The good news: Trust in business tracks upward

Where does your business rank on the trust meter? High? Low? Don’t know?

In 2013, trust between business and customers/clients is more important than ever. As much as we’d like to think trust is inherent and customers will just know that we can be trusted, the truth is we need to continually prove we are worthy of their trust.

Businesses doing just that are beginning to see their hard work pay off slowly but surely. In 2013, trust in business rose to 58 percent, up five points from the year before, according to the 2013 Edelman Trust Barometer.  

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As Richard Edelman explains, “Today, business builds trust by treating employees well, exhibiting ethical and transparent practices and placing customers ahead of profits while also delivering quality products and services.”

He goes on to say that business owners need to embrace a new mantra from the license to operate to license to lead, in which a business serves the needs of shareholders and broader stakeholders by being profitable and acting as a positive force in society.

Business leaders, on the other hand, saw minimal trust increases, according to the Edelman report. Worldwide, only 43 percent of informed publics trust CEOs as credible spokespeople and only 18 percent of the general population trust business leaders to tell the truth regardless of how complex or unpopular the truth is. This underscores the necessity for “Transformation at the Top,” one of six principles of ethical enterprising based on the premise that an organization’s leaders are the caretakers of the culture.

Business credibility is increasingly judged by external-facing behaviors and policies that ultimately contribute to personal satisfaction. How does the company treat employees? Does the business listen to customer needs and feedback — and act on what they hear? Does the company practices ethical business practices? Does it place customers ahead of profits? Does the business have transparent and open business practices?


On April 23, BBB Foundation will honor eight Wyoming and Northern Colorado businesses at the 15th annual BBB Torch Awards for ethics in Fort Collins. Although this year’s finalists are diverse — from auto repair and sales to gluten-free oats and veterinary products — the most compelling attribute they share is valuing the trust of their customers, employees and stakeholders.


In “Speed of Trust,” Stephen M. R. Covey writes that there are three primary reasons why extending smart trust is smart: it produces results, it increases trust and it elicits reciprocity.

Trust, as evidenced by our finalists, starts at the top. As Covey writes, “When leaders don’t extend trust, people often tend to perpetuate vicious, collusive downward cycles of distrust and suspicion.” But, he continues, “when leaders take the lead in extending trust, negative, collusive cycles of distrust and suspicion can be broken, and the door can be opened to greater prosperity, energy and joy for all stakeholders.”

I encourage you to evaluate the standards of trust in your own company. Do you advertise truthfully? Are you transparent? Do you honor all promises? Do you have protocols in place to ensure the privacy of employees and customers alike? Do you approach all business dealings with integrity?


In a few short months, BBB Foundation will be asking for nominations for the 2014 Torch Awards for Ethics. Will we be honoring your business next year?


Pam King is president/CEO of Better Business Bureau Serving Northern Colorado and Wyoming.