NFIB

Business Ethics, the Foundation of Customer Relations
10/ 17/ 2003


There is an old saying: "A customer doesn't have to like his banker, but he has to trust him." There's an element of truth in that for every business. Customers simply will not continue purchasing products or services from businesses they don't trust. Customers will, however, go out of their way to purchase from businesses that have high ethical standards. For this reason, every business should establish an unshakable level of confidence in its customers, simply by maintaining high levels of integrity, honesty and forthrightness in all its dealings. In today's Workshop, Jeffrey Moses discusses this basic foundation for all customer relations.

Most of the time, the incentive to maintain ethical behavior within a company comes down from the top. When owners and managers are committed to honesty in all dealings with customers, employees throughout the company are encouraged to do the same. In fact, it can be of great benefit for a company when ownership openly encourages honesty in all employees. This commitment can be communicated to employees at the time of hiring and initial training.

The opportunity for unethical behavior is present at almost every level of a company, including, among many others:

1. The manufacturing process -- for instance, cutting corners on quality without informing customers.

2. Sales and quotes -- misleading customers about product features, or deliberately underbidding then adding costs as the job proceeds.

3. Distribution -- changing orders without informing customers.

4. Customer service -- not following through with guarantees.

When customers are dissatisfied with a company's service, they not only cease doing business with the company, but speak to others about their dissatisfaction. These people, in turn, also stop doing business with the company, and inevitably pass the word on to others. This negative word-of-mouth snowballs and can quickly bury a small company's sales efforts. By the same token, customers who receive fair and ethical service go out of their way to do more business with the company and recommend the company to others. For this reason, integrity and honesty are important to the long-term growth of a business.

Always make it easy for your employees to act ethically. Set an example. Encourage them and support their ethical decisions and activities. When choices come up in day-to-day dealings with customers, always choose honesty, even if it means making a little less money on the transaction. This honesty will pay off in the long run.

Along the same lines, make it easy for employees to report to you whenever they are aware of unethical dealings within the company. Let employees know that reporting such behavior is for the good of the company and will never affect them personally in a negative way.

Several points on your ethical to-do list: Avoid making commitments you can't keep. Always inform customers of changes in pricing, availability and delivery schedules. Think of each separate transaction as leading to future dealings with the same customer and his or her associates. This will help keep your focus on the larger picture, which is always strengthened by ethical activities.

For more information, simply type "business ethics" in your favorite search engine to learn more about business . The following sites are among the best you will find.

1. International Business Ethics Institute

2. DePaul University Institute for Business and Professional Ethics

3. Ethics Information Center

4. Center for Ethics and Business

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