CRISIS AND THE PROTECTIVE POWER OF TRUST
In today’s tumultuous media environment, rising callout culture and tense sociopolitical landscape, issues develop into crises quickly, often wielding significant and long lasting fiscal and reputational impact in a matter of minutes. This reality has underscored the value of trust as the data clearly shows trusted companies are far more resilient in the face of crisis, experiencing shorter and less damaging crisis lifecycles.
The benefits of trust extend beyond crisis management as well. Trusted companies, for example, financially outperform their respective sectors, are better able to retain and recruit key talent and are generally more resilient in the face of risk, operational and competitive threats. People are six times more likely to recommend their friends, family members or colleagues seek a job at trusted businesses, and 58 percent say they would defend a trusted company if they heard someone criticising it. Further, trust lowers demand for regulatory scrutiny; only one in five say they would lobby for more regulations for companies they trust versus two in five for distrusted businesses. As technology, financial services, health and transportation sectors experience unprecedented levels of consumer and regulatory scrutiny, trust becomes both a distinct competitive advantage and key indicator of a business’ resilience and ability to maintain fiscal health.
Simply stated, trust capital is perhaps a business’ best insurance policy against crises, risk and disruption today – and further, is also its best investment toward driving positive business impact tomorrow.
Apr-Jun 2019 Issue