Archive

Posts Tagged ‘Trust Inc. Strategies for Building Your Company’s Most Valuable Asset’

Mar
20

Are financial institutions inherently untrustworthy or is this a simple misconception? 

To answer this question we first must consider how “finance” and “trust” are being defined. Without universally accepted definitions, all financial institutions are painted with one broad brushstroke and consumers among other stakeholders, are left in an ever escalating state of mistrust and confusion. And when the “news” and the latest “study” report that trust in finance is up (or down) this only fuels the fire.

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

Finance? Can global investment banks, regional banks, brokerage firms, insurance companies, financial planners, REITS, and/or a local savings and loans be lumped together when discussing trust in finance? Should they be?

For nine years Trust Across America has been researching and reporting on the trustworthiness of America’s largest 2000 public companies via our proprietary FACTS® Framework. We perform this analysis through a quantitative and objective lens (with no input from the companies themselves)

 

This is, by order of magnitude, the largest ongoing study ever conducted on trustworthiness at the individual corporate level. Our 2018 data (Russell 1000 only displayed below) concluded that the finance sector remains the lowest in trust, with an average score of 57 on a 1-100 scale. (Down from 58 in 2017). This dataset was finalized in April 2018. It is updated every April.

 

Copyright 2019 Next Decade, Inc.

 

But what do these numbers really mean?

Our data also tells a more detailed story, and one that places us in a unique position to discuss trust AND the financial industry. Industry is NOT destiny and those more trustworthy financial institutions suffer at the hands of their less trustworthy colleagues. Take a look at this. Suddenly certain financial industry players look quite a bit better, while some look worse.

Copyright 2019 Next Decade, Inc.

 

 

And dissecting the data even further reveals the following:

 

                                                 Name            Symbol    Sector                        Industry                 FACTS Score

Copyright 2019 Next Decade, Inc.

 

Some of the major regional banks have high trust scores, while others do not. Again, industry is not destiny.

Trust in financial institutions isn’t necessarily “up” or “down.” That’s simply a news headline. At its core, trust is internal. It is a function of how much leadership cares about its corporate culture, and chooses to embrace the value of trust in meeting the needs of every stakeholder group. For those leaders who are interested in learning more about how to elevate trust internally, please Tap into Trust and take our sample one minute (customizable for any organization or team) quiz.

For all others, keep debating whether trust is “up or down.”

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. She holds a BA in International Affairs and an MBA. 

Purchase our books at this link

For more information on Trust & Integrity in Corporate America purchase our 2018 report. To be among the first to review our research and more fully engage in elevating organizational trust, please consider membership in our vetted Trust Alliance.

 

Copyright 2019, Next Decade, Inc.

, , , , , , , ,

Feb
05

 

The trust “talk” is increasing in frequency and volume, and that’s a good thing. Or is it?

 

At least leaders are thinking about it. Yet when it comes to defining trust, those same people are either getting stuck (at best) or using the word “trust” as a placeholder (at worst.) When trust is misdefined or misidentified, it not only gets diluted, but stakeholder cynicism quickly builds.  If you choose to talk it, keep in mind that trust takes many forms, each with it own distinct definition. Make sure you are using the right one!

Trust:  (the noun)

Trust: (the verb)

Trustor: (noun)

Trustee: (noun)

Trustworthy: (adjective)

Trusting: (gerund)

Propensity to trust

For those who want (or need) a refresher course, Charlie Green and I wrote this article, complete with definitions (and much more,) almost 3 years ago. And if you want to see how you are doing in the “trust department,” we offer this brand new one-minute quiz. How are you defining trust and how does your organization compare to others?

Copyright 2019, Next Decade, Inc.

, , , ,

Jan
31

This past week the World Economic Forum held its annual meeting at Davos and the global elite were buzzing like bees around the word “trust.” 

Overlapping was another meeting being held in a remote corner of NJ (of all places), perhaps because the “polar vortex” was about to ground the attendees’ private jets. This gathering was called “Sovad so Good” or “Sovad” for short.)

For those unfamiliar with the annual Davos event, it’s by “invitation only,” and even those who secure an invite might not be able to afford the cost of admission. Most badges require a membership to the World Economic Forum, which costs somewhere between $60,000 and $600,000, plus an additional fee of more than $27,000 per person to get into the conference. (CNBC, January 25, 2019)

Worth noting: Of the 3000 attendees almost 800 were Americans and 22% were women, up from 21% last year! Less than 5% of S&P 500 CEOs are women—that’s just 24 companies. We can’t know how many of those 24 were invited to the event in Davos, but the official attendance list includes four of their names: Heather Bresch, CEO of Mylan N.V.; Adena Friedman, CEO of  Nasdaq Inc.;  Vicki Hollub, CEO of Occidental Petroleum Corp.; and Ginni Rometty, CEO of IBM. Quartz, January 21, 2019

Sovad (the other Davos) didn’t include the high price tag (or any admission fee for that matter), nor the “A” list of celebrities like Matt Damon or Will.i.am, and side deals were not being done off stage, probably because there was no stage. (Over 50% of the SOVAD group is women.) No large “trust signs” were erected at the entrance to our gathering like the one leading up to Davos. It was just too darn cold for anyone to want to climb a ladder, especially those in skirts.

CNN reported, ‘Trust is the new buzzword at Davos,” and as Dana Carvey “The Church Lady” liked to say on SNL, “Well isn’t that special.” (Dana and I lived together at one time but that’s a topic for another post.) So what was all the Davos “buzz” on trust about? These were the trust “themes:”

  1. Rebuilding trust (think Facebook.) Sheryl Sandberg was the trust “expert” on this subject.
  2. Trust and technology (digital security, AI, blockchain, etc.)
  3. Trust and innovation
  4. Trust and sustainability
  5. Trust and CEOs “taking stands.”

To the attendees at Davos these are certainly important revenue generating discussions to be having. But do they actually get to the heart of trust, or even move the needle slightly to elevate societal trust? That’s a solid “No.”  Here’s why.

It seems only one trust conversation was missing at Davos, and probably the most important one: How do we move our societal institutions from trust buzz to trust action? And that was the ONLY conversation at Sovad.

So while the fine food and drink flowed, and the planes stayed warm on the tarmac in Switzerland, the Sovad attendees arrived by auto and took the following action over a burger and a beer:

With no revenue generating agenda, we created 12 universal principles for elevating trust and began asking those who didn’t travel to Europe, how that “trust thing” is working in their organization. After all, isn’t that where trust starts (and ends)? Apparently, we struck a chord as over 35,000 unassuming folks from around the world have joined the conversation.

Will you take our brand new (one question/one minute) survey? Find out how your organization compares to others.

Note: Some believe that this year’s gathering was a disappointment on many fronts. Perhaps the word “trust” was simply a placeholder until a “real” topic can be identified for 2020. Kenneth Rogoff, the Harvard economist, summed it up: “This is the flattest Davos I can remember. Normally, there is a star country or a star industry that everybody is talking about. But this year, there is nothing.”

Could it be that the “nothing” has “something” to do with trust?

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

For more information contact barbara@trustacrossamerica.com

Copyright(c) 2019, Next Decade, Inc.

, , , , , , , ,

Jan
26

Celebrating Our 5th anniversary!

 

Formed in 2013, we are a growing collaborative community focused exclusively on elevating organizational trust by providing enlightened leaders with the “right” tools and resources. Unlike other think tanks, we have advanced our “thinking” to action.

 

The past twelve months represented a “banner year” for the Alliance as we completed the following projects:

Trust Alliance Project Highlights

 

  • Named our first 12-member Trust Council comprised of Alliance members who have taken an active role with us in building organizational trust programs over the years.
  • Published our 10th anniversary TRUST! Magazine spring issue, highlighting good governance practices. It’s a gem and should be read by every Board member everywhere!
  • Members contributed to our growing case study library called Trustlets.
  • Dozens of hours were spent coordinating and consulting on TAP (Trust Alliance Principles). Phase II has now begun with a new project launching on January 29, 2019.
  • Global members helped construct our first annual Country Trust Index.
  • The 4th annual Showcase of Service Providers was published.
  • Our 10th anniversary report “Trust & Integrity in Corporate America” (available at www.trustacrossamerica.com ) features the work of many Alliance member, and we published this “2 pager” under the Research tab on our website.

What’s Ahead?

 

In 2019 we began arming our members with a new actionable trust “tool” delivered every month through our member newsletter.

Why Not Join Us?

 

If you are interested in rolling up your sleeves and participating with a group of collaborative global professionals, we’d love to consider you for membership.

(Some of our members have been kind enough to add their thoughts on this testimonials page.)

 

Questions or comments? Feel free to send your thoughts along.

Barbara Brooks Kimmel, CEO and Chief Trust Officer

 

Copyright 2019, Next Decade, Inc.

, , ,

Nov
06

(A condensed version of this article first appeared on The FCPA Blog)

Recently, the newly appointed CEO of Novartis, Vas Narasimhan, announced that he would be linking employee bonuses to ethics as part of a strategy to rebuild the company’s reputation. Specifics of the scoring system were not divulged. This raises some interesting questions in the trust, ethics and compliance community. Among them, is it ethical to pay people to act ethically or is it a form of bribery? Will these bonuses elevate ethical behavior? What is the minimum “acceptable” behavioral standard to receive a bonus? We asked Trust Across America’s 12-member Trust Council to weigh in. Some of their best answers from both a macro and micro perspective, are provided below.

Ethics is a Company Wide Issue

At Datron, we spend a lot of time in the FCPA world as over 90% of our business is conducted outside the US.  We find that ethics is a company wide issue that encompasses not only your employees but also any organization that represents us in the marketplace.  We have not taken the route of rewarding ethical behavior at the employee level.  We spend the money on training, both in the compliance area and in the “servant” leadership area to ensure that everyone understands the company mission, purpose and how our behaviors (values) are reflected in the work we do.  In our multi-cultural company with over 80 representatives around the world we take compliance to all entities that interface with our customers at any level.  This means that our annual FCPA training is required and annual anti-bribery statements are completed by both employees and our representative companies.  In addition we require all of our representatives to hold current Trace International certifications.  If these items are not completed as required we don’t do business with that organization and don’t let our employee interface with the customer.

In general I would recommend that leaders know what would work best for their organizations.  I personally would not take the approach Novartis has taken just because paying money for a required behavior is too much like a bribe and I believe it sends the wrong message to the organization.  It also says that it is ok to act unethically we just won’t provide you a bonus if you do.  I think requiring behavior in accordance with the company values is a better long-term solution.

I believe that a focus on culture, understanding why it is important for the organization to conduct itself in accordance with it’s core values and spending training dollars to ensure this each and every day is a better investment than providing an annual bonus award.  Art Barter

Influencing Human Behavior

This approach is a good idea for Novartis. We can’t change human nature—there will always be some unethical people. But we can influence human behavior. We influence human behavior through many means: education and training, personal examples and role models, good leadership, shared norms and values, rewards and punishments, and more. Good companies reward (or punish) employees with scoring systems for both achieving goals (results) and “how” those goals are achieved. Scoring a 1 on values and behavior at Novartis (1 = below expectations) makes an employee ineligible to receive a bonus and likely signals they may face demotion or termination. It is a realistic way to grab people’s attention that unethical behavior will no longer be tolerated at this firm. Bob Vanourek

Systematizing Ethical Practices

I applaud Novartis’ efforts to encourage and systematize ethical behavior. Behaving ethically should be the “ticket of admission” for even having a job, but many organizations don’t view it that way. Novartis is taking proactive steps to enforce consequences for salespeople who don’t meet expectations. Randy Conley

Innovation is Key

To determine the best ways to make progress on the trust, transparency and ethics road we have to innovate. To develop proven, repeatable and scalable strategies we all have to be bold enough to try. Novartis is trying. We don’t know the context or risk appetite they are working from so it is hard to objectively review their strategy. To innovate well we have to accept failure and partial successes, learn, pivot and go at it again. The fact that organizations are trying is, in my mind, the thing of value. They will engage in many critical conversations around this project and that dialogue with their employees, partners and board is priceless in the fight for ethics. Deb Krizmanich

Discussing Ethics

Ethical performance — good or bad — is an intrinsic aspect of organizational culture, While company value statements, codes of conduct and compliance training are essential components of an ethical culture, even more important is how organizations react to ethical dilemmas and lapses.  When discussions about ethics are taboo, and individuals are rewarded for unethically achieved results, the culture quickly adapts to this reality without regard to official policy.  In this respect, Novartis is on the right track by explicitly withholding rewards for employees who behave unethically.  Even more telling will be whether discussion of ethics is normalized and unethical behaviors consistently derail careers at the company. Barton Alexander

Payments for Behaving Ethically

There is something prima facie anti-ethical about paying people money to behave ethically. If you have to be paid to be ethical, you’re not. And by reducing ethics to behavioral inducements, the system devalues the ethicality of all actions, regardless of their objective desirability. This reduces ethics to the category of compliance and sales quotas. Charles H. Green

The Devil is in the Details 

Whether the Novartis plan is a good idea to resolve the ethical dry rot is debatable. The devil is in the details, but I would raise a caution flag.  Essentially they are saying that meeting expectations or being a role model for ethical behavior will earn employees extra pay, while not meeting expectations means you get no extra pay, and it could lead to termination. I also do not agree that bringing in Klaus Moosmayer from Siemens to be the ethics tsar is going to make up for poor leadership at the top. Bob Whipple

A further Internet search of the Novartis bonus “plan” revealed the following “anonymous” comment:

This has been in place for over two years. Probably just touting this in the news because of all the recent violations. Reps don’t get an additional bonus. They have money withheld from each bonus period and if their manager sees fit and gives them a good rating, they may or may not get all the money back. So Novartis actually takes money and holds it for a year. Some reps get back more but a lot will actually get back less. The kicker is, they have to still be employed to get that money and it’s only paid out once a year and it’s supposed to be about values and behaviors but it’s still tied to sales. 

The Trust Council jury is split with regard to the ethics of ethics bonuses. To be meaningful ethics and trust must remain a top-down strategy built from the inside out, and only then will they have a long-term impact on organizational reputation.

Trust Across America-Trust Around the World’s Trust Council is an invitation-only advisory group comprised of global business leaders and consultants from a broad cross section of industries and functions who are rotated through membership in our Trust Alliance. The Council serves for twelve months.

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

For more information contact barbara@trustacrossamerica.com

 

 

 

 

 

 

 

 

, , , , , ,

Oct
13

If this confidential workplace culture survey were administered, how many of the following ten questions would you answer “yes?” 

(Take the survey below)

  1. Do you trust leadership?
  2. Are you very engaged at work?
  3. Do leaders have the “right” skills to build trust?
  4. Do the words of leadership match their actions?
  5. Does high organizational trust keep you at your job?
  6. Does your company behave ethically?
  7. Is the company culture highly aligned?
  8. Is innovation affected by the culture?
  9. Do you think a high trust culture is responsible for elevating the success of your company?
  10. Has leadership committed to elevating organizational trust?

No doubt these are some tough questions. And while most workplace surveys exclude them, imagine the valuable insights if they were included. And in fact, every one of these questions has been addressed in recent studies conducted by many leading organizations. These are just a few of the answers to the ten questions posed above.

  1. According to HBR.org and Zenger/Folkman, these two competencies were voted the most important for management positions. “Inspires and motivates others, displays high integrity and honesty.”
  2. According to Deloitte’s Millenial Survey 2018 only a minority of millenials believe businesses behave ethically.
  3. Gallup reports that only 46% of disengaged employees trust management.

Are you surprised by these findings? For the most part, trust in business has stagnated since we began tracking it ten years ago. In Trust Across America’s most recent 2018 study of the trustworthiness of America’s largest public companies only 103 companies in the Russell 1000 scored a 70% or above. The rest failed our test.

In celebration of our 10th anniversary helping organizations build trust, we spent the best part of the past three months assembling a research report called “Trust & Integrity in Corporate America 2018.” The (almost) 50-page report answers every question posed above, and many more. Studies from over 20 leading organizations, trust models addressing individuals, teams, leadership and organizations, highlights of our FACTS® Framework research and many other valuable tools are included.

Good measurement informs uncertain decision-making, and when an organization asks the right questions and measures what matters, leaders make better decisions. While corporate culture, core values, good citizenship, ethics, integrity and trust are commonly believed to be immeasurable intangibles or soft skills, research highlighted in our report points in the direction that these are not only false beliefs, but also that the benefits of an ethical culture 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 or reviewing the “right” data or inputs. Trust Across America tackled the “Board challenge” topic in the free spring 2018 issue of TRUST! Magazine.

It’s not uncommon for the following warning signs to be present in organizations when focus is on the wrong “tangibles” and the “soft skills” are misidentified.

  • The organizational culture is a mystery.
  • No clear “ownership” of ethical or trustworthy business practices or decision-making exists.
  • Discussions/training on ethics and trust rarely occur. When they do, they are lead by either the compliance or legal department and focus on rules, not integrity and trust since these attributes are voluntary and cannot be regulated.
  • Discussions of short-term gains and cost cutting dominate group meetings.
  • The pressure to perform is intense and the language used is very strong.
  • The Legal and Compliance departments are large and growing.
  • Ethical considerations/testing are not part of the hiring process and fear is widespread among employees.

Sound familiar? If so, leaders should be asking themselves a series of questions including the following. (Others are addressed in our recent report.)

SUCCESS: What role does trust play in ensuring a healthy culture ultimately impacting the success of your organization?

PERFORMANCE: How is trust tied to high performance, innovation, and sustainability in your organization?

COSTS: What are the costs/implications of not having a high level of trust in your organization?

BENEFITS: What are the payoffs of a trust-based organization for your stakeholders including your employees, customers, community and shareholders?

CULTURE: What values, principles or beliefs does your organization follow that are essential to building a foundation of trust?

What better time then now to start asking the “right” questions, collecting the “right” data and improving the culture for the benefit of all? Wouldn’t it be great if more organizations, including yours, could pass the test? What’s holding you back?

Take our survey here:

[powr-survey id=cc4e6af7_1539436598009]

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

 

, , , , , , , , , ,

Jul
23

 

By Barbara Brooks Kimmel, CEO & Co-founder Trust Across America

 

In the short-term “low trust” public companies can be very profitable. Corporate executives who “legally” cheat, steal, avoiding paying taxes, and stay just to the “right” of compliance may produce the profits that both their “old school” Board and short-term oriented shareholders crave, but these “business as usual” trust violations are not conducive to long-term business success. A growing number of companies are replacing the “stuck in the 80s leadership model” with proactive business executives who acknowledge that long-term success is built by embracing trust as both a strategic advantage and intentional business strategy. This translates to practicing “trust” on a daily basis by building a trustworthy and responsible corporate culture,  treating customers and suppliers “right”, by having superior products, great service, a well-configured Board, low employee turnover, and a high degree of innovation.

Now in its 9th year, our proprietary FACTS® Framework measures the trust “worthiness” of America’s largest public companies (over 2000). The following are some of the “fast facts” drawn from our larger study.

Chart #1 

Since 2012 Trust Across America has selected and publicly published an annual list of “Top Ten” Most Trustworthy Public Companies. Had you invested in those 10 companies on the day of publication, your portfolio would have significantly outperformed the S&P 500.

 Chart #2

FACTS data can be sorted by sector and the following chart represents the sector rankings for the Russell 1000 for 2018. Please keep in mind that the Framework uses a broad 16-sector model provided by Zacks Investment Research. Others like S&P and Morningstar sometimes place companies in different sectors. For example, Zacks financial sector includes banks, insurance companies, REITS and brokerage firms, to name just a few. And it’s also important to remember that industry is NOT destiny.

The data can also rank companies within sectors, by market cap and headquarter location, to name just a few. We can also perform company comparisons.

 

Sector Rankings

 

Correlation Studies:

Trust Across America continues to run a series of ongoing correlation studies with other organizations and these are a few of our findings:

  • High correlation between our FACTS rankings and percentage of women on boards as reported by Catalyst.
  • High correlation between our FACTS rankings and Governance & Accountability Institute’s companies that voluntarily report on sustainability.
  • Low correlation between our FACTS rankings, Great Places to Work and Forbes Annual Ratings of Most Trustworthy Public Companies. (Forbes data providers employ a narrower “measure” of trust “worthiness” to compile their rankings.)

These studies and many others, confirm that the best companies are more responsible, and they dedicate the necessary resources for continuous improvement.

Our FACTS Framework and rankings are being licensed in a variety of formats. Read more about the Framework at this link.

Email Barbara@trustacrossamerica.com for more information.

Barbara Kimmel, CEO & Co-founder Trust Across America

 

 

 

 

 

 

 

 

Copyright© 2018, Next Decade, Inc.

 

, , , , , , , , , ,

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.

 

, , , , , , , ,

May
10

 

Elevating organizational trust becomes simple once leadership acknowledges the business case. That case has been made repeatedly by many organizations, including ours. Last month we introduced our TAP Principles through the Million Taps Campaign. Each of the 12 statements is designed to open the trust discussion among teams of any size in any organization. (TAP is currently available in 5 languages, with more being added.)

And if you are a leader who wants to build trust into your organization’s DNA, it all begins (and ends) with you. How many of these boxes can you check?

Start with an assessment of yourself:

  • Are you trustworthy?
  • Do you possess integrity, character and values?
  • Do you share those values with your family?
  • Do you instill them in your children?
  • Do you take your personal values to work?

Perform an organizational trust audit:

Consider your internal stakeholders:

Consider your external stakeholders:

  • Have you shared your vision and values in building a trustworthy organization?
  • Have you identified the outcome(s) you are seeking?
  • Have you defined your intentions for each of our stakeholder groups?
  • Have you made promises that you will keep?
  • Have you determined the steps you will take to fulfill these promises?

Elevating organizational trust is not difficult. It begins with awareness, acknowledgement of the long-term benefits and a daily commitment to do so.

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.

Copyright (c) 2018, Next Decade, Inc.

, , , , , , , , , , ,

Apr
26

Last week the spring issue of TRUST! Magazine was published by Trust Across America-Trust Around the World (TAA-TAW). This special 10th anniversary issue, coauthored with Bob Vanourek, a former corporate CEO and cofounder of Triple Crown Leadership is called Building Trustworthy Organizations: The Role of Good Governance. Having polled almost two dozen lead directors, Board members and governance experts, Bob and I asked three survey questions. The first two were:

What does/did the term “good corporate governance” mean to you? 

What are/were some of the key governance practices you find/found most useful to good corporate governance? 

The third question was:

What are some suggestions you have for improved corporate governance in the future? 

While the magazine contains literally dozens of responses and ideas, the following are ten recommendations regarding the Board in general:

  1. “Understanding and practicing good governance is not a skill set listed when looking for candidates to nominate for election to a board—it is important that good education is provided for new and current directors on the tenets of good governance which are publicized by the company.”
  2. “Good governance is enhanced with high levels of trust among board members, good communications between directors and senior management, a solid internal auditing function, and a reliance on competent outside counsel.”
  3. “Greater gender, ethnic, age and geographic diversity.”
  4. “Define ‘cognitive diversity’ and integrate it into the board search process.”
  5. “Fewer sitting CEOs as directors and limitations on how many boards their own CEO may sit on.”
  6. “A board that is deeply engaged with each other, the CEO, and leadership team.”
  7. “Yearly review by the board of recommendations from the various stakeholders for changes and additions to governance policies and procedures.”
  8. “Closer attention to ESG (Environmental, Social, Governance). In 2017, ExxonMobil faced a 62 per cent proxy vote for stronger climate change disclosure. Expect ESG to become a standard proxy concern for major shareholder groups.”
  9. “Ensuring a constructive, trustworthy tone at the top among board members and senior management, personally modeling appropriate behavior.”
  10. “Strive to lead in the spirit of trust to make things better now and for the future. Their goal is to leave the organization better than when they found it.”

Building trustworthy organizations is, indeed, an essential element of good corporate governance. As one of our wise respondents said of board members,

“As stewards, they strive to lead in the spirit of trust

to make things better now and for the future.

Their goal is to leave the organization

better than when they found it.”

 

Last week we also introduced TAP, our Trust Alliance Principles. They are available (in 5 languages) by tapping the button on our home page or to the right of this blog.

We hope these two new resources will help organizations build trust. That has remained the mission of TAA-TAW since it’s inception 10 years ago.

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.

 

, , , , , , , ,