Archive

Archive for the ‘Compliance’ Category

Nov
02


Why should business leaders care about trust? This is why:

 

Performance of Trust Across America’s

Most Trustworthy Public Companies vs. the S&P 500 (2014-2019)

 

The chart above is the cumulative “Return on Trust” of America’s annual “Top 10” Most Trustworthy Public Companies over the past six years. Through its FACTS® Framework, Trust Across America has been analyzing, assembling and publicly reporting on this data for ten years.

If you are the CEO of a public company, or any company for that matter, who claims there is no Business Case for Trust, now may be the time to reconsider. Why DO business leaders require proof or ignore trust as their most valuable strategic advantage?

Leaders take trust for granted

Trust doesn’t just “happen.” It is not bestowed upon leaders by virtue of their title.  Trust is a learned competence and an intentional business strategy that must be crafted, practiced, modeled, and reinforced daily.

Leaders focus on the wrong metrics

Growing quarterly earnings, over reliance on sales quotas, focus on “old school” risk and/or “new school” ESG metrics will not satisfy the trust imperative that stakeholders are increasingly demanding. Neither will talking rather than acting on trust.

Leaders treat trust as a “soft skill”

Organizational trustworthiness is a hard currency. The proof is in the chart above.

Leaders are “trust reactive” 

Rarely do we hear proactive leadership discussions about building stakeholder trust. Instead, trust becomes a communications talking point only after a breach. This is both a missed and lost opportunity for leadership.

Leaders delegate trust

Trust is not a function of legal, compliance, HR, communications, or any other department. Boards of Directors and executive leadership teams must spearhead trust, making it central to the organization’s core values, so that all stakeholders can benefit.

 

Note: In 2010 Trust Across America introduced the FACTS® Framework, an EXTERNAL quantitative measurement of the corporate trustworthiness of America’s largest 2000+ US public companies. The Framework identifies companies whose leadership is going beyond doing just what is legal and compliant to choosing the right core values that satisfy all stakeholder needs. The FACTS® Framework is the most comprehensive and data driven ongoing study on the trustworthiness of public companies. We analyze companies quarterly and rank order showing trends by company, sector and market capitalization. Read more about the Framework at this link.

In 2018 Trust Across America-Trust Around the World’s Trust Alliance, a group of global trust scholars and practitioners, introduced its Trust Alliance Principles (TAP), and in 2019 our AIM Survey tool was created to guide leaders and teams in building trust INTERNALLY. It is based on universal behaviors that strengthen and weaken trust. To date, almost 150,000 global professionals have tapped into trust, and dozens of teams and organizations have used our simple survey tool to start a trust discussion.

 

Barbara Brooks Kimmel is the founder of Trust Across America-Trust Around the World, whose mission is to help organizations build trust. Now in its 12th year, the program has developed two proprietary trust-evaluation tools, the latest is AIM Towards Trust. She also runs the world largest global Trust Alliance and is the editor of the award-winning TRUST INC. book series. Kimmel is a former consultant to McKinsey who has worked across multiple industries and with senior leadership. She holds a bachelor’s in international affairs from Lafayette College and an MBA from Baruch.

For more information visit our website at www.trustacrossamerica.com or contact us.

 

 

Purchase our books at this link

 

Copyright © 2020 Next Decade, Inc.

 

 

, , , , , , , ,

May
19

If you don’t own trust, don’t expect others to own it either. Barbara Brooks Kimmel

 

 

 

 

I was recently asked to lend a bit of trust subject matter expertise at a webinar hosted by Navex Global. Several polls were conducted during the program. In the chart below, 420 respondents selected who they thought had primary responsibility for organizational trust.

Do you agree?

 

 

If you would like to learn more about who owns trust, please click on this recent Human Synergistics/ Culture University article, Creating a High Trust Culture: Who is Responsible?

Please stop by our website for additional resources, or schedule a call to learn how we can help elevate trust in your leadership team and among employees in your organization.

Did you know that over 136,000 global professionals have Tapped into Trust? Have you?

 

Copyright 2020, Next Decade, Inc.

 

 

, , , , ,

May
12

 Geert, thank you for participating in our 2020 Trust Insights series. What is your trust insight?

Ethics and compliance officers need to stimulate and assist management to establish a culture of trust.  Geert Vermeulen

 

 

 

 

Can you expand a bit on this important insight?

If you want to create a culture where people feel free to speak, hold people accountable, managers set a good example, where employees are engaged with the organization and feel that they are treated fairly, you are basically working towards establishing a culture of trust. This means that as management, you should not only focus on satisfying shareholders, but also on your other stakeholders, starting with your employees.

By establishing a culture of trust, where people are not afraid to admit errors and mistakes, are able to challenge decisions, where they openly discuss potential problems as well as new ideas, you will not only have fewer long-lasting problems but you will also stimulate a more innovative culture. As a result, you will have a better reputation as a company.

Therefore, you will be better able to attract high-potentials to come and work for you and clients will be more inclined to buy something from your brand. And as a result of fewer problems, more innovation and a better reputation, you will see that you will have better financial results in the long term. So, in the end, this also benefits your shareholders. It’s a win-win situation in the long term.

 

Can you provide a real life example of a trust “challenge” where your insight has been effectively applied.

I was working as an ethics & compliance officer at a multinational and found out that in a certain country people were making corrupt payments. We stopped the payments and asked an outside party to conduct an investigation. Unfortunately, the quality of the investigation was unsatisfactory and in the end, I decided to continue the investigation myself together with a colleague. So, we traveled to this country to interview people, analyze what had gone wrong and submitted a report to the management in which we advised to take a number of corrective and preventive measures, including firing a few people and taking disciplinary measures against others. Virtually all of our recommendations were adopted. As a result, people in the local organizations looked at me as the guy who got their colleagues fired and were frightened to talk with me. But that is not what I wanted, I wanted people to come to me with their challenges and issues, so we can have a discussion and try to find solutions together. We, (the management and I,) basically had to restore trust. But the question was how. We decided to use all the tools that we could think of.

We started by confessing that we (regional/global management and the compliance department) had also dropped the ball and had not been sufficiently involved in this country, despite the fact that it was identified as a high-risk country. Therefore, we invested in the local compliance function and I also visited the country more often. We encouraged everyone to come forward with anything that had happened in the past that they were concerned about, trying to create a culture of openness and transparency. And if they had not been the main driver behind the unethical behavior, they would not get fired or face any negative consequences whatsoever for coming forward. We offered all employees free access to external lawyers for a number of days. They could ask confidential advice and we would pay for that, without knowing who asked what.

Now that the corrupt payments had been stopped, some of our employees received death threats from former clients. After a careful deliberation we decided to step into that discussion, taking away the authority to make payments from the local country office and by communicating that if anyone still had problems with that, they could have a discussion with somebody from the head office (me), herewith exposing ourselves to these threats as well, demonstrating personal commitment. I have to admit that, since I have children, I have become less brave and more careful, so this was quite uncomfortable. Luckily nobody showed up to have that discussion.

We personally visited some of the more problematic locations to actually see with our own eyes what was going on. We organized dilemma sessions with the employees to explore potential solutions and panel sessions with senior management where employees could ask anything. At the same time, we launched a marketing campaign, organized a compliance quiz and handed out rewards. And to conclude the marketing campaign, we organized a party.

We knew that we would lose a number of clients and were prepared to make a loss. Much to our surprise our experience proved that, as we profiled ourselves as the most compliant supplier in the market, we obtained new clients and our annual results in the end actually showed a growth of both revenue and profit. We put a lot of effort into restoring the trust and I think that we managed to succeed. That said, keeping the trust also requires a lot of work and is something that should not be taken for granted.

 

Generally, do you think the global “trust” climate is improving or worsening? What actions are making it better or worse?

This is a difficult question. If I look at the political climate across the world I am not very positive. I notice that quite a few leaders with a nationalist agenda are elected, taking protective measures. Not trusting other countries. Blaming the opposition. 

At the same time, I also see changes in the business world, like the recent emphasis on ESG, as expressed by BlackRock and other major investors, as well as the declaration from the Business Round Table in the US. Business leaders are realizing that they are losing credit from society and they release statements that they want to balance the interests of the shareholders with the interests of the other stakeholders. But do we see that happening in practice? I guess it is still too early to tell. In The Netherlands we have seen leaders like Paul Polman from Unilever and Feike Sijbesma from DSM making their companies more sustainable and at the same time also delivering better business results. The question is what their successors will do now that they have stepped down. And whether other companies will adopt a similar strategy.

More importantly, I am very optimistic about the younger generations, the millennials, who seem to have another attitude. In the US we have seen employees starting protests against their companies who don’t seem to follow their own value statements. I have not seen that in other countries yet, but I do notice (anecdotally) that also in Europe the young generations are less interested in money, possessions and wealth and more interested in experiences and doing something meaningful with their life.

 

Many claim we have a crisis of trust. Do you agree?

Yes, I do. Countries seem to be less inclined to support each other. Free trade agreements are re-negotiated. The value of international institutions is challenged. We spend less money on development aid. The US and Europe stop refugees who want to enter their countries looking for a better life. We have free movement of goods and capital but not of people. If anything bad happens, foreigners are blamed. In the US the Democrats and republicans are so divided that it is hardly impossible to reach a compromise. This while a good democracy also takes the interests of the minorities into account.

Instead, we see an ‘us against them’ attitude and people hardly seem to be able to listen to each other, feel empathy with other people, trying to understand their situation and line of thinking. And this happens at a time where we are more connected than ever through social media and global supply chains. The reality is that we are all in this together. Trust in vital institutions like journalists and scientific institutes is waning. However, I also see some positive trends, as described above.

 

Geert, how has your membership in our Trust Alliance benefitted you professionally?

The Trust Alliance inspires me. I learn from other people and it is always nice to meet likeminded people to exchange thoughts and ideas. I have also used the outcomes of the FACTS(R) Framework to support my theory that ethical/trustworthy organizations achieve better business results in the long term. I use that in my articles, talks and training sessions.

In The Netherlands I have been active in the Association of Dutch Compliance Professionals. I am the former Chairman. I launched and still chair the expert group on Financial Economic Crime and am a member of the expert group on Culture and Behavior, where I lead the internationalization effort. This last group developed a toolbox with some 40 tools that ethics and compliance officers can use to (assist management to) influence the company culture and the behavior of individuals. We are going to include Trust Across America-Trust Around the World’s AIM Survey tool in our toolbox this year.

 

Geert, thank you so much for your time and more importantly for your commitment to elevating organizational trust. What would you like our audience to know about you?

My mission is to help organizations conduct business in an ethical and compliant way by reducing risk and stimulating better business. I specialize in establishing and improving ethics and compliance programs in general and anti-corruption programs in specific. In 2016 I founded ECMC: Ethics & Compliance Management & Consulting to provide compliance training, consulting and interim ethics & compliance management. I also speak and write on ethics and compliance.
Most of my experience was obtained in-house as the Chief Compliance Officer Aon EMEA and the Global Head of Compliance of Damco, the freight forwarding arm of Maersk. I have been the President of the Dutch Compliance Officers Association, the founder/chair of the expert group on Financial Economic Crime of the Association, a member of the expert group on Culture and Behavior and a member of the Professional Advisory Committee of the Law Compliance Minor at The Hague University. I am the recipient of the 2020 National Compliance Award.

 

Before you leave, Tap Into Trust and complete our 1 minute/1 question quiz. Find out how the level of trust in your workplace compares to hundreds of others. 

Have you reviewed how our workshops are helping teams and organizations just like yours elevate trust? Schedule an ONLINE webinar today.

Did you miss our previous 2020 Trust Insights? Access them at this link.

Contact us for more information on elevating trust on your team or in your organization or email me directly: barbara@trustacrossamerica.com

Copyright 2020, Next Decade, Inc.

, , , ,

Jan
23

It may be no coincidence that three trust surveys were published just when the annual World Economic Forum Davos event kicked off in Switzerland.  Let’s take a quick look at them:

 

 

Edelman Trust Barometer: The annual Edelman survey polls the public on the four major societal groups: government, business, NGOs and the media.  The results are not so much about trust, but rather PERCEPTION of trust by members of the public who participate in the survey.

YPO Global Pulse Survey on Trust: Another global survey, this time of business leaders. Again, a measure of perception of trust, this time by business leaders.

Morning Consult: Survey of the Building Blocks of Consumer Trust in Brands: Explores the factors that are important to consumers when considering whether to trust a company. The results of this survey are quite different from the first two. I suppose it depends who you ask and how you ask your questions about trust. This survey also measures perception of trust, this time on the part of consumers.

These surveys, and others like them provide Davos attendees with some common language to talk about trust, and in many ways, that’s important, especially in a gathering of world leaders who may be thinking about “trust” for the first time. But it’s only a start.

So what’s the problem?

The problem is, and has been for over a decade, that perception of trust surveys provide no action plan for moving the needle on trust in any societal group. All they do is provide something to talk about.

And what is the solution?

If you lead any team or organization, please consider the following statements when planning an ACTIONABLE trust strategy:

 

  • In every organization, trust is an outcome of ethical leadership, nothing else will build it. If the leader is unwilling to acknowledge that trust starts and stops with them, there is no reason to read any further.
  • To elevate trust, only the leader can CHOOSE it as a business priority.
  • Leaders should not confuse PURPOSE with PRINCIPLED BEHAVIOR. Principles must be addressed if purpose is to have any meaning or impact. Putting purpose before principles has the same effect as a clean shirt on a dirty body.
  • Trust is built through actions not words. Modeling trust is an intentional business strategy that must be practiced and reinforced daily, and driven by leadership.
  • Trust is not a marketing tool, and it can’t be delegated to compliance, HR or any other function. The leader owns it along with the Board.
  • A leader cannot expect anyone in their organization to care about trust if they don’t. And if you think low trust is not a tangible risk, consider its impact on Boeing and many others who chose to ignore it.
  • Trust is interpersonal, and a trustworthy culture is built from the inside out. Brand trust, data trust, AI trust and every other “buzzy” trust of the day, including “Purpose” will be natural outcomes.
  • When presented with an expensive trust “solution,” by an organization that offers “trust” as one of many options, a closer look is probably in order, since its chances for long-term success are slim. Trust subject matter experts may be more difficult to identify, but locating them will be well worth the price. Don’t follow the crowd.
  • Waiting until after the crisis to build trust will be very costly and in most cases, completely ineffective.
  • Many leaders are proactively embracing trust as an intentional business strategy. They currently have an advantage over those who are still at the “talking” stage.

Making the decision to move beyond trust talk to trust action is a hard one. It requires not only introspection but a certain amount of vulnerability. Virtues like trust, the ones that really matter, may not be easy, but they are certainly worth exploring for those who are seeking long-term success.. Who is up for the challenge once Davos ends?

Barbara Brooks Kimmel is the Founder of Trust Across America-Trust Around the World. Now in its eleventh year, the mission is to help organizations build trust. That’s all we do. 

Copyright 2020, Next Decade, Inc.

 

 

 

 

, , , , , , , ,

Oct
08

A story of a toxic industry and how a soccer game might just offer some guidance…

This week HSBC announced the layoff of 10,000 employees, just months after ousting its Chief Executive, and bringing in an interim. According to the Financial Times, in 2014 the company employed 24,300 risk and compliance officers, and in their 2018 annual report the word “compliance” appeared 129 times. Yet since 2014, billions of dollars in fines have been levied against HSBC ranging from bank violations, fraud, money laundering, wage and hour violations and toxic securities abuses. Even with a very significant compliance presence, something still isn’t quite right at HSBC, and hasn’t been for years. Could it be that it’s not a compliance issue?

HSBC isn’t alone. Others in the industry are taking similar steps, with banking leaders continuing to cite “external” factors driving their decisions. Rarely, if ever do we hear “I screwed up” or better yet, “Our culture remains toxic and the expensive 1980s fixes are no longer working.” What if instead, leaders chose an all together different strategy, one that began with some introspection and ended with an outcome other than mass layoffs?

And now for the soccer part…

Any parent who has sat on the sidelines of a high school soccer game knows that the referee serves in a “leadership” capacity, “controlling” both the technical and behavioral components of the game. Some might think of the referee as the “Chief Compliance Officer.” Usually the “calls” are accurate, but not always. When they aren’t, coaches, parents and players pile in, and the yellow cards fly.  Sometimes these “stakeholders” are even removed from the field.

But what happens when the referee doesn’t to show up? That scenario recently played out in a game between two teams- one a big inner city group, and the other a “smaller” suburban group. From the sideline, it looked like trouble. Who could imagine these two groups facing off on a field with no one in charge? But since it was an “add on” to the schedule, and didn’t “count”, the coaches made the decision to play the game without a “leader.”

The parents and coaches held their collective breath as the game began, and for the next hour, we waited for “trouble.” It never came. In fact, the two teams got along just fine, better than in most games. Good sportsmanship was displayed and members of both teams were communicating and laughing with each other throughout the hour. It ended in a 2-1 victory for the urban team, the boys shook hands, and we all went home. What a pleasant surprise. Nobody got “carded.”

What can we learn from this story?

Perhaps the person in charge only thinks they have the power. After all, they can make the “obvious” short-term calls, collect their fee and leave the field. They have completed the “task” they were hired to do. Yet when no one is in charge or the leader chooses to relinquish some control, team members are empowered and collaboration replaces command and control. The obvious calls are mutually agreed upon, and the not so obvious are talked through until a consensus is reached. This is a healthy culture where trust replaces fear. Maybe there is a lesson for everyone to take away from this story.

What are your thoughts? Drop me an email at barbara@trustacrossamerica.com

If you want to learn more, join over 70,000 global professionals who have Tapped Into Trust, participate in our global 1 minute/ 1 question global workplace study and access our survey tools.

Copyright 2019, Next Decade, Inc.

, , , , ,

Oct
02

Once again, the scandal plagued banking industry has a new CEO vowing to rebuild trust. This time the headline is out of Copenhagen… 

 

Trust in Danske Bank has collapsed, says its new chief executive

How many times have we heard these words before? “As reported by Reuters, Trust in Danske Bank has collapsed amid its involvement in a damaging money laundering scandal said the bank’s Chief Executive Chris Vogelzang, as he vowed to strengthen the bank’s defense.”

Fresh out of ABN Amro, another scandal plagued bank, the newly elected Danske CEO cites the primary cause for the loss of trust: “The high level of trust in Denmark, which enjoys a reputation as being one of the least corrupt nations, mean(ing) that there had been fewer incentives to control risks.” And his solution… As a result, he said, nine out of 10 people in the top compliance team are now from outside Denmark.

And also… “There was also some “bad” product in the mix. Trust in the bank has been further dented after a scandal, in which it failed to inform customers that it expected a poor performance from an investment product called Flexinvest Fri and continued to sell the product after raising fees associated with it.”

Once again I asked the members of our Trust Council to read the article and share some advice for Chris Vogelzang.

Donna Boehme, our “Lion” of compliance weighed in first, offering the following observations: 

To rebuild trust and establish a culture of ethical leadership is a huge undertaking that takes years, not days, and requires the advice and coaching of experts, not just PR Wizards of Smart.  One area the experts would focus this company on would be the entire system of “incentives” which has an outsized effect on culture and business decisions, as demonstrated so vividly by Wells Fargo and its fake accounts scandal. Danske might want to look at the leading edge examples being set by a number of companies In this arena.

It is also encouraging that the CEO has brought a compliance team together that has AML and other compliance SME. But if he wants that team to be successful, he must ensure that it has independence, empowerment, line  of sight, seat at the table and resources adequate to do the job well. Gone are the days when reputation and brand can be entrusted to an in-house legal team with no legitimate compliance SME (earned in the trenches) and lacking the positioning and authority to do the job. 

 

Stephen M.R. Covey  shared the following thoughts:

First, “you can’t talk your way out of a problem you behaved your way into.”  In other words, the only way to restore trust here will be through actions—behaviors—not merely words (although words can be helpful to signal what you’re going to do).  Key behaviors to restore trust here include:  Confront Reality (acknowledge it), Practice Accountability (own it), Right Wrongs (make it right as best you can), Clarify Expectations (tell people what you’re going to do to re-earn their trust), and Keep Commitments (do what you say you’re going to do).

Second, trust in the marketplace is an extension of trust in the workplace.  It’s inside out.  So in order to restore trust with customers, it will be vital to also restore trust with your own people.  Too often organizations who have lost trust in the marketplace focus primarily (sometimes almost exclusively) on the customer/market trust and don’t recognize that they also need to be rebuilding internal workplace trust.  Without the workplace trust, it’s hard to sustain market trust.  Indeed, it’s incongruent.

Third, while building/rebuilding trust is definitely an inside-out process, starting with each leader and with the leadership team, it’s also vital that the process move out to the organizational level where they can better and more appropriately align systems and structures to ensure they build trust the right way.  Some of these systems/structures may have been misaligned in the past and may have contributed to the challenge.

There’s a lot more they need to do but those are just a couple of thoughts.

 

I’ll add a few more observations to the sage advice provided by Donna and Stephen. 

The concept of rebuilding something implies that it was built before.There is one question that the new CEO must answer before a trust-building strategy can be developed. What exactly did we trust our bank to do in the past that we are currently failing to do? 

While compliance plays a role in elevating trust, it must first come as a directive from the top. If the Board of Directors doesn’t understand or support the importance of creating a long-term strategy to elevate trust, the leadership team will be ineffective. The Danske Board currently consists of five committees: audit, compliance, nomination, remuneration and risk. I would suggest adding a sixth called “trust” and immediately calling in some trust subject matter experts to assist in outlining this critical trust-building strategy.

And speaking of strategy, whether post crisis or proactive, trust can never be delegated, yet this is what we see time and time again. It is not a legal or PR “tactic,” but rather an outcome of an intentional trust “plan” that leadership executes, practices and reinforces daily. In other words, trust “talk” must be followed up with action.

I hope someone at Danske reads this and passes the article up the chain. Perhaps Danske will someday become the industry role model in building trust. After all Denmark, with its high level of trust, should demand nothing less.

Barbara Brooks Kimmel is the CEO of Trust Across America-Trust Around the World whose mission is to help organizations build trust. For more information on how to build authentic trust, contact her at barbara@trustacrossamerica.com 

Copyright 2019, Next Decade, Inc.

This is the link to the original Reuters article.

, , , , , ,

Aug
20

Ideally, an internal C&E team will have great people skills and the ability to communicate and collaborate with all stakeholder groups. But if the team is ignoring the underlying principles essential to building high trust, the C&E function will be ineffective AND responsible for increasing enterprise risk.

Barbara Brooks Kimmel, CEO Trust Across America-Trust Around the World

The head of Compliance & Ethics at a large global public company recently engaged us to administer our AIM Towards Trust assessment within their 20+ member team. Unlike others who take trust for granted or consider it a soft skill, this one acknowledged that internal team trust was lacking and wanted to find out why. They sought to identify trust weaknesses and strengths, and to begin a trust discussion with the goal of remedying the weaknesses, celebrating strengths and reducing risk.

Our one question/one minute assessment is based on our universal principles called TAP (Tap Into Trust), developed over the course of a year by many of the world’s leading trust scholars and practitioners, accessed almost 65,000 times, and now in use in dozens of teams and organizations.

The survey results are displayed below. Accountability, Transparency and Respect were identified as the principles that needed immediate attention and, armed with this knowledge, the C&E Team leader was provided with additional do-it-yourself tools to address the weaknesses.

This leader believes that the responsibility to elevate organizational trust lies with their team, and is now expanding the assessment, bringing it into other functional areas within the organization to identify and remediate trust gaps. 

High trust C&E teams are role models, supporting employee and customer wellbeing which, in turn fosters faster company growth and achievement of organizational goals, while minimizing risk. 

What do you think the trust profile of your C&E team would look like, or would you rather not know?

While your colleagues are embracing trust as the NEW currency, are you choosing to ignore it?

Barbara Brooks Kimmel is the CEO of Trust Across America-Trust Around the World whose mission is to help organizations build trust using a proprietary assessment tool called AIM Towards Trust. A former consultant to many Fortune 500 CEOs and their firms, Barbara also runs the world’s largest global Trust Alliance, and is the editor of the award winning TRUST INC. book series and TRUST! Magazine. Barbara holds a BA in International Affairs and an MBA. For more information contact barbara@trustacrossamerica.com

Copyright 2019, Next Decade, Inc. No part of this document may be reproduced without permission.

 

 

, , , , , , ,

Apr
01

Trust Across America has been writing about Wells Fargo and making public suggestions to leadership on how to fix the Bank’s low trust since 2016, apparently to no avail.

The recent “trust building” communications “horse and pony” show was predictably a huge and expensive fail.  Anyone with even a basic understanding of organizational trust knows that trust is internal and must be built from the inside out, not through a PR campaign. So now the sudden resignation of the current CEO comes as no surprise to us, nor does the appointment of the “interim” CEO who “by chance” happens to be a lawyer.

Over the weekend we asked members of our cross functional Trust Council to weigh in on the actions required to right what appears to be a sinking ship. We appreciate the thoughts of our Council members who took the time to weigh in.

Acknowledge trust as a hard asset: Do not assume that trust is a “soft skill” and do not attempt a fix via exclusive input from legal and compliance. Form a cross-silo team to attack low trust with the support of the “right” Board members, possibly necessitating some “reshuffling” at the highest level. In other words, clean house.

Make trust building the first priority: A foundation of trust must be built before culture can be fixed. 

Be accountable: Embrace responsibility and accountability and avoid the deadly Watergate sin of tip-toeing up to the line but not crossing it, perpetuating the sense of cover-up. You’ve got to own it—and then some.

Measure what matters: Assess the current level of stakeholder trust and use this baseline to begin attacking the weaknesses. What can be measured can be managed.

Practice and reinforce values: Saying or printing them is mere cant. You’ve got to propagandize them, talk about them in application to specific instances, hold leaders accountable for a quota of such applications.

Model humility: Place truth-telling ahead of personal or professional gain.

Be transparent: Reject hidden agendas and be transparent wherever and whenever possible.

Hire and fire: Nothing builds trust faster than firing and hiring people. Hire/fire/promote on visible demonstrations of the bank’s values. Cull out the middle managers who still think they can get away with hiding unethical behaviors. 

Erase fear: Drive out fear and ensure every voice is heard and every trust breach is fully investigated. “The absence of fear is the incubator of trust.” Reward moral character and reinforce candor.

Track performance:  Define and scorecard performance against both values and value.

Perhaps the most difficult question came yesterday when someone asked me “Who would want the job of CEO?” That’s a tough one. Hiring another banker may not even be the best solution as finance is not generally considered an industry to exhibit high trust behavior. Regardless, the hope is that whoever the brave soul is who steps in to take the position begins their tenure by first acknowledging that trust is internal and must be elevated from the inside out. Only then can the required culture work begin.

PS- CNN just (attempted to) weigh in on how the bank can end the crisis. They may want to go back to the drawing board and craft a followup article.

For more information and tools to elevate trust, head over to our website at www.trustacrossamerica.com

Copyright 2019 Next Decade, Inc.

, , , , ,

Jan
13

2019 began with a trust “bang” when Salesforce CEO Marc Benioff announced a new position in his company. Essentially, after some deep soul searching, this CEO recognizes that most large organizations, including the tech sector, have a trust problem and he is committed to solving that. Marc is one of a small yet growing cadre of enlightened leaders, and with the appointment of Paula Goldman from Omidyar Network, Salesforce now has a Chief Ethics and Humane Use Officer.

I recently asked a few of Trust Across America’s Trust Council members  to weigh in on how Paula can be most effective in her new role.

Donna Boehme who heads Compliance Strategists and has been a leading voice for Compliance 2.0 had this to say:

As the CEO says, it’s been “dark days” for the tech industry, which is by no means an overstatement. With so much change leading to an aggregation of power in the big tech companies, the industry is long overdue for a reckoning. By appointing a senior executive to begin to manage such issues at his company, the CEO is demonstrating intuitive foresight and risk assessment. I also imagine he has seen the disasters that befall companies that fail to value ethical leadership and culture as a key company asset.

That’s quite a high minded and open-ended title to the extent it opens the door to confusion and misinterpretation. Ms. Goldman should do what I often coach new chief compliance and ethics officers (CECOs) to do: refine her title and ensure she has a clear written mandate for the role that is understood and agreed by all of senior management.

In that vein, Bob Whipple at Leadergrow had similar advice for Paula:

Make sure to have clarity of your role.  Many a “Chief Ethical Officer” has found out that he or she is ultimately like an appendix. I have always believed that ethical culture is a line rather than a staff function. Also, try to figure out what “humane use” really means.

Back to Donna Boehme

A clear written mandate is the key to empowerment for those in these roles…including a clarification of the respective roles of others (HR, Legal, Audit, etc.) supporting the program to avoid redundancy and gaps. The future… hinges on robust collaboration and coordination by all who support related activities, which is why the written mandate and collaboration tools are important. I go by the well-established compliance maxim  of “If everyone is responsible for feeding the dog, the dog starves.”

Another early area of concentration for anyone new to this role is to establish key peer and mentor networks to support them as they navigate the often rocky waters in which any new function/executive must exist and succeed. 

The challenges for BigTech feel analogous to those faced by the defense industry in the 80’s, and it seems natural that a shared endeavor to address the risks of compliance and culture could prove as productive and proactively beneficial as the early Defense Industry Initiative did for BigDefense in the 80’s.

I also turned to Bob Vanourek, at Triple Crown Leadership, a former CEO of several major companies who offered this advice:

As the first steps in her new role as Salesforce’s first Chief Ethical and Humane Use Officer, Paula Goldman should:

  1. Seek input from multitudes of sources inside and outside the company as to the ethical and humane issues that are frothing to the surface in the coming years.
  2. Enlist a large cross-section of volunteers from inside and outside the firm who agree to think deeply about these issues and offer their counsel on how to deal with them. These volunteers should be wildly diverse in age, gender, disciplines, experience, political views, and other areas of difference.
  3. Assemble a small group of volunteer colleagues inside the firm to crystalize and summarize the input and views from above to discuss with her superiors at Salesforce with recommendations on the top few issues on which Salesforce wishes to take an initial public stand.

And finally, Stephen M.R. Covey who needs no introduction, offered these valuable insights:

This will not be easy for Paula because people often view differently what they perceive as right and wrong when it comes to policy decisions, and it can especially become contested when it comes to matters that are (or might become) politicized. In other words, there could be more than one right answer. If that’s the case, then focusing on establishing agreed upon criteria and process would seem to be among the highest leveraged initial steps she should take, including: 

  1. Focus on establishing criteria for her committee’s framework that includes making the creation, preservation, and enhancement of trust—externally and internally—an explicit objective, i.e., “How will this decision affect our trust in society? In the marketplace?  In the workplace?, etc.”
  2. Focus on establishing criteria that recognizes the fundamental needs (economic, social, intellectual, purpose) of ALL stakeholders, and seek to establish a dynamic process of attempting to assess and ultimately balance these needs and stakeholders.
  3. Create a process for internal feedback and discussion so as to be open and transparent inside the organization so that even if some people might disagree with the decision, they might still have felt heard and understood (even if not agreed).
  4. “Declare your intent” as to what you’re doing, and especially why you’re doing it, so as to be clear and transparent about agenda and motive.

As the CEO of Trust Across America-Trust Around the World, I offer Paula the following:

1. Our TAP program, guiding principles developed over the course of the past year by our global Trust Alliance, and currently accessed over 30,000 times. These Principles, available in 16 languages, can elevate trust in any organization of any size. We have recently completed Phase #2 providing a series of discussion questions for implementing each Principle.

2. Our research on the intersection of trust and profitability, should anyone should ask the question “Why trust?”

A few closing questions:

  • Should Paula Goldman be reporting to the Chief Equality Officer or someone else?
  • Will Paula’s role simply be to ensure that new technology initiatives remain ethically “compliant” or will the position go beyond this somewhat limited scope?

While our ten years researching the trustworthiness of public companies points to the conclusion that “no company is perfect,” how exciting to start 2019 with this news from a visionary leader in the tech sector. Well done. Now the “hard” work starts.

You can read Marc Benioff’s announcement at this CNBC link.

Barbara Brooks Kimmel is an award-winning communications executive and the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. A former consultant to McKinsey and many Fortune 500 CEOs and their firms, Barbara also runs the world’s largest global Trust Alliance, and is the editor of the award-winning TRUST INC. book series and TRUST! Magazine. In 2012 she was named one of “25 Women who are Changing the World” by Good Business International, and in 2017 she became a Fellow of the Governance & Accountability Institute. Barbara holds a BA in International Affairs and an MBA. Don’t forget to TAP into Trust!

For more information contact barbara@trustacrossamerica.com

Copyright(c) 2019, Next Decade, Inc.

 

 

Jan
06

How can organizations ensure that

red lights turn green in 2019?

 

Please share your ideas.

 

 


Is this a useful resource to you and your organization? Please consider making a donation to help us build more tools.

,