Do you think trust is needed in a business? Or does dishonesty in business pay? If you ask me, my answer would be yes, no, maybe and sometimes! There are several examples of dishonesty, fraud, deception, and thievery on in this business world. Is it a threat for your business? Are you thinking who can you trust?

Enforcing corporate honesty

The Sabanes-Oxley Act (2002) was enacted following the Enron scandal, which strengthens reporting requirements and directs corporate oversight and internal controls. But can external requirements work when the rewards for a little corruption can be so astonishing? The answer would be no. Corporate scandals continue unabated. There is always a "risk-reward" equation in operation that seems to favour taking chances. Every time, ethics and honesty lose out when confronted with the possibility of huge financial rewards, the profitability demands of shareholders, and the relatively small chance of legal recourse.

The consequences of dishonesty

The consequences of dishonesty can be severe. Apart from the jail terms, personal disgrace and business failure, the taint of the entire business community and the distrust of even reputable businesses will kill the person inside.
Other consequences include, commerce can grind to a halt, liquidity shrivels, and financing may be practically unattainable. And consumers may curtail their spending, investments as well as purchases. Moreover, promises, guarantees, and contracts will be under suspicion, or of limited meaning.