Trust

Trust is recognized as an important factor that mediates many aspects of human behavior (Camerer, 2003).?Definitions of trust vary but a widely accepted one is that it is a psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behavior of another (Rousseau, 1988).?Therefore, a person who depends on someone else expects to reduce the likelihood or size of a negative outcome in some situations, such as when that dependence is misplaced, the expected value of the outcome is lower.

"He who does not trust enough will not be trusted."

Lao Tzu - Chinese Philosopher?and Writer

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“The toughest thing about the power of trust is that it's very difficult to build and very easy to destroy. The essence of trust building is to emphasize the similarities between you and the customer.”

Thomas J. Watson - Chairman and CEO of?IBM (1914-1956)

In order to build trust, the basic thing that we need is to continue to do good and ethical behaviors. To succeed as a business, one must assess the quality of relationships across organization, from leaders to employees, employees to leaders, employees to employees, and employees to customers.

Edelman Released their Trust Barometer in 2016. Based on their survey, the first most trusted resource of information is recommendation from friends and family, while the second most trusted resources is shared positive opinion from online search engine.

Global trust for Non-Governmental Organization (NGO), Business, Media and Government is rising from 2015 to 2016 event during recession period. However, trust in Indonesia is decreasing except for business. This phenomenon is due to people image that business is still a trusted institution due to its capabilities to adapt on changes, along with its abilities to improve the economics and social conditions while maintaining its activities and profits.

?Indonesia 5 year trend show government & Non-Governmental Organization trust increase, although still behind media and business. Non-Governmental Organization has the most trust due to its aim for social activities without the needs to gain profit which makes people believe that such businesses will be more honest and transparent.

For most cases in Indonesia, Chief Executive Officer (CEO) and Senior Executive are often trusted more rather than the lower level management. Company will gain benefits if its puts more ‘brand image’ of the high level executive on its campaigns.

Looking at current developments, it can be said that data and articles from internet are one of the most trusted sources. This also includes the current trend of online mouth to mouth marketing as one of the most trusted source of information, according to Nielsen. Around 92% of consumers believe recommendations from friends and family over all forms of advertising.

Bottom up approach for trust is transparency, which allows the employees to know the condition, development and perceive themselves as part of the company. One of the method to build trust to our clients and potential clients is to make them human, with personalize story to make them feel comfortable and appreciated.

?"When the trust account is high, communication is easy, instant, and effective."?

Stephen R. Covey - Educator, Author and Businessman

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Trust is an intangible asset which is imperative in business. Supplier in a high-trust trading relationship are also willing to invest in costumer-specific and general assets because of the assumed long-term commitment in such relationship.

Business integrity policies, as defined for the purposes of this report, include internal company programs, functions, people, processes or controls that seek to prevent, detect and/or address Serious Corporate Misconduct (OECD, 2015).

"The glue that holds all relationships together, including the relationship between the leader and the led is trust, which is based on integrity."

Brian Tracy - Chairman and CEO of Brian Tracy International

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?"The leaders who work most effectively, it seems to me, never says 'I' and that's not because they have trained themselves not to say 'I'. They don't think 'I'; they think 'we'; they think 'team.' They understand their job to be to make the team function. They accept responsibility and don't sidestep it, but 'we' gets the credit. This is what creates trust, what enables you to get the task done."

Peter Drucker - Author of Managing for the Future

Effective Corporate Governance would ensure the checks and balances system that is necessary to prevent corporate misconduct. It is important to devote more time and resources for developing and implementing better business integrity practices, which are incorporated into a company’s governance framework, operations, and strategy.

?Companies that implemented these values will create a corporate culture where misconduct and reckless risk-taking are not tolerated (nor rewarded) and where violations are addressed and often also self-reported to the authorities. They tried to address the material and reputation risks of further misconduct related to their businesses, performing an important role in preventing, detecting and addressing serious corporate misconduct.