I recently spoke with a CEO who wears a special lapel pin close to her heart every day as a reminder of why it’s so important to keep her customers safe and earn their trust. She describes it as “...a physical act, something that I can do so I never forget what we're up to, so I never forget why we're doing it.”
Keeping trust top of mind is a daily habit that any good business leader can practice, as building trust has never been more important, especially given today’s complex environment. Leaders are facing near-term headwinds, increased pressure to deliver financial outcomes and rising stakeholder expectations while, at the same time, looking to reinvent their businesses for the future. To compete, keeping trust at the top of leadership agendas is critical while navigating these market forces.
Recently, and for the third time, PwC surveyed business leaders, consumers and employees on trust. In our 2023 Trust Survey, the results reveal leaders, consumers and employees overwhelmingly agree that organizations have a responsibility to build trust. Underscoring the idea that trust is critical to business in our world of rising stakeholder expectations, 91% of executives agree their ability to build and maintain trust improves the bottom line.
The survey echoed themes we’ve seen in prior years and also revealed how technology –– specifically data privacy and AI –– are playing an increased role in driving trust for employees and consumers. Here are a few key findings for all of us to consider as we’re working to build trust with our stakeholders:
- Business executives think they are more trusted than they actually are. Eighty-four percent of surveyed business executives felt their customers highly trust their companies, while only 27% of consumers responded that they actually do. And 79% of business executives said employee trust is high, compared to 65% of employees who said they highly trust their employer. This is the third time that we’re seeing this sizable gap –– evidence that it continues to be an opportunity for businesses to understand and address the issues that matter most to their stakeholders, which in turn, can impact the bottom line.
- In our digital world, data privacy is an increasingly important driver of trust. Roughly seven out of ten consumers (68%) and employees (67%) said it’s very important for companies to disclose their data privacy policies — this was the highest cited category, ahead of financial information, DEI progress and environmental impact. Companies that protect the interests of their stakeholders with transparency around data privacy policies and proactive risk management will maintain trust.
- Artificial intelligence and how companies are using it present significant trust-building opportunities. AI continues to be one of the biggest technology trends shaping 2023, and leaders must confirm that implementation occurs in a responsible, fair and trustworthy way. As we continue to see AI use cases expand in the coming months, putting processes in place that safeguard ethics and security is critical.
- It is possible to build trust while making difficult workforce decisions. Eighty percent of surveyed employees agreed that in general, layoffs negatively impact stakeholder trust in companies. Showing up as a trusted leader and trusted organization each day, in every interaction, matters. Company actions that can help build trust during layoffs include encouraging managers to increase communications with remaining team members (cited by 58% of employees), offering generous severance packages (57%) and being more transparent about the reasons for layoffs (57%).
While these insights show just a snapshot of the survey’s findings, the data consistently confirms the critical role trust plays in shaping the actions and outcomes of our business community. As I reflect on these findings and think about how we can build trust in our organizations, I see three major themes:
- Go all-in on trust. Leadership alignment and commitment to trust is imperative, as is embedding a trust-based mindset into your corporate strategy. If you want to see real change and drive real value, taking ownership of trust and fully committing is essential.
- Trust is a team sport. For trust to touch every part of your business, it will require everyone, from leadership down, working together to help drive it forward. Like with most things in life, we accomplish so much more when we work together, and trust is no different.
- And lastly, transparency goes a long way when building trust. It's important to practice trust always, but especially in hard and difficult situations. Clear communication and explaining the why behind big decisions can go a long way when it comes to building trust with your stakeholders. Proactively addressing concerns and tailoring communications to your specific audiences can foster better understanding, too.
Trust remains a constant that can help guide us through uncertain times. I go back to my recent conversation with that CEO as she’s building trust and reinventing her company through a challenging environment. Making trust a priority in good times and in tough times can help organizations not only do right by their stakeholders, but also positively impact the bottom line and position them for future growth. While building trust takes time and a lot of hard work, I encourage us all to have trust lead the way.
Tim Ryan is the US Chair and Senior Partner at PwC. Connect with Tim on LinkedIn.
This article originally appeared on PwC.