Trust: The Ultimate Currency in Business

As businesses, we often prioritize meeting the needs of our customers, investors, employees, and society at large. However, we must not forget about one crucial ingredient that is fundamental to productive relationships with these stakeholders: trust.

Trust is the foundation of global business, and without it, most market transactions would be impossible. But it is not just an essential element for businesses to conduct transactions. It is also a hallmark of high-performing organizations. Companies that build trust among their employees, customers, and other stakeholders reap the rewards of increased productivity, higher sales, and more job satisfaction.

However, trust is not something that can be built overnight. It takes time, effort, and a deliberate strategy to cultivate trust among stakeholders. The recent PwC

analysis shows that more CEOs were fired for ethical lapses than for poor

financial performance or battles with their board, indicating that stakeholders

have little tolerance for leaders who violate their trust.

One example of a company that successfully built trust among its customers is Fisher-Price. In 2009, the company introduced the Rock 'n Play Sleeper, a portable and soothing bassinet-like device for infants. The device was a massive success,and by 2019, Fisher-Price had sold 4.7 million units. The company's ability to create a safe and reliable product that met the needs of parents and infants alike built trust among its customers, leading to greater loyalty and higher

sales.

In contrast, Boeing faced a massive trust crisis after two of its 737 Max jets crashed, killing 346 passengers and crew. The company's CEO, Dennis Muilenburg, had the daunting task of owning up to the company's role in the tragedies while also convincing the public that Boeing would do better in the future. It was a difficult challenge, but one that was necessary to rebuild the trust that had been lost.

As businesses, we must prioritize building trust among our stakeholders. It is not just the right thing to do; it is also the smart thing to do. By investing in trust-building strategies, we can create stronger relationships with our customers, employees, investors, and society at large, leading to long-term success and sustainability.