Mechanism
Aposematic Signaling
TL;DR
Aposematic signals are honest because they're indexical - physically tied to reality (actual toxicity).
In the forests of Central America, a poison dart frog sits on a moss-covered log, its skin blazing in electric blue and black stripes. The frog makes no attempt to hide. Its coloration - aposematic signaling, warning coloration - advertises toxicity. Predators that have encountered poison dart frogs before recognize the pattern and avoid attack. The frog's bright colors are an honest signal: 'I am poisonous. Eating me will harm you.'
Business Application of Aposematic Signaling
Aposematic signals are honest because they're indexical - physically tied to reality (actual toxicity). Organizations can create similar index signals through audited metrics and legal structures.