Business management and promotion Conducting your business in an ethical manner is largely a matter of treating people fairly and decently, using your skills and time effectively, and adhering to high standards in your work. Your promotional materials, recordkeeping, financial dealings, and conduct in day-to-day business matters should also be able to pass ethical scrutiny. Funeral directors should not engage personnel to solicit funerals at or near the time of death. It is unethical and illegal for a funeral director to pay commission or related payments for this kind of solicitation. This is neither meant to discourage advertising nor pre-arranged or pre-financed funeral agreements. Preneed sales Preneed sales should be handled in an ethical manner. New York is an example of a state with strong preneed laws (PrePlan Funeral Trust, n.d.). Here are a few provisions of that state’s laws: ● All monies must be trusted in government backed securities, with principal and interest remaining the property of the consumer. ● The preneed account remains under the purchaser’s control. A revocable account allows a purchaser to receive a full refund of principal and interest at any time, for any reason, without penalty. ● The purchaser is allowed to choose a new funeral home at any time. ● Full disclosure concerning the funds must be provided to the consumer. ● Applicants and recipients of Medicaid and Supplemental Security Income may set aside funds for funeral and burial expenses for themselves or for family members (in an irrevocable trust) that will not be counted as a resource. (PrePlan Funeral Trust, n.d.) Advertising/marketing As a representative of your profession, you need to be aware that any negative perceptions of your marketing materials or advertisements tend to reflect poorly on your colleagues and the profession as a whole. All advertising should be factual and treat the subject of funerals with dignity. All advertisements should be truthful and professional. Documentation and recordkeeping All records should give a factual and complete account of relevant transactions. It is unethical to withhold or insert any invoice or statement of false record or representation of any transaction, invoice, record, or documentation for the purpose of misleading or deceiving a colleague, family member, organization, or government agency. It is unethical and unprofessional to misrepresent any aspect of the funeral service. Proper documentation and recordkeeping represent a critical, if mundane, dimension of a successful business. Keep notes legible and accurate. If it is ever necessary to refer to files at some time in the future (in legal proceedings, for example), the Contractual obligations The funeral director is required to fulfill all agreements and contracts, both verbal and written, to which he/she has contracted. There is no substitute for honesty and integrity in business matters. Be able to admit mistakes should they occur, as “covering up” means adding dishonesty on top of dishonesty.
Maintaining your business in good professional standing means: ● Filing local, state, and federal taxes. ● Discussing and/or displaying fee schedules and billing practices prior to a first meeting. ● Making the family’s welfare your paramount concern. ● Following generally accepted accounting practices. ● Keeping accurate financial records. ● Maintaining confidentiality. ● Collaborating respectfully and cooperatively with other professionals. ● Making appropriate referrals, if necessary. The following are some points to ponder concerning preneed sales: ● Is there anything that makes you uncomfortable about letting a purchaser know how much of their money will be put into trust and how much money you will retain? ● Do you clearly inform the consumer of an administrative fee taken from the principal paid to you and its purpose? ● Do you believe that consumers should have a yearly accounting of their funds? Have you chosen for the trust to pay the tax so that the consumer will not get a yearly statement? ● If you receive a commission or other financial consideration for the placement of consumer dollars into a preneed insurance policy or a trust program, do you reveal that commission to the consumer? ● If you receive a special price on caskets when placing a consumer’s monies into a preneed insurance policy or trust, do you reveal this information to the consumer? It may be that if you feel uncomfortable telling consumers everything about their preneed accounts, you should take a close look at the ethics of your actions. (Note that Part II of this course includes Arizona’s laws concerning preneed funeral planning.) Promotional materials should: ● Include your license number, place of business, and phone number. ● Refrain from using fear or guilt as motivational tactics. ● Avoid unrealistic, misleading, or sensational claims. ● Refrain from using any wording or image that might be construed as offensive in nature. ● Adhere to truth-in-advertising standards. context and details of your notes should be clear. Adhere to the following guidelines for preparing and maintaining records: ● Notes should be legible, as well as accurate. Pay attention to your handwriting, and use clearly written and recognized abbreviations. Remember that you and other people may need to refer to these notes years in the future. Make sure the notes are easy to read and understand. ● File records promptly and accurately. Establish a strict filing system and adhere to it, and be sure other staff members know the system and the importance of using it.
Instead, be honest and do what you can to make amends. Trust is crucial to a harmonious relationship between the family and the funeral director.
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Book Code: FAZ0724
EliteLearning.com/Funeral
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