Trust in business is in crisis, and continuing to decline around the world. CEOs saw the largest drop in credibility in the 2017 Edelman Trust Barometer, trusted by just 37% of the general public. Trust is the foundation of long-term business success. It drives customer loyalty, employee satisfaction and support from local communities. Business leaders must ensure that public decline in trust does not continue or they risk company longevity and global economic health.
In a blog post for Open Government Partnership, May Miller-Dawkins, Director of The B Team’s Governance & Transparency initiative, emphasises the importance of trust for business to thrive. Recognizing trust as “the glue that binds companies to their customers and communities they operate in,” she outlines several ways for business to build credibility.
From being transparent about supply chains and tax structure to using CEO voices to support key legislative efforts, business can take action to restore trust with customers, investors and communities. Governments can also operate with increased openness, ensuring equitable economic markets and robust democracies that strengthen business success. Policies and institutions that promote open company ownership, support fair public procurement and encourage citizen participation serve to bolster credibility in both the private and public sectors.