Trust in Business Is a Means for Greater Business Efficiency

All businesses strive to be effective and efficient. Whilst the hallmark of a capitalist economy is self-interest and competition, cooperation is also necessary in order to further efficiency and productivity. For a business to be successful, the people within need to develop relationships amongst each other as well as outside the organization in order to be able to work with one another. These relationships are a function of trust. Trust is the reliance on the integrity, ability, or character of a person or thing. Therefore building trust is a vital step towards maintaining and promoting business efficiency. However, in terms of business ethics, the sole purpose of the use of trust is to promote business efficiency. Customers and the†¦show more content†¦While loyalty is not easily quantifiable, and thus does not show up in a corporate ledger, it will affect the company’s overall performance.† Because trust is a vital part of loyalty, it follows that creating trust amongst employees by treating them respectfully is likely to result in improved company performance and efficiency. This once again provides a quantifiable measure for trust in a capitalist economy. Trust is also dependent upon not lying. Companies that lie about their product are in essence diminishing the trust established among their customers and the community. This can be anything from providing misleading information about their products in advertisements or stating obvious falsehoods . For example, an obvious falsehood would be a deodorant company that claims that the user of the product is likely to attract women as a result of the product itself. Lying is always wrong because it undermines the trust that makes telling the truth useful. If no one could be ‘trusted’, and everyone lied about what they did, the business world would fall apart quickly as a business could not be assured of any one else’s services. A business would not be able to do something as simple as take a loan out of a bank to afford its various activities. This is because banks would not trusting a business to repay the loan as in a capitalist economy paying back a loan would not be in a business’ self interest. Thus in such an environment, all of business comes to aShow MoreRelatedEssay Trust In Business Is A Means For Greater Business Efficiency1860 Words   |  8 Pagesorder to further efficiency and productivity. For a business to be successful, the people within need to develop relationships amongst each other as well as outside the organization in order to be able to work with one another. These relationships are a function of trust. 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