Trust: The New Currency for Business

The world is changing at an unimaginable pace, and leaders have to remain nimble while meeting expectations from a myriad of stakeholders. To thrive today and in the future, it takes trust. This belief was underscored by findings in our new survey, Trust: the new currency for business. The findings offer insight into the value of trust, how to earn it and the possible consequences for losing it. Moreover, the data backs up what we’re already seeing in the market – stakeholders reward trusted businesses. Let me share our top findings and the actions that leaders can take to build trust.

What’s new in trust for business?

1. Business leaders overestimate how much their employees and customers trust them. Our research shows that 87% of business leaders think customers highly trust their companies when only about 30% of consumers do. Our survey also shows continued misalignment on what builds trust. Forty-seven percent of executives say trust is more bottom-up than top-down, built from customers, employees and other stakeholders rather than senior leadership. But only 27% of customers and 35% of employees say the same, indicating that they are looking to the C-suite to lead more on trust. That jarring gap can have consequences ranging from employee retention rates to the bottom line. UPS CEO Carol Tomé and I discussed this topic on PwC Pulse, our new podcast series. The series provides insights on why trust is so important and how to start thinking about it differently. 

2. Employees and customers: know what matters – and start with the basics.  Businesses are rightfully making commitments and taking action around social issues like diversity, equity and inclusion (DEI) and environmental, social and governance (ESG). However, these efforts may not be moving the needle on trust with employees and consumers as much as hoped. Uncertainty in the economy – and beyond – is likely why these critical groups are prioritizing what directly impacts them right now, like available, affordable products and services and treating employees well. Only 27% of consumers strongly agree that companies that invest in social and racial equity are more trustworthy, and only 23% of consumers say that the new climate risk disclosures will help companies build their trust as a customer. This doesn’t mean companies should stop investing in these areas; however, to make an impact on trust, businesses should take the time to communicate transparently about the basics that employees and consumers prioritize – and then move on to environmental goals and larger societal issues to credibly maintain trust with their stakeholders.

3. The cost of losing trust outweighs the benefits of gaining it. Our survey showed that consumers and employees are more likely to react to a loss in trust than they are to a gain in trust. In fact, 71% of consumers said they are unlikely to buy from a company if it loses their trust, and of that consumer group, a vast majority (73%) said they would spend significantly less if a company loses their trust. For employees, 71% say they’re likely to leave a company if they lose trust in their employer.  

Leaders may find that consumer loyalty can change very quickly if they lose that trust. And, while employees find it harder to unwind their connections with companies, that doesn’t mean that they won’t leave. 

4. Suppliers are rising as a key stakeholder, and they play a pivotal role in building trust with employees and consumers. Ongoing supply chain disruptions and inflation have shaken up the business world in the first half of 2022. Forty-two percent of business leaders now rank suppliers as a top-three important stakeholder, which is up sharply from our 2021 Trust in US Business Survey. Over the past few years, we’ve seen that supply chain resilience and diversification are critical for a global economy to operate. With the rise of nationalism and ongoing geopolitical issues, there will likely be an increased focus on suppliers as a primary stakeholder. The good news is that suppliers want a lot of the same things that employees want – confirmation that contracts will be honored and that they will be treated fairly. Consumers and employees are more likely to put their trust behind a company if their products are available, affordable and high quality, and suppliers make that possible. Many leaders already have plans to build trust with this group, and they should continue.

What can leaders do now to build trust?

Business will be challenged again and again on trustworthiness, and the issues are only going to multiply and intensify going forward. Here are five actions that leaders can take now:

1. Define what trust means to your company and establish a framework for trust. Your trust framework should align with your corporate values and purpose. This is critical in the event of a trust crisis. Having a cycle of purpose, intent backed with action and a shared scorecard of what you got right or wrong can help rebuild or earn trust.

2. Treat employees like customers. Give them choice and flexibility, alongside purposeful work. Understanding human capital is hugely important – talent, recruiting and development and the pulse of the organization. If leadership doesn't capture the hearts and minds of employees, how can they translate your strategic vision to your customers? 

3. Don’t try to be all things to all stakeholders, but make sure you communicate what you’ve chosen and why. Businesses can’t stand for everything. A part of building trust is picking the areas you will lead and the areas you will support and following through on those commitments. Communicate with your entire stakeholder community what those choices are and remember, during this period of inflation and uncertainty in the equity markets, keep an open dialogue with consumers and employees about their in-the-moment priorities. 

4. Recognize that maintaining trust takes effort AND action. Have the courage to recognize the importance of maintaining trust and work to build beyond table stakes. Any commitments made must be backed with actions. 

5. Acknowledge that you’re standing on moving ground and trust is fluid. Invest in active and continuous listening to understand your stakeholders and be ready to shift when necessary. 

Trust as the cornerstone of our business strategy 

One year ago, we launched our new business strategy, The New Equation, which puts trust at the center of our business and everything we do. As part of our commitment to deliver on our purpose, we also launched a first-of-its-kind program called the Trust Leadership Institute, convening a diverse community of executives who would explore this evolving world, navigate the complexities and embrace new opportunities. And now, we are going one step further to expand education around trust in business by sponsoring the launch of “The Trust Factor.” It's a new weekly newsletter (and Fortune’s first!) that will explore the role that trust plays in the business world through analysis, advice and insights from leaders working to build trust in their companies, industries and communities. You can subscribe to it here. 

Folks, there’s no better time to put a spotlight on trust. Like our research shows, we have never been more confident that trust is one of a business’s most important assets and critical to an organization’s survival in a fiercely competitive and quickly changing environment. With trust as the new currency in business, understanding its value couldn’t be more important. 

I’d love to hear about how you're building trust in your organization. Please share in the comments to continue our conversation.