A11

Tomorrow Takes

trust

73%

Customer loyalty

How trust benefits your business

Q: To what extent does building trust in your company, internally and externally, help improve the following? (Response to ‘A lot’) Source: PwC Trust in US Business Survey, Sept. 16, 2021: base of 503 business executives

—MOHAMED KANDE VICE CHAIR, CONSULTING SOLUTIONS CO-LEADER AND GLOBAL ADVISORY LEADER, PwC US

“Each leader in an organization is likely to work with stakeholders with varying definitions and expectations of trust. It is important that leaders consider those different perspectives as they seek to establish and foster trust.”

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58%

Positive reputation

56%

Expanding into new areas/markets

57%

Revenue growth

52%

Employee recruiting/retention

54%

Strong relationships with regulators/policymakers

54%

Brand equity/brand protection

55%

Growing customer base

48%

Strong analyst feedback

50%

Access to capital/financing

How to harness stakeholder trust in troubled times

A framework to stay connected and ahead

We’ve all seen that crisis mode has the ability to sharpen priorities. The pandemic made this clear and brought us all closer—businesses, investors, employees, and consumers. While the world shut down, 80% of stakeholders said they maintained a trust in business or watched it grow. But business trust is a variable, not a given. Just like interpersonal relationships, building trust in your business takes work. Leadership should manage to anticipate crises ahead—it’s the stuff that will put your brand and reputation to the test. The good news is that trust in business is high—nearly two-thirds of consumers polled in PwC’s Trust in Business Survey say they trust U.S. companies. But as we watch the unfolding of geopolitical events and climate and social challenges developing, leaders need to be prepared for what’s next. Here are three strategies companies can think about to help build trust with all stakeholders—so that when the going gets tough, those relationships can only strengthen. 1. Define intent: Get in front of difficult conversations and communicate the “why” As stakeholder priorities grow and change, business leaders are pressured to consider the needs of all during a crisis—a task that’s made even more challenging when consumers or employees have conflicting wants and needs. By actively listening to their key stakeholders like employees, leaders can anticipate difficult conversations, define intent based on ethical decision-making, and most importantly, communicate. “You cannot overstate the value of business leaders taking the time to effectively and transparently articulate to all of their stakeholders what their organization is doing and, importantly, why,” says Wes Bricker, Vice Chair and US Trust Solutions Co-Leader at PwC. “This is necessary to reframe the conversation from shareholder to stakeholder, conveying your business’s purpose and values and how decisions are made. And it’s foundational to building trust.”

“There’s no secret sauce to building trust, but proactively communicating with stakeholders about what you’re doing to build trust—and backing those words with action—is a critical step. Every company has a story, and business leaders need to make sure that the story they are telling is authentic to the company’s actions, operations, and its culture; what we do as organizations isn’t just about numbers—it’s about people, the communities we serve, and making a lasting impact.”

—WES BRICKER VICE CHAIR - TRUST SOLUTIONS CO-LEADER, PwC US

Note: This article was created by PwC.

One example of how an organization can effectively define intent to build trust through a potentially risky time is when considering automation. As talent shortages and supply chain issues point to uphill challenges for businesses, 47% of leaders are looking to automate. For employees, a very important stakeholder for companies, this can be unsettling. And unhappy employees can be damaging to both a company’s reputation and brand. If not communicated clearly by leadership, a large move to automation could be perceived by employees as a way to cut overhead through job reduction—rather than an opportunity to upskill, spend more time on higher value work, and advance their careers. How these difficult decisions are handled can determine whether a business’s reputation with its people takes a hit or emerges with renewed trust. Bricker says, “Being open and straightforward shows your stakeholders your intent around decisions, that you have put thought into them. Transparent communication can help foster stronger ties and more mutual understanding.” 2. Back intent with action Defining intent with strategies based on ethical decision-making isn’t enough. Businesses should back that intent with action and match what they’re saying with what they’re doing. Otherwise, messaging can be perceived as merely lip service and can potentially make an issue even worse. This means taking actionable steps to respond to, or even stay ahead of, issues. Take the pervasive nature that digital now occupies in our lives. Intentional, strategic action that protects consumers is a must. Financial services companies, for example, should have an all-hands-on-deck approach. With an ever-changing regulatory landscape, protective risk management—which anticipates challenges and builds trust in your business model now and for the future—lets stakeholders know digital privacy and security is top of mind. Forward-thinking, actionable strategies can help solve problems and build trust, simultaneously. When the pandemic-related logistical jams hurt

manufacturing and sales companies, some businesses had invested time, attention, and capital into building strong relationships with sustainable and reputable suppliers. And they were rewarded with a first shot at limited supplies. Actions like prioritizing long-term relationships over short-term price cuts—with potentially questionable down-line suppliers—won the day. 3. Share the scorecard in order to stay accountable Accountability builds trust. In fact, consumers say their top trust-driver is when a business holds itself accountable. Once a business says it’s going to do something, stakeholders will inevitably wonder if the business has lived up to its promise. That’s why business leaders should continually evaluate whether their actions hit the mark or fall short, and they need to be transparent about their results—sharing that information with stakeholders can ultimately build trust. Accountability also means a willingness to accept responsibility for your business’s actions. Companies that assess their environmental impacts and are transparent in communicating environmental, social, and governance (ESG) goals realize a powerful way to connect with people—and a tool to innovate and to affect global change. And certain stakeholders, like employees and customers, expect corporations to use their size and heft—by investing in industries that are moving boldly to mitigate the climate crisis—to affect change on their behalf. Learn where business and stakeholder priorities dovetail, as well as where they may diverge. And be prepared to share your progress. Teaching leaders to manage trust Perhaps most importantly and to effectively lead a resilient organization through a crisis, work to know your people and your purpose. At PwC’s Trust Leadership Institute, leaders use this framework and come away with actionable strategies for managing stakeholder trust. “It’s really important for business leaders to decide what they stand for, rooted in the organization’s purpose, and share that with their stakeholders,” says J.C. Lapierre, PwC’s US Chief Strategy and Communications Officer. The messaging is key, Lapierre says, “This is critically important to establish—before an event provokes you to have to weigh in on an issue or act on your purpose.” As we continue to make our way through trying and emotional times, businesses won’t always get it right. But the vulnerability to recognize and acknowledge when things don’t go as planned can help build the kind of trust that enables business relationships to survive a hard road.

Note: This article was created by PwC.