The Ethics of Consulting 4

[RichGeoffroy]

I take no credit for this article. I stumbled across it on Monster.com, and it was too appropriate to this forum to not pass this on.

Take the High Road​

The Ethics of Consulting​

by John Rossheim​

Monster Senior Contributing Writer​

When professionals proclaim their emancipation from traditional employment, they open up worlds of new opportunity. At the same time, they must stumble through a tangled nest of ethical concerns that they never encountered as cogs in a corporate machine. Here's my take on the top ethical concerns of free agents who thrive by wheeling and dealing in a networked economy.
It goes without saying that many unethical behaviors are also illegal. Consult with an attorney if you need legal advice on an ethical matter.

Avoid Conflicts of Interest

Don't accept clients who compete directly with each other, at least not without discussing the conflict with all interested parties. When you learn that a prospective client carries a potential conflict, refer the prospect's business to a peer in your field with whom you share no financial interest. Today, you'll earn everyone's respect; tomorrow, you'll get reciprocal referrals.

Observe the Limits of Your Professional Competence

Don't take on work requiring expertise that you lack. Be honest with prospects about any requirements of the project that may exceed your qualifications. Where your shortfall in skills is confined to a small and well-defined task, consider subcontracting out that particular task.

Discuss Subcontracting Before the Fact

When a client contracts with you, they generally expect you to do the work and manage the project, not hand it off to a subcontractor because you're up to your ears in other work. You must honor this expectation. But there are many cases where it makes sense for you to outsource a specific task -- for example, a statistical analysis -- to a specialist. This is fine as long as your client agrees in advance.

Mind Your Fees

Some consultants believe they must charge all clients at the same rate; others see the consulting business as a pure market and try to extract the highest fee that each client will bear at any given time. Whatever path you choose you must be meticulous about timekeeping and charge the client only for work actually performed.

Be Reasonable and Honest About Expenses

Unless your consulting specialty involves showing off to investment bankers or Hollywood directors, you shouldn't spend $300 on a lunch that's charged to your client. Be reasonable about reimbursable expenses and never bill a client for items that are arguably personal.

Disclose Any Other Fees You Receive

Suppose you convince a client to choose a certain product or service from a vendor who pays you a commission or other fee. You must tell the client about the fee, which he might interpret as a kickback. Armed with this knowledge, the client can decide whether you're in a position to provide objective recommendations about how he spends his money.

Protect Clients' Confidential Information

Whether you're privy to a software maker's proprietary source code or a soft drink maker's undisclosed plans to enter new markets, you've got to keep your clients' secrets. If word gets out that you took advantage of confidential information or even disclosed it casually to a disinterested party, your consulting practice is toast.

Be Forthright in Reports to Clients

Do you ever get the feeling that your prospective client knows what she wants your final report to say, even before she engages you? Think twice before you sign up for the gig. You don't want to get a reputation as a consultant who willingly suppresses data or warps analysis in order to support the client's hidden agenda. Let your clients know from the get-go that when report your findings, you will strive for integrity and objectivity.

Observe the Ethics of Your Discipline

Writers shouldn't incorporate other people's copyrighted works into their own without obtaining the required permissions. IT consultants shouldn't build trap doors into programming code to allow their clients to spy on customers. No doubt your profession comes with its own list of taboos. Know and avoid the no-no's specific to your field.

Monster.com, 9/15/04

Rich Geoffroy
Polymer Services Group
POLYSERV@aol.com