Why Honesty is a Good Business Practice

Honesty in any type of business is a must. An honest business not only affects the customers, it also has a direct impact on the suppliers, investors, employees and the entire community. Whether it is a direct fact or mainly a rumor, a business loses its reputation if word gets out about dishonest actions that are occurring in a company whether it is a major organization or a store. Individuals will lose its trust of the business. For example, the customers will wonder whether they were lied to about the quality of the product; the suppliers will worry that they will in turn be accused of dishonesty; the employees will wonder if they will have a job; the entire town will wonder if the business fails how the community will be affected. Everybody involved in the business-the community, the customers, the supplies and the employees-just want one thing from a business, honesty.

If a customer believes that he has been dealt with in a dishonest way, he will go elsewhere to purchase a product. Just like how direct sales positions rely on referrals, the customer can also use referrals to hurt the dishonest business. Since they do not like being lied to, they will tell their family, friends and other people they know not to deal with the dishonest business. When a dishonest business loses one customer, they are actually losing many future sales.

If suppliers deal with a dishonest company, they will-in turn-be associated with dishonesty. Other businesses may not want to deal with the supplier. It would be in there best interest to cut off any ties with the dishonest businesses.

Some companies, such as those involved with direct sales, require the employees to bend the truth about specific products and services. They are selling a high priced item and are trained to be persistent and force a customer to purchase a product. There is a high turnover rate in this type of sales because individuals claim this is too stressful of a job.

Some companies ignore safety standards. While the rest of the business is ethical in regards to honesty, an employee does not want to work at a place where his health and life is at risk.

A dishonest business will hurt the other businesses in the community. If the business is forced to close its doors, many people will be out of a job. Therefore, they will not have the money, even if they get an unemployment check, to purchase products at the other businesses. One dishonest business can cause other businesses-even the honest ones- to close its doors.

If you want your business to succeed, you must constantly practice honest and ethical techniques. Everybody including the customers, suppliers, investors, employees and the entire community want to deal with a business that they can trust in.