Success of any business lies in effective communication. The more effective the communication is, the better the results are. Communication is effective when it produces desired action in the reader or audience. You should be straight forward and sincere while communicating in a business environment. If you are not honest and direct when communicating to others there is a greater chance that you may lose the trust of the person you are speaking with. Without trust there is no bonding between two parties which can lead to direct business loss and low morale in the workplace.
In a business environment, the more you know about the person you are communicating to can make it easier to concentrate on their needs which in turn will make it easier for them to hear your message, understand it and respond to it positively. I like for people to speak to me direct and straight forward, no matter what the subject matter is about. If I did something incorrect, I want you to tell me what I did wrong, explain to me how to fix it, and then we move on. Working in Human Resources, I have learned everyone does not want to be spoken to in a straightforward manner. In the past I had to find ways to tell employees they messed up on a project, but I had to hold their hand (not literally) throughout the conversation so their feelings would not be hurt.