Why Honesty Is the Best Policy in Business

Young smiling woman and group of happy people.

In the majority of businesses, it has become a common for a lot of leaders to keep their customers in the dark when there are problems. While they may see this as a beneficial way to keep their clients calm, it can also be seen by others as a “white lie” or “exaggeration of the truth”; which it most likely is. One of the primary reasons that business leaders tend to stretch the truth when it comes to their clients is because they are afraid that they may lose trust and confidence in their work. In the majority of cases, this isn’t true. Your clients would much rather have you be honest with them than feed them a line of excuses as to why you haven’t met their expectations. I have listed some of the top reasons why honesty is so important in developing and maintaining lasting business relationships.

  • Trust – When you are straightforward and honest with your customers, you will immediately notice that you are developing a relationship based on trust and respect. The majority of your clients will likely appreciate your honesty when it comes to their business. The trust that you establish at the onset of your business relationship will be used to create the foundation from which your relationship will continue to grow.
  • Reputation – Your existing clients have the potential to be one of the largest marketing tools you have. When your existing clients have positive experiences and results working with you, they are more likely to recommend your services or products to others. When one of your clients shares how satisfied they are with your service, it can go a long way in establishing a positive business reputation for you and your company.
  • Positive Feedback – When you present yourself and your company in an honest light, you will likely receive positive feedback from your clients. This type of feedback can then be used to improve your services and provide a higher level of service to your existing and new clients. Positive feedback is one of the most effective tools you can obtain to improve your level of service.
  • Understanding – If your business provides a service to your clients, and that service is late, your client may begin to question whether or not you are capable of meeting their needs. Rather than keeping your client in the dark, explain to the them the reason behind the delay and they will likely become less impatient and become more understanding of the current situation.
  • Positive Environment – When you work from a place of honesty, you are more likely to see that your employees are following your lead. They will become more honest with customers, and they will tend to be more honest with you as well. Honesty breeds honesty, if you want to be treated by others in an honest fashion, then you must lead in such a manner. The more honest you and your employees are, the higher the level of transparency you will have in your business.

When you conduct yourself and your business in a manner based on honesty, you will earn the respect, dedication, and repeat business from your clients. Throughout the day you are presented with many opportunities in which you can choose to be honest or tell a “white lie” to satisfy a client. You will likely discover that honesty is always the best choice. Once you begin to depend on “white lies” or “stretching the truth” you may find that it is more difficult to keep track of what you told a client and how to respond to their next inquiry.

As a rule, you should always remember that you should treat your clients in the same manner in which you would like to be treated. If you would not like to given the runaround when you ask someone you’re doing business with where your products are, then you probably shouldn’t treat your clients in the same way. Honesty is much more appreciated in business than anything else. It has the potential to expand your business, increase your positive reputation in the community, and help you create a positive brand image.

If you value your clients, and your business reputation, then you should only work from a place of honesty. Once you have lost the trust of your clients, it may be impossible to salvage that relationship. To avoid damaging positive and profitable relationships, always be honest and upfront whenever there is a problem related to the needs of your clients, they will thank you, and you will be rewarded with a positive business reputation.