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Keyword: ‘wells fargo’

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.

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Dec
04

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Measuring the integrity or trustworthiness of public companies is an ongoing research project at  Trust Across America-Trust Around the World. In fact, we now have over 7 years of increasingly “rich” data.

Take a look at this chart:

 

 

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While we are in the business of identifying “best in breed” and not in predicting the next corporate crisis, our FACTS(R) proprietary data is quite capable of doing so. Citigroup, JP Morgan, Bank of America, Wells Fargo… Did the lack of integrity at Wells Fargo contribute to its recent crisis? Could it have been avoided under different leadership? What do you think?

Would you like more insights like this?

Request our White Paper:  The State of Trust in Corporate America 2016

Trust Data: Public companies can review the level of trust within their organization and compare their performance to their peers.

Order our Trust Inc. book series.

2017 Trust Poster: Weekly Do’s and Don’ts to Foster Organizational Trust

Join our Trust Alliance where share our research with high integrity business leaders.

If you lead an organization, serve on a Board or in any management capacity or work with others, and you continue to ignore trust as a hard asset, you are losing out to your competitors and failing to protect your organization against a Wells Fargo crisis.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. Now in its seventh year, the program’s proprietary FACTS® Framework ranks and measures the trustworthiness of over 2,000 U.S. public companies on five quantitative indicators of trust. Barbara is also the editor of the award-winning TRUST INC. book series and a Managing Member at FACTS® Asset Management, a New Jersey registered investment advisor.

 

Copyright (c)  2016, Next Decade, Inc.

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Jul
18

Papa John’s is the latest to call for trust “reconstruction” from the inside out. A quick review of recent news headlines also mentions the EPA after Pruitt, Michigan State’s new athletic director, the Charlottesville police department, Samsung, and Wells Fargo, among others, all calling for trust rebuilding.

At first glance, the obvious recipients of that “first” phone call might be: PR firms and ad agencies, crisis management firms, risk experts, monitors or watchdogs, lawyers or compliance consultants. Yet every one of those choices will result in a “Band-Aid” fix, at best.

For an organization to rebuild trust, the first decision is not who gets the phone call, but who makes it. That first call must originate from the top, and be made to a professional firm with expertise in organizational trust. When that call is delegated to communications, legal or compliance, the chances of obtaining a long-term desired outcome are greatly reduced.

Trust building (and rebuilding) is an intentional holistic exercise. It can’t be pushed down the chain of command and it can only be fixed by the “right” people. Trust can’t be rebuilt with a press conference or an ad campaign, and it does take time.

These 12 Principles called TAP, were developed over the course of a year by a global group of ethics and trust professionals who comprise our Trust Alliance. They are currently available in 14 languages as free PDF downloads and serve as a great starting place and a clear roadmap to building and rebuilding trust. A variety of complimentary tools are also available on our website at trustacrossamerica.com and our Trust Alliance members may also be in a position to help.

Barbara Brooks Kimmel is 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. For more information contact barbara@trustacrossamerica.com

Copyright (c) 2018, Next Decade, Inc.

 

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May
30

(Source: G.Palazzo, F. Krings, Journal of Business Ethics, 2011).

 

Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind.

 

As organizations are comprised of individuals, Ethical Blindness naturally extends into the workplace. Some business sectors appear to be more ethically blind than others, and this creates enormous enterprise risk. This chart shows the trustworthiness of the major sectors for the Russell 1000 companies based on Trust Across America’s FACTS(R) Framework.

 

Ethical blindness can be corrected if leaders choose to be “tuned in” to the warning signs described below:

  • The Board of Directors does not have established long-term policies or procedures in place to elevate ethical and trustworthy behavior with their internal and external stakeholders. For more information see the Spring Issue of Trust Magazine.
  • Leaders, unless they are ethically “aware” by nature, are not proactive about elevating trust or ethics as there is no mandate to do so. When a crisis occurs, the “fix” follows a common “external facing” script involving a costly and unnecessary PR campaign. Wells Fargo’s latest “building trust” television commercial provides a timely example. Meanwhile internally, it’s “business as usual.”
  • Discussions of short term gains and cost cutting dominate most group meetings. The pressure to perform is intense and the language used is very strong.
  • The Legal and Compliance departments are large and growing faster than any other function.
  • The organizational culture is a mystery. No clear “ownership” of ethical or trustworthy business practices or decision-making exist. Think “hot potato.”
  • Discussions/training on ethics and trust rarely occur and when they do, they are lead by either the compliance or legal department and focus on rules, not ethics and trust.
  • Ethical considerations/testing are not part of the hiring process and fear is widespread among employees.

Is Ethical Blindness at the organizational level fixable? Absolutely. But the first order of business requires leadership acknowledgement and commitment to elevating organizational trust and ethics.

These 12 Principles called TAP, were developed over the course of a year by a group of ethics and trust experts who comprise our Trust Alliance. They should serve as a great starting place for not only a discussion but a clear roadmap to eradicating Ethical Blindness. As a recent TAP commenter said:

An environment /culture that operates within this ethos sounds an awesome place to me , I would work there tomorrow if I knew where to look for it. 

Barbara Brooks Kimmel is 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. For more information contact barbara@trustacrossamerica.com

Copyright (c) 2018, Next Decade, Inc.

 

 

 

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May
01

That’s a brash statement, but the facts are the facts. One of the most enlightening moments of my ten-year career leading TAA-TAW came early when a CEO of a large public company said to me “Trust, I never thought about it, but I like that word.” And that statement is why most companies suck at trust.

The daily news discussion of institutional breaches of trust should raise some eyebrows in Boards and C-Suites, but there is little evidence that it does. In public companies, the reasons why are rather simple. The Board and CEO are unwilling to adopt trust-building as a long-term strategy because it may, in the very short-term, impact:

  • Quarterly earnings
  • Wall Street “guidance”
  • Shareholder value
  • Their compensation and tenure

And they are not willing to sacrifice any of these, not even for one quarter.

Some other reasons why leaders in both public and private companies, suck at trust may include:

  1. They were appointed to their position for the wrong reasons. Former fraternity brothers and college lacrosse teammates don’t always make the best CEOs.
  2. They don’t know what matters to the people they lead, and some simply don’t care.
  3. Their well-written mission and vision statement is not practiced. We’re committed to the highest standards of integrity, transparency, and principled performance. We do the right thing, in the right way, and hold ourselves accountable. (Wells Fargo Vision and Values)
  4. Their legal and compliance team sets the ethical barometer, doing only what is “legal” as opposed to what is “right.”
  5. They believe that crisis repair is less costly than building long-term trust. They will not speak publicly about their organization’s values, ethics, integrity or trust-building until after the breach.
  6. They have never set aside a budget for trust because it is mistakenly viewed as a soft skill.

Industry is not destiny nor is any company perfect. But when the Board and the CEO suck at trust, the chances are that all the employees will too. That’s too bad for the company, especially since the business case for trust continues to be proven.

If you are a Board member, director or CEO interested in elevating trust in your organization, please read the latest issue of TRUST! Magazine.

If you work in any organization of any size and are interested in elevating trust, please read our recently released global TAP principles. They are now available in 5 languages.

Barbara Brooks Kimmel is 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 & Company, 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@trustacrossamerica.com

Follow us on Twitter @BarbaraKimmel and @TapIntoTrust

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

Copyright (c) 2018, Next Decade, Inc.

 

 

 

Dec
17

Photo above courtesy of www.ceotoceo.com

Every year about this time, the news “treats us” to the top corporate reputation failures, and 2017 is certainly no exception. I think it’s safe to say that the “buck stopped” on the CEO’s desk at Wells Fargo, United Airlines and Equifax, to name just a few leadership fails this year.

While bad news continues to sell, not all is gloom and doom. When I launched Trust Across America-Trust Around the World almost ten years ago, one of our objectives was to redirect attention to the “good.” Great corporate leaders are plentiful, but their stories often get buried amongst all the bad news.

The list below is not about philanthropy or CSR, but rather a long-term holistic embrace of trustworthy leadership and the resulting impact on ALL stakeholders, not just shareholders.

Ten Great CEO “Trust” Stories for 2017

(not in any rank order)

#1 David Reiling, CEO at Sunrise Banks talks about community enrichment, innovation and its impact on underserved consumers in banking.

#2 Basecamp CEO Jason Fried limits both meetings and work hours to ensure his employees lead well-balanced lives.

#3 Amy Hanson, CEO of Hanson Consulting encourages both teamwork and corporate transparency.

#4 Rose Marcario runs Patagonia and for her, conscious leadership has resulted in the quadrupling of profits.

#5 Fifty-year old Earth Friendly Products CEO Kelly Vlahakis-Hanks pays her employees a minimum of $17.00 per hour.

#6 In an industry fraught with reputation disasters, Gary Kelly at Southwest Airlines not only puts customers first but insists on making flying enjoyable.

#7 Love, trust and commitment to excellence are how Mark Stefanski, CEO (for 30 years) of Third Federal Savings and Loan describes his values, while eighty percent of his associates are women.

#8 Mark Benioff at Salesforce is trying to close the gender and racial pay gap.

#9 Cathy Engelbert, Deloitte’s CEO has a 94% employee approval rating and still manages to balance work and family. (After all, family is certainly a stakeholder in the life of a CEO.)

#10 Chip Bergh, who took the helm at Levi Strauss in 2011, has created a long-term focused culture where employees feel safe to experiment… and it’s worked.

(And BTW: Chip and I share the same (Lafayette College alma mater.)

Whether male or female (count them on this list) trustworthy CEOs know that philanthropy and CSR only go so far in building high trust companies. Trustworthy CEOs practice what we call VIP Leadership (Values, Integrity & Promises kept). The CEOs mentioned on our 2017 list don’t just “talk” about stakeholder trust, they walk it. Community enrichment, focus on employees, conscious leadership, treatment of customers, protecting the environment. These are what make a great CEO.

Let’s celebrate these trustworthy leaders and the companies they run. Let’s work together to continue to build organizational trust in 2018.

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 (c) 2017, Next Decade, Inc. All rights reserved.

 

 

 

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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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Apr
12

 

Trust Across America’s focus has always been on finding and highlighting the “best in breed” corporate citizens while leaving the worst for the scrutiny of others. But today is only Wednesday and my inbox is swamped with so many trust busting stories that even Lucy’s head is spinning. Here we go:

Wells Fargo is clawing back compensation to rebuild trust, or are they?

Volkswagen has found the “secret” to  rebuilding trust…. are they kidding?

Barclay’s CEO has his own strategy for trust, but it’s certainly not the “building” kind. This is the same CEO who not so long ago said “I do believe that trust is returning to our institution. But we will never rest, we are never done. We have to focus on building that trust every day.”

A  bunch of “fake activist” companies, outraged over the purported trust violations of Bill O’Reilly, pull their advertising, or do they? Thanks Jim!

And let’s not forget United, except this isn’t about customer brutality, and maybe not even about trust! It’s just ironic.

This week, instead of watching sitcoms, I’ve taken to reading the news. As an organizational trust researcher and communicator, I’m finding it not only highly educational but also wildly entertaining.

As I’ve said for many years, the ongoing trust crisis will certainly not abate until untrustworthy leaders sail off into the sunset or recognize the error of their ways and start advocating for change.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. Barbara also runs the world’s largest global Trust Alliance, is the editor of the award winning TRUST INC. book series and a Managing Member at FACTS® Asset Management, a NJ registered investment advisor. 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.

Copyright (c) 2017, Next Decade, Inc.

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Sep
22

 

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If your work brings you in contact with others, and chances are it does, how much time do you, your team or your leaders spend discussing how your internal and external stakeholders perceive the company’s integrity? How much time is allocated to reinforcing the notion that strong corporate culture built on trust and integrity are business imperatives? If your answer is “little to none” you are not alone. As a former CEO told me, most leaders are too busy putting out the day-to-day fires to think much about “soft skills” like integrity. One need only refer to the latest Wells Fargo and Mylan scandals to see what happens when culture, trust & integrity are of little importance to corporate leadership. Ironically, many of these same crises could be averted if the “soft skills” were a business imperative.Why does organizational integrity matter? Can, and should it be measured?

Why do organizational trust and integrity matter?

When the culture and core values of an organization are not only strong but also reinforced daily, and leaders keep their word, the following occurs:

  • Employees are more engaged and turnover decreases
  • Innovation increases
  • Decisions are made faster
  • The reputation “bank account” grows
  • Crises diminish
  • Profits are higher

According to a 2011 Booz & Co. study, “The Global Innovation 1000: Why Culture is Key,” companies with both highly aligned cultures and highly aligned innovation strategies have 30 percent higher enterprise value growth and 17 percent higher profit growth than companies with low degrees of alignment.

A 2013 study by Guiso, Sapienza and Zingales called “The Value of Corporate Culture” finds that proclaimed values appear irrelevant. Yet, when employees perceive top managers as trustworthy and ethical, firm’s performance is stronger.

And in the absence of strong core values…

  • Volkswagen lost 20% of its stock value after the emissions scandal and Target’s profits fell 34.3% after it’s data breach.
  • A study by Murphy, Shrieves and Tibbs called “Determinants of the Stock Price Reaction to Allegations of Corporate Misconduct” finds that allegations of misconduct are accompanied by statistically significant control-firm adjusted declines in reported earnings, increases in stock return variability, and a decline in concordance among analysts’ earnings estimates.”
  • In a 2008 study by Karpoff, Lee and Martin called “The Cost to Firm’s of Cooking the Books,” the authors find The penalties imposed on firms through the legal system average only $23.5 million per firm. The penalties imposed by the market, in contrast, are huge.

Can, and should culture, integrity & trust be measured?

Jose Tabuena recently wrote an article for Compliance Week called “To Really Improve Corporate Culture it must be Measurable.” It’s worth a read. The essence of the article is that “good measurement informs uncertain decision-making. And if you measure what matters, you make better decisions.” While corporate culture, core-values, good citizenship, ethics, integrity and trust are commonly believed to be immeasurable intangibles or soft skills, evidence like that provided above point to the fact that these are not only false beliefs, but also that the benefits of ethical cultures far outweigh the costs. Yet most leaders continue to hold fast to the “soft skills” argument because neither they nor their Boards of Directors are thinking about them, being provided with the “right” data and/or because systemic change is:

  1. Hard work
  2. Takes time and
  3. Requires an “all hands on” approach.

Much of our work at Trust Across America-Trust Around the World focuses on measuring the integrity or trust “worthiness” of pubic companies and identifying “best in breed” via a unique, holistic lens called the FACTS® Framework.

Developed by a cross-silo multidisciplinary team, and in the wake of the financial crisis in 2008, the framework began to take shape by asking the same question of dozens of “siloized” professionals from leadership, compliance and ethics, legal, accounting, finance, HR, consulting, CSR, sustainability, etc. “What do you consider an indicator of corporate integrity or trust “worthiness” that can be independently and quantitatively measured without requiring the input of the organization itself? And while every professional had a different perspective, the same indicators were mentioned time and again. “In order for a company to be trust “worthy” it must display good corporate governance said the governance folks.” Similarly the financial professionals pointed to stable earnings, the accounting group talked about forensics, and so on. And by blending all of these indicators of corporate trustworthiness into a very large integrity spreadsheet, we found ourselves able to measure integrity and trustworthiness with some degree of accuracy. The master spreadsheet also makes glaringly apparent where and why the Enron-like “risk” often lays hidden in these 1500+ public companies.

Fast forward, and with eight years of unique and compelling data, the majority of companies and their leaders continue to hold on to the notion that trust is a soft and immeasurable skill, and that data from one corporate silo to the next need not be viewed as a holistic “whole body” scan. After all, it’s very hard to balance long-term value creation against the need to “maximize earnings” and meet the always-looming quarterly numbers. Better to wait until the next corporate crisis to talk about the importance of trust and how measures will be implemented (maybe) to safeguard against future missteps. Or maybe it’s time to start thinking more carefully about integrity & trust.

According to our FACTS® Framework, during the three-year period from February 2013-February 2016 America’s most trustworthy public companies substantially outperformed the S&P 500 according to the actual composite audited performance shown below and reprinted with permission of Facts Asset Management, LLC.

FACTS SP 500 Returns

This was not a “back test” but rather “live” money under management, followed by an independent audit verifying the returns. Trust works as a business strategy.

FACTS® Managed Accounts were independently audited from Feb.1, 2013-Jan.31, 2016. Prepared by FACTS Asset Management LLC. FACTS® is our model of identifying America’s Most Trustworthy Companies by applying FACTS strategy parameters. The composite results translate to 50.09% for FACTS® and 28.1% for the S&P 500 cumulative percentage return shown above, or 16.7% average annualized for FACTS® vs. 9.5% for the S&P 500 over the same period.  The audited Composite Performance results shown above may not be indicative of future results.  Full audit documents available upon request.

The composite performance records are based on all accounts managed using the FACTS strategy for a three year period, 2/1/13 to 1/31/16 and are not representative of the FACTS® Asset Management LLC program. Tax consequences are not reflected in the performance records.  Past performance is not an indication of future return.  There can be no guarantee that a new program will prove to be profitable in the future or that it will achieve performance results similar to those achieved in the past using the FACTS strategy parameters and you may lose money.  The performance numbers reflect the reinvestment of dividends.  The composite performance net of fees is calculated using a weighted average fee for the entire period because not all accounts were charged equal fees and some accounts were not charged fees. The S&P 500 is a widely recognized market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market’s industry weightings, and does reflect the reinvestment of dividends. Past results are not necessarily indicative of future results.

FACTS® Asset Management LLC is a New Jersey registered Registered Investment Advisor. Prepared by FACTS Asset Management LLC

 

While no company is perfect, a growing group of visionary leaders have struck that balance and are reaping the rewards shown in the chart above. Over the years our FACTS® Framework has identified many high integrity companies who share above average scores across all measurable indicators of trust “worthiness” and a leadership vision that embraces the new strategic business imperative of elevating integrity & trust.

Leaders that measure what matters, including trust, DO make better decisions and over time they are rewarded with lower risk and higher 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. Now in its seventh year, the program’s proprietary FACTS® Framework ranks and measures the trustworthiness of over 1500 US public companies on five quantitative indicators of trust. Barbara also runs the world largest global Trust Alliance, is the editor of the award winning TRUST INC. book series and a Managing Member at FACTS® Asset Management, a NJ registered investment advisor.

 

Copyright © 2016, Next Decade, Inc.

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Nov
29

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There’s nothing more destructive to trust than deceit, and nothing more constructive than candor.

Jim Kouzes & Barry Posner, The Leadership Challenge

 (from Trust Across America’s Weekly Reflections on Trust 2014)

Organizational Trust this Week is a new feature beginning with the “Good”, moving through the “Debatable” and occasionally ending with the “Ugly.” Each story contains a trust component and at least one lesson for organizations seeking to make trust a business imperative.

 

THE GOOD

7 Essentials for Leaders to Develop Trust (starting with confidence)

Idaho comes down hard on trust violations. Maybe they should change their motto from the “Gem State” to the “Trust State.”

What does the Torah say about trust? A Rabbi’s message

 

THE DEBATABLE

Just hire the Ex-Con with the shortest rap sheet! Apparently Wells Fargo is the best of the worst!

Sorry, but integrity cannot be regulated!

 

THE UGLY

CEO Apologies? Really? More Uber weirdness.

 

OUR MOST POPULAR POST THIS WEEK

And finally, Trust Across America-Trust Around the World’s most popular post on LinkedIn Pulse this week. Sometimes saying “No” is better than saying “Yes.” Send us your stories for consideration in future editions of Organizational Trust this Week: barbara@trustacrossamerica.com

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Nominations are now being accepted for Trust Across America-Trust Around the World’s 5th annual Global Top Thought Leaders in Trustworthy Business.

Our brand new magazine TRUST! makes the case that in Financial Services, Industry is NOT Destiny

Fall 14 Trust Magazine-Cover

We will be publishing our third book at the end of November.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

                                                                                               Coming Soon!

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

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