Customers lack trust in suppliers. Employees lack trust in leadership and even leaders are struggling as they are constantly having to push for higher profits which means cuts need to be made to retain margin.
What if we were to tell you that there is a way to increase profit by an estimated 10% by believing in the importance of trust and creativity? The positive theory of business ethics is to do the right thing and when doing that, you will also maximise long-term profit.
Today many businesses are not doing the right thing. It’s not their fault – it’s something that has been eroded over time and in such small ways that it’s hard to really see the change when in it.ÊThis is the decline in trust.
By focusing on their responsibility to maximise profit, leaders feel that to do anything else feels like a cheat to investors and stakeholders. It’s a really interesting argument because in a competitive world, there is very little wiggle room. With the strong focus on the bottom line, there is a decline of trust in business ethics.
Make no mistake this is an issue that will not go away as both customers and employees are wanting change.
A solution
Boards have rightly focused on the business model and where it’s going Ð pushing it to the nth degree which in turn has created this mistrust. As process and technology has enhanced certain systems, it has also removed the ability for one person to stand up and take responsibility.
Now someone must look at the long game and say, “Hold on, is this the right thing for our long term goals?” By adopting this stance, businesses can take responsibility for their ethics and look at the real picture Ð the customer and the employee. They must take personal responsibility and not blame the profit-focused system.
Why trust?
In most businesses, trust is something we want and something we seek out. We use our personal interactions to choose where we place our trust. We trust those who tell the truth when it’s easier to lie. We trust someone who keeps a promise, even when it’s easier to have gotten away with breaking it.
How and why?
- Higher productivity
- Stronger cultures
- Increased wellbeing
- Greater retention
- Real pride in the business
About the author
Ben V Butler writes for eHotelier’s sister print titleÊEP Business in Hospitality.ÊEP is working on a campaign that includes former sports player’s being brought into businesses, in many types of industries, to solve the issues on trust. These top performers possess brilliant leadership and communication abilities and therefore work effectively in bringing back the trust and creating and enhancing strong cultures. To find out more please contactÊBen.Butler@epmagazine.co.uk.
