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Posts Tagged ‘restore stakeholder trust’

TRUST: EssentialAmerican consumers and stakeholders find reasons to distrust business, political, and civic leaders every time they tune into CNN or other news outlets.

However, there’s been an unintended consequence: The diminishment of integrity in leaders has given voice to the presence of integrity in the rest of us!

Despite the global financial challenges that we face, there are reasons for optimism.

SynergyBlog is pleased that trust in leadership and trust in each other is becoming an integral part of the daily business discourse.

Today, like so many other days, I witnessed incredible sensitivity, tremendous integrity, and a spirit of giving we never hear about in the news… all in the context of commerce.

I witnessed corporations interested in sustainable practices; companies really interested in consumer needs and desires; organizations interested in the bottom line – and so much more. These virtues all demonstrated by business and civic leaders!

When we look around, it’s easy to point out the violations of trust – they’re everywhere. Perhaps we should sometimes do the harder thing and pay attention when colleagues, leaders, and everyday people do the right thing.

There’s a great peice on brand trust in Forbes by leadership guru Ken Blanchard and author and consultant Terry Waghorn that speaks to this. See the full article here:

How do you keep people trusting you at a time like this? Trust is essential in our lives, and it has been since the beginning of our country. Our dollar bills say In God We Trust. Yet today trust is all but vanishing, especially trust in our business leaders, whose greed and short-term selfishness seem to have been a major cause of our economic crisis. With negativity running amok, it is no small wonder that trust within the organizational context is slipping.

Yet that need not be the case. “Managed properly, trust can actually grow in such adverse conditions,” says Shawna O’Grady, associate professor of management at Queens School of Business, in Kingston, Ontario. “Taking this point to the extreme, consider the bonds forged between comrades-in-arms in a theater of war.”

The key to building trust in both good and bad times is to realize that none of us is as smart as all of us. There are companies that have embraced this simple truth and used it to maintain trust before, during and, we’re sure, after this economic downturn. All these companies seem to have two characteristics in common. (more…)

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Restore Stakeholder Trust

Restore Stakeholder Trust

There has never been a more critical time in our history to be concerned about the trust stakeholders place in institutions. As has been stated here by Tim Hartford, “Trust enables people to do business with one another. Doing business is what creates wealth.” Yet, each day, we hear more stories of trusted executives who betray stakeholder trust. Despite the best intentions of some organizational leaders, public exposure and scrutiny of corporate greed and fraud are so prevalent that stakeholder skepticism is commonplace. In fact, the potential for perceived breaches of trust also presents a risk to corporate leaders. So, what is to be done? What can executives do to right the ship – to exude values that establish, maintain, and maximize stakeholder trust?

In a recent qualitative study of three U.S. institutions, including a Fortune 500 corporation, a government entity, and a nonprofit organization, the author found that there are seven critical elements of a comprehensive trust repair agenda. The first, and most important finding is that when trust has been violated, stakeholders are motivated to understand why the violation occurred. Findings show that stakeholders first want to understand the circumstances surrounding the violation. Managers and executives should provide an open account of key features of the transgression. Explanations which are authentic, reasoned, open and relevant to the transgression in question enhance fairness judgments, and can increase trustworthiness perceptions. Our findings have been supported by scholars (see Barclay 2008; Greenberg, 1993), and practitioners. (more…)

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