The Ethics Coach on Conflicts of Interest and Personal Tasks We tackle the ethical dilemmas of getting insider information, and asking your assistant to complete items on your personal to-do list.
By Gael O'Brien
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Write to The Ethics Coach at ethics@entrepreneur.com.
Q: I'm the sole proprietor of a property management business that has grown rapidly since I started it in 2011. I have several clients and manage more than 300 units. For maintenance and construction projects, I call contractors to put in bids, but their response times are slow and prices are high. I want to start a maintenance company so I can improve turnaround and quality of work for my property management business. It would be a separate entity for tax and liability purposes.
Is this ethically acceptable? As the owner of both, I will have the inside track on competitors' bids and make the hiring decisions. Can I source the work to another company I own if I know I am providing customers better service at better rates than they would otherwise get? Regarding disclosure, should I tell clients I own the other business or ask for forgiveness later? Or is this too self-serving, and I should avoid starting the company altogether?
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