The Blog

The Importance of Integrity & Reputation

Whether it’s in a business relationship, a friendship, or a marriage – the importance of integrity can not be emphasized enough. I have been forced to think about this topic quite a bit over the last few weeks – due to a friendship that at this point, looks as though it has unfortunately, and catastrophically, ended.

Without identifying the friend, nor their situation, I’ve found myself stuck in a situation that has forced me to re-evaluate the importance of staying true to one’s own values. The problem is, I see my friend making a multitude of errors in their life that has hurt many people. They have sacrificed quite a bit over the last few weeks due to this – and yet, they continue to follow a path that from my experience, will not dig them out of the hole they’ve created for themselves.

One of those sacrifices has been their integrity. The person I thought I’d known for the last few years – now, I hardly recognize. When all of this started, I promised them that as a friend, I would not tell them what they wanted to hear – but what they needed to hear. And, they said they would not want things any other way. So, about 10 days ago, I had to do one of the hardest things I’ve ever done. I had to bring to their attention, the fact that I know the reasons behind their recent choices. And, I didn’t do this in a judgmental way. Rather, I was trying to show them how their current path could lead to more problems.

The problem is compounded by the fact that this person has been one of my best friends. They feel horribly guilty over the pain they have caused others. And, since my warning to “be careful”, they have ended all contact with me. Yet, I have no regrets over trying to warn them – since, it would be a violation of my own sense of integrity, as well as a violation of the promises I’d made to them as a friend, if I hadn’t brought this to their attention.

The tough thing about living a life of integrity – is it’s not an easy path. Whether it’s a friend, a spouse, a business associate, or a customer – taking the path of least resistance may seem at the time to be the best approach. It avoids confrontation at the moment. It allows you to avoid the pain and discomfort of having to face someone that is offended. And, there’s always the excuse that “I can just avoid this now and deal with this later”.

Unfortunately, unless dealt with immediately, the longer you go without dealing with the issue, gives the person that you’ve offended that much more time to question your integrity. And may damage the relationship to the point that you loose that customer permanently. Or the spouse. Or business associate. Or…as in this case…possibly a friend.

Reputation research has verified what you were taught as a kid –  reputations are hard to earn and easy to damage. We filter the behavior we experience through the lens of its reputation. Behavior consistent with the reputation is accepted at face value while events inconsistent with the reputation are discounted.  And, once a reputation begins to move in a positive or negative direction, its momentum is extremely difficult to reverse.

From a business perspective, studies have shown that even a small positive increase in a company’s reputation results in a significant increase in business value, while a negative drop in reputation results in a decrease in business value. For example, a +1% improvement in the reputation of a company is accompanied by significant increases in that company’s value. Unanticipated, however were the strength of the impacts of negative changes in company reputation. A minor decrease in reputation (-1%) has 34 times the impact than an equally minor increase in reputation (+1%)!

Looking at the current economic crisis is a perfect example. A strong positive business reputation attracts customers, investors and employees. This has great benefits for a company because it will book more business, have an easier time raising money and recruiting employees. One of the great gains of a positive reputation is the loyalty it generates in customers and employees. Loyalty will cause customers and employees to stick with a company through tough times. A good reputation also makes a customer more likely to give a company the “benefit of the doubt”. This will make a customer more likely to tolerate a huge mistake and to not resort to the courts to settle a dispute. And, may give that company a competitive advantage over other, less reputable companies

It’s also important that when we end up in a situation where our trust is broken, that we let our own sense of integrity derive the path we should take with that person, company, or organization. Many times, there may be underlying reasons that were out of their control that caused the fault to occur. So, giving them “the benefit of the doubt” is never a bad thing. But at the same time – once should never compromise their own integrity in that process. To do so – may cause others around you to question your integrity just like you’re questioning the integrity of the  person or company that broke your trust.

How do you know if you’re a person of integrity? Simple. There is a wonderful quote from Thomas B. Macaulay. “The measure of a man’s real character is what he would do if he knew he would never be found out”. As well as another one from Martin Luther King Jr. – “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy”. And, finally, one from Thomas Jefferson – “In matters of style, swim with the current. In matters of principle, stand like a rock”.

PS. In the event that my friend reads this (which is doubtful) – I would hope they would call me – as a matter of principle, I don’t abandon my friends – especially when I know they are feeling bad. ☺

Why PayPal SUCKS!!

I realize there are a huge number of people out there, that are looking to do nothing more than separate you from your money – and give you nothing in return. What really irritates me – is when companies that talk about how they are out to protect you – allow you to get screwed!

My example – I sold a camera on eBay three weeks ago. The buyer did an instant purchase via PayPal. Now, I always thought PayPal was the safe way to deal with stuff like this.  So, after I got notification that the buyer’s payment had hit my account, I then shipped the camera. Sweet – I just sold my camera for about $500, and got instant payment. I then checked, and got confirmation from UPS that early last week, the buyer received the product. Life is good.

Or…not. Tonight, I get a notification from PayPal that the charge had been reversed. This means that some dude in Virginia has a $500 camera…and I now have nothing. I login to my PayPal account – and sure enough, it shows the $500 payment, a $500 reversal, and a charge for the reversal! The reversal then has a link for “Details”. Which brings me to a screen that again, tells me the charge was reversed – and nothing more. Now, I’m irritated.

But, I figure – I’ll call PayPal and find out what happened. First, the dude that answers spouts all the platitudes that every customer service person is trained to say when dealing with someone that might be a bit pissed. Fine…dude is just doing his job. Here’s where I got pissed. He tells me that he’s not sure why the charge was reversed. That I need to contact the buyer, and have him contact PayPal, as PayPal might have put a hold on the account, not allowing him to submit a payment in that large an amount. WTF??!!!  And, if I don’t get a response from him, then I can file a dispute.

So…let me get this straight. PayPal will allow any body wanting to buy something on eBay (or, actually, any PayPal transaction) – to send money, get product, then take the money back? And the person then that has to do all the work…is the person who just got royally screwed? I can see if there was no proof of shipment – but the dude at PayPal could look at the UPS transaction I did through PayPal for shipment and see that delivery had been verified! But NOOOOOOO!!!  PayPal, without warning me, or giving me an explanation, just gave this dude his money back, I’m out a $500 camera…and I get to bust my ass to more than likely, get nothing for it.

This is crap!

Social Networking – Is It Relevant?

I was just reading an article in 1to1 Magazine  – called “The Social Media Hype Is Over” – basically, they feel that it’s time to create real value from online customer interactions. Beyond being today’s buzzword, social media has taken our job as marketers, and thrown us on our collective asses.

We started out with the Internet – a nice, controllable vehicle to get our message out. Then, we started corporate blogs – which gave us the ability to get closer to our customers, while getting feedback (good and bad) – but we still retained some control over the “message”. Now, with the growth of social communities such as Facebook, MySpace, LinkedIn, etc, – we no longer control the message – our customers do.

The question we keep asking ourselves (or, get asked by our bosses / clients / customers) – is whether social networking is really relevant?

Short answer – if you think for a second it’s not – it’s time for a new career.

I’m thinking of a kayaking trip with friends in the next few weeks. I’ve communicated with my friends to plan the trip over Facebook. I read reviews of different tours on Yelp. One company – has a blog where i read up about the last few trips they’ve headed up for clients. I’ve checked out trips taken by other customers on Flickr, Photobucket, YouTube, and Picasa.

In the past, I’d had just called the company, booked the trip, and hoped for the best. Yet now, with a tightening economy, I want to know what I’m getting prior to the trip – and I want to know what others think.

The opportunity for us as marketers – is to realize that as costs go up, for us to ignore our clients desire to research what they are getting for their money – that the less we do with marketing over social networks – the more our customers will do it for us. I realize that I’d mentioned above that the customer controls the message now. This isn’t totally true. They interpret what we put out there as our message – and then do some of our marketing for us.

Our job – is to make sure the message is more accurate than ever before – and, make sure that we stay on top of that message. Then, utilize these social media tools to make sure our customers know about our message. Finally, once we’ve accomplished that – we then need to stay on top of what they say about our message – how they interpret it and market it – so we can constantly make course corrections in our message.

I like to think that in some ways, we’ve simplified some of our market research via the introduction of social networks. Think about how many blunders have taken place over the years because what a focus group said was important, was irrelevant once brought to market. Now…you’re going to know the relevance to the market that much sooner, and possibly more accurately, than ever before. We now have the ability to monitor our brands in real time – for better or worse!

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