The Business Value of Integrity September 12, 2011Posted by David Dirks in Management.
Tags: business strategy, David Dirks, differentiation, dirks on strategy, increasing profits
You can have the best business model in the world but if it isn’t backed with impeccable integrity, it’s a business model that isn’t worth much. The common dictionary definition of integrity is “the quality of being honest and having strong moral principles.” One thing I know is that there is no strategy for having integrity. You either have it or you don’t. Integrity is learned at a very early age and by the time we’re teenagers, we either have it or we don’t.
The business value of integrity is worth far more than gold. Integrity in business has another name and a distinct, definable value: goodwill. Goodwill is defined as “the established reputation of a business regarded as a quantifiable asset.” So, if you have a business that is engineered on a great business model that rest on a solid foundation of integrity, you win two ways. Your first reward is a business that is growing and profitable. Your second reward is a business that is worth far more than what your accountant would call “fair market value”.
What I personally like about integrity and the resulting goodwill that it produces over time is that there is no ‘formula’ for it. There’s no ” 5 Steps to Integrity” or some other swill. You either possess it now or you don’t. That’s refreshing.