Why you should always tell the truth in business: The importance of trust in business relationships

Trust is the foundation of any relationship. However, this does not stop us from telling the occasional white lie. According to a Raja Group study, 69% of employees have lied at work. 47% say they lie up to five times a day. According to data from the Office of National Statistics, (2) there are an estimated 22,000,000 UK workers who lie to their colleagues and clients. Why do people lie, though? The reasons for lying can be varied, but the most common reason is to avoid punishment. Other reasons include protecting yourself or others or impressing those around you. Helen Steel, a Berkshire based consultant who specialises in SME growth and funding strategies, understands the importance of being truthful. Helen Steel explains how the truth can be beneficial to an organization and why it is important not to fall into the habit or telling white lies.


My professor, when I first started my career, was studying an MSc degree in Microbial Genetics in South Africa at the University of the Witwatersrand. He gave me some advice that has stayed with me ever since. He said: “Always be honest with someone, so they can change things if necessary. You can’t work with them if you lie. You may have been angry with them for initially telling the truth but you’ve shown respect by telling the true.”

The comment of my professor resonated with when I was settling into a part-time job as a newspaper deliverer. After being hired as a Sunday Girl, I learned the business. Then, I increased my hours. I jumped on the opportunity to buy the company when it arose. The company was clearly run badly and I had to deal with angry customers demanding answers. These individuals became my biggest supporters after I handled the situation honestly.



The “Meet, Know, Trust, and Like” principle

Honesty in business is not just a moral choice, but a strategic imperative. The network of a company grows as the business does. It’s important that your peers view you and your organization as trustworthy. Bob Burg, author of Endless Referrals said that “When all things are equal, people do business and refer to those they trust, know and like.”


Meet: First impressions

First impressions last a long time. Presenting yourself as you are can create real connections. This includes your physical appearance, verbal and nonverbal communication. People tend to hold on to first impressions for several months (3). Even when confronted with contradictory evidence, it is difficult to convince people of a different opinion. It is therefore important to establish truthful foundations. In grant applications, dishonest clients are often found out. It is crucial to avoid wasting time by avoiding the truth.

It is easy to adopt a new persona in a workplace. It is common to see this in positions of leadership or when working alongside colleagues. Staying authentic is key to avoiding this trap. Harvard Business Review found that 72% are genuine at work. Many people said it took them two to three weeks to feel comfortable.


Know the truth about yourself

People prefer to do business with people they can relate to. People invest their time and energy in people who they believe are honest, regardless of whether it is about financial figures or personal judgments on a presentaion. Transparency, admitting errors, giving accurate information, and apologising if necessary are all ways to achieve truth.

When I took over the newspaper delivery service at 19 years old, I found angry customers who were unhappy with the service provided by the previous owner. They wanted to know what I was going to do differently. I promised to always be honest with them and tell them the truth about what happened, how I resolved it and deliver their product again. I apologized for the mistakes made by my team and provided exceptional customer service. Over time, angry customers turned into loyal fans.


Like Integrity is magnetic

It takes courage to speak the truth. Integrity is what draws people to you, even though it may not be comfortable at first. Stephen Covey, an American author and educator, said that trust is the glue for life. It is the key ingredient to effective communication. “It’s the fundamental principle that underpins all relationships.

The English Dictionary defines integrity as “the quality to be honest and have strong moral principles”. You must have the courage to act on what you believe is right regardless of whether or not others will see it. It takes years to build a reputation for integrity, but only seconds to destroy it.


Trust is the foundation of lasting business relationships

Over time, trust can be developed through honest and consistent actions. Zig Ziglar, a famous author, believes that “if people trust you, then they will do business with them.” Authenticity and reliability can help build a lasting relationship with clients. This can increase customer loyalty.


Honesty does not mean brutal bluntness

It is also important to be empathetic when we talk about honesty and to discern the unspoken message to understand the situation. To convey a message more effectively, it is better to tone down the bluntness.

Often I have to give honest feedback when businesses are looking for grant funds. It is the hard truth that not all businesses are grant-worthy. While this is a message that no entrepreneur would like to hear, I must tell them this in order to save time, frustration, and money.


Reputation

Honesty is a great way to differentiate a company from its competitors and establish a positive image. I won a lucrative re-compete contract in the corporate sector by being honest with prior delivery issues.

Truth can help an organization internally. The workforce could be more motivated and engaged, increasing productivity and innovation. Businesses that place a high priority on honesty are better equipped to adapt and weather economic downturns.


References

  • How Often Do We Lie at Work?

  • https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/businessregisterandemploymentsurveybresprovisionalresults/provisionalresults2022revisedresults2021#:~:text=Main%20points,increased%20by%2021%2C700%20(0.4%25).
  • https://journals.sagepub.com/doi/abs/10.1177/1948550616662123
  • https://www.psychologytoday.com/gb/basics/first-impressions
  • https://hbr.org/2016/05/most-employees-feel-authentic-at-work-but-it-can-take-a-while

The first time this post appeared was on Human Resources News.

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