Management
Why Every Company Should Take Ethics Seriously
By Dan Chenoweth, MBA/CPA
Apr 2, 2006 - 10:03:00 AM

For the first time in human history supply exceeds demand in virtually all consumer products. We can obtain a wide variety of goods and services from all over the world at prices far cheaper than was possible just a few years ago. The consumer is definitely in the driver's seat! And this makes it even more difficult for companies to compete and differentiate themselves.

When a company develops an innovative product or service idea, other companies can quickly duplicate it. This is because instant telecommunications, computers and the Internet allow all of us to learn quickly what others are doing. In addition, production and delivery processes can also be easily replicated because every company has access to the same improvement techniques and must improve quickly to be successful. The end result is more and more products and services are becoming commodities. And, in a 'commoditized' world, what a company delivers becomes less important than how they deliver it. The differentiating factor appears to be customer service.

How important is customer service to an organization's success? Survival in this dog-eat-dog world depends on it. Customer service can be both a differentiating factor and a competitive advantage. Excellent customer service involves setting expectations and delivering on those expectations consistently, while being truthful and honest in dealing with the customer. Plainly and simply, the best customer service in any business depends on ethical behavior. Over time, by delivering superb customer service, you will build an impeccable reputation. And in today's competitive world, if you don't have an impeccable reputation, you're dead!

How long does it take to create an impeccable reputation? It can take a long time and it is an ever-evolving process. How long does it take to ruin an impeccable reputation? Weeks or months. You are only as good as your last transaction with your customer. And if customers are suddenly unhappy with your product or service, two things are likely to happen: one, they will stop buying from you; and, two, they will begin spreading negative word-of-mouth.

How can your company build an impeccable reputation? Be ethical! Your key stakeholders must view your company as being trustworthy and a credible resource. They must perceive that when you say you will do something, you actually do it! This requires open communication, collaboration and teaming internally with your employees and between your company and outside stakeholders, such as contractors, suppliers, and other business partners. And if you always do what you say you will do, others will view you as predictable and consistent.

In a high-speed world, fickle customers have many choices and little brand loyalty; if they have a bad experience they simply stop buying what you're selling, and before you know it, you are out of business. The bottom line is that success depends on outstanding product / service delivery capability combined with excellent customer service, which, over time, creates an impeccable reputation. The key to all of that is ethical behavior which is why every company should take ethics seriously.

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