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. The following some of the most reliable and current research supporting the business case for trust.
- According to the proprietary FACTS® Framework research conducted by Trust Across America-Trust Around the World, over a 10-year period the most trustworthy public companies outperformed the S&P 500. (November 2021)
- 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)
- 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)