Integrity | A Business Essential

I’m amazed at the number of companies I hear about who have caused customers, employees, and suppliers immense financial pain because of a lack of integrity. Think about the housing bubble and the financial fiasco creating with the collapse of the sub-prime housing market and the bundled loans. What about the Madoff Ponzi scheme? How many people were hurt there?

Trustworthy and Dependability

In the posting Talk to Your Vendors we looked briefly at the advantage of being honest with vendors and keeping them informed of your company’s financial condition as much as necessary. The bottom line was that these practices served to build your reputation as being trustworthy and dependable.

Other Areas

It is not just vendors where integrity is a business essential. When you are dealing with customers, never, ever lie to them. If you will be late shipping or are out of stock and know it, communicate this to them. The same goes for communicating with employees. Obviously some things are confidential, but hiding things they need to and should know is a surefire way to lose their trust and confidence. I’ve been in a situation where a company owner was withholding important information employees needed and even outright lying to them. Suffice it to say, they developed a deep distrust for him. Sometime after I left the company his employees managed to take advantage of his dishonesty and buy the main portion of his business for what I understand was a bargain price. If only he had been honest and upfront he could have been a part of the success they later experienced.

Your Company

As a business owner or member if management, are you making sure that integrity is practiced, knowing that it is a business essential? I believe it should be one of your core values.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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