If there is one single quality that every business should seek in its employees, colleagues, vendors and even customers, it is honesty. But not only should businesses want to see that quality in its people, honesty should also be the bedrock principle upon which all organizations function. Indeed, Harvey S. Firestone, inventor and founder of the Firestone Tire and Rubber Company, one of the first global makers of automobile tires, said “I believe fundamental honesty is the keystone of business.” Likewise, Ed MacMahon, the late singer, comedian, program host and announcer, once said “Honesty is the single most important factor having a direct bearing on the final success of an individual, corporation, or product.” General wisdom dictates that honesty is one of the most important qualities that a person or company can demonstrate.
Yet, it may seem that honesty is becoming something of a scarce commodity in today’s business world. At ostensibly every turn, there are examples of “the end justifies the means” behavior in corporate America. Job applicants exaggerate on resumes with the goal of landing a job. Quarterly reports overstate projected earnings to elevate stock values. Business owners overstate their pro formas to get the highest valuation possible from investors. Real estate owners overstate a property’s value in order to negotiate the highest price in a deal. Customer service representatives cover up mistakes for fear of losing clients. Is dishonesty on the rise? Has honesty and integrity all but disappeared in business?
Honesty IS the best policy.
Most people know that being honest means choosing not to lie, steal, cheat, or deceive in any way. And most people believe that, in being honest, they build strength of character, gain peace of mind and attain self-respect. Being honest also enhances future opportunities. In turn, it is widely understood that being dishonest is harmful. It damages not only self worth but also relationships with others. Closely associated with honesty is integrity. Integrity constitutes thinking and doing what is right at all times, regardless of the consequences. People with integrity are willing to live by set standards even when no one is watching.
If honesty is so beneficial and dishonesty so harmful, why would anyone choose to be dishonest? And yet, people do. In fact, entire countries have been found to be more prone to dishonesty than others. Indeed, sociologists have been studying honesty and the cultural and behavioral roots of economic development as it relates to honesty. Dr. David Hugh-Jones, of UEA’s School of Economics, conducted two experiments looking at how honest people were in different countries. He found evidence for dishonesty in all the countries, but levels varied significantly across them. People in some countries tended to be much more honest than people in other countries, and the degree of honesty of countries was related to their economic growth. Poor countries were less honest than rich ones. The U.S., for example, ranked in the top 10 most honest countries in both experiments. One way to interpret those findings is that economic prosperity either causes or allows people to be more honest. Or, one could argue the reverse; that economic hardship might either cause or lead to greater dishonesty. But, if the adage is to be believed, the data might simply reflect the fact that honesty is the best policy.
However, recent research on the honesty of people in the U.S. revealed other interesting information. Extensive studies done by Dan Ariely, a professor of psychology and behavioral economics at Duke University, looked at how honest people are. In his book, The (Honest) Truth About Dishonesty: How We Lie To Everyone — Especially Ourselves, Arielly explained how in experiments with some 30,000 people, he found that very few people lie a lot, but almost everyone lies a little. He also found that people want to view themselves as honest, wonderful people. When they lie or cheat, as long as it is just a little bit, they can still view themselves as good people. However, once they start lying or cheating too much, then they can’t view themselves as good people and therefore stop.
This need to view themselves as “good people” may explain why – when tested — most people are basically honest and the honor system is still alive and well. Case in point. For the past six years, the Honest Tea company – the Maryland-based company generating annual sales of $159 million at their 100,000 stores — have traveled around the U.S. setting up unmanned “Honesty Boxes”. People are asked to leave a dollar for every bottle of tea they take. The unscientific social experiment has yielded results that reflect that most people are honest. On average, 94% of the people who took a bottle of tea have paid up in full.
The Honest Tea company is not the only business that has tried conducting commerce on the honor system. Candlewood Suites hotels feature self-service cupboards where guests are invited to jot down what they take on a slip of paper. The idea is not meant to generate revenue, but rather make their customers feel like they are ‘at home.’ Still while some guests have not been entirely honest in their tally, others rounded up their tally because they lacked exact change. In the end, it balances out for the chain.
In fact, honor system marketing, which may seem like something from a by-gone era, seems to be making a come-back. Or so said Jeff Mcpherson in his 2011 book titled “Honor System Marketing.” In his book, Mcpherson draws on years of personal experience and interviews with dozens of fellow farmers, business owners and customers, to show how businesses can make the honor system work to their advantage and details how to avoid common pitfalls, manage finances, and maintain a sense of optimism.
Being Honest about Honesty
So the question remains, is honesty on the rise or decline in business? Perhaps it is harder to find but also more valuable to have. Being honest requires courage because it requires a person to be both vulnerable and accountable. And to avoid stepping on the feelings of others with honesty also requires tact. Clearly, being truly honest involves more than just telling the truth in every situation. It is also about doing the right thing. For that reason, honesty and integrity are in greater demand but also harder to find.
Ultimately, businesses should seek to hire and work with people who are honest and have integrity. The two go hand in hand, like two-sides of the same coin. These are arguably the most important qualities any person can bring to work or business. Indeed, Billionaire investment and business guru Warren Buffet, Chairman and CEO of Berkshire Hathaway, said it best, “In looking for people to hire, look for three qualities: integrity, intelligence, and energy. And if they don’t have the first one, the other two will kill you.”
Quote of the Week
“Honesty and integrity are always rewarded.” Scott Hamilton
© 2016, Keren Peters-Atkinson. All rights reserved.
