Trust has always played a vital role in developing and maintaining civilizations and other organized groups of humans, large and small. But it seems like trust in business is as important now as it has been before.
As described in the Harvard corporate governance blog by PwC’s Paul DeNicola: “Confidence in the institutions that form the bedrock of society is perilously low. Surveys show that many people have lost faith in government, the media, and the police, among other institutions. Meanwhile, corporations have emerged as leaders. They’re now the most trusted institution in the US according to the Edelman Trust Barometer. Maintaining this trust, and seizing the opportunities it presents, should be a priority for every company.”[1]
Another significant development in this area is the recent publication of Why Trust Matters: An Economist’s Guide to the Ties That Bind Us by Benjamin Ho of Vassar College.[2] In this very useful and enjoyable book, Ho examines the economics and history of trust in a wide variety of settings. Further, he focuses on various aspects of trusting institutions known for expertise (a subject of particular relevance to the present) and how we can do more to trust one another generally.
DeNicola suggests ways companies can indeed make trustworthiness a priority, focusing on corporate culture, human capital, and social action. To this, I would add—to the extent it has not already been done—expanding the responsibilities of the chief ethics and compliance officer to include promoting trustworthiness in the organization.
Companies should consider including trust issues in the chief ethics and compliance officer’s job description, risk assessment, training/communications, personnel evaluations, and board reporting. These and other commonsense measures can help strengthen a company’s trustworthiness.
