What Should We Do to Respect an Individual’s Rights?

A number of people in Hong Kong and Macau are eager to improve their lives by establishing their businesses. However, the start-up cost is very high from around several hundred thousand dollars to a million dollars. It is too much to afford for an ordinary person. In addition, business operators need to spend lots of personal time to conduct the business, and therefore, entrepreneurship seems to be a pathway full of challenges.
 
The introduction of the direct selling industry provides an alternative way for these entrepreneurs who have a passion but are lacking financial support. These entrepreneurs not only can take advantage of the lower capital threshold to develop their own businesses with more time and financial freedom, but also open the markets gradually through personal network, and thus, helping more people to succeed. Although the direct selling industry is full of charm, business partners have to pay attention to the compliance of the strict operating rules, i.e. Policies and Procedures and the relevant regulations so as to maintain market fairness and order.
 
At the beginning of the development of NU SKIN business, a few new business partners mistakenly think that they could sign-up on behalf of their friends as long as they agree verbally, including filling up relevant information and signing the Distributor Agreement, or using their friends’ accounts to place orders or using their friends’ credit cards without their consents in order to maintain the sales volume requirement. However, they do not know their behaviors have already violated the Company’s regulations, or in a worse case, violated the law.
 
Operating with Compliance, Sales Volumes will grow Steadily
 
There are two cases below for our business partners to self- evaluate whether we have similar misconducts owing to negligence.
 
Case 1:
John participated in Tony’s home party and listened to his sharing of the NU SKIN business opportunities. He thought this would be a good business opportunity but he wanted to spend more time to understand the Company’s background, products and culture before deciding whether to become a distributor or not. He told Tony, “I need to discuss with my wife. I will come back to you later!” Tony said, “That’s fine! You can give me your basic personal information first!” Tony signed up on behalf of John without his consent and submitted the new Distributor Agreement to NU SKIN on the following day. Thus, John became a distributor.
 
Case 2:
Mary joined Tony’s team not too long ago. She is a consumer and only purchases products when she needs. One day, when Tony checked his team’s sales volume, he found that they were still a bit short of meeting the sales requirement. He knew that Mary did not place any orders this month; therefore, he decided to place an order through Mary’s account and use her credit card for payment. Under the circumstances that Tony did not notify Mary in advance and did not obtain her authorization to use her account and credit card, Mary had no idea about this until receiving the bank statement requiring an additional payment for the unauthorized order. She was angry and complained to the Company.
 
If you were Tony, what appropriate actions would you take in the above circumstances?
 
Ethics Leader:
“Regarding case 1, I would follow up with John after the family gathering. If he is really interested in becoming a distributor, I would show him the steps for the application, including having himself to complete, sign, and return the Distributor Agreement to the Company and to purchase a not-for-profit Business Portfolio. Operating the distributorship with integrity is very important. I would never sign the Distributor Agreement for the perspective distributors without their prior written consents because this not only violates NU SKIN’s Policies and Procedures, but also violates the provisions in the Crimes Ordinance of Hong Kong.
 
Ethics Leader:
“Regarding case 2, I would never place orders on my downline’s account and use his/her credit card without his/her prior written consent because this violates the Company’s Policies & Procedures. Unless I have the prior written consent from Mary, I would also violate the provisions in the Theft Ordinance of Hong Kong. I cannot jeopardize my integrity when I operate my NU SKIN business just because of personal interest, as it would damage the team and the Company’s reputation.
 
(Analysis)
Everyone’s signatures are important. They cannot be used just as one pleases. While sponsoring new distributors, we business partners are under a duty to tell them the advantages, features and cultures of NU SKIN business in detail, and have them complete and sign the contracts e.g. Distributorship Agreement etc. This is what an act of respect is like. New distributors may then operate NU SKIN business in the long term on the basis of a solid mutual relationship. Each distributor has his/her own distributorship.  Using others’ accounts to place order or their credit cards without their prior written consent would infringe the rights and interests of others, and damage our reputation. Others may also pursue against us for any legal liabilities. Therefore, please be cautious!
 
NU SKIN believes that each of our business partner is great at realizing dreams with passion. Apart from passion, they still have to operate NU SKIN business with honesty and integrity. While you are in compliance with NU SKIN’s Policies and Procedures and the local laws and regulations, Ethics Leadership will be leading you on your way to success. Partners, let’s strive!
 
The followings are references to the related provisions in NU SKIN’s Policies & Procedures:
Chapter 1- Your Distributorship
1.1   Apply to Become a Distributor
3.1 Keeping your Distributor Agreement, Business Entity Form and Joint Participation Form current
Chapter 2- Operating Your Business
1.3   General Ethics
3.7 Submitting Orders in the Name of Another Distributor
3.9 Use of another Individual’s Credit Card
 
*Section 71, The Offence of Forgery of the Crimes Ordinance (Cap. 200) of Hong Kong
“Commits the offence of forgery and is liable on conviction on indictment to imprisonment for 14 years”.
 
*Section 16A,Fraud of the Theft Ordinance (Cap. 210) of Hong Kong
“Commits the offence of fraud and is liable on conviction upon indictment to imprisonment for 14 years”.
 
(The names of the characters in this article are fictitious. No identification with actual person is inferred.)