{"id":3287,"date":"2016-10-27T09:33:49","date_gmt":"2016-10-27T13:33:49","guid":{"rendered":"http:\/\/www.trustacrossamerica.com\/blog\/?p=3287"},"modified":"2016-10-27T09:33:49","modified_gmt":"2016-10-27T13:33:49","slug":"the-high-costs-of-a-low-trust-business-environment","status":"publish","type":"post","link":"https:\/\/www.trustacrossamerica.com\/blog\/?p=3287","title":{"rendered":"The High Costs of a Low Trust Business Environment"},"content":{"rendered":"<p><a href=\"http:\/\/www.trustacrossamerica.com\/blog\/?attachment_id=1005\" rel=\"attachment wp-att-1005\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-medium wp-image-1005\" src=\"http:\/\/www.trustacrossamerica.com\/blog\/wp-content\/uploads\/TAATAW_LOGO_H_color-tagline-300x122.jpg\" alt=\"TAA_R2_EDIT-CS3\" width=\"300\" height=\"122\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>What do low integrity and trust cost an organization and the economy? The research studies cited below should give our readers some insight:<\/p>\n<ul>\n<li>Gallup reports that <em>employee engagement was more or less stagnant in 2015, (over 17% actively disengaged.) In 2014 less than one-third of US workers were engaged in their jobs, with millenials the least engaged, and this is costing the US economy $450-550 billion a year, which is over 15% of payroll costs.<\/em> (Gallup, 2015)<\/li>\n<\/ul>\n<ul>\n<li>The Association of Certified Fraud Examiner\u2019s survey participants estimated that <em>the typical organization loses 5% of its revenues to fraud each year. Applied to the 2011 Gross World Product, this figure translates to a potential projected annual fraud loss of more than $3.5 trillion. <\/em>2012 Global Fraud Study<\/li>\n<\/ul>\n<ul>\n<li>According to\u00a0The Economist Intelligence Unit (2010),\u00a0<em>84% of senior leaders say disengaged employees are considered one of the biggest threats facing their business. However, only 12% of them reported doing anything about this problem.<\/em><\/li>\n<\/ul>\n<ul>\n<li><em>The cost of Federal Regulations is approaching $2 trillion annually<\/em> according to a study by the Competitive Enterprise Institute.<\/li>\n<\/ul>\n<ul>\n<li>According to a recent report by PwC <em>the U.S. held its position as the top location for innovation, with in-country R&amp;D spending of $145 billion in 2015. However, other countries (i.e., China) increased their R&amp;D spending by greater proportions than the U.S. which caused it to lose some of its relative advantage.<\/em><\/li>\n<\/ul>\n<ul>\n<li>Volkswagen lost 20% of its stock value after the emissions scandal and Target\u2019s profits fell 34.3% after it\u2019s data breach.<\/li>\n<\/ul>\n<ul>\n<li>A study by Murphy, Shrieves and Tibbs called \u201cDeterminants of the Stock Price Reaction to Allegations of Corporate Misconduct\u201d finds that <em>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\u2019 earnings estimates.\u201d<\/em><\/li>\n<\/ul>\n<ul>\n<li>In a 2008 study by Karpoff, Lee and Martin called \u201cThe Cost to Firm\u2019s of Cooking the Books,\u201d the authors find <em>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.<\/em><\/li>\n<\/ul>\n<ul>\n<li>The PR firm Edelman finds in their 2016 \u201cTrust Barometer\u201d that <em>nearly one in three employees don\u2019t trust their employer. And more than two thirds feel that CEOs are too focused on short-term performance. As a result, employees are far less likely to say positive things about the company they work for.<\/em><\/li>\n<\/ul>\n<p>The trust gap not only negatively impacts a company\u2019s revenue, market share, brand reputation, employee engagement and turnover, stock price, and bottom line profitability, but every facet of society.<\/p>\n<p>What happens when integrity &amp; trust increase?<\/p>\n<p>Find out in\u00a0our new white paper: <strong><em>The State of Trust in Corporate America 2016<\/em><\/strong>. Request it <a href=\"http:\/\/trustacrossamerica.com\/cgi-bin\/free-white-paper.cgi\">here.<\/a><\/p>\n<p>Copyright (c) 2016 Next Decade, Inc.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"wp-best-social-bookmark\"><ul class=\"socials\"><li class=\"oknotizie\"><a href=\"http:\/\/oknotizie.virgilio.it\/post.html.php?url=https:\/\/www.trustacrossamerica.com\/blog\/?p=3287&title=The High Costs of a Low Trust Business Environment\" title=\"Share this on oknotizie\"> <\/a><\/li><li class=\"twitter\"><a href=\"http:\/\/twitter.com\/home?status=The High Costs of a Low Trust Business Environment &raquo; https:\/\/www.trustacrossamerica.com\/blog\/?p=3287\" title=\"Share this on twitter\"> <\/a><\/li><li class=\"delicious\"><a href=\"http:\/\/del.icio.us\/post?url=https:\/\/www.trustacrossamerica.com\/blog\/?p=3287&title=The High Costs of a Low Trust Business Environment\" title=\"Share this on del.icio.us\"> <\/a><\/li><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>&#8220;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\u2019 earnings estimates.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[45,400],"tags":[122,18,116,423,5,6,246,167,121],"_links":{"self":[{"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3287"}],"collection":[{"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3287"}],"version-history":[{"count":3,"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3287\/revisions"}],"predecessor-version":[{"id":3290,"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3287\/revisions\/3290"}],"wp:attachment":[{"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.trustacrossamerica.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}