This may be a very fair statement especially if the reputation of the individual in concern is already tainted. It said that people are extremely unforgiving; this means that if one erred in the past in his or her social life, the people erred against are highly unlikely to engage in any business venture with this individual. In other instances, the mixing of business with personal matters may bring about the issue of conflict of interest. Conflict of interest arises when one is bound to make a biased decision or judgment because of the stakes one holds on the issue. For instance, in the judicial system, if the judge is found to have any connection to the case at hand, the judge relieves himself or herself from duty citing conflict of interest (Argyris, 2011).
The advice on never mixing business with personal matters, as it will lead to damaged relationships and poor decisions, is a very unwise advice. This is because, in the current corporate world, every business entity requires a stable and strong foundation that is based on mutual trust and understanding. Successful business entities are first molded by the interpersonal skills endowed by the seller or the buyer. In essence, a buyer is more likely to purchase a product from someone he or she knows and trusts as opposed to a complete stranger (Canary, 2011).
One crucial aspect of business in the modern business world is networking. Networking is made easier, faster and highly effective if one conducts it within ones close friends and family. This is because when engaging with a stranger, one spends a lot of time building trust and rapport with the individual. However, when dealing with close friends and family members, the rapport and trust is already established and all that is left is convincing the individual on why the product is of relevance to him or her. It is believed that what leads to damaged relationships or poor business decisions is the personality, judgments and habits of the participants. Relationship is extremely powerful tool that can be used for propagating the business entity or destroying it (Cheney, 2011).
Argyris, C. (2011). Organizational traps: Leadership, culture, organizational design. New York, NY: Oxford University Press.
Canary, H. (2011). Communication and organizational knowledge: Contemporary issues for theory and practice. Florence, KY: Taylor & Francis.
Cheney, G. (2011). Organizational communication in an age of globalization: Issues, reflections, practice. Long Grove, IL: Waveland Press.