Trust scale: how reputation affects doing business

Business is one of those areas where the institution of reputation is very significant or even vital.

Business is one of those areas where the institution of reputation is very significant or even vital. Competent specialists are more willing to work for a good company, while many employees will not go to a dubious employer even for a higher salary. And 21% of online sales occur precisely because of the company’s good reputation, that was shown in a recent study. Evgeniy Renge, an entrepreneur in the coal industry and mining engineering, spoke about the importance of reputation management.

The price of a word

It is extremely important for a businessman that his words do not differ from his actions, otherwise no one will simply work with him. And this ratio of promises made to promises fulfilled is precisely his reputation. Of course, situations are different, and some of them are completely beyond our control – various force majeure events happen to everyone all the time. However, if you have made an obligation, you simply must fulfill it – even if this reduces the profit from the transaction to a minimum, or even brings losses.

After all, even if something went wrong and force majeure circumstances intervened, this does not cancel the agreements. This is your area of ​​responsibility as a businessman. If actual financial indicators diverge from the calculated ones, it means that you did not take something into account, or made a mistake somewhere. But one way or another, you need to fulfill the agreed conditions, because you have taken on certain obligations.

But what happens if you don’t keep your word? To find legal loopholes in the contract, to justify yourself with absolutely compelling reasons? Partners and contractors in the future will either set less favorable conditions or turn their backs on you altogether. Employees usually value a good employer, but valuable specialists will quickly leave a company with a bad reputation.

Unobvious profit

In other words, business reputation is an intangible asset of your company. And it is quite valuable, because it takes years to develop a good name, it could be lost quite easily, and then it is not always possible to restore it. Therefore, sometimes it makes sense to work on reputation, and not on the financial components of the business.

Let me give you an example from personal practice. We were providing mining contracting services, and a technological force majeure occurred at the entity. A man-made disaster led to the collapse of the side of a coal mine, which resulted in additional volumes of work that were already beyond the perimeter we initially calculated. The entity was geologically complex, and the chance of such an incident was one in a hundred, nothing more. Even experienced companies could miscalculate in such a situation, and at that time we did not have enough experience at all.

Nevertheless, although the cost of work increased sharply and the production deadlines moved forward, we had to complete the entire volume. Because, even though the situation that occurred is quite rare, we did not calculate this probability – this is a flaw in our geological exploration.

Of course, we looked for compromises with our partner and explored various options. And as a result, we received additional volumes of coal production at a reduced cost, which allowed us to partially compensate for the losses. But the most important thing is that in this situation we showed that we are ready to work in difficult conditions, fulfill agreements and find solutions to any problems that arise. This improved our reputation and allowed us to maintain our position in the market.

Information contained on this page is provided by an independent third-party content provider. Binary News Network and this site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact [email protected]


Trolls Golf Club – The future of golf is now

Scottsdale, AZ, 11th July 2022, ZEXPRWIRE, Every real golfer loves a real challenge, and there’s nothing more challenging or prestigious than getting to play...

Agency of Nigerian Government NDDC Harps on Collaboration, Renewed Hope Agenda As Minister Inaugurates Board

The Chairman of the Niger Delta Development Commission NDDC, an agency established with the sole mandate of developing the oil-rich Niger Delta region of...

The Young Musician Music Institute Offers Different Music Lessons for Children, Beginners, and Adults

The Abu Dhabi-based music institute offers diploma courses and exams accredited by Trinity College, London Abu Dhabi, UAE, 16th December 2022, ZEXPRWIRE, Launched in 2002 at...

Clayton’s Quality Tree Service LLC Provides Quality And Reliable Tree Removal And Trimming Services To Enhance Property Landscapes In Deltona, Fl

Deltona, FL, 9th December 2023, ZEX PR WIRE, Clayton’s Quality Tree Service LLC, a veteran-owned and operated tree service provider in Deltona, Florida, is pleased...

Feed The Poor Foundation of America Inc. Appreciated for its Vital Contribution to Achieving United Nations Sustainable Development Goal 1

With a vision to end abject poverty and on a mission to extend opportunities to the poor, Feed The Poor Foundation of America Inc....

Binghamton City Court Candidate Debra Gelson Answers Questions Most Frequently Asked By Voters At Their Doors

Binghamton, NY, 4th October 2023, ZEX PR WIRE, Debra Gelson is a candidate for Binghamton City Court Judge in the upcoming Nov. 7th election....

Alpha Wildlife Launches Comprehensive Squirrel Removal Services for Nashville Residents

Nashville, Tennessee, United States, 18th Feb 2023 – Alpha Wildlife, the leading wildlife removal service in Nashville, has announced new and improved services for...

Revolutionize Your NFT Trading Experience with Rize’s Multichain Marketplace

Maui, Hawaii, May 10, 2023, ZEX PR WIRE, Rize is about to launch a decentralized multichain NFT marketplace that is attracting a lot of...