Why Honesty Is Important in Business Ethics

There should be no exceptions to honesty and integrity. Integrity is a state of mind, not a situational one. If you compromise your integrity in small situations with minor consequences, it becomes very easy to compromise in small situations. Running a company that prides itself on being ethically and socially responsible is a challenge, and many companies end up cutting more than a few corners in the name of profit. Digging deeper into these companies, you`ll likely find that honesty isn`t considered an important trait. However, it is almost impossible for a company to establish trust if honesty is not a guiding principle of how that company manages all aspects of its work process. In business, honesty is not only about doing things immediately, but also about expressing the values on which a company is founded. «Does it matter? They can be rich in dollars and very poor in their own sense of values and what life is like. I cannot judge anyone in dollars; I judge them by their actions and how they react. None of these benefits can easily be incorporated into a rational business analysis of whether to lie or keep a promise. Snipers are invisible; The sniper only takes shots that you can`t measure or see. How could you quantify the financial impact if the suppliers you`ve abused reject your phone orders or ship hot items to your competitors first? «Normally, manufacturers don`t like to sell their products to people like us at disposable prices,» says one of these discounters. «But our business has thrived because department stores always have their suppliers, especially after all these leveraged acquisitions.

At the same time, manufacturers have learned that we treat them correctly. We conscientiously deliver on our promises. We pay when we say we pay. If they ask us not to promote a particular article in a particular area, we won`t. If they make a mistake in good faith in a show, we will not punish them. If someone recommends your business to a friend or family member, they like your products or services and will recommend it to others. Even if they`re not interested in buying something from your business, they can recommend it so they can get discounts or gifts from the company itself. This helps them save money on the products or services they will need in the coming years when they need them personally or professionally. The word «honesty» encompasses a number of qualities that customers look for in a business. Fortunately, the larger world we live in is less rigid. It is populated by trusted optimists who willingly do business with foreigners and innovators.

A 26-year-old Steve Jobs with no significant background or a 52-year-old Ray Kroc with nearly ten failures behind him can get help starting an Apple or McDonald`s. People are allowed to move from Maine to Montana or from plastic to baked goods, without much why or what. The importance of moral and social motives in the economy cannot be overemphasized. Selective memory, a careful examination of facts, can help maintain the fiction of profitable virtue, but the fundamental basis of trust is moral. We keep our promises because we believe it`s right to do so, not because it`s a good deal. Cynics may dismiss feelings we`ve heard as gesticulations, and it`s true that performance often lacks ambition. But we can`t find any other way than consciousness to explain why trust is the foundation of so many relationships. Establishing an ethic that allows, let alone encourages, honesty is not easy. Through reward and promotion systems, by focusing narrowly on the bottom line, many leaders promote the kind of coping strategies that corrupt the integrity of internal communications.

Under such circumstances, intelligent, long-term decision-making becomes virtually impossible because most rewards focus on short-term outcomes and because the information on which the decision is based is almost certainly inaccurate. This information becomes increasingly inaccurate as distortion accumulates on the distortion. And government and industry managers have no real idea what the «real» numbers would look like, even if they had them. Another example would be an employee on a business trip who has the ability to replenish their expense account, but chooses not to do so because that employee has adhered to the culture you have established and wants to remain consistent in all circumstances. We rely on rational arguments for trust. Economists, ethicists and economists had convinced us that honesty was the best policy, but their evidence seemed weak. Through in-depth interviews, we hoped to find data that would support their theories and thus perhaps promote higher standards of business behavior. Honesty is also important when dealing with customers.

When a customer asks a question about something in their contract, they need to get a truthful and accurate answer (not just a «yes»). Just as those who trust find reasons for the risks they want to take, those who are asked to keep a difficult promise look for a justification, even if the numbers point the other way. Reliability has achieved the status of «strategic point» and «enduring competitive advantage» in business folklore – a plausible (if undocumented) touchstone of long-term economic value. Every time I have a strategic planning meeting, the first value that all leaders agree on is integrity. Leaders know that honesty and integrity are the foundations of leadership. Leaders stand up for what they believe in. Fair play in business means treating people fairly without deceiving them or being dishonest. He adheres to the established rules without cheating. There should be fair play in business. Everyone should have a chance, regardless of ethnic, social or religious background.

«I can only really speak for myself, and for me, my word is the most important thing in my life and my credibility as an individual is of paramount importance. All the other successes we have had are secondary. People will discover the lies and their customers` trust in you will shatter into small pieces. Your reputation as an honest person will make people want to work with you or buy from you again. If they no longer trust this honesty, they won`t want to work with you or buy from you. This is perhaps the most important principle of leadership and it depends on integrity because it requires sincerity and honesty. Many businesses and organizations fail because they do not follow the principle of reality. Tolerance also allows resources to be left to companies that have survived their functions. If the buggy whip manufacturer is driven out of business, we understand that some promises need to be broken – promises that perhaps should not have been made. But adjustments in the age of the automobile are easier to achieve unless we demand complete retaliation for every violation of implicit and explicit treaties. The business people we interviewed attach great importance to respecting their family, friends and the community as a whole.