NFIB

Why Maintaining Ethical Standards Can Help Your Business
06/ 07/ 2002

The longterm profitability of many small businesses is based on two key factors: establishing enduring relationships with a certain number of customers, and satisfying customers to such an extent that they encourage others to become customers as well.

These factors depend on numerous issues, perhaps the most important of which is maintaining ethical standards in all business relationships. Customers simply will not continue doing business with a company they do not trust--and they certainly will not recommend such a company to others. Based on this understanding, Workshop contributor Jeffrey Moses lists a number of points to follow to maintain ethical relationships with customers.

1. Stick to all time schedules and deadlines. After a deadline is missed, it's hard for a customer to feel that future deadlines will be met. This can influence future decisions regarding choice of suppliers.

2. Honor all financial arrangements. It's almost always better to stick to agreed-upon budgets, even when it means not making as much as expected on a project. The only exception is when a customer is involved in budget decisions throughout a project.

3. Don't pad billed hours when invoicing. Inevitably, customers discover or suspect that they're being billed more than they should be.

4. Maintain customers' confidential records and information. A customer's trust may be devastated if information they give to a supplier leaks out. In addition, the supplier could be liable for financial damages.

5. Don't recommend unnecessary products or services, particularly if they will add to your bottom line. To do so is clearly a conflict of interest. Not only does it violate a customer's trust, it may be the basis for legal action.

6. Don't work for competing companies at the same time, unless both know about it beforehand.

7. Never do anything that is illegal, even at a customer's request. When a customer asks for products or services that could be construed as illegal, it's usually best to discontinue the relationship.

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