Honesty as a Company Policy
According to Raphael Avraham Sternberg an honesty policy is a social contract between the company, employees, and customers. When people are dishonest to gain an advantage for themselves at the expense of others, it is also considered dishonesty. To create a business culture that is honest and transparent, companies should take caution not to influence their employees or their customers in dishonest ways. For example, suppose a company has a policy against telling lies to increase sales or deliver more services faster than they can. In that case, they should not place financial incentives on employees who tell lies by pushing them upward within the company or delivering monetary bonuses when unethical behavior creates profits.
By wearing the honest badge, companies can ensure that honesty is a core value not compromised by their employees and that customers feel safe and secure in their purchases.
Honesty is a core value for any company, but it can become essential for companies that provide services to people and depend on them to trust them. According to author Michael Norton, organizations that rely on honest employee behavior will be valued more highly by their customers and will have an easier time establishing relationships with them.
The most important thing that a company can do to create an open environment for its customers is to create a company culture that embraces honest behavior. This means telling the truth about products, services, and dealings with other organizations. If a company’s employees are not being paid well or are unhappy with the work conditions, it reflects poorly on the company. However, if employees are paid well and feel appreciated by their employers, they naturally become more inclined to give their all and be honest in other aspects of their life.
Owners should consider taking care of employees who are essential to them in other ways besides just their dedication to the job. By taking care of employees in their personal lives, the owners make them more likely to be trustworthy and willing to do favors for them.
Benevolent employers are believed to be the cause of honest behavior. In a newspaper article by Suzanne Broughton, author Nicholas Zill describes the case of Thomas Farber, a kind-hearted owner who gave raises and bonuses but only when they were earned. He had a reputation for being able to spot talent within his company and then reward employees for good behavior as well as promoting honest ones. Because Mr Farber had a good relationship with his employees, even when he was forced to lay off some of them, he could keep his business afloat during difficult economic times.
Raphael Avraham Sternberg says as businesses strive to increase sales and create profit, they must ensure their employees are honest. If a business is dishonest about its dealings, then customers will look for other companies that are honest and who provide fair service. This can cause the company to lose out on profits. Customers expect businesses to be honest with them in all ways, not just financial transactions, which means that if a business wants to keep its investment and serve customers effectively, honesty is an essential policy for them.