Should businesses be honest with their clients?

Most business brands will agree that businesses should be honest with their customers. Should businesses be honest with their customers every time? Many will murmur or plainly disagree because they harbour certain reservations about absolute honesty in business. Some business owners believe occasional dishonesty is actually inevitable in business and is, in fact, beneficial to the overall success of the business. Their stance on being honest in business and the effect of calculated dishonesty is fueled by certain misconceptions.

These misconceptions include;

• Honesty regarding products or service provision problems presents the glitches and admitted mistakes as signs of weakness or incompetence. Customers may prefer to opt for seemingly perfect competitor brands. This is however not true and this misconception will be proven false when discussing the importance of being honest in business.

• The effects of dishonesty in business are merely exaggerated and borne out of extreme moral principles. This is also false as there are numerous examples of business collapse due to single acts of dishonesty in business. An example of such business includes Naked Juice, a US fruit company that claims all products are non-GMOs (Genetically Modified Organisms). The company's product was found to contain soy from GMOs and the consequent lawsuit costs the company $9m. A more popular example is a sort of Snapchat desensitization that followed the public knowledge of easy picture-saving which the company claimed was impossible.

Dishonesty in business (why businesses lie)

• Greed: Some companies lie to boost sales, revenue or income. This can be through outright falsification of information or concealing information. The latter happens often in the entertainment industry where Record and management labels can conceal important and determinant terms of artists' contracts with the aim of increasing their profits and keeping them as cash cows.

• Many businesses lie /would lie in situations of possible image ridicule. They cover shortcomings and bury their misdeeds. This behaviour extends to professional workers and may be observed amongst medical workers, professional bodies and so on.

• Vulnerability. Companies show dishonesty in business to prevent being/feeling vulnerable to competitors and customers.

Importance of honesty in business

Honesty in business helps to build trust and credibility with clients. This trust is necessary for a smooth and continual relationship with customers. Trust increases the possibility of word-of-mouth advertisement by customers.

Honesty breeds understanding between businesses and clients. This is better than the assumption of poor service or products by customers when there's no honest communication. Being honest in business help to connect with clients and understand what matters to them regarding their happiness and satisfaction with the product or service being offered.

Being honest in business often warrant honesty in return from customers in their dealings with the business. This encourages their loyalty. Most importantly, bring honest in business prevents the horrible effects of dishonesty in business.

Effects of dishonesty in business

Dishonesty puts the business in a difficult situation. The reputation of the business is basically a disaster waiting to happen. Little dishonesty in business begets bigger dishonesty. The business will practically struggle to keep up and save face through more lies to cover up previous lies. The whole cycle of dishonesty in business gets more complex and exhausting in the long run.