Reputation and Integrity

There are distinct differences between reputation and integrity. Reputation is based on others' perception; integrity is the reality of the foundation we build on.

Our reputation is based on how others perceive our business. Our actions, customers, vendors, the public, media, and our own employees contribute to our reputation. Rumors, gossip, appearances, and performance impact how others view our business.

A business's reputation is its public image, visible and changing with the observer's viewpoint. Our reputation is our business character reflected in the eyes of others. A solid reputation attracts customers, vendors, and investors; it creates opportunities and accelerates growth. Reputations are fragile; however, one misstep and progress comes to a screeching halt. A business scandal can dismantle a reputation and halt future growth.

Once a reputation is damaged, it is difficult to rebuild. A reputation ruined is like the smell of smoke after a house fire. Even if the fire damage is repaired, the smell of smoke may linger long after. A reputation is what attracts customers to our business. Like a sturdy ship, a strong reputation can help weather a storm. The stronger our reputation is, the more likely we are to maintain our public image in the face of adversity.

Think of our reputation as a lovely home. Everyone can see it from the street; it looks inviting and safe, a warm place to live or visit. People passing by cannot see the foundation the house is built on. This is where integrity comes in.

Integrity is the unseen foundation our business is built on. This foundation should be unwavering. There are a few basic principles that compose the elements of integrity.

Ethics
Ethics is often interchanged with morals. Ethics can be considered the moral code we adhere to. Ethics is about decision-making. Will we do what is right or what is wrong? Is there a grey area? Most of us were taught right from wrong as children. Lessons like, "Treat others as we would like to be treated" can readily be applied to business practices. Each business will eventually establish its own code of ethics, whether or not it planned to create one at startup.

Honesty
Telling the truth is not difficult. Telling the truth every time gets harder. Being truthful in every business transaction should be the standard. Honesty builds trust, and trust is necessary for a business to grow.

Fairness
Treating everyone fairly and equitably allows for adjustments due to disparities. Equal and fair are not the same thing. Paying employees equal salaries when one does more than the other may be equal but is hardly fair. Establishing fair parameters for dealing with customers, vendors, and employees avoids the appearance of unjust standards.

Accountability
Taking responsibility for our own actions is crucial to building an integrity-based foundation for our business. If we make a mistake, we should be the ones to remedy it. Finding reasonable solutions to correct mistakes is a skill every business owner should possess.

Integrity is the moral compass of our business. It does not waver and is not subject to the view of the observer.

Reputation encompasses the external view of our business while integrity represents the internal core. A reputation is fragile and alluring; integrity is stable and emanates throughout a business.

Aligning our reputation with integrity builds trust among customers, vendors, partners, and employees, which in turn strengthens relationships and makes them more difficult to break. Trust drives success and builds loyalty. Trust and loyalty are key components in building a stable customer base and creating repeat sales. Trust and loyalty carry businesses through difficult markets and help create the goodwill every successful business relies on.

Maintaining the alignment between reputation and integrity requires consistency: a commitment to a public character that reflects a chosen internal ethical path. Reputation and integrity - one visible, one hidden - each formidable in its own right, but unstoppable when aligned.