Aug
09

A colleague likes to remind me that all politics are local. But the sad fact is that so little, if any, are based on accountability or trust.  

This past year I have witnessed local “bad” politics set against the backdrop of national “worse” politics, and while the local players may not have nationally recognized names, their tactics are no different than what is playing out in Washington today. While some will say “who can blame them, just look at their role models,” this is no longer a satisfactory answer, at least not to me.

Two of our regional school board members are the subject of recall petitions filed by separate groups in different towns. The targeted officials are claiming that the recalls are about intimidation. I’m reminded that often when people accuse others of a specific character flaw or personality defect, they may be pointing to their own shortcomings. What further strikes me as odd is that these are the same individuals who I have personally seen intimidate their own members and the public, while disparaging and excluding those who don’t agree with them. 

The politicians are piling in to the local battle in the hopes of gaining “control”-  citizen activists, board members, town councils and mayors are all trying to grab their share of some elusive power pie, while balancing themselves on both sides of an imaginary political fence. Sound familiar? Lines are being drawn faster than summertime lightening strikes and alliances are made (and broken) with a mere phone call or wink of the eye. Meanwhile, the individual political motives and alliances remain nontransparent, finger pointing is rampant and the issues are spiraling out of control. If it sounds to you like a scene from the TV show Big Brother, it could be.

But what is the “real” issue at the local level? What makes it different than what’s going on in Washington? For me… well nothing.  We, as a nation, have tossed ethics and morality to the wind. Those in power, at whatever political level, have forgotten what it means to be “servant leaders” and to do so with humility, dignity and grace. Elected officials are no longer accountable to their constituents, nor do they perform their duties with integrity or trust. In this particular case, a regional school district full of kids is suffering. At the national level, the whole country feels the same pain. What a shame. We have nobody to blame but ourselves.

I live in small town America. I speak to those in neighboring towns and I hear that the issues are the same. Only the names and faces are different. Imagine this.  What if a copy of this blog was sent to every local school board, every town council and every mayor with a note that said “Say what you mean and do what you say. We, your citizens, are watching and we want you to help restore trust to this nation.”  Imagine if these elected officials began setting the examples, at the local level, that our country so desperately needs right now. What is the downside? Where is the risk?

Readers of this blog have the power to start a movement. Forward this short blog to your School Board, your Town Council and your Mayor. Ask them whether they want to continue to be part of the problem or part of the solution.  Remind them that collectively, they have the power to change the course of this nation.

Barbara Kimmel is the Executive Director of Trust Across America. Please feel free to send any questions or comments to barbara@trustacrossamerica.com

Jul
24

It seems like it is happening more frequently… those “accidental” billing errors imposed by companies… and I’m not referring to the pizza joint on the corner, but rather large and well known businesses that seem to think nothing of tacking on bogus charges, perhaps with the hope that only a small percentage of customers will notice, and the rest will  mistakenly pay these fees, much to the delight of the corporate coffer watchers and quarterly earnings manipulators.

In the past two weeks I have been on the receiving end of three corporate “scams.” Scam is an ugly and slanderous word, and I wouldn’t use it if I didn’t think it was accurate.

The first involved an estimated bill by a utility company (the actual bill was half, resulting in bill reduction of almost $300). The second offender was a “rent-a-car” company that imposed “phantom” gas charges, but could not produce any evidence of the actual gas used. The third was a large hotel chain that thought nothing of tacking on $32.00 in “honor bar” fees (you know- the jar of peanuts or package of M&M’s in the hotel room refrigerator), when, in reality, the honor bar was never accessed.

In the first and third instance, the extra fees were cancelled without a single question… almost too easily.  In the second case, two minutes of online research turned up an undercover investigation of this company’s deceptive and bogus gas charge practices. (I’m still working on resolving this one, as it is a bit more complicated. I did not rent the car directly. It was a service loaner from a “high end” auto manufacturer who was fixing my SUV. The interesting twist on this story is that the auto company released my personal credit card info to the rental company…but that’s a story for another discussion.)

And this brings me to Trust Across America’s metrics. As a followup to an article I wrote on the Role of Trust in Sustainabile Business, www.triplepundit.com/2011/07/role-trust-sustainable-business/, I decided to do a tiny study (of these 3 public companies) to see if there is a correlation between “good trust and good business” and what I found should not be surprising. Two of the three companies have below average aggregated trust scores. The third is slightly above average, but has a very low score in corporate integrity.  All three have at least one link that breaks the chain. The weak links are concentrated in corporate integrity and transparency- two of our five FACTS trust drivers- and certainly no surprise.

In conclusion, these are not companies that understand the benefits of trustworthy business behavior, nor have they adopted a culture of trust. In fact, they may believe that trust is not relevant to conducting good business. Unfortunately for them, as our world becomes more transparent, it will be more and more difficult for companies like these to sustain their business model. Oh well. I certainly won’t be sorry to see them go.

Trust Across America’s mission is to highlight companies that do the right thing.  This blog post is as close as we will come to reporting a scam. But let us know about your own corporate interactions, be they good or bad. Feel free to use actual names. We will be happy to provide some personal insight back to you regarding the company’s trust metrics. They must be public companies, and in our database.

www.trustacrossamerica.com/documents/offerings-reports/facts-audit.pdf

Jun
26

Trust Across America (TAA)  has set a standard for measuring trustworthy business behavior through our FACTS analysis, combining financial and non-financial metrics. TAA has been tracking the performance of the top companies based on our five FACTS drivers- Financial stability, Accounting conservativeness, Corporate integrity,Transparency and Sustainability.

Our proprietary research and external back-test of our universe of almost 3000 public companies confirm that the most trustworthy companies provide long-term benefits to all stakeholders, including shareholders. In November, 2010, our data selected 59 companies that met our “Gold Standard” of trustworthy business behavior.  The chart (link) below is a graphic representation of the performance of this group of companies since 1999 vs. the S&P 500.

Gold Company Performance

These Gold Standard companies are outperforming the S&P 500 by over 500% since 1999, and by approximately 35% since we began tracking them in November 2010.

This group contains many “household” names like Aflac, Fed Ex, Lexmark and Cigna. Others are not so well known- Albemarle, Praxair, Teco Energy and Lubrizol, which was recently acquired by Berkshire Hathaway.

But whether well known or unknown, they all share a common characteristic. They have adopted a culture of trustworthy business that benefits all stakeholders, including shareholders.

So while the news continues to be filled with stories about the lack of trust in business, companies actually can do good and be profitable at the same time.

Feb
14

Who Are the Tri –State’s Most Trustworthy Public Companies?

Even though trust in corporations is dropping nationwide,  many companies in the Tri-State area exhibit high levels of trustworthy behavior and many are surging ahead of the S&P as America recovers from its most recent recession. According to Trust Across America (TAA), the Tri-State area’s most trustworthy companies are:

New York:       

Gold- Hess Corporation                    

Silver- Transatlantic Holdings Inc.  

Bronze- Avon Products, Inc.            

For more details: tinyurl.com/4bn6zn3

New Jersey:          

Gold- Prudential Financial, Inc.

Silver- Cytec Industries Inc.

Bronze- Sealed Air Corporation

For more details: tinyurl.com/5t5cxlw

Connecticut:        

Gold- Praxair

Silver- Rockville Financial

Bronze- United Technologies

For more details: tinyurl.com/65ekk43

Trust Across America shines the spotlight on world-class companies exhibiting high levels of trustworthy business behavior, while providing a roadmap for other organizations to follow. Although trust was difficult to accurately measure in the past, TAA has compiled a composite set of trust metrics and worked closely with organizations that measure them.  The result is a new model called FACTS™, an acronym that stands for Financial stability and strength, Accounting conservativeness, Corporate integrity, Transparency, and Sustainability, with each factor evenly weighted. The power of this model is that it is objective, quantitative, and rich in independent metrics. 

Barbara Kimmel, Executive Director of Trust Across America states: “There are no perfect companies.  However, many companies have touted themselves as trustworthy and have been given a free ride because corporate America has lacked a definition of trust and tools to measure it. Our data can see through the smoke and mirrors.”

So while the news continues to be filled with surveys showing that consumer and investor mistrust of business is rising, we can now focus on the companies that are working hard to earn the public’s trust. As a result, consumers can now choose to do business with these trustworthy companies, while investors have an added level of protection from the next corporate scandal. 

 Trust Across America is a program of Next Decade, Inc., an award-winning firm that has been unraveling and simplifying complex business subjects for over 20 years. TAA provides a framework for public companies to improve trustworthy business practices, as well as showcasing role models that are exhibiting high levels of trust and integrity.

Jan
30

Last week’s  release of the 2011 Edelman Trust Barometer www.edelman.com/trust has prompted much discussion in the news . Edelman sampled over 5000 people in 23 countries. Highlights of their survey, for our purposes focusing on US business, are as follows:

1. Trust is now an essential line of business

2. Trust in US business to do what is “right” dropped 8 percent

3. Trust in the US media to do what is “right” dropped 11%

4. Trust in the following US industries decreased from 2008-2011:

                – Technology- down 5%

                – Banks- down 46%

5. Trust in Automotive increased 17%

6. The most trustworthy industries in rank order are:

                -Technology

                -Automotive

                -Telecommunications

7. The least trustworthy industries, starting with the worst are:

                -Financial

                -Banks

                -Insurance

Charles H. Green at Trusted Advisor Associates www.trustedadvisor.com followed the release of the survey with an excellent blog post “Can You Trust the Data on Trust?” that explores the meaning of the word “trust” and how data can be interpreted in various ways:

trustedadvisor.com/trustmatters/can-you-trust-the-data-on-trust

As Charlie notes, the Edelman Survey is an opinion poll while Trust Across America (TAA) www.trustacrossamerica.com  uses quantitative data to assess the trustworthiness of American business. Both are important, but TAA’s findings are somewhat different than Edelman’s, especially in terms of the trustworthiness of various industries, as a whole.

Our data segments the largest 3000 companies into 16 sectors. While they cannot be fully aligned with Edelman’s industry categories, they are close enough to make several observations. Utilities, retail/wholesale and auto represent our most trustworthy sectors, while oils/energy, finance and transportation are the least trustworthy.

Edelman’s findings include estimates of how much people trust varies by industry. In our data, we have found that industry is not destiny; there is considerable room for individual company variation in trustworthiness. For example, technology is just slightly above average as a group. But when we delve a bit deeper into our data, the findings reveal something more interesting- thirteen of our Top 59 Gold List Companies www.trustacrossamerica.com/documents/media/PressArticle-v9.pdf are in the technology sector, lead by Lexmark www.lexmark.com , Texas Instruments www.ti.com , Analog Devices www.analog.com  and Teradyne www.teradyne.com– that’s over 20%. 

No one can argue with Edelman that trust is an essential line of business, and if trust in business to do what is right is down, we must find ways to reverse this cycle of mistrust. Quantitative data and surveys are certainly useful, but until CEOs acknowledge the trust crisis and agree to examine the data, we don’t see much changing in the short term. In other words, talking is fine, but moving the needle is essential.  

Trust Across America’s challenge to the C-Suite for 2011: The opinion surveys are out and our quantitative data does not lie. Very few companies have adopted  trust as a corporate culture.  Collectively, you have the power to reverse the downtrend in trust. Study your worst practices and improve them. Communicate your actions with your stakeholders. Get the needle moving in the right direction.

Jan
13

CHESTER, NEW JERSEY, January 13, 2011.  Trust Across America, dedicated to unraveling the complexities of trustworthy business behavior, has selected 2010’s Top 100 Thought Leaders in Trustworthy Business Behavior. These people collectively represent a group that can genuinely transform and reverse the cycle of mistrust in business.

 According to Barbara Kimmel, Executive Director, “This year’s recipients include leaders from the public and private sectors as well as authors, consultants, researchers and academics. Each recipient has made an extensive, positive contribution to building trust in business.”

 The full list of honorees can be found at www.trustacrossamerica.com/offerings-thought-leaders.shtml.

 The Top 100 Thought Leaders represents the culmination of two years of research. Trust Across America sought the counsel of and requested nominations for this honor from over 150 professionals across the nation. The list was narrowed through an extensive vetting process. As leaders of The Most Trustworthy Public Companies in America, ten CEOs were included in the list.

 According to Barbara Kimmel, “These individuals are inspiring organizations to look more closely at their higher purpose…to create greater value for, and trust from, all of their stakeholders. We congratulate all of the honorees whose work is shining a spotlight on the importance of trust and providing a roadmap for everyone to follow.”

 Trust Across America™ (TAA) www.trustacrossamerica.com is a program of Next Decade, Inc., an award-winning communications firm that has been unraveling and simplifying complex subjects for over 20 years. TAA provides a framework for public companies to improve trustworthy business practices, as well as showcasing role models that are exhibiting high levels of trust and integrity.

Dec
28

What were the most trustworthy business sectors in 2010? We recently ran this question through our FIDES ™ computer software. We bundled all the companies in our database (almost 3000), sorted by sector and pressed “go!” Here are the top 5 sectors- there are 16 in total:

Basic Materials– lead by Lubrizol (www.lubrizol.com) and Eastman Chemical (www.eastman.com)

Oils-Energy– lead by Hess (www.hess.com)

Utilities– lead by Pinnacle West Capitol Corp. (www.pinnaclewest.com)  and Oge Energy (www.oge.com)

Consumer Staples– lead by Avon Products (www.avoncompany.com)

Auto-Tires-Trucks– lead by Cummins Inc.  (www.cummins.com)

Our data incorporates five key drivers of trustworthy business behavior: Financial stability/strength; Accounting conservativeness: Corporate integrity; Transparency and Sustainability. We call this FACTS (tm).

One of the goals of Trust Across America is for the top trustworthy companies to start sharing best practices with their peers.

Do you have any questions or comments? Email me at barbara@trustacrossamerica.com

Dec
22

Today, Trust Across America™ (TAA) (www.trustacrossamerica.com)  announced the results of their audit of almost 3000 public companies and named Hess (www.hess.com ) as the Most Trustworthy Public Company for 2010. Barbara Kimmel, Co-founder of Trust Across America states that “While no company received a perfect score, Hess came out on top.”

The audit incorporates over 500 data points with respect to five key corporate indicators of trustworthy business behavior: Financial stability and strength, Accounting conservativeness, Corporate integrity, Transparency, and Sustainability, aptly called FACTS™.

The model was developed in collaboration with two Harvard MBA’s and a leading PhD quantitative analyst. The audit process, which took almost two years to complete, is “the most holistic and comprehensive trust “health” checkup for public companies,” according to its founders.

A statement on the Hess website indicates that the company has “six core values that represent its collective conscience and embed them in their organization: Integrity, People, Performance, Value Creation, Social Responsibility and Independent Spirit. Their business is “built on long standing relationships founded on trust.”

The companies  that ranked among the “Top Ten” embed trustworthy business behavior in their corporate culture. They are listed below in alphabetical order. 

Albemarle www.albemarle.com

Best Buy www.bby.com

Cummins www.cummins.com

Eastman Chemical www.eastman.com

Hess www.hess.com

Lexmark www.lexmark.com

Lubrizol www.lubrizol.com

Sonoco Products www.sonoco.com

Texas Instruments www.ti.com

USANA www.usana.com

Trust Across America™ (TAA) is a program of Next Decade, Inc., an award-winning firm that has been unraveling and simplifying complex subjects for over 20 years. TAA provides a framework for public companies to improve trustworthy business practices, as well as media opportunities to highlight companies that are exhibiting high levels of trust and integrity.

Contact: For more information contact Barbara Kimmel, Executive Director, Trust Across America barbara@trustacrossamerica.com  or simply hit reply.

Dec
21

Now, more than ever, consumers want to make the best purchasing decisions from companies they trust- those that will stand behind their products. While most people would agree that trust and integrity are the foundation of our economy, the news is full of surveys showing that consumers’ mistrust of business is on the rise, but we must not forget that great businesses still exist. 

So whether you are stopping for gas, taking a vacation, buying a computer, getting a cup of coffee, looking for auto or health insurance, or buying a new pair of shoes, you can rest easy that a purchase from one of the following is coming from a trustworthy source that has earned your support: 

                         Alfac www.aflac.com

                         Best Buy www.bby.com

                         Carnival Corp www.carnival.com

                         Cigna  www.cigna.com

                         Costco  www.costco.com

                         Federal Express www.fedex.com

                         Hess www.hess.com

                         JC Penney www.jcpenney.com

                         Lexmark www.lexmark.com

                         Mattel www.mattel.com

                         Nike www.nike.com

                         Progressive Corp www.progressive.com

                         Starbucks www.starbucks.com

                         Timberland www.timberland.com

                         UPS www.ups.com

                         US Airways www.usairways.com

                         Whirlpool www.whirlpool.com

While no company received a perfect score from Trust Across America, our audit incorporated over 500 data points with respect to five key corporate indicators of trustworthy behavior: Financial stability and strength, Accounting conservativeness, Corporate integrity, Transparency, and Sustainability, aptly called FACTS™.

Trust Across America™ (TAA) is a program of Next Decade, Inc., an award-winning firm that has been unraveling and simplifying complex subjects for over 20 years.  TAA provides a framework for public companies to improve trustworthy business practices, as well as media opportunities to highlight companies that are exhibiting high levels of trust and integrity.

Contact: For more information on our methodology please visit our website at www.trustacrossamerica.com or email:  barbara@trustacrossamerica.com

Dec
11

Holiday Festival of Trust December 22

Mark Your Calendars for Our Holiday Festival of Trust December 22

 

Join Barbara and Jordan Kimmel, the co-founders of Trust Across America, for a “virtual eggnog” on Trust Across America radio from noon to 1 PM EST on December 22.

This will be a fun filled hour with surprises and gifts. We will unveil our new website, bring you up to date on our programs, and count down the “Top 10 Companies in Trustworthy Business Behavior for 2010.”

And as a way of saying “Thank you” to our supporters, we will be giving away lots of books and “Trust Across America™ logo products. All you need to do is email us a question or comment about our programs that you would like us to address during the show (send questions or comments before December 20) and we will enter your name to win a prize.

Please email: barbara@trustacrossamerica.com

(US address must be supplied to receive a prize).

A quick run down on what’s going on at Trust Across America is provided below:

Week of December 12-Launch of new website at www.trustacrossamerica.com

December 22-Release of “Top 10 Most Trustworthy Companies” on Trust Across America Radio (noon-1PM EST)

www.voiceamerica.com/voiceamerica/vshow.aspx?sid=1713

December 29-Release of “Top 100 Thought Leaders in Trustworthy Business Behavior” at www.trustacrossamerica.com

January 2011

Company Trust Audits and Sector/Industry Reports Become Available at www.trustacrossamerica.com