China’s Real Estate Enterprises Misconduct And The Correct Ways

As everyone knows, the real estate market is one of the major pillarsfor the national economy. However, some real estate enterprisesmisconduct becomes serious, disrupting the order of the real estatemarket. These behaviors mainly show as seeking high profits, driving upthe price of real estate make its price higher than the fair price; damagingthe interests of consumers and lack of sincerity in the transaction process,infringing the private property, embezzling scarce landscape ordestroying the natural environment. The real estate enterprisesmisconduct brought serious harm to the society. The exorbitant pricemakes the national economy risk accumulated ceaselessly, bring seriousharm to national economy which can’t keep continuous health developing,collapsing the traditional values, so that the ethic takes on dissimilation.The real estate misconduct also seriously damages the interests ofconsumers, reducing the competitiveness of enterprises, deteriorating thereal estate industry’s image, and destroying the harmony between theenterprise and society, the large number of external costs imposed onsociety. The main causes as follow: first, the real estate entrepreneurs are lack of vocation spirit; second，the ethic of the real estate is weak, pursuitof profit maximization excessively. Third, the real estate enterprises arelack long-term plan, short-term operational behavior tend serious. Fourth,the information asymmetry exists between the real estate business andconsumer. Fifth, to the real estate business misconduct, the localgovernment lacks justice supervision. The last is the law and theconstruction of the credit system not perfect. Because of the unity of theeconomic person and the moral person, and the real estate enterprisesrealize ethical operation corresponding to the presence of pressure andpower, in the ethical perspective, controlling the real estate enterprisesimmoral behavior should be possible. So the real estate enterprises shouldstrengthen the construction of enterprise ethics, to carry out the principleof mutual benefit between enterprise and society, and the naturalecological ethical principles, and highlight the honesty and trustworthy,the unification of righteousness and benefit and harmonious development.To weaken the real estate enterprises misconduct, restore the normal realestate market order, also should explore some effective ways. As follow:the real estate enterprise leaders should strive to enhance their own moralcultivation, make the Virtue shape the leadership; Strengthen the realestate enterprise staff’s ethical education and ethical management, Createeffective operation model for the real estate enterprise ethics; Firmly andthoroughly implement the central government fair property control measures; Effective prevent some government officials who indulge thereal estate enterprise misconduct; Establish the real estate enterpriseinformation disclosure platform, to increase the transparency ofinformation; Hold the moral evaluation activities in the real estateenterprises, Construct of moral recognizer in the real estate market; Makethe real estate market legal system construction and the construction ofcredit system perfect.