The ROI of transparency
I was struck this weekend by the positioning of a question in the New York Times Magazine’s Ethicist column. A person was referred by her doctor to a lab partially owned by said doctor. The doctor didn’t disclose his stake, and much hand-wringing about the omission ensued.
Based on the phrasing of the question, Randy Cohen’s ethical guidance was firm: “That’s why a physician should not send patients to facilities in which he has a financial interest. It is neither prudent health policy nor good medical ethics to put a doctor or a patient in such a position.”
But the inverse is also true. Patients should want to go to facilities in which the physicians have a financial interest. The doctors have a vested interest in providing their customers with the same professionalism and quality of care that they give in their own offices.
This is true in any industry. Think about hair salon that opens a spa, the deli with a catering business, the ad agency with a media buying arm. Businesses create corollary interests for financial purposes, yes, but the implied message is one of consistent performance. Indeed, that’s often the hook behind the sale.
The error in the Ethicist column is therefore about the omission, not the referral. How might the answer have been different if the question were phrased this way (my edit in bold):
“A specialist recommended that my wife get a CT scan and suggested that she use a lab in which, the physician clarified, he had an interest. She wasn’t required to use that lab, and there was no reason to question its quality or his calling for a scan. I’m O.K. with this lab — I say you either trust the specialist or you don’t — but my wife is not so sure. What do you say?”
Suddenly the question shifts from cagey profiteering back to trust. As the questioner remarks, if the patient (client, party-thrower, CPG marketing manager) trusts the adviser, the recommendation of a related business can be more trustworthy, not less.
All businesses can benefit from this transparency, ecommerce sites among them. A strong parent company or sub-site can give added validity and confidence to customers. Don’t hide facts when they’re not worth hiding; empower people to make well informed decisions. Providing knowledge can build trust and boost the bottom line.
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