Timeless Musings

Honesty was Never Cheap

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If you are an entrepreneur, investor or a hiring manager never overlook the attribute of honesty and integrity, you might bump into folks with less intellect or someone who needs the push they all will fit in jigsaw but the kind of damage a person who has a flawed character can inflict can’t even be compared with innocent dumb idiots.

Any business revolves around fundamentals of trust and transparency and if one imbibes them in the core DNA you become a difficult force to beat or be dislodged.

So what transpires that selfish gene to trigger a dishonest act? If we study in-depth it almost always has to do with that sin of greed and want for more. One must never underestimate the power of incentives it can make the world spin in a direction you have never thought.

I have seen a lot many money managers for higher commissions designed either flawed products or sell high commission products at the wrong time. For instance, if a wealth manager sells a high concentration mid and small-cap oriented equity portfolio at the peak of valuations either he is ignorant or blinded by commissions and sales targets.

In financial services having sales-target is criminal as fundamentally it creates biases in minds of the relationship professionals towards revenue and not customers’ financial well being.

This phenomenon is global and you will find it in all aspects of life. The incentive reward systems just narrow the vision and make it myopic and people don’t see beyond a quarter or max current financial year.

This is a reason why a lot of professionally run organizations don’t create that degree of value where entrepreneurs have been pioneers and visionary and tend to fail as well as innovate more.

One Comments

  • Reply

    Sneha

    25 July 2020

    Well said… Every organization should think about it..

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