Honor System In Business
Business

Honor System In Business

There was a lot of news here today where for our transit system apparently they can send collection agencies now to enforce people who have been given fines for fair evasions and have yet to pay it. That generated the topic on how with the system here we actually rely on the honesty of people to pay for their fairs before they hop onto the rapid transit system that we have here. I guess everyone can see how a ton of people simply abuse this by not paying at all.

This reminds me of even in business where in most cases when you trust others to pay you based on an honor system it usually just results in the other party coming up with all the excuses in the world to not pay. Ultimately, like in this transit example it is because people feel you can’t do anything significant to them anyways so why pay? Actually, I remember one example of a guy’s dad who’s advice to him apparently when it came to a gym membership that he didn’t want to pay was to simply not pay it as the company isn’t going to waste their time to go after him anyways.

So I guess it’s unfortunate that a lot of people like that are out there and so it’s better from the start to create a system where if someone needs to compensate you for what you are offering them that you have a good way to semi make sure that you can collect it ahead of time.

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