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Good Character Important for Success of Business

by Ron Kurtus (updated 19 January 2022)

The goals of most businesses are to gain profits, to lead in the marketplace, and to provide benefits to its customers. The character of all personnel involved in the functioning of a business is important for success in maintaining an effective organization, both internally and externally.

Good character is needed for internal business activities. When the workers of a company have poor character, there can be losses and increased costs. Poor character among sales representatives and those involved in external business activities can result in lost business and profits.

But also, good character is also required from upper management. Poor character among upper management results in loss of business and even the downfall of the company. Whatever your role is within a business, your character is also important to that business.

Questions you may have include:

This lesson will answer those questions.

Internal business activities

Internal business activities consist of work done inside a company. This includes production and management tasks.

Poor character traits among workers—such as being lazy, careless, dishonest, or argumentative—can result in poor workmanship, low productivity, and personnel problems. This results in increased costs and lower quality goods and services. Likewise, an insulting or demeaning manager or supervisor can be harmful to productivity.

You want hard-working, conscientious employees, who are honest and helpful.

(See Character of Workers Important for more information.)

External business activities

External business activities include sales, customer service, and other tasks that deal directly with customers, as well as with suppliers.

Poor character traits among these workers—such as being rude, insulting, unreliable, or dishonest—can result in lost sales, disgruntled customers, angry suppliers, and a loss of business.

You want those dealing outside the company to have integrity and good social character.

(See Character of Sales Staff Important for more information.)

Upper management

Assuming you are in a management or even ownership position, your good character is needed as an example to emulate among your workers. Also, since your character and that of upper management represents the character of the company itself, it has a tremendous influence on the reputation of the company.

Poor character traits in upper management can result in high employee turnover and dissatisfied customers. A company that has a reputation of lacking integrity is doomed to failure.

(See Character of Management is Important for more information.)


Good character is important for an effective business organization.

Workers of a company should have good character. Poor character can result in losses and increased costs. Poor character among sales representatives can result in lost business and profits. Good character is especially required from upper management since they represent the character of the company.

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