The Most and Least Trusted Organisations

How companies build trust, how they lose it - and how to stay trusted

There is a paradox with trust: those who talk most loudly about it are often trusted least. For example politicians, people who regularly ask for your trust, seem to be trusted least. In fact, trust is becoming so scarce that those people and organisations that nurture it enjoy a clear advantage over those that do not. Consider Johnson & Johnson, who despite the fact one of their pharmaceuticals killed three customers managed to recover the situation and become one of the most trusted brands in America. Celltech is another example, where the entire workforce kept a buyout confidential until the deal was concluded. Or the Innocent Drink Company, who told customers that if their fruit drinks were not fresh enough, send them the house keys and they would make them one in your kitchen. One customer took them up on this – from a remote location in northern Scandinavia. The firm kept their promise and sent someone out immediately to freshly squeeze their orange juice the next morning.

Trust matters in business, underpinning issues as diverse as sales, financial management and leadership as well as affecting job satisfaction and career prospects for millions. We understand that trust matters in our personal lives and we regularly debate the importance of trust in politics (just consider the arguments about the Hutton enquiry or the US Presidential race), but the value of trust for organisations is much less understood. So, why is trust so important at work?

First, as the disasters at Enron and elsewhere highlighted, formal rules will never be enough, the spirit of an agreement is as important to success as the letter of the law. Second, trust is decisive in increasing profitability. New customers will be attracted to brands that they trust, existing customers will remain loyal, employees will increase productivity and stay, reducing the costs of staff turnover. Also, people respond better if they can give and receive trust. This matters if you are trying to achieve anything – motivate someone, sell to a customer, share ideas, generate new opportunities, prevent or solve a problem, the list is endless.

However, even increased profitability is not the most compelling reason to build trust. People value trust, but what is overlooked is the corollary of trust being welcomed, its absence does not result in a neutral situation but something much, much worse. As executives such as Gerald Ratner and Matthew Barrett have discovered, when trust is undermined there is a high cost to pay.

So, who are the most and least trusted organisations, and why are they are in this position?

The most trusted organisations

The BBC remains highly trusted, admired worldwide for a consistent, open and at times courageous approach. Even when it antagonises politicians, which it does frequently, critics accept its motives, respect its courage and values and realise that to punish the Beeb would be politically damaging.

Dell Computer is another trusted organisation, successful because it has spent money and taken time to understand customers, offering tailored, popular products and convenient ways of purchasing. Dell also understand an important point: complexity can diminish trust. Customers give their trust expecting speed, responsiveness and service, and these are jeopardised by complexity. If you want customers to continue trusting you, keep it simple.

Harley-Davidson is a trusted, world-class brand, enjoying sixteen consecutive years of record earnings and profits and with 90% of Harley-Davidson customers staying loyal. They achieve this by combining knowledge of individual customer’s with an appeal to their emotions. The result is customers trust them and Harley use this to develop stronger bonds, profits and more trust in a virtuous circle. Managers meet customers regularly at rallies and advertising reinforces the image of owning a Harley. Also, the firm devotes considerable resources to benefiting customers. If it seems easy to sell a product as exciting as a motorbike, remember they also get thousands of customers to keep buying their machines and paying to attend rallies where they make friends, provide customer feedback – and even tattoo themselves with the name of the company. How many businesses achieve that?

BMW and Mercedes are regarded as trustworthy, largely because of their reliability. The certainty that people have about buying German engineering has become legendary, to the point where it can help them weather competition. The trust enjoyed by BMW did not extend to their acquisition of Rover, however, who needed to build trust in their own brand. The lesson is to make sure you are trusted for at least one thing, such as reliability, and deliver this consistently. Other car companies (notably Toyota) are also highly trusted, suggesting that the intense competition for products as ubiquitous, important and expensive as cars has focused these manufacturers on the issue of trust.

The least trusted organisations

Microsoft emerged as one of the least trusted firms. A glance at their share price or turnover would seem to indicate massive popularity, but despite driving the IT revolution they face a real problem. Many people feel that Microsoft is neither fair nor trustworthy but controlling, ambitious and power-seeking. Anti-trust actions in the USA and Europe, combined with criticism in the media and attacks on their products, appear to have been met with a defiant belief that simple product innovation and aggressive commercialism will win the day. They won’t.

Financial services firms also score low when it comes to trust for similar reasons. When RBS announced record profits of £6.2 billion the public reaction was not one of pride in a great British institution and its workers who had done better than ever (as happened, for example, when ICI became the first British firm to post profits of more than £1 billion). The response to RBS was concern and a need to know more: how were these profits incurred? Is their market position too strong? Are customers over-charged? Major banks are strong when it comes to managing processes and handling risk. They are much weaker at explaining their actions and reassuring people they are acting fairly – both essential for building trust. When Barclays Bank CEO Matthew Barrett commented publicly on his aversion to credit cards, this simply reinforced people's suspicions.

What should these firms do? First, communicate, explaining, reassuring and building genuine relationships. These firms may be dependable and competent but they are not perceived as being fair, open, unselfish, supportive or understanding – vital components when building trust. Don’t simply believe that producing great products is enough. Above all, believe in what you do and convey that passion and belief. Massive profits and an appearance of dominance leave people feeling uneasy and uncertain about how that success was achieved and how it may be used in future. Better relationships with the media and customers will result in greater trust, delivering more options in the short-term and greater security in the longer term.

Rail firms are among the least trusted corporations, and not simply because they operate in an industry beset with difficulties. They lack trust because they are perceived as doing little to look after their employees and customers. Instead, they appear fixated on narrow self-interest and survival. Their difficulty is the lack of trust and goodwill of their customers which translates into political pressure. The solutions are easy to see – be clear, consistent and truthful, communicating with customers, understanding them and providing the best possible service. Sadly, this is fiendishly hard to achieve in a culture of uncertainty, blame and recrimination.

McDonalds scores low because while they are trusted to provide food prepared to consistent standards, they suffer from a suspicion that they are too concerned with uniformity, profit and power. People worry that the firm may be unscrupulous – and that consequently the quality of food may suffer. The difficulty is that if these concerns go unchallenged, they gain credibility, but even if they are answered the firm risks appearing aggressive or manipulative. For example, adverts and tie-ins with Disney movies are designed to project a wholesome family image, but without trust they can be seen as cynical manipulation of children. The solution is to build trust not through words but actions, in much the same way as The Body Shop and Starbucks have adopted and publicised an ethical business approach.

Another corporation now seen as untrustworthy is Enron, standard bearer for corporate scandal. Enron executives have falsified business results, hidden losses and lied. A major lesson from Enron is the fact that people often prefer the pursuit of power to the pursuit of trust. It is easy to understand why: power is seen as providing control and security whereas trust is a riskier option. What is often forgotten is that trust is much more durable and flexible. It lasts, and it works better. Enron also demonstrates the significance of information: used properly it can help to generate trust, abuse or manipulate it in the pursuit of power and it will come back to haunt you.

Corporations lacking trust focus solely or obsessively on a narrow view of their own self-interest. They focus exclusively on their own goals instead of allowing people to seize initiatives and support others. They are weak communicators, often with an attitude that is cynical, negative or combative. This contrasts with trusted organisations who are diligent and consistent, delivering what they say they will. They also act with integrity and sincerity, treating people as individuals. They understand who they are dealing with and what is important to them. Above all, they remember that trust matters.

What do people think about trust?

Our research into people’s attitudes to trust found:

Our research also highlighted several other interesting aspects about trust at work.

• - Only 10% of workers trust their colleagues.
• - On average, people spend a third of their time (36%) on ‘political’ issues (such as building bridges with colleagues in the expectation of mutual support)
• - Only 5% of Americans would keep their level of trust in someone unchanged, regardless of increasing pressure, compared with 31% of Europeans
• - Politicians are among the most and least trusted people. This highlights the trust paradox: those who talk most loudly and frequently about trust are trusted least

What do trusted leaders do?

• They understand themselves and why others trust them
• They trust others – so creating an atmosphere and expectation of trust
• They take responsibility and are consistent
• Their intent is clear and honest – without hidden agendas
• They genuinely have the organisation's and employees' best interests at heart
• They don't rely on power, control and an overload of rules
• They let others see their passion – and it’s obvious what they care about
• They confront people without being confrontational
• They have integrity and credibility
• They use power and influence positively

Do people trust you?

If you are interested in discovering the level of trust that people may have, consider the following questions:

1. Do people tend to open up to you and tell you things about themselves that they don't tell many others?
2. Are you generally accepting and non-judgmental of others?
3. Do people freely offer you help and support?
4. Do people come and seek your advice?
5. Do people feel comfortable being vulnerable around you?
6. Do you readily admit when you are wrong or have made a mistake?
7. Do you tend to use sarcasm and make put-down comments about people?
8. Do you gossip about others more than just occasionally?
9. Do you tell lies if it will benefit you to do so?
10. Do you like to make yourself look good even if it is at the expense of others?
11. Do you take credit for things that others have done?

If you have answered 'yes' to questions number 1 to 6 and 'no' to questions 7 to 11 then there is a good chance that people trust you.

If you want to increase your trustworthiness for it's own sake and not for personal gain or to manipulate someone, here are some actions that will help.

• Communicate with the intention of relating not controlling or manipulating
• Be open and genuine
• If you are feeling or acting critical or judgmental check your intention
• Try to understand other people's intentions - don't judge them just on their actions
• Show genuine interest in people
• If you are not interested in someone don't try and fake it (they will know)
• Be honest, don't lie
• Give others a chance to have their say and genuinely listen to them
• Be open-minded
• Don't blame, try and understand instead
• Admit to your mistakes and say when you are wrong
• Apologise when necessary
• Don't get defensive
• Follow through on your commitments

However, if these behaviours do not come naturally, then it is hard to acquire them. You have to want to improve your relationships with people for the sake of those relationships. If this isn't your aim then don't try this – they will trust you less because they will assume that you are 'being nice' as a way of manipulating.