evolved from barter trade to recent fast and efficient online trade. This has been made easy due to technological discoveries on the best and efficient practices in business. Technological advancement and inventions have contributed significantly in shaping up how businesses operate (Anglin, 1991). In recent time, most business and companies have embraced the use of internet and online transaction in their daily operations. In this regard, online transactions has been common since it provides a quick way of doing business a cross the globe. The quest to deliver goods and service as fast as possible and at the same time grow and maintain client base, has precipitated the emergence of Agencies in the business world. Agencies are organization that act or link business or companies to other companies so as to facilitate quick trade in the market. There are several types of agencies delivering various services in the market. This paper takes a critical and a comprehensive look into the negative impact of agencies in relevant to the ethical problem associated by them in the business world.
Agencies in business
Agencies play a critical role in the business world in that they not only offer link to companies and business enterprises but also advice, facilitate transaction, and carry out marketing role on behalf of the business enterprises among other roles. For instance, regulatory agency is “a governmental authority charged with overseeing and supervising a particular area of economic activity”. For example, the Food and Drug Administration is the regulatory agency that oversees the introduction of new pharmaceutical products in the market. Agencies such as Visa, Money bookers have specialized in facilitating online transactions on behalf of other business enterprises across the world. Money being the central core of the business, its safety and prompt availability is very important to the growth and development of business. In this regard, many business enterprises prefer outsourcing the services of agencies to carry out their transaction as second party so as to enhance their security and reduce the risk involved in carrying out such transactions.
Problems of Agencies
It is prudent to note that agencies roles are inevitable in the business world, however, these roles some time leads to loses in the business. There are a number of unethical practices that some agencies involve in which not only dent the reputation of agencies but also reduce their credibility among some business player in the market.
Fraud
According to Danson, Damborg, and Halkier, (2002), “Fraud is any business activity, which resorts to deceitful practices or devices with the intent to deprive another of property or other rights or to cause economic injury” The primary characteristic of fraud is the intent to deceive. If the intent of deception is lacking in any act or series of acts or representations, it is wrong to call such acts fraudulent, although they have caused you a loss as a creditor. “A principal may be incompetent or negligent in managing the business or may be even willfully wasteful of the firm’s assets, by gambling for instance; but, unless creditors were at some point intentionally deceived on a material fact, the principal cannot properly be charged with fraud” (Kemp, Morrison, & Ross, 1996). Companies are susceptible due to completion in the market and the desire to grow fast and develop to other frontiers in business
Solution to fraud
It is therefore necessary for all business enterprises outsourcing the services of agencies to verify the authenticity of their operations, their capability and the available risk insurance available when such eventuality occurs. This will go along way in reducing cases oof fraud in business world more so in e-commerce.
Conclusion
Business enterprises and agencies always need each other and therefore, all the organization should work together for their mutual benefits. This will make the business world vibrant and further enhance the growth and development of agencies.