Building a trust based organization begins with tracking trust in teams and addressing trust weaknesses. Doing so results in the following:
Elevating employee engagement & retention
Reducing workplace stress
Enhancing decision making
Increasing innovation
Improving communication
Reducing costs and increasing profits
How many readers work on teams and in organizations with these attributes?
The growing interest in our Tap Into Trust campaign has brought over 200,000 individuals to our list of universal principles, available in 16 languages. We are now running the largest global (one minute/one question) anonymous survey on workplace trust, with the goal of determining which of our 12 principles of trust are the WEAKEST in teams and organizations. The anonymous survey can be taken here and the results viewed upon completion.
Building a trust based team or organization first requires leadership ACKNOWLEDGEMENT that trust is a tangible asset, not to be taken for granted, and acknowledgement remains the greatest obstacle, requiring vulnerability. If that hurdle can be overcome, the rest is easy: IDENTIFY and MEND. We call this AIM Towards Trust, and the framework is being adopted by enlightened leaders of teams and in organizations of all sizes and across industries, providing a path forward to high trust.
Elevating trust in teams and organizations requires both personal and interpersonal principles.
The weakest principles break the progress.
Trust does not stop at “talk”. It requires action.
Dress down Fridays, ice cream socials and “purpose” statements will not get a team or organization across the trust goal line.
For more information contact Barbara Brooks Kimmel, Founder, Trust Across America-Trust Around the World
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in The Financial Times, Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
Over the past 15+ years I have spoken with hundreds if not thousands of business leaders from small startups to Fortune 500 and, if the opportunity presents itself, I ask the following question:
What role does trust play in your daily work?
And the most common responses, in no particular order, are:
I never thought about it
My employees trust me
None, I have too many daily fires to extinguish
None, it’s not my job
Huge, every year we bring in a “big name” motivational speaker
What’s the message here? Whether you are a leader, manager or work as a member of a team, if you do not intentionally choose to incorporate trust into your daily activities, do not expect it to flourish. It does not happen on its own.
If you are interested in learning more, take a look below.
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in The Financial Times, Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
When I was recently asked how trust has changed in the past decade my response was “Not much.” While the people, groups and institutions we should trust keep rearranging themselves in our collective minds, some gain in trust while others fade. Yet according to most major public opinion poll headlines trust has been declining.
But if you think about it, how we experience trust now is the same as it ever was. So is the value of trust – what it does for us – in business, politics, society, and life. Trust is very simply, the outcome of principled behavior. It always has been and always will be. As Stephen Covey has written, “Trust is the foundation for everything we do….” It is part of every relationship we have and undergirds everything we want or need to do together. So it is not that trust has been declining, it is trusting that has declined, and distrusting that has increased.
The Unchanging Experience of Trust
Our bodily experience of trust (and distrust), the sensations we feel, and the underlying neurophysiology that produce them have been with us for millennia. We are hard-wired to trust and to distrust, and we need both. Trusting others allows us to work together to accomplish what none of us can do alone. Distrust is built into our biology to help us stay alive and safe. What we are predisposed to do when we trust or distrust someone, or a group of someones, is also pretty much the same now as when humans were living in small clans and painting on cave walls.
Humans are wired to be drawn towards trust. When we trust others we feel safe enough to be open and at ease with them. At work this translates to collaborating effectively and having fun doing it. We happily share our ideas, good, bad and everything between, with people we trust. When we trust an information source we form opinions and act based on what we hear from them. When we trust a company, we tend to buy from them and invest in them. Distrust, on the other hand, insists we act to protect ourselves. Like a plague, we avoid people, groups, companies, and institutions we don’t trust.
In Whom We Trust (or not)
When you think “I trust this person/group/company/organization” an assessment is being made that their future behavior won’t harm and in fact will support you. That assessment leads to the embodied experience of trust described above, together with feeling certain emotions that travel with trusting, e.g., generosity, curiosity, hope, happiness, care. The same is so with the assessment “I don’t trust” except the sensations and emotions are distinctly different.
Which brings me to what has changed in the past decade and continues to change: specifically who we are trusting, and to what extent we are trusting them to do what they say they will do. According to several recent polls on perception of trust, we are trusting less. For example, over the past decade the Edelman Trust Barometer, an annual global opinion poll of trust levels in business, government, NGOs, and media, has found an annual shift in which of these institutions we are trusting more or less. Similarly public opinion surveys conducted by PwC, Pew Research Center and the Knight Foundation have looked at the trust employees and customers have in companies vs. what company leaders believe, and our trust in science and media, respectively. Again, they find changes in who we are trusting/distrusting.
Couple rotating/decreasing trust in societal institutions with what we know about the outcome of distrusting others and we have the makings of a slow-moving disaster. Unless we start turning this ship around we will see diminishing cooperation with increasing polarization, more balkanization in politics, media and society, and less willingness to talk things out as people pull back from those they distrust.
Trust-Building as Necessary Work
I believe now more than ever it’s time for those of us who work in the field of trust-building, who have the tools and expertise, to focus on helping the people we work with become trust-builders in their chosen fields. We understand that this is a competency that can be learned, developed and practiced. We have frameworks and tools to support people as they try to build their own trust-building capability and capacity. It is incumbent on leaders everywhere to step up and put learning and practicing trust-building at the forefront of their work.
Trusting people at work (where we spend most of our time) and in our communities, and between us and the institutions that hold together the fabric of those communities, is going to be essential for us as a species to make it through the big storms looming on the near horizon: political and social upheaval, and the potential threats posed by AI, to name just a few.
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Financial Times, Global Finance Magazine, Bank Director and Forbes, among others.
When taken seriously, tracking and addressing the behaviors that build or weaken trust in teams and organizations will have the following benefits:
Elevating employee engagement & retention
Reducing workplace stress
Enhancing decision making
Increasing innovation
Improving communication
Reducing costs and increasing profitability
Is progress being made?
The growing interest in our Tap Into Trust campaign has brought over 212,000 people to our universal principles, available in 16 languages. We are also running the largest global (one minute/one question) anonymous survey on workplace trust, with the goal of determining which of our 12 principles of trust are the WEAKEST in teams and organizations and whether they change over time. The anonymous survey can be taken here and the results of hundreds of respondents viewed upon completion.
Building a trust based team or organization is not one size fits all. It happens in 3 stages. We use AIM as an acronym for our process.
ACKNOWLEDGING that trust (the outcome of principled behavior) is a tangible asset
IDENTIFYING the behaviors that are weakening and strengthening trust
MENDING the behaviors and tracking them over time
We call this AIM Towards Trust, and the framework is being adopted by enlightened leaders in organizations of all sizes and across industries, providing a path forward to high trust.
Elevating trust in teams and organizations requires specific personal and interpersonal principles and skills.
There is no “one size fits all” or check the box fix.
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, The Financial Times, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
Fifteen plus years have passed since I began studying trust and trustworthiness and building tools to help leaders and teams. My focus remains on companies of all sizes and across industries. Without exception 2024 certainly had its share of organizational trust challenges from data breaches (Ticketmaster, Meta), to product safety violations (Boeing, Kellogg), and toxic workplaces (Nike, Uber) to name just a few.
OUR DATA
Close to 200,000 global participants have accessed our Trust Alliance Principles, the result of the efforts of some of the worlds leading trust scholars and practitioners. They are available at no cost and in multiple languages on our website at www.trustacrossamerica.com.
The behavioral trends in our “TAP INTO TRUST” ongoing survey of interpersonal workplace trust have not wavered since we began tracking them in 2019 with over 700 respondents reporting the following:
42% report weak ACCOUNTABILITY
38% report weak TRANSPARENCY
46% report weak TRACKING of trust
In fact, every behavior (12 in total) in our survey shows at least 20% of respondents reporting weaknesses within their organization.
Our FACTS Framework tracking the trustworthiness of public companies highlights a strong business case for organizations to focus on trust, After 13+ years our Trust 200 Index, maintained by IndexOne continues to outperform the S&P 500.
What will 2025 bring? We gathered some opinions and ideas from some of our trust colleagues in the recently published winter 2025 issue of Trust! Magazine. The link is available on the home page of our website.
Barbara Brooks Kimmel is an award winning author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
The returns of the Trust 200 Index over 13+ years according to IndexOne
More than 15 years ago The Economist published a briefing paper sponsored by Cisco, called “The Role of Trust in Business Collaboration,” concluding that tens of millions of dollars had been spent evaluating corporate governance but a *definition of corporate trust continued to elude us. The 2008 financial crisis essentially destroyed investor confidence in the stock market and the ethical decision making practices of business leaders and their public companies. And so it should come as no surprise that trust in the financial markets has stagnated and even deteriorated since that time. After all, what actions, if any, have organizations taken to build investor confidence and trust? Plenty of money is spent on PR “talk” followed by little constructive action.
What if instead of using the elusive word “trust” as the barometer, companies could instead be evaluated based on their trustworthiness? In other words, the ethical business principles and leadership practices that support trust building within the organization and can then be applied to all stakeholders. This was the question we began to address over fifteen years ago. With the assistance of academic, financial, corporate and consulting professionals, Trust Across America began to construct what became the FACTS Framework.
*Trust Across America describes trust at the individual/interpersonal level as the “outcome of principled behavior” and organizational trustworthiness as the “collective outcome of principled behavior.”
Our ten+ year study published in November 2021 continues to be, by order of magnitude, the most comprehensive and data driven analysis available regarding the trustworthiness of public companies. It speaks to both the public and the financial industry’s understanding of trust, supports trust based investment decision making and enables targeted and simplified trust portfolio construction. We analyze companies quarterly and rank order by company, sector and market capitalization.
As our chart and study link above highlight, trustworthy public companies are rewarded over the long-term. They not only avoid expensive crises but also have the benefit of broader internal and external stakeholder support.
Low trust keeps investors out of the stock market and on the sidelines
It has not been valuation, liquidity, or profits that keeps many investors on the sidelines. It is a lack of trust in both the financial industry and in the ethical actions and decision making practices of public company leadership. Even after a time of dramatic returns over the past several years, vast amounts of money remain parked in low yielding money market accounts and other underperforming investments. By delivering a time tested and “beyond reproach” strategy to investors combining the key drivers of corporate trustworthiness, Trust Based Investing can serve as a viable solution that both the industry and the public has been seeking.
In conclusion
Trust Based Investing provides the following:
Companies have proven through a rigorous analysis that they are trustworthy and represent lower investment risk.
Investors can be assured that ethical business and investment decisions are being made.
Trustworthy companies have stable and strong investment returns.
A virtuous cycle is created. As investment money flows into the hands of these companies, other companies will want to follow suit and become more trustworthy.
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
As the year draws to a close, I am pleased to provide the following visual summary of the progress we made at Trust Across America-Trust Around the World in 2023. For more information please visit our website at www.trustacrossamerica.com or reach out directly to me at barbara@trustacrossamerica.com
#1 Trust Across America’s Trust 200 Index Continues to Outperform the S&P 500 over time (12 years)
Contrary to what many executives are lead to believe, trust is not a “soft” skill. In fact in today’s challenging business environment it may mean the difference between survival and failure. Trust impacts an organization in multiple ways, from profitability to workplace stress and wellness, stakeholder relationships, regulatory costs and beyond. The following represents some of the more current and less biased research/surveys supporting the business case for trust:
Companies that actively and consistently build trust amongst consumers across their entire spectrum of brands gain greater marketing efficiency. They face fewer headwinds in marketing and selling their products and services, have more effective advertising due to higher believability, and can charge a premium for their products. Ipsos Mori Trust the Truth, September, 2019
Accenture Strategy Global Consumer Pulse Report surveyed 24,877 consumers worldwide about their evolving expectations towards companies. Lack of trust costs global brands $2.5 trillion per year. This compares to $756 billion lost by U.S. companies and 41 percent loss of clients. 2017
Research shows that 30% of a company’s value is at risk where trust is broken with the public and external stakeholders. Those CEOs who have a proactive approach to crisis planning view simulation training and drills as an investment. They also see it as a way to test and build the trust and confidence of their teams. It hones and develops leadership and communication skills, builds coherence and cross-functional support. McKinsey & Company research in Connect: How companies succeed by engaging radically with society 2015 – John Browne, Robin Nuttall, Tommy Stadlen
Employee Engagement:
According to Gallup, when employees don’t trust organizational leadership, their chances of being engaged are one in twelve. But when that trust is established, the chances of engagement skyrocket to better than one in two. A highly engaged workforce means the difference between a company that outperforms its competitors and one that fails to grow. Currently 31% of the working population are engaged. Taking into consideration three Gallup measures of employee engagement this year, the overall percentage of engaged workers during 2020 is 36%. July, 2020
The level of trust in the work environment is also associated with increased adjusted odds of having cardiovascular disease. International Journal of Environmental Research, 2019
Research from 2018 suggests that “trust and perceived support are both significant predictors of mental and physical health, job satisfaction and turnover intentions. However, the support at the team level is a more important predictor, while trust is a stronger predictor at the organizational level. Italian Society of Occupational Medicine, 2018
According to PwC, when we look at employees, 22% have left a company because of trust issues and 19% have chosen to work at one because they trusted it highly. In other words, one out of five of your employees who leave don’t do so primarily for a better salary or position. They leave because they don’t trust your company. PwC Trust in US Business Survey, August 2021
Improved Stakeholder Relationships:
Only 7 percent of Americans believe that major company CEOs have high ethical standards, and only 9 percent have a very favorable opinion of major companies. Only 42 percent Americans trust major companies to behave ethically, down from 47 percent last year. Public Affairs Council, 2018
Regulatory Costs:
The Competitive Enterprise Institute reports that The cost of Federal Regulations is approaching $2 trillion annually. To put that number in perspective, if U.S. regulations were an economy, it would be larger than Canada’s entire GDP and the eighth largest in the world. The regulatory state costs more than the U.S. government collects from income taxes. It’s almost equal to all corporate pretax profits earned in 2016. Investor’s Business Daily April 19, 2021
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
Recently, I presented at a conference for leaders running businesses with participants from over one hundred and fifty countries. Having spoken on trust in more than fifty-eight countries on-site—and in even more virtually—I’ve noticed that although every culture is beautifully unique and different, there is one common thread that runs through them all: trust. Regardless of the setting or the circumstances, each culture and country is shaped by trust – or the lack thereof. Every society, organization, team, group, and family functions well only to the degree there is trust. Indeed, it can be said that trust “makes our world go ‘round.”
If it feels like your world isn’t going ‘round right now, or it’s going slower than you’d like, I recommend looking at trust first. The reality is, that low trust is almost always the root of the problem – or the most impeding barrier to the solution. Indeed, most organizational performance issues are really trust issues in disguise.
Never before has the impact of low trust been more prevalent or apparent. More and more we see examples of this play out on the news, as well as in our own organizations, communities, and neighborhoods. On top of that, we have more research and data on how trust drives performance available at our fingertips than at any other time in history. We know this is important. And yet, deliberately moving the needle on trust, which is vital for everyone and everywhere, continues to present an enormous challenge. Why is that?
Trust the Noun
For me, it begins with understanding what Trust means. Trust as a noun is both complex and eye-opening.
Take for example, this exercise that I invite teams and audiences to participate in when I speak on this topic. Consider the statement below:
It is possible to have two trustworthy people working together and to have no trust between them.
Take a few moments to ponder the significance of that statement, because in all my years of teaching trust, this is perhaps one of the most profound insights I’ve learned.
Read it again. What stands out to you?
The idea that you can have two trustworthy people working together and also have no trust between them continues to be one of the biggest challenges I run into when working with people— regardless of the situation. Whether it be on a team, between teams, in an organization, in the relationship between partners and customers, or even just on a personal level, this problem comes up again and again.
It exhibits itself as misalignment between departments, a lack of collaboration, weak retention, lethargic execution, an inability to innovate, and formation of silos. It becomes greatly magnified in the context of nearly every form of organizational change. It becomes a silent stumbling block on the road to innovation and progress. Have you experienced this or seen it in your own organization? The majority of people can relate to the frustration that comes hand in hand with low trust.
However, the statement I shared is only part of the insight. Take a moment to consider the completed message:
It is possible to have two trustworthy people working together and to have no trust between them . . . if neither person is willing to extend trust to the other.
When most people think about trust, they simply think about trustworthiness – the level at which someone can be relied upon or trusted. Although insufficient by itself, trustworthiness is still a good place to start because it’s difficult to have real, meaningful trust between people when one or both parties isn’t worthy of it.
But here’s the kicker: in my experience, our most significant challenge is not a lack of trustworthy people. Everywhere you go, you can find good, honest, trustworthy people to work with. So, that is less often the issue. Rather, the bigger challenge is trustworthy people who do not extend trust to other trustworthy people. Those same good, honest, trustworthy people are often the ones who find it hardest to give trust to others.
I can’t tell you how many leaders I’ve worked with who are credible and authentic, who care deeply about both their work and their people, who are excited and eager to make a difference for their organization – and yet who just can’t seem to extend trust, or enough trust for it to really matter. They are trustworthy but are not trusting. Both dimensions are vital. And because trusting is reciprocal, it goes both ways: employees and team members who are distrusted by their leaders learn to withhold trust from those same leaders. And the cycle and impacts of low trust continue onward. To achieve Trust in its ultimate noun form, we must have both components present and operating – trustworthiness and trusting.
The Good News
Although your organization might not currently be operating at the level of trust you want, I believe this insight provides hope that it can. If our teams and organizations really are full of trustworthy people, it means there is enormous potential waiting for us on just the other side of a meaningful extension of trust. There are enormous benefits we have yet to reap if we shift our focus from not only being trustworthy but also to being trusting.
Gail McGovern, twice named one of the “50 Most Powerful Women in Corporate America” by Fortune Magazine, is a model of being trusting. When she became CEO of The American Red Cross, she inherited a $209 million operating deficit, along with a Board mandate to eliminate said deficit within two years. On top of that, she was the 10th CEO of the prior decade. Walking into the struggling non-profit and assuming trustworthiness at scale may not have been the most natural position to take.
Knowing the difficult circumstances the organization faced, and how temporary the CEO role had been, Gail arranged a series of town hall meetings around the country—what she called a “listening tour”—with the intent to listen to and connect with employees as a foundation of developing a turnaround plan. During one such meeting, an employee bravely asked the question on everyone’s mind, point blank: “Gail, you’re new and we’ve gone through a lot of leaders. How do we know if we can trust you?”
Gail responded thoughtfully, “You’ll have to decide that for yourself but I certainly believe you’ll find in me someone you can trust.” Then she leaned in and emphatically declared to everyone in the room, “But let me tell you that I trust each and every one of you.”
This was an easy thing to say yet hard to do. But Gail meant it. She was trustworthy when she arrived, bringing with her an excellent track record, but that wasn’t what inspired her employees to trust her. It was her early decision to practice trusting others that people responded to powerfully. This strong start inspired her people and helped them to buy into her plan and vision for the organization. This unified front served them well as they were able to eliminate the deficit and kick off a turnaround that continues to this day to perform and serve society in profound ways.
Trusting Globally
Another great example of trusting is Daniel Grieder, the CEO of global fashion retailer, HUGO BOSS, out of Germany. When Daniel was brought in from outside the company to serve as the new CEO, he immediately met with his top leadership team, and outlined, in essence, two possible paths forward. In that meeting, he laid out his vision and invitation for the future:
“Team, you don’t know me, and I don’t know you. So, we have two choices: we can spend the next year deciding whether or not we can trust each other . . . but then we’ll have wasted a year. Or we can decide to trust each other from day one. I choose the second option. So please know this: I trust you. Please trust me too. Trust is how we we’ll create a new way of working together, and a new culture.”
Can you imagine the impact this immediate extension of trust had on those in the meeting? In fact, I recently had the opportunity to meet with Daniel and his team, just about two years into his tenure and the results were obvious. In those early days, the company had created a five-year strategic plan and, even though only two years had passed they were already on year four of the plan! Indeed, they were operating at the speed of trust. The decision to trust each other internally had long since been made, and their external performance—as well as internal culture—was the proof. Through trust, Daniel and his team were able to build a strong culture of trust that allowed them to collaborate more frequently, innovate more fully, and achieve their goals more quickly. They were winning in the marketplace as a result of winning in the workplace first. Daniel was trustworthy but he also trusted his people who in turn trusted him and together they were able to achieve remarkable results.
Imagine how differently things might have gone in both scenarios had Daniel or Gail chosen not to extend trust.
What About You?
Stories like this are inspiring but may also feel overwhelming due to their scale. But in my experience, the results of extending trust are just as impactful and magnificent on a personal level as they are on an organizational or global level. Perhaps this can be seen most clearly, as you consider these three favorite questions of mine.
The first is simply, “Who trusted you?” I often ask people to identify someone in their life who trusted them. Someone who saw potential in them that maybe they didn’t even see in themselves, someone who believed in them, someone who took a chance on them. Almost without exception, everyone can quickly, if not immediately, think of someone (and sometimes more than one). Whether it was a parent, a boss, a teacher, a coach, a friend – we all remember those people who trusted us and believed in us.
The second question I like to ask is, “how did that extension of trust impact the way you saw yourself?” We know these people had a great impact on us but there is something special about articulating how exactly they did and how it changed and inspired us. Regardless of the situation, deep down we all want to be trusted – and when we are, it does something for us. Being trusted is the most inspiring form of human motivation. Being trustworthy is vital—but sometimes the very thing that makes a person worthy of trust is when they find themselves on the receiving end of it. People more often than not rise to the occasion when they are given the chance to prove themselves.
Having thought about the person who trusted you and how it impacted your life for the better, my third question is, “For whom can you be that person?” The cycle of extending trust shouldn’t end with you. There are people out there waiting for someone to offer them the chance to shine. You can be that person for them.
I invite you to consider all three of these questions. No matter your circumstances – whether as CEO of a company, a manager of a small team, an hourly employee, a stay-at-home parent or simply as a human being, you have the opportunity to change lives through trust. Your organization, your team, the trustworthy people in your life can reap the benefits as you extend trust to them. And you will find in turn that they will extend trust to you. And this uplifting cycle, no matter where on the globe you might be, will indeed make your world go ‘round.
by Stephen M. R. Covey (bestselling author of The Speed of Trust and Trust & Inspire)
Investopedia offers this summary: Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. The conversations around the role of “S” (how companies treat their stakeholders) and “G” (how they are governed) have recently come into focus and for good reason.
What do we mean by a “trust deficit.”
At Trust Across America-Trust Around the World (TAA-TAW) we consider trust as the “outcome of principled behavior.” If the principled behaviors are absent, a trust deficit is created.
What is Causing the ESG Trust Deficit?
Reading the current headlines one might concluded that the ESG trust deficit is “all political.” That one side wants ESG and the other does not, and so one group is “right” and the other is “wrong.” But while politicizing ESG may be convenient for some, blaming politics ignores the root causes of the trust deficit (the behavioral ones), and they are plentiful.
The Employee Perspective
According to the Public Affairs Council members of the public don’t trust corporate CEOs as much as they trust the companies these CEOs lead: 47% place a lot of trust or some trust in major companies to behave ethically but give CEOs poor marks in this area. Only 7% believe CEOs to have high standards for honesty and ethics, and almost half (47%) believe their standards are low. October 2020
And Gallup recently reported that low employee engagement costs the global economy $8.8 trillion or 9% of global GDP.
The Sustainability Perspective
Elaine Cohen, a leading global voice in sustainability and reporting offers the following:
For me, the ESG Trust Deficit shows up as publicly stating a commitment to ESG but not following through with actions:
inconsistencies between what the company talks about in its (financial) annual report and its sustainability report
lack of integration of ESG as part of the business strategy
lack of clear ESG targets and transparent report of progress against targets while declaring a strategic approach to ESG or sustainability
lack of understanding of the financial implications of ESG impacts
public commitment but poor performance against commitments
lack of Board understanding or and visibility on sustainability matters
lack of accountability for Board members for ESG matters
The Governance Perspective
Lawrence A. Cunningham an authority on corporate governance, corporate culture, and corporate law has this to say: The traditional “G” in ESG refers to allocation of corporate power among and between directors, officers and shareholders. The “E & S” (and now the “P” for political) is a nouveau addition addressing allocations of corporate power to other constituencies as well, especially fellow citizens, employees, and customers. Among the pairs between traditional governance and nouveau ESP some are (1) mutually compatible in theory (so both can possibly be implemented without necessarily compromising), (2) mutually exclusive and (3) mutually compatible in theory but often not in practice (the nouveau ES focus crowds out traditional G priorities). The related classifications in the following infographic are subjective judgment rather than scientific truth but they illuminate the changing landscape and stakes.
What does this chart reveal about the role and value of trust? Walking through the exercise and sensing the variability and uncertainty of the practices and priorities will likely raise questions for many readers about the compatibility of the nouveau ESP practices with fundamental notions of trust.
The Leadership Perspective
Finally, Barton (Bart) Alexander who has worked to effect positive change from senior executive positions within government, Fortune 500 corporations and NGOs weighs in on a third cause of the ESG trust deficit.
The longstanding cycles of labeling and then criticism of the labeling are just in another phase. We used to have corporate citizenship, then corporate responsibility, then shared value, then ESG, then purpose. Each creation of the “new framework” says the old one is misdirected and incomplete. Even governance for a long time was just about the basics of transparency and accountability. In one of the current cycles, we have ESG being criticized as PR oriented, then Woke, and now we have green hushing as much as green washing.
Companies are challenged to meet investor expectations amidst pressure to adhere to environmental and social imperatives. Taking a stand exposes them to accusations from both sides — being too slow and prioritizing “woke” issues over profits.
In conclusion, thriving companies adhere to sound business strategies, without succumbing to polarized debates. Their sustained success depends not only on short-term profits, but on building value for all of their stakeholders, starting with their employees. They need not exaggerate nor hide what they are doing — their results speak for themselves. Senior executives who make principled behavior a priority tend not to “take stands” or make bold claims via corporate communications about their purpose or the organization’s positive environmental and social programs. Instead they simply choose to do the right thing without much fanfare.
For Trust AcrossAmerica-Trust Around the World (TAA-TAW) this is not a new revelation. When we built our FACTS® Framework over ten years ago to evaluate the trustworthiness of public companies, we recognized the need to create a holistic model of principled organizational behavior that gave equal weight to the E, S and G. This was long before ESG became a “household name.” The FACTS® Framework is an acronym that includes five drivers or indicators of trustworthy business behavior. Read more at the link.
One solution to the ESG Trust Deficit: Our Trust 200 Index
TAA-TAW maintains an index of our FACTS® Top 200 most trustworthy public companies. The Index is updated daily. The twelve year performance against two benchmarks (iShares Russell 1000 Value ETF (IWD) and SPDR S&P 500 (SPY) ETF) is shown below (as of August 3, 2023) and the results speak for themselves. Over time the most trustworthy companies outperform.
Why? The best leaders create long term value through principled behavior which builds trust instead of breaking it. They know it begins with integrity which enables trustworthy leaders to attract and retain top talent who then willingly owns and model the values flowing from the top. These values then organically tend to extend to all stakeholders. Said another way, trust is built over time and in incremental steps by the actions of trustworthy leaders, not through weak or politicized ESG “programming” or “talk.” The public has watched these misdirected messages backfire time and again, resulting in an accelerating erosion of trust. And this is why the ESG trust deficit exists.
The trustworthiness of an organization is determined equally by its environmental, social and governance structure and practices, incorporating not only shareholder interests but those of other stakeholders as well, beginning with employees. ESG programs don’t create or fix trust, but principled behavior will do both.
Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.
Building a trust based organization begins with tracking trust in teams and addressing trust weaknesses. Doing so results in the following:
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