Archive

Posts Tagged ‘trust across america’

Sep
18

Photo courtesy of www.dondalrymple.com

According to a July 2017 World Economic Forum article about regaining trust in business….

Business is on the brink of distrust.

It is clear that the expectations of business are changing as rapidly as the world around us. Corporations must find a way to lead.

A contemporary CEO cannot afford to ignore this sentiment. The epoch of corporate social responsibility (CSR) as a cost of doing business has passed; the era of “doing well by doing good” is upon us. Balancing the profit motive with the creation of societal value is about to become a precondition for the long-term success of any corporation, sector, scale or geographic reach notwithstanding.”

(Note: Trust Across America, through it’s FACTS Framework, developed the scorecard in 2009 and has been tracking and ranking the trustworthiness of the largest 2000 US based public companies since that time.)

So what is the path forward for leaders to regain trust in business? After all, the business case for trust has been proven time and again. Perhaps it boils down to the simple question of who owns trust.

The current SOP in most companies, is to take trust for granted until there is an “issue” and then trust is “delegated” to the “right” silo depending on the nature of the problem:

  • If there is a corporate crisis, the communications and legal team are there to talk about restoring trust after conferring with their PR firm.
  • If it’s a matter of “ethics,” the Chief Compliance Officer steps in.
  • Market share declining? The CMO steps up to tout brand “trust” in its campaign.
  • High employee turnover got you down? Head to HR. After all, they must not have hired “right.” Fire the whole darn department and replace the staff with interview robots. (I kid you not)
  • Unhappy shareholders? Punt to Investor Relations.
  • Giving a speech about building trust in the community? The corporate responsibility and sustainability silos are right on it, once legal signs off.

Got the picture?

Unfortunately, in most companies, no single person or department owns trust and that’s why business is on the brink of distrust. It’s that simple. Imagine running a company without a Chief Financial Officer. How would the job get done? Trust can no longer afford to be treated like a hot potato.

Who should own trust?

No doubt, it’s the CEO. Trust starts at the top, as a directive from the Board, with leadership acknowledgement of its strategic importance. Once that occurs, the day-to- day practice could be delegated to a Chief Trust Officer, who reports directly to the CEO. Imagine the first company bold enough to do this. Did I just say bold? I meant smart and proactive. 

What would the job entail?

  • Review and refine the credo, vision and values, with buy-in from every C-Suite member (and the Board.)
  • Regularly communicate vision and values to all stakeholders and ensure everyone abides by them.
  • Work closely with HR so hiring (and firing) is done according to the standards set forth above.
  • Get trust on the daily docket.  This is an example of how one company does this, and a bit more about driving culture.
  • Enforce a “zero” tolerance policy for trust breaches. Nobody is immune, especially the CEO.

What would the job requirements be?

Someone who lives the holistic concept of doing well by doing good, is a stellar communicator, and has the right combination of personal qualities to rally the troops. Impeccable character, courage, competence and consistency are key. In fact, not all that different from the qualities of a great CEO.

An organization’s chances at long-term success are predicated on the level of trust it builds with all its stakeholders. I can’t think of a more important and timely job title than Chief Trust Officer. Can you?

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

 

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Sep
07

 


Photo courtesy of www.luckypeach.com

Question: If elevating organizational trust improves profitability, what stops senior executives from placing trust at the top of every business agenda?

Possible Answers:

  • Trust is taken for granted or overlooked
  • No silo “owns” trust so there is no budget
  • Trust is soft and intangible
  • Trust is not regulated
  • External stakeholders are not demanding trust
  • Executives believe that the business case for trust does not exist
  • Organizational trust is completely misunderstood by just about EVERYONE

I recently posed the following questions to two senior executives at Fortune 500 companies:

Question #1:  How is the level of trust in your organization?

  1. Answer from Executive #1: We have no trust issues
  2. Answer from Executive #2: We have no trust issues

Question #2: How do you know?

  1. Answer from Executive #1: Our revenues are exploding and we are expanding globally.

Note: I call this the “shareholder value” answer.

  1. Answer from Executive #2: Weren’t you listening during my speech? Our CSR and philanthropy programs are some of the best out there.

Note: I call this the “corporate window dressing” answer.

Ask almost any C-Suite executive these two questions and most likely you will get a similar answer.

 Now let’s take a deeper dive

Executive #1 works for one of the largest health insurers in the world. Over 500 employees posted the following comments on Glassdoor.com. Overall, the employees rate the company a 3 out of 5.

  • Horrible health benefits (the company is a health insurer)
  • Huge cronyism issues
  • Tons of corporate politics and red tape
  • Poor appraisal process
  • High stress
  • It paid the bills
  • Management by fear
  • High turnover rates

Executive #2 works for one of the world’s largest pharmaceutical companies. Let’s see what over 200 employees have to say about their work experience. Overall, the employees rate the company a 3 out of 5.

  • We played cards to reduce our workday from 8 to 6 hours
  • Employees not allowed to talk to each other
  • Too many company meetings and policies
  • No decent leadership
  • No morale
  • Leaders are inept
  • Bureaucracy and never ending process

Do these sound like “high trust” companies to you? Do perceptions match reality?

Trust Across America has been researching and measuring the trustworthiness of the 1500 largest US public companies for almost eight years via it’s FACTS® Framework. This, by order of magnitude, is the most comprehensive and fact-based ongoing study on this subject. We analyze quarterly and rank order by company, sector and market capitalization. We are particularly interested in tracking individual companies and sector trends over time.

 

While Trust Across America continues to make the business case for trust, it remains quite common for perceptions of organizational trustworthiness to remain misaligned with reality. Most times, the trust “wake up call” and the residual fallout unfortunately occur AFTER a crisis, and as a direct result of a blatant abuse of stakeholder trust. Just ask Wells Fargo, Mylan and Volkswagen.

It’s a lost opportunity when business leaders wear their trust blinders while the evidence mounts not only for the business case but also the financial one.  Trust works.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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Sep
02

Photo courtesy of psychologicalscience.org

How frayed is trust in your organization? As a business leader, it’s your responsibility to repair it before the rope snaps and a crisis occurs.

Five Trust-Building Resources for Business Leaders

  1. Read a book on building trust
  2. Purchase a DIY kit called Trust in a Box
  3. Receive cutting edge advice by joining our Alliance
  4. Read our White Paper: The State of Trust in Corporate America
  5. Hold a workshop

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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Aug
19

Photo courtesy of www.foodconnections.org

Business leaders often talk about trust, particularly after a crisis. Yet, in the majority of companies proactive initiatives to elevate trust simply don’t exist, and that’s why the crises continue unabated and repeat themselves across corporate America.

Building trust proactively requires not only a strategic plan, but full understanding and support on the part of leadership. These facts about trust represent a good starting point to elevate trust in any business.

  1. Without trust at the top, trust in the middle cannot be maintained.
  2. Trust cannot be regulated. It’s voluntary and built on vision and values, not on rules and laws.
  3. Ethics and compliance are not synonymous with trust.
  4. Hanging a corporate credo on the wall doesn’t satisfy the trust imperative.
  5. Growing quarterly earnings does not make a company trustworthy. What makes it trustworthy is meeting the needs of all stakeholders, not just shareholders.
  6. Trust cannot be owned by one corporate silo. It’s holistic and must flow down through the entire organization.
  7. Elevating trust is NOT a CSR program.
  8. The trustworthiness of public companies CAN be measured.
  9. Trust is a hard currency, not a soft skill, and it’s more profitable in the long-term.
  10. The business case for trust can be ignored by corporate leaders, but only for so long.

The most progressive business leaders have joined our Trust Alliance to ensure that they never miss an opportunity to learn about elevating organizational trust.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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Aug
12

A customer service representative at a major health insurance company recently told me that HIPAA prevented him from disclosing whether an application submitted for one of my children had been received by the company. I sensed he had misinterpreted HIPAA whose purpose is to safeguard medical information, but as he insisted, he was just “following the rules.” I thanked him for his time, hung up, and called back to the same department. The second customer service rep gave me the information I needed without hesitation.

Whether an employee or a customer, I’ll bet you’ve heard these statements (excuses) or used them yourself more than once.

  • I need to get approval to do (or say) that.
  • I need to clear this through compliance.
  • I need permission before you can quote me.
  • I can’t help you without approval.
  • I’m just following the rules.
  • I apologize for your frustration.

Perhaps it’s time for business leaders to take a few minutes to understand the relationship between trust and approval.

Merriam-Webster provides the following definitions of approval:

Definition #1: The belief that something or someone is good or acceptable: a good opinion of someone or something. 

Definition #2:  Permission to do something: acceptance of an idea, action, plan, etc.

Focusing now on Definition #2, how many employees are constrained by “permission” in your organization? Have you considered how this impacts:

  • Speed of innovation
  • Decision-making
  • Employee engagement
  • Cost

Every time an employee needs approval to say or do something, the “approval” process impedes the outcome. In fact, the process may be so daunting, that employees choose to take the “easy” road, never creating anything new or suggesting a novel idea;  or as in the story above, checking with someone else when they clearly do not understand the company’s daunting “rules.”

As a business leader, have you considered how your customers are impacted by the “approval process” in your organization, or how the company’s actions:

  • Waste customer AND employee time
  • Create hard feelings
  • Lower customer retention
  • Damage reputation and elevate risk
  • Raise costs

As a business leader, what if your focus shifted from “approval” or rule enforcement to elevating stakeholder trust?

The most progressive and successful CEOs and their Boards have redirected their attention to crafting long-term vision and values statements and/or Codes of Conduct, not driven by legal and compliance, but by their two most important stakeholders, their employees and their customers. (The “credo” etched into the wall at corporate headquarters does not even begin to satisfy this requirement.) The entire staff, beginning with the Board and CEO, must vow to live their values every day, and ensure that employees understand that any “values violation” will result in immediate termination. Just imagine the innovation, speed of decision-making and empowerment that would result from this cultural transformation, not to mention the ultimate cost savings and impact on profitability.

During the editing process of our book Trust Inc. I reviewed the websites of many large public companies with the goal of including an Appendix brimming over with examples of well-crafted vision statements. This became a difficult and disappointing task as the handful identified could not be included in the book without “approval” from the respective company’s legal department, which would have meant a lengthy delay of the book’s publication. Instead, I created a “work around” by eliminating the company name. What a lost opportunity for all!

If organizations spent more time building values instead of layers of legal teams and compliance departments, the word “approval” would start to look more like Merriam-Webster’s first definition:

The belief that something or someone is good or acceptable: a good opinion of someone or something. 

And “approval” would be replaced with trust.

The most progressive business leaders have joined our Trust Alliance to ensure that they never miss an opportunity to learn about elevating organizational trust.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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Aug
07

Courtesy of mystorybook.com

Far away and just as long ago, in the land of gardens and strip malls, also known as New Jersey, a somewhat smallish “Jersey Girl” named Barbara (Barb to her high school friends) had a rather tall vision to change the world, or at least the conversation.  Barb believed that if she could get people thinking about trust, particularly in business, trust would spring eternal- similar to Jersey blueberries- and take off like a Jersey driver.

And so Barb began to knock softly on the doors of corporate America to politely inquire about trustworthy leaders and their business practices. The responses were far from what she expected to hear.

  • We are big business and don’t budget for soft stuff like trust since it doesn’t impact our bottom line.
  • The corporate credo written on the lobby wall has trust covered.
  • We are already trustworthy. After all, our quarterly earnings are growing and look how fast we are expanding globally.
  • We give to charities and have an annual CSR event.
  • Haven’t you seen our latest TV commercial on diversity?
  • We’re conserving water and energy.
  • We are looking in to cybersecurity.
  • Our compliance department “has trust covered.” We stay just on the “right side” of the law.
  • Who cares if our employees are unhappy? There are plenty to replace them.
  • And the best one, the response from the CEO of a Fortune 500 company… “Trust? Interesting, I never even thought about that word!”

Barb’s quick takeaway…the trust crisis is not the “problem” of big business (until there’s an internal crisis and then lots of money is paid to consultants to make it look like the problem is fixed when it’s not), and one person named Barb from NJ is no threat to big business! Go knock somewhere else until such time as trust is regulated.

And that’s exactly what she did, because Barb had changed her middle name from Jane to “Tenacity” right around her fifth annual 39th birthday. She knocked and knocked and did not give up until the right people started to listen, and even lend a hand. And then the idea struck (sort of like a lightening bolt) – if one rather small woman from NJ could get some “trust loving”, imagine how much 100 men and women, or 1000, or even a million could attract? And so she started a movement, A Campaign for Trust, and she invited everyone who didn’t slam the door to join her (except the mainstream media because they seemed perpetually stuck on bad news that sells)!

In a few months, eyebrows began to raise beyond Jersey’s borders, as did the roster of global Trust Alliance members, men and women from “big business” (the ones who didn’t slam the trust door), small business, startups academia, researchers, community leaders, government and consulting (leadership, culture, teamwork, compliance, ethics, CSR, HR, sales, reputation and crisis repair, communications, risk, data security, governance, sustainability.) They weren’t exactly sure what “signing up” meant, but they trusted Barb enough to know they wanted to be part of this particular movement, because without trust, organizations are at best mediocre, never knowing when the next crisis will strike.

The Trust Alliance has been quite busy over the past four+ years with dozens of projects including:

  1. Roundtable discussions with industry leaders on building trust
  2. Publication of three books in our Trust Inc. series
  3. Introductions between members resulting in speaking engagements, consulting opportunities and new business relationships
  4. An annual trust poster
  5. Publication of a collaborative digital magazine called TRUST!
  6. Assembly of DIY Trust Boxes
  7. Real world case studies called Trustlets

And many more initiatives including two new programs launching this fall. After all, it’s hard to imagine why any organization (even one run by a small, perpetually 39 year old woman from NJ) wouldn’t want to join us and collaboratively help in elevating organizational trust. So what’s holding you back? Feel free to use one of the excuses listed above!

(And by the way, on most days Trust Across America’s website attracts between 500-1000 enlightened visitors who “get” the importance of organizational trust.)

PS- One of Barb’s offspring cautions about trying to be funny about trust. It’s a serious subject. Barb disagrees. She thinks trust can be funny and fun, and serious too! What do you think?

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

Copyright 2017, Next Decade, Inc.

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Aug
04

Courtesy of mmo-champion.com

Which of these companies do you think has the higher integrity culture, Coca Cola or PepsiCo?

Let’s start by defining what we mean by a high integrity culture. A high integrity culture is…

  • NOT the credo written on the wall in the corporate headquarters
  • NOT a CSR program or how philanthropic a corporation chooses to be
  • NOT solely what employees think of their organization

A high integrity culture…

Has a high integrity VISION that defines its purpose, and that vision is practiced and reinforced daily.

Has high integrity VALUES that serve not only as a guideline but as a PRACTICE for all employees. HR supports these values at all times by hiring PEOPLE who share the corporate values. In fact all silos play a role in maintaining the high integrity values.

Starbucks offers an excellent example of high integrity values:

  • Creating a culture of warmth and belonging, where everyone is welcome.
  • Acting with courage, challenging the status quo.
  • Being present, connecting with transparency, dignity and respect.
  • Delivering our very best in all we do, holding ourselves accountable for results.
  • We are performance driven, through the lens of humanity.

Has high integrity LEADERSHIP who understands and meets the NEEDS of all its stakeholders, not just shareholders through its consistent practice and reinforcement of its high integrity vision and values.

So who has the higher integrity culture Coca Cola or PepsiCo?

Trust Across America has been measuring the corporate culture of public companies for over seven years through its FACTS Framework. Unlike other culture surveys that rely heavily on employee input, FACTS (an acronym) measures the quantitative indicators or dimensions of high integrity- Financial stability, Accounting conservativeness, Corporate governance, Transparency and Sustainability. And in our analysis Pepsi wins. Out of the five indicators, PepsiCo scores significantly higher in three.

While relying on employee surveys alone may be helpful in measuring culture, surveys don’t tell the full story and can be easily gamed. In fact, in the case of Coke and Pepsi, their Glassdoor reviews, for example, are almost identical.

Why should a high integrity culture matter?

In our ongoing research at Trust Across America, all signs point to high integrity cultures being more profitable. To all those companies whose leaders think culture is soft, intangible, immeasurable and/or doesn’t matter, you are ignoring the FACTS at your own risk. And perhaps that’s why Pepsi scores higher than Coke. It may boil down to Indra Nooyi’s leadership priorities.

You can read more about our Corporate Integrity Monitor findings at this link.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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Jul
29

Photo courtesy of Ratemds.com

Would you visit a shoe store without giving the salesperson your shoe size, color or the style you are seeking and expect to leave with shoes that fit properly and meet your needs?

At Trust Across America we often receive the following inquiry:

Do you have a questionnaire or a tool, to detect the level of trust in an organization? Click To Tweet

And every time, I respond with “What are you trying to measure or detect?”

Similar to shoes, trust is not a “one size fits all” proposition. These are just a sampling of the trust assessment choices available to organizations, and most have their own tool and/or assessment mechanism:

In most organizations trust is taken for granted, and maybe it’s because of the mistaken belief that “one size DOES fit all.” After all, most leaders think:

  • Trust is intangible
  • Trust can be taken for granted
  • Trust has no impact on the bottom line.

And perhaps the greatest obstacle to trust…. many leaders have never thought about the word “trust” or considered how it might impact business success. We hope these tools will help change that mindset.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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Jul
24

Trust Across America Announces

2017 Most Trustworthy Public Companies by State

via its new Corporate Integrity Monitor (the corporate Richter Scale of Trust)

 

State Company Name
California Nvidia
Connecticut Xerox
Florida CSX
Georgia Home Depot
Illinois Abbott Labs
Massachusetts TJX
Michigan Delphi Auto
Minnesota Best Buy
New Jersey Johnson & Johnson
New York Morgan Stanley
North Carolina VF Corp
Ohio Cliffs Natural
Pennsylvania Hershey
Texas Dr Pepper Snapple
Virginia Altria

(Russell 1000 only) States listed above are those with the most Fortune 500 companies according to this article.

Methodology: Since 2009 Trust Across America’s FACTS® Framework has been measuring and ranking public companies on five equally weighted quantitative indicators of trustworthiness and integrity, forming the acronym FACTS: Financial stability, Accounting conservativeness, Corporate governance, Transparency and Sustainability.

 

Our objective model (there is no “pay to play,” companies do not know they are being analyzed nor are any internal employee surveys completed) was initially constructed in 2008 and measures the corporate trustworthiness/integrity of the largest 2000 US public companies. Trust Across America’s Most Trustworthy Public Companies ranks the Russell 1000.

This, by order of magnitude, is the most comprehensive and fact-based ongoing study on this subject. We analyze quarterly and rank order by company, sector and market capitalization. We are particularly interested in tracking individual companies and sector trends over time.

No company is perfect, nor does our model “negative screen.” The 2017 highest scoring company(ies) in 2017 received a “79” on a 1-100 scale.

We are pleased to see the expanding coverage of our FACTS Framework in publications including The Harvard Business Review, Strategic Finance Magazine, The Huffington Post, Globescan Dialogue, the Trusted Advisor Blog,  FCPA Blog, and other publications. This release introduces Issue #4 of a new publication The Trust Across America Corporate Integrity Monitor, available to our Trust Alliance members. 

Click here to view previous issues of Trust Across America’s Corporate Integrity Monitor.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

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Jul
12

 

Ever since the financial crisis, it’s not uncommon to read articles and studies about trust in banking and whether trust is “up” or “down.” In the past year alone:

  • Ernst & Young reports consumer trust in banks is diminishing. September 2016
  • International Banker claims that trust is often found wanting in today’s banking relationships. December 2016
  • Edelman reports in their 2017 Trust Barometer that in the United States 60 percent of financial institutions bounded forward (in trust) six percentage points from 2016. March 2017
  • And according to The Hill, almost a decade later, public trust in financial institutions remains stubbornly low. April 2017

So is trust in banking up or down? Some of the confusion stems from a lack of definitional clarity. Without a clear(er) understanding of what “trust in banking” means, the entire sector finds itself painted with one broad brushstroke, the reading public is left in an an ever escalating state of confusion, and elevating organizational trust becomes all the more challenging.

Trust? What are we trusting banks to do, or not do? Safeguard our money, earn a good return for shareholders, protect our personal data, treat employees well, provide good customer service, or all of the aforementioned?

Banking? Can global investment banks, regional banks, and/or a local savings and loans be grouped together when discussing trust in banking? Should they be?

For seven years Trust Across America has been researching the trustworthiness and integrity of America’s largest 1500 public companies via our proprietary FACTS® Framework.

 

 

This is, by order of magnitude, the largest ongoing study ever conducted on trustworthiness and integrity at the individual corporate level. Our 2017 data concludes that the finance sector remains among the lowest in trust, with an average score of 58.

 

 

But our data also tells a more holistic and detailed story, and one that places us in a unique position to discuss trust in the banking industry. Industry is NOT destiny and those more trustworthy financial institutions suffer at the hands of their less trustworthy colleagues. And the headlines above only serve to reinforce this fact.

It’s important to give credit to companies who have earned the trust of a broad range of stakeholders. Understanding that no company is perfect, the following is a list of some of the “banks” that score a “70” or above (on a scale of 1 to 100) according to our 2017 FACTS ® Framework research. Scores in the finance sector range from 40 to 77.

  • Morgan Stanley
  • Goldman Sachs
  • KeyCorp
  • Commerce Bancshares
  • US Bancorp
  • Bank of America
  • JP Morgan Chase

Headlines don’t always report the “full” story nor do articles and studies regularly or consistently define the meaning of trust. Trust in banking isn’t necessarily “up” or “down.” The level of trustworthiness or integrity of a specific company is determined by how well leadership defines its corporate culture, and understands and embraces the value of trust in meeting the needs of every stakeholder group. Our study continues to point in the direction that trust is not only a measurable business strategy and a business differentiator, but also a direct route to long-term profitability.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award winning TRUST INC. book series. In 2012 she was named one of “25 Women who are Changing the World” by Good Business International, and in 2017  a Fellow of the Governance & Accountability Institute.

Purchase our books at this link

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