How often do we look up a company on the internet to make sure that the company is rated “A+” (or at the worst “A”) by the Better Business Bureau? I do it all of the time, but now I am not so sure.
An article appeared on CNNMoney (September 30, 2015) by Blake Ellis and Melanie Hicken entitled: “Slammed by the government, A-rated by the Better Business Bureau,” that makes great reading – and just a little bit frightening. I would urge you to read the piece from an ethical point of view.
As it is a long article (and well-written), let me just share some of its highlights and make a few comments.
- The authors investigated a number of companies that were under federal investigation for discrimination, giving kickbacks to physicians, misleading consumers and taking advantage of senior citizens. Every company carried the BBB’s A+ rating. Every one of these companies paid the BBB thousands of dollars in membership fees every year.
- Ironically, companies such as Starbucks that pay no BBB membership fees are among the lowest rated companies.
- Some companies that were shut down after committing all manner of fraud were allowed to keep their BBB A+ ratings.
- Consumer lawsuits against BBB are allegedly not factored into the ratings!
One of the more difficult points of the article to absorb is quoted from the article as follows:
“While many people view the BBB as a consumer watchdog or even a government agency, the BBB itself says this is a misconception. Instead, it views itself as a mediator between frustrated consumers and the companies they do business with, receiving nearly 1 million complaints each year from consumers hoping to achieve resolutions like refunds and repairs.”
Let me please share just one more quote from this important article:
“The BBB has come under fire for allegations of unfair ratings and unethical practices in the past. In 2010, the Connecticut Attorney General likened its membership program to a ‘pay to play’ scheme after a local bureau gave an annual award for business ethics to a company that was under investigation by his office.”
Pay to Play?
In fact, all signs seem to point to the fact that the BBB chiefly cares about its member companies; those companies paying annual dues – and not very much about those of us who have complaints. Ethically, this is quite a serious indictment. It means that at best, the agency either nationally or through its many member chapters is a referee on a case by case basis, and it is not a true rating agency.
I am reminded of a couple going into a restaurant where on average, 100 meals are served each evening. The restaurant has a five-star rating given to it by a world famous restaurant critic, which is an excellent rating. However, the restaurant paid the critic $10,000 to write a great review.
One evening, the chef quits and they promote the dishwasher. The food is awful and all 100 complain to the critic, including our couple. The critic throws up his or her hands and says, “What do you want me to do about it?” Finally the critic agrees to take their complaints to the management of the restaurant for resolution. However, the critic knows that the restaurant is about to pay him or her to review the restaurant again. The restaurant keeps its five-star rating.
If these types of allegations ring true, the BBB loses both credibility and validity.
The BBB is not alone; the majority of other ratings agencies are not independent either. The more well-known websites derive their income from charging contractors of all kinds of money to advertise. The more they advertise, the better their position on the websites.
Whether the BBB or other ratings organizations, it is important to understand that the best ratings may still come from your family members, friends and neighbors. I understand that given our reliance on internet rating services we would rather click and search rather than having to talk to real people, but it might still be a good idea to do your own research through your own contacts!
Another way of looking at it is this: you just can’t buy your way to good ethics!
YOUR COMMENTS ARE WELCOME!
