Truth and Business

Assignment Brief

For this assignment, you will produce a discursive essay of 1500 words on the topic of truth and business.

You will be graded on 

• task achievement
• structure and organisation
• grammar and lexis
• referencing and presentation

Sample Answer

Truth and Business: A Discursive Essay

Introduction

The concept of truth has long been central to philosophy, ethics, and human relations, yet its role in business is often contested. In the corporate world, truth is associated with honesty, transparency, and integrity in communication and decision-making. Businesses operate within competitive markets where profit motives sometimes encourage the concealment, manipulation, or selective disclosure of information. At the same time, long-term success and legitimacy often depend on trust, credibility, and accountability, all of which are tied to truth. This essay explores the complex relationship between truth and business, considering both the advantages of truth-telling and the challenges posed by globalisation, corporate pressures, and cultural contexts. Using examples from real-world corporations, it critically examines whether truth is an asset or a liability in modern business practices.

The Value of Truth in Business

A central argument in favour of truth in business is that it underpins trust, which is the foundation of sustainable relationships with stakeholders. Customers, employees, investors, and regulators are more likely to support companies that demonstrate integrity and openness. According to Kaptein (2008), corporate ethics and truth-telling contribute to building reputational capital, which directly influences customer loyalty and brand value. For instance, companies such as Patagonia and Ben & Jerry’s have built their brand identities around authenticity and transparent communication. Their truth-based approaches, particularly regarding sustainability and social justice, have cultivated consumer trust and differentiated them from competitors.

Truth in business also plays a crucial role in internal operations. Employees are more engaged and motivated when organisations are transparent about their goals, expectations, and performance. Research by May, Luth, and Schwoerer (2014) suggests that honesty within management fosters psychological safety, where employees feel secure to express ideas and report mistakes. This culture not only enhances productivity but also reduces the risks of unethical behaviour or corporate scandals.

From a broader perspective, truth is aligned with corporate social responsibility (CSR) and ethical governance. Companies that openly acknowledge their social and environmental impact demonstrate accountability and improve their long-term legitimacy. The success of firms engaging in “truth marketing,” where claims about products are supported with verifiable evidence, illustrates the growing consumer demand for transparency in an age of information overload.

The Challenges of Truth in Competitive Markets

Despite these benefits, businesses often face powerful incentives to distort or conceal the truth. The competitive pressures of global capitalism can encourage companies to prioritise short-term profits over long-term trust. For example, the 2015 Volkswagen emissions scandal revealed how a leading automotive firm deliberately manipulated data to meet environmental standards. The concealment was motivated by a desire to maintain market share, but the eventual exposure caused significant reputational and financial damage. This case illustrates how short-term dishonesty may appear beneficial but ultimately undermines trust when revealed.

Another challenge arises in the form of “truth versus survival.” Small businesses and start-ups often operate under intense financial pressures, which may tempt them to exaggerate product claims, underreport risks, or withhold unfavourable information. Investors and customers are not always receptive to full transparency, particularly if the truth highlights uncertainty or weakness. Hence, business leaders may argue that partial truth is necessary for survival in a competitive market.

Moreover, truth in business is not always absolute. Cultural relativism plays a role in shaping what counts as truth in different contexts. For instance, in some cultures, indirect communication or saving face may be considered more ethical than blunt honesty. This creates challenges for multinational corporations, which must balance global standards of transparency with sensitivity to local practices. What one culture views as truthful, another may interpret as disrespectful or inappropriate.

The Role of Technology and Information Age

The rise of digital platforms and social media has intensified the importance of truth in business while simultaneously complicating it. Consumers now have greater access to information and the ability to fact-check corporate claims. A single false statement can quickly escalate into a viral scandal, damaging brand reputation overnight. As Tapscott and Ticoll (2003) argue, businesses are entering an era of “naked corporations,” where transparency is not a choice but a condition of survival.

However, the same technologies also facilitate misinformation and manipulation. Companies use targeted advertising, selective algorithms, and curated narratives to shape consumer perceptions. While these practices may not always involve outright lies, they often represent partial truths designed to influence behaviour. The ethical dilemma lies in whether strategic communication that omits inconvenient facts is consistent with the principle of truth in business.

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