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Customers Quote by Adam Smith

“The real and effectual discipline which is exercised over a workman is that of his customers. It is the fear of losing their employment which restrains his frauds and corrects his negligence.” quote by Adam Smith
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“The real and effectual discipline which is exercised over a workman is that of his customers. It is the fear of losing their employment which restrains his frauds and corrects his negligence.”

Adam Smith

About This Quote

Source Book: The Theory of Moral Sentiments, 1759

The quote argues that workers are primarily disciplined by the fear of losing jobs, which curbs fraud and negligence more effectively than any formal oversight.

In simple terms: Job security drives honest work; fear of loss enforces discipline.

Key Takeaway

Ensure fair employment conditions to promote integrity.

Themes

labor discipline economics

Mood

analytical pragmatic

Type

economic ethical

When to use this quote

  • human resources policies
  • employee training
  • performance reviews

Key Concepts

Incentive structures employment law workplace ethics

Questions to Reflect On

  • What positive incentives could replace fear?
  • How does job insecurity affect morale?
A Different Perspective

Overreliance on fear can create toxic work environments.

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