How important is honesty in business?
It can be tempting to hide problems or gloss over them.
In fact, according to a study conducted by University of Massachusetts psychologist Robert S. Feldman, 60 percent of adults can’t get through a 10-minute conversation without lying.
ResumeLab surveyed 1000+ Americans to find out who lies on a resume. Thirty-six percent of respondents openly admitted to lying, and 93 percent knew someone who lied on their resume.
When we talk about honesty in business, it’s about what you stand for. But with so many lies, a constant barrage of fake news, and misleading advertising, you might wonder why it’s even necessary to tell the truth.
Honesty in business: why it is the best policy
Companies that are honest with their customers, employees, and partners will be much more likely to be successful in the long run — and not just because it’s the right thing to do.
Predictability
Predictability is what makes customers feel comfortable doing business with you. It shows them that they can rely on your product, service, and company as a whole. They know what to expect and that you won’t let them down.
Showing respect
Being honest isn’t always easy. It requires taking risks and sometimes saying things that might make you uncomfortable — but in the end, it pays off. Being honest means showing your customers that you respect them, which is essential for building lasting relationships.
Becoming a trusted partner
Businesses get entangled in lies just to make a quick buck or cover up some mistake they’ve made. As a result, their reputation is tarnished forever. And what’s the point of doing business if your reputation goes down the drain?
Fostering understanding
People avoid saying no because they fear confrontation, but the alternative is even worse. You procrastinate, make excuses, and work on ideas you don’t believe in. If you cannot accommodate a request, be polite and explain why. When you take the time to explain your point of view, people are often surprisingly understanding.
Overpromising and underdelivering
Don’t waste time spending all your energy on getting people excited about what you have to offer only to disappoint them later on.
Strengthening relationships
When you act with integrity, it builds loyalty with your customers and makes them want to do business with you again and again. There’s a lot of talk about honesty in business these days. Because at the end of the day, people want a company they can trust. And they’ll pay more for that kind of relationship because it makes them feel safe.
Eliminating cross-functional rivalries
The rivalry between departments, teams, and individuals is a common problem in many organizations. To avoid such problems, it’s crucial to ensure everyone understands how their work fits into the overall strategy. When people understand the big picture, they can focus more on working together to achieve results than competing against each other for resources or recognition.
Gaining respect from your team
Your team will have more respect for you if you’re honest in your business dealings. Set the standard you want your team to follow so they’ll feel like they’re on solid ground. Honesty in business is beneficial for everyone involved.
Creating a positive work environment
Honesty is something you need to instill in your employees from day one. Honesty fosters an environment that encourages open communication, which is essential for building strong relationships.
Bad press
One negative story can turn into a full-blown scandal in no time. That’s when things get ugly fast. If you don’t want to see your company in the news for all the wrong reasons, make sure your company’s reputation is built on sound principles.
Word travels fast
Word of mouth has long been considered one of the most effective marketing tools. The truth is, businesses can only thrive if people feel like their word can be trusted and that the company will deliver on its promises.
Some things are worth more than money
Some things are worth more than money; honesty is one of them. Lying can cost you more than just a deal: trust and loyalty are built on honesty, and those things take time to create — but they can be lost overnight.
You might get away with it, but only once
You may get away with a lie the first time you tell one. People will often give you the benefit of the doubt and assume that they misunderstood or that there was some extenuating circumstance. But if someone catches you in a lie and calls you out on it — even if they’re wrong — it can damage your credibility so much that no one will ever trust you again.
What is a lie?
Lies can be divided into three categories: lies of commission, lies of omission, and unintentional lies.
Lies of commission include outright lies, fabrications, and exaggerations. For example, exaggerating numbers, lying about technical abilities, claiming language fluency, etc.
Lies of omission include not telling the complete truth. This is when you answer a question with just part of it or leave something out altogether. You can even say nothing while still lying by omission if you fail to correct their false impression.
Unintentional lies are a result of a gap between reality and perception. For example, the owner of a startup submits a report to investors, indicating that 200 thousand people are registered in the service. But when he looks closer at the data, he realizes that 75 thousand of them are bots and fake accounts that will not bring business anything but problems.
When discussing honesty in business, we often think of the big scandals and frauds. But what about the smaller aspects of honesty?
It’s easy to focus on the big picture and lose sight of the little things. Pressures of competition, financial concerns, and other issues may make you feel like lying is the only way to make things work out. But if you want your company to have a good reputation, you have to be honest — no matter how insignificant it seems.
Final thoughts
In short: nobody likes being duped.
Honesty is the best policy and is not just a catchy phrase. Without it, you can’t build trust with your customers, employees, and partners.
What are your thoughts on the role of honesty in business?