Posts Tagged ‘trust’

Integrity in Business

Wednesday, April 2nd, 2008

Honesty is the only way to get aheadand stay therein the business world. This sounds like common sense, but it’s surprising how many people don’t understand it, from the juniormost employee to the Chief Executive Officer.

Developing a reputation for being an honest and trustful person is the most valuable asset you have. Without it, all the intelligence or assets you have are meaningless. Contracts, for example, are based on trust. While a written contract should includes protections against disagreements between the parties, few will sign a contract if they expect to end up in litigation because of a a trust issue.

Here’s a situation I know of where trust became a major issue in a mid-sized company. After a merger, the CEO wanted to cut costs. He told an executive to reduce a manager’s pay by 20%. The manager, a popular and effective employee, was in a bind for personal reasons, so she reluctantly accepted the pay reduction. When the CEO heard that the pay reduction was accepted, he told the executive to fire the manager.

Getting rid of the manager had been the CEO’s goal, but the way he did it was dishonest. When word of this incident traveled through the company, it unnerved people. Some of them were shocked at what had happened. The CEO’s action’s didn’t just affect the one individual, it lowered morale among many other employees. Within a couple of months, several key executives and managers left.

The CEO achieved the result he wanted, which was to terminate the manager, but at a great cost to the company. He could have achieved the same result, but if he handled the situation in an honest manner, the effect on others would’ve been greatly diminished.

Trust can be the hardest thing to build, but it’s so easy to lose.