BBB, universities work together_to foster the business of trust

Trust is more important to business and life in general than most people give it credit. All relationships created when doing business are based on some level of trust. In addition, trust is one of the key elements that create efficiencies in a society. The greater the trust the less we need regulators, litigation and various forms of insurance.

Within an organization it is similar. If workers trust management, unions aren’t needed. If management trusts employees, less bureaucracy is required. If customers trust the company and the company trusts the customers, fewer legal documents are needed for the transaction. Greater trust in all of these relationships creates efficiencies and lowers costs.

Simon Longstaff, executive director of the St. James Ethics Centre, states in his 1994 article “A Question of Trust” that while a high-trust environment helps to improve the functions of an organization, it also plays an important role in creating a favorable environment for ethical behavior.

How do we create trust in the workplace? It starts with respect: Respect for coworkers, management, customers, suppliers, etc. I am more likely to trust someone I respect and who shows respect for me. We show respect by listening to people’s thoughts and ideas, especially those that differ from our own perspectives. We show respect by including them in decision-making processes. We show respect by learning about them and their views of the world. It takes a lot of work, and a long time, to create a high level of trust, yet we must remember that it is fragile and can be destroyed easily.

Trust helps to create an ethical work environment, and an ethical workplace requires less bureaucracy and allows our organizations to be more responsive to changing external conditions. Creating a trusting environment also results in a less stressful working environment. This reduces many other costs of doing business such as health-care costs, turnover costs and loss of productivity.

It is apparent that increasing the level of trust in organizations is a winning formula. Yet few business programs include trust as part of the curriculum. Trust doesn’t appear as one of the hot topics for business consulting, either. This needs to be addressed if we are to have more trusting organizational environments.

Business schools have an important role to play here. We have relationships with students, businesses and government organizations that are important players in educating people and assisting in the implementation of trusting environments. When used wisely, trust is a very powerful management tool.

In conjunction with the BBB Torch Awards, the University of Northern Colorado Monfort College of Business and the business colleges at Colorado State University and the University of Wyoming are fostering the business of trust.

BBB Torch Awards set for April 23

The Better Business Bureau serving Northern Colorado and greater Wyoming will honor local companies that demonstrate outstanding business ethics at the 11th annual BBB Torch Awards April 23 at the Fort Collins Marriott. The event includes a reception at 5 p.m. and dinner at 6:30 p.m.

The Torch Awards honor companies that demonstrate exemplary management practices, uphold high standards in relationships with customers, suppliers and shareholders, show honesty and integrity in marketing and advertising, and give back to their communities.

For more information, call the BBB at 470-484-1348 or visit www.wynco.bbb.org.

Don Gudmundson is dean of the Monfort College of Business at the University of Northern Colorado.

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