1. Why Be Honest If HonestyDoesn’t Pay(AmarBhide and Howard H. Stevenson.)Harvard Business Review, Sep.-Oct. 1990 Presented by Deepak A. Pratush B. Ranajee PhD (2008-11) Batch-II IIMT, Hyderabad

2. The authors Bet on Rational case for trust. Honesty is the best policy Is Checked through extensive interviews to support the theories But Evidence seemed weak.

3. RESULTS DISCUSSED………. Trust through Retaliation and reputation. VS TREACHERY(Violation of faith and confidence) Can pay as there is no economic reason to tell the truth or Keep ones word And Punishment is neither swift nor sure.

4. Cont…… E.F. Hutton Exxon Borland international Professional sports- Basketball Coach and athletes. Power-the ability to do others great harm or great good can induce amnesia As substitute for Trust.

5. Protection by.. Ambiguity and complexity As Trust is a factor of (i)Integrity (ii)Native ability (iii) Favorable external condition. Determination of Whether and to what extent. Forget and move on.

6. BUT……… It would be gross exaggeration if we claim that Honesty has no value. Or Treachery is never punished.

7. AS Trustworthy behavior Provides Protection against Loss of power Invisible sniping But they are intangible and are responsible for believe in a business entity .All business has its ups and downs.

8. What really matters…… Trust of suppliers Don’t systematically screw. Treat them right. Keep the promises. Don’t penalize for honest mistake. Neither the benefits can be nor the financial losses of these measures. Unknowns and unknowables.

9. Cont….. Trustworthiness has attained the status of (i)Strategic focus. (ii) Sustainable competitive advantage. (iii)Long term economic value.

10. Roots ….of trustworthiness Businesspeople value their reputation and not the nebulous financial gain. Trustworthiness cant be judged from outside so they are guided by inner voices, consciences. Own sense of values. Credibility as an individual.

11. Conclusion Tolerance for broken promises encourages risk taking and hence facilitates a dynamic entrepreneurial economy. 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.

12. Thank you.