Why Be Honest If HonestyDoesn’t Pay(AmarBhide and Howard H. Stevenson.)Harvard Business Review, Sep.-Oct. 1990<br />Presen...
The authors<br />Bet on Rational case for trust.<br />Honesty is the best policy<br />Is<br />Checked through extensive in...
RESULTS DISCUSSED……….<br />Trust through Retaliation and reputation.<br />VS<br />TREACHERY(Violation of faith and confide...
Cont……<br />E.F. Hutton<br />Exxon <br />Borland international<br />Professional sports- Basketball Coach and<br />athlete...
Protection by..<br />Ambiguity and complexity <br />As <br />Trust is a factor of<br />(i)Integrity<br />(ii)Native abilit...
BUT………<br />It would be gross exaggeration if we claim that<br />Honesty has no value.<br />Or<br />Treachery is never pun...
AS<br />Trustworthy behavior<br />Provides<br />Protection against <br />Loss of power<br />Invisible sniping<br />But the...
What  really matters……<br />Trust of suppliers <br />Don’t systematically screw.<br />Treat them right.<br />Keep the prom...
Cont…..<br />Trustworthiness has attained the status of<br />(i)Strategic focus.<br />(ii) Sustainable competitive advanta...
Roots ….of trustworthiness<br />Businesspeople value their reputation and not the nebulous financial gain.<br />Trustworth...
Conclusion <br />Tolerance for broken promises encourages risk taking and hence facilitates a dynamic entrepreneurial econ...
Thank you.<br />
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Why Be Honest If Honesty Doesn’T Pay

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Why Be Honest If Honesty Doesn’T Pay

  1. 1. Why Be Honest If HonestyDoesn’t Pay(AmarBhide and Howard H. Stevenson.)Harvard Business Review, Sep.-Oct. 1990<br />Presented by<br />Deepak A.<br />Pratush B.<br />Ranajee<br />PhD (2008-11) Batch-II<br />IIMT, Hyderabad<br />
  2. 2. The authors<br />Bet on Rational case for trust.<br />Honesty is the best policy<br />Is<br />Checked through extensive interviews <br />to support the theories <br />But <br />Evidence seemed weak.<br />
  3. 3. RESULTS DISCUSSED……….<br />Trust through Retaliation and reputation.<br />VS<br />TREACHERY(Violation of faith and confidence)<br />Can pay as there is no economic reason to tell the truth or<br />Keep ones word <br />And <br />Punishment is neither swift nor sure.<br />
  4. 4. Cont……<br />E.F. Hutton<br />Exxon <br />Borland international<br />Professional sports- Basketball Coach and<br />athletes.<br />Power-the ability to do others great harm or great good can induce amnesia<br />As <br />substitute for Trust.<br />
  5. 5. Protection by..<br />Ambiguity and complexity <br />As <br />Trust is a factor of<br />(i)Integrity<br />(ii)Native ability<br />(iii) Favorable external condition.<br />Determination of Whether and to what extent.<br />Forget and move on.<br />
  6. 6. BUT………<br />It would be gross exaggeration if we claim that<br />Honesty has no value.<br />Or<br />Treachery is never punished.<br />
  7. 7. AS<br />Trustworthy behavior<br />Provides<br />Protection against <br />Loss of power<br />Invisible sniping<br />But they are intangible and are responsible for believe in a business entity .All business has its ups and downs.<br />
  8. 8. What really matters……<br />Trust of suppliers <br />Don’t systematically screw.<br />Treat them right.<br />Keep the promises.<br />Don’t penalize for honest mistake.<br />Neither the benefits can be nor the financial losses of these measures.<br />Unknowns and unknowables.<br />
  9. 9. Cont…..<br />Trustworthiness has attained the status of<br />(i)Strategic focus.<br />(ii) Sustainable competitive advantage.<br />(iii)Long term economic value.<br />
  10. 10. Roots ….of trustworthiness<br />Businesspeople value their reputation and not the nebulous financial gain.<br />Trustworthiness cant be judged from outside so they are guided by inner voices, consciences.<br />Own sense of values.<br />Credibility as an individual.<br />
  11. 11. Conclusion <br />Tolerance for broken promises encourages risk taking and hence facilitates a dynamic entrepreneurial economy.<br />Only our individual wills and determination to do what is right, whether or not it is profitable, save us from choosing between chaos and stagnation.<br />
  12. 12. Thank you.<br />

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