I took a phone call from a friend who admitted he screwed up and my respect for him rose even higher.

I had recommended him for professional work to some colleagues and he failed to live up to the reputation that I had created. He called my colleagues first to acknowledge his mistake. And then he called me to apologize for letting me down because I had recommended him.

He made no excuses. Owned the mistake. Did not blame anyone but himself.

“Buddy,” I said to him. “I will continue to recommend you. Anyone can make a mistake. Not everyone can admit it.”

Honesty and integrity are two crucial qualities for business leaders. My friend has both. Honesty is telling the truth. Integrity is living up to a set of values and principles.

Honest leaders build trust and accountability. They acknowledge the truth event when it is uncomfortable. Leaders with integrity never compromise their values for personal gain. They are accountable.

And that is exactly why my respect for my friend grew.

Here are four ways that behaving with honesty and integrity will make you a great leader.

1. Your Personal Reputation Will Grow: Think of the people you respect. They have a reputation for telling the truth honestly and without malice. Your customers and colleagues value truth over harmony.
2. You’ll Encourage Others to Behave Ethically: When you set the standard, others will follow. They will not be afraid to do the right thing because they know they will not be punished for it. You want people to be accountable and you can expect them to behave as you do.
3. You’ll Reduce the Number of Conflicts: When you communicate honestly, you are less likely to create misunderstandings and hard feelings. Caution: Honesty without enmity is crucial here. Don’t use “I’m just being honest” as a reason to insult someone. Focus on behavior not personality.
4. You’ll Be More Successful: When you are honest, you build a positive reputation and earn the trust of others. That leads to greater success in life and business.