Archive

Posts Tagged ‘trust in business’

Oct
02

Ask any C-Suite executive about organizational trust and most will tell you that the “soft stuff” belongs to another department. Soft stuff? How many business executives do you know who could pass this “trust” test?

The Hard Cost of Low Trust

Question: Gallup’s research (2011) places ________ % of U.S. workers as either not engaged or actively disengaged.

Answer: A startling 71%

Question: The price tag of disengagement (Gallup) is $________

Answer: $350 billion a year. That roughly approximates the annual combined revenue of Apple, General Motors and General Electric.

Question: The Washington Post reported that “the federal government imposed an estimated $_________ in regulatory costs on the economy (in 2012).”

Answer: $216 billion in 2012, nearly double its previous record.

Question: The cost of the tort litigation system alone in the United States is over $________.

Answer: $250 billion. – or 2% of GDP, Forbes, January 2012

Question: The six biggest U.S. banks, led by JPMorgan Chase & Co. (JPM) and Bank of America Corp., have piled up $___________ in legal costs since the financial crisis.

Answer: $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years. Bloomberg, August 2013

Question: According to The Economist Intelligence Unit (2010), __________ % of senior leaders say disengaged employees are considered one of the biggest threats facing their business. However, only ____________ % of them reported doing anything about this problem.

Answer: 84%, 12%

Question: In 2011 , WIQ calculated that mistrust is costing companies between ______% to ______% revenue loss, and _____% to _______% loss of profitability. WIQ is a team sourcing technology company

Answer: 14-18% revenue loss and 17-24% loss of profitability.

Question: In the 1960’s, if you introduced a new product______% of the people who viewed it for the first time believed the corporate promise. Forty years later, if you performed the same exercise less than _______% believed it was true. Howard Schultz, Founder & CEO Starbucks

Answer: 90% believed the corporate promise, now less than 10% believe it to be true.

Question: According to Edelman globally, _____% of consumers trust businesses, but just ______% trust business leadership.

Answer: 50% of consumers trust business, while 18% trust business leadership.

Question: In the United States, Edelman’s statistics are similar, but the story is a bit worse for leadership. While _____% of U.S. consumers trust businesses, just ____% trust business leadership.

Answer: 50% of consumers trust business while just 15% trust business leadership.

The Low Cost of Hard Trust

Unfortunately, it’s easier to find data on the cost associated with low trust. But here are a few test questions addressing the cost savings of hard trust.

Question: A study by the Russell Investment Group finds the “100 Best Companies to Work for in America (In which trust represents 60 percent of the overall criteria) earned over _______ times the returns of the market at large.

Answer: See for yourself. resources.greatplacetowork.com/article/pdf/how_trust_affects_the_bottom_line.pdf

Question: The Towers Watson 2011-2012 “Change and Communication ROI Study Report” shows that companies that have highly-effective communications practices are _________ times more likely to outperform their peers financially.

Answer: 1.7 times

And finally, Trust Across America – Trust Around the World continues to track the performance of America’s Most Trustworthy Companies agains the S&P 500 and the findings are nothing less than remarkable.

FACTS1013

 

 

The next time a business executive tells you “trust is soft”, suggest he take the “Test” and maybe (even) buy our new book:

Trust Inc., Strategies for Building Your Company’s Most Valuable Asset.

 

Trust Inc.

Trust Inc.

 

 

 

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Sep
08

 

I don’t eat cookies, except for Mallomars. I love Mallomars. They take me back to my childhood. I ceremoniusly pull off the tops and eat the cookie separately. I wait for Mallomar Week every year and then I indulge in a box (or even two)!

So when I walked into our local chain supermarket earlier today with one of my teenage sons (he also has the Mallomar excitement gene) and we were greeted with an ENORMOUS display of Mallomars, we high-fived each other and added two boxes to the shopping cart (at $1.99 a carton). And then we read the fine print. “Sale is in effect for 4 days from September 11 through September 15 (today is September 8).  And my son said, “That’s deceptive advertising” just as one of the store managers walked past, and he must have heard the comment.

He politely asked if he could help and I explained the issue to him. At first he “pretended” (I’ll tell you why I chose that word in the next paragraph) not to understand until I pointed out that anyone who bought the cookies between now and  September 11 would not do so at the advertised price. And not only did he agree, but he immediately removed the signs; and my son and I felt like we had all won (including the store manager for doing the right thing) and we had all done a good deed for the shoppers who would have mistakenly paid full price before the sale date.

And then we went shopping, discussing how people can, and do act with integrity and will admit their mistakes…until I realized that I had forgotten the tomatoes, which were on display next to the Mallomars, where the signs had been put right back up, as soon as we walked away.

And that, my friends, is today’s story about trust, or lack thereof. And when I finally do buy that box (or two) on Wednesday, I bet they won’t taste quite as good as in the past. The bitter taste of today’s experience may linger for a while.

Shame on all the companies that try to “put one over on their customers.” Remember, without your customers, you have no business.

 

 

 

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Jun
11

 

TAATAW



 

 

 

 

 

ALLIANCE OF TRUSTWORTHY BUSINESS EXPERTS: OUR FIRST FIVE INITIATIVES

 

We are pleased to announce the formation of our Alliance Steering Committee and five initiative task forces. 

 

1. Community Ambassadors: Increasing the Global Dialogue on Organizational Trust

2. Trust Talks™: Delivering Expert Content, Speakers and Panels on the Topic of Organizational Trust

3. The Trust Project™: Constructing a Framework and Master Database for Trust: A General Framework with Customized Components for Specific Organizational Needs

4. Making the Case for Trust: Proving the Correlation Between Trustworthy Behavior & Organizational Leadership Success

5.Generational and Cultural Trust: Exploring Generational and Cultural Trust Synergies and Differences

 

For additional information: Barbara Kimmel, Executive Director, Trust Across America – Trust Around the World

and visit our Alliance to learn more.

 

Email: Barbara@trustacrossamerica.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Jun
03

 

  1. Our name changes to Trust Across America – Trust Around the World, reflecting our global expertise and program reach
  2. Our membership expands to almost 20 countries
  3. Our Alliance members organize into task forces to tackle five early initiatives in our Campaign for Trust
  4. 46,000+ page views in May! Organizational trust is a global concern and a popular subject
  5. Our book, Trust Inc.: Strategies for Building Your Company’s Most Valuable Asset is now available for preorder 
  6. Construction of a master Framework of Organizational Trust (for use in any organization regardless of size) is underway
  7. Trust Talks™ launches: Delivering speakers and panels for worldwide events
  8. Trustworthy businesses continue to outperform their less trustworthy peers bit.ly/111ZtjV
  9. Community Ambassadors to our Alliance are joining us from around the world
  10. A Google search of the term “trustworthy business” returns the first 4 listings to us!

 

Collaboration is a powerful tool, especially in addressing and advancing a global issue like trust!

 

For more information, please contact Barbara Kimmel, Executive Director, Trust Across America – Trust Around the World

Email: mailto:Barbara@trustacrossamerica.com

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May
19

Does Trustworthy Business Result in Stock Market Outperformance?

This week, a well-respected colleague put a challenge before me. He said that Trust Across America (TAA) must continue to correlate stock market performance to trustworthiness in order to gain the attention of public companies. In other words, companies care about little else.

While I humbly think that TAA has gained plenty of attention, I love a challenge! So Mike, this one’s for you!

I decided to look back at our first “Top Ten” Most Trustworthy Public Companies named in early 2010 and calculate the collective market performance of these ten companies vs. the S&P 500.  We begin our calculation on December 10, 2009, the day the companies were selected, and end on May 17, 2013.

This is the list:

Hess (HES)

Albemarle (ALB)

Best Buy (BBY)

Cummins (CMI)

Eastman Chemical (EMN)

Lexmark (LXK)

Lubrizol (acquired by Warren Buffett)

Sonoco Products  (SON)

Texas Instruments (TXN)

USANA (USNA)

 

Setting Lubrizol aside (although the Buffett acquisition could be the subject of a separate blog post) leaves us with 9 companies. Collectively, these companies posted gains of 63.96% vs. 51.27% for the S&P, resulting in outperformance of 24%. For those of you who want to dig a bit deeper, 8 companies increased their share price while one (Best Buy) saw a decrease. Three companies had greater than 100% stock price appreciation over that period.

So Mike, in the short-term you may be more right than wrong. But the world is not that simple. We are seeing a shift in focus away from shareholder value, albeit a slow one. Building trustworthy organizations and increasing stakeholder trust, while flying in the face of the quarterly income statement mentality, may be gaining in popularity.

I will argue that the companies listed above are “on to something” that somehow approximates trustworthy business practices.  On the other hand, maybe Trust Across America just got lucky, as I’m sure some will conclude, when our FACTS® Framework chose these companies back in 2010.  You decide.

Feel free to leave your comments here or email me at barbara@trustacrossamerica.com

 

Our book, Trust Inc:, Strategies for Building Your Company’s Most Valuable Asset is now available for preorder!

 

Trust Inc.

 

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Mar
10

Once upon a time, in the land of gardens, also known as New Jersey, a somewhat small “Jersey Girl” named Barbara (Barb to her good friends) had a rather tall vision to change the world, or at least the conversation.  Barb believed that if she could increase the dialogue around trust, particularly in business, it would spring eternal- similar to Jersey’s blueberries- and the trust crisis would subside.

And so Barb began to knock on the doors of corporate America (and businesses in lands far away) to politely inquire about trustworthy business practices. Oddly, the response was not what she expected to hear. “We are big business. We are trustworthy. We are beating our quarterly earnings and expanding globally. We give to charities. The trust crisis is not out problem. You are just one person named Barb from NJ. Go away with your “soft words.”  Go knock somewhere else.”

And so she did because Barb had changed her middle name from Jane to “Tenacity” right around the same time that she turned 39 for the third year in a row. She knocked and knocked and did not give up until the right people started to listen-and even offered to help. And then she came up with an idea- if one rather small woman from NJ could get some “trust lovin’”, imagine how much 100 men and women, or 1000, or even a million could attract? And so she started a movement- A Campaign for Trust, and she invited everyone who didn’t slam the door to join her-  (except the mainstream media because they are still stuck on bad news)!

And in a few months, eyebrows around the world began to “raise” as did the roster of alliance members, almost 200 from 13 countries and counting. Men and women from academia, consulting, the “alternative” media, and even a few from “big business” (including some CEO’s) signed up to help. They weren’t exactly sure what “signing up” meant, but they trusted Barb enough to know they wanted to be part of this particular movement- because without trust, what else really matters?

Do you want to be part of the problem or part of the solution? Do you want to learn more about what Barb and the band of “trustnicks” are up to?

Read more about our alliance here.

trustacrossamerica.com/cgi-bin/alliance.cgi

 

PS- Barb’s teenage son cautions about trying to be funny about trust. It’s a serious subject. Barb disagrees. She thinks trust can be funny and fun, and serious too! What do you think? Email her at barbara@trustacrossamerica.com

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Mar
03

As the Executive Director of Trust Across America, I often find myself discussing the difference between being legal and being ethical. The legal side of the discussion is pretty easy to explain. If you and/or your organization comply with the law, you are meeting your legal requirement. Being ethical- not so easy to describe. It’s going beyond what’s legal to “doing the right thing” and I’ve learned there is no standard for the “right thing.”

 

In reading today’s headlines, I may have found a perfect case study for legal vs. ethical, right in my own backyard. Talk about not “getting it!” The story has do do with NJ taxpayers paying dozens of school superintendents twice via a paycheck and a pension. It’s called “double-dipping” and it’s perfectly legal. But is it ethical? You can read the full article here.

bit.ly/12m0p3Q

        The interim superintendent of the Mahwah School District has a $167,000 contract on top of her $131,000 annual pension. She is quoted as saying the following: “I think it’s the way the system is set up,” said Lake. “Greater people than me made that decision, I took advantage of it.”
        Congratulations to you. As the Commander in Chief of a school district you are responsible for the “culture of the corporation.” Just remember what you said the next time a student shows up in your office and uses the excuse that “everyone else was doing it,” or when one of your faculty members chooses to use all their days off, leaving a classroom full of kids with no teacher.  After all, it’s the way the system is set up. And the NJ taxpayers- apparently they don’t factor in to your ethical barometer at all. You just “took advantage of it (them).”
        Finally, thanks for providing me with the perfect case study the next time someone asks me to explain the difference between legal and ethical. Ms. Interim Superintendent you are part of the problem, not part of the solution. Is this how you “role model” education? Is this what you want your legacy to be? What’s your next stop on this unethical gravy train?

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Feb
05

 

BARBARA KIMMEL INTERVIEWS DEB MILLS-SCOFIELD

 

Barbara Kimmel: Deb – tell us a bit about your background, qualifications and expertise. If you have written a book, please provide the title.

Deb Mills-Scofield: I was raised to challenge and question the status quo. I went to Brown University and helped create the Cognitive Science concentration and went to Bell Labs after graduation where I received a patent for one of AT&T & Lucent’s largest revenue generating products. I have my own strategy and innovation consulting practice, am a partner in an early stage Venture Capital firm, teach a class on business model innovation at Oberlin College. I love spending time at Brown on the Engineering Advisory Council, as a Visiting Scholar mentoring students in entrepreneurship and social ventures, and guest lecturing. I also blog for Harvard Business Review. I’ve done a few startups that failed and succeeded and love working with young entrepreneurs to keep my business acumen nimble and open-minded.

Barbara Kimmel: Trust Across America’s mission is to rebuild trustworthy business behavior across the globe.  How would you generally define trustworthy business behavior? 

Deb Mills-Scofield: The golden rule is a great start – do unto others as you would have them do unto you, no matter what the situation.  This means keeping commitments and promises, being accountable, acting with integrity, being vulnerable and humble, and understanding that having the right doesn’t make it right.  It means always being able to look your customers and employees in the eye because you know you’ve done the right things.

Barbara Kimmel: In your opinion, what are some of the specific components of trustworthy business behavior?

Deb Mills-Scofield: Treating people (customers, employees, etc.) fairly, which isn’t always equally; taking the 2nd, 3rd etc. order consequences of your business’s operations and offerings into account in decision-making (for customers, employees, communities, environment); focusing on profit and money as outputs (means to an end) which enable outcomes (ends) of purpose and meaning; first truly understanding customers’ needs and circumstances before rushing to a solution.  This starts with the people around you, your personal relationships with peers, bosses, those that work for you and goes on from there.

Barbara Kimmel: We all know that the erosion of corporate trust is a big problem. What are companies doing to combat this, and is it enough?

Deb Mills-Scofield: Companies are trying in various ways.  A common way is compliance – which is obedience of the mind, not heart – to the letter of the law versus the spirit of the law.  I think it has to start with leadership making themselves vulnerable, admitting they are wrong, that they need input and don’t know all the answers but know the direction.  Leader need to trust their people: treat them like adults, reward, recognize, give autonomy and permission to try, fail and learn, let them create their own jobs and self-organize.  And this is done in sincerity and authenticity towards the goal of freeing one’s people to delight customers instead of constantly checking to see if it improves the bottom line (outcome vs. output again).

Barbara Kimmel: Is the global “trust” climate improving or worsening? What actions will turn things around?

Deb Mills-Scofield: At a macro level, I think it is worsening.  Even if it is getting better, there is a time lag before people will trust again.  In my practice, admittedly self-selecting, I see a concerted effort to increase genuine trust and integrity within the organization and with customers and suppliers.  The issue is having the tenacity to stick with while you’re building up credibility and a track record.

Barbara Kimmel: Can you provide a few examples of companies that are doing the “right” thing in your opinion? What steps are being taken by these companies that sets them apart?

Deb Mills-Scofield: There are the famous ones you hear about – Whole Foods, Zappos, etc.  I know several ‘unknowns’ that are remarkable.  One is Menasha Packaging, a 164yr old 6th generation family business over $1B that has to be one of the most incredible teams I’ve ever worked with in terms of compassions, integrity, honesty, transparency resulting in terrific profitability and growth. Their president, Mike Waite’s (who is joining me for the Feb 13th  Trust Across America radio show) primary concern is making sure his people, at all levels, can live their dreams at home.  The leadership lives up to their commitments, gives their people autonomy, allows failure, encourages self-organization and keeps a flat organization with a true open-door policy.  The other company is Thogus, a 21st century manufacturing polymer and 3D printing company.  Matt Hlavin, the president, makes sure he owns the culture – keeping it vibrant, open and transparent about his strengths and weaknesses.  It truly does feel like a family.

Barbara Kimmel: Anything else you would like to add as a closing comment?

Deb Mills-Scofield: I’m a bit concerned that trust will become, if it hasn’t already, a buzzword.  The issue and importance is that it has to come from within the person, from the heart.  It should have only one real motive – it’s about ‘the other’, not about you. It shouldn’t be a way to achieve corporate growth, career advancement etc.  It should be because you genuinely want to be trustworthy and that you want the best for your people, your customers, and your stakeholders.  Anything less is not sustainable.

Barbara Kimmel: Deb, I share your concerns that a new industry of “trust-washing” will emerge, if it hasn’t already.  I appreciate your insights and all you do to foster trustworthy business.

Deb Mills-Scofield can be reached at: dms@mills-scofield.com

Do you have questions or comments? Email Barbara@trustacrossamerica.com

 

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Feb
04

 

INTERVIEW WITH MICHAEL HOPKINS FOUNDER OF MHCi

Barbara Kimmel: Michael – tell us a bit about your background, qualifications and expertise. If you have written a book, please provide the title.

Michael Hopkins: My main aim in life is to promote the issue of corporate social responsibility for peoples, communities, companies, countries, governments and NGOs around the world.  I help to accomplish this as a teacher (University of Geneva Graduate Courses on CSR www.corporateresponsibility.ch and through my company www.csrfi.com); as a researcher through research and advisory services with a strong focus on creating employment strategies through MHC International Ltd.  (MHCi: London, Washington DC & Geneva); and as the author of thirteen books of which the last two: The Planetary Bargain:CSR Matters (Routledge 2003) traces the history of CSR and proposes a framework; and CSR and International Development (Routledge, 2007).

I have also worked on developing and evaluating human resources and labour market issues in over 120 countries around the world, inter alia, Colombia, Brazil, Cote d’Ivoire, Tunisia, Morocco, Egypt, Jordan, Qatar, Dubai, South Africa, Malaysia, China, India, Philippines, Vietnam, Portugal, and Azerbaijan.  I blog with CSRwire and in MHCi’s regular monthly features which are now in their 12th year.  I am currently working, interalia, with my sister-in-law, the just appointed Deputy Prime Minister of Somalia, to promote trust and development in Somalia…it will work just wait and see!

Barbara Kimmel: Trust Across America’s mission is to rebuild trustworthy business behavior across the globe.  How would you generally define trustworthy business behavior? 

Michael Hopkins: Trustworthy business behavior means treating the key stakeholders of a company or institution ethically or in a responsible manner, which I equate with Corporate Social Responsibility (CSR). ‘Ethically or responsible’ means treating key stakeholders in a manner deemed acceptable according to international norms. Social includes economic and environmental responsibility. Stakeholders exist both within a firm and outside.  In fact acting responsibly toward your stakeholders is obviously good for business and so there should not be special tasks.  However, the financial crisis, the fall of Enron, the pyramid scheme of Madoff etc. indicated that companies need to be persuaded either by vigorous NGO activity or by new forms of legislation.

Barbara Kimmel: In your opinion, what are some of the specific components of trustworthy business behavior?

Michael Hopkins: Being British, I am often challenged by our colonial past and am not impressed by many of my forbearer’s ruthlessness and scant regard for indigenous peoples.  Yet curiously, my country is known for fair play and, in business, that a gentleman’s honour is his handshake – note rarely she, maybe not needed? We men can learn.  I am told these days that nothing is now done without a written contract and I have also been often disappointed with the lack of respect of verbal agreements.  Now, more and more, the old joke rings true and that is why does the sun never set on the British Empire?  Because you cant trust ‘em after dark.  I wish this to become less and less true and why I greatly support the notion of trust, and Trust across America with the hope that the movement becomes ‘Trust Across the World’.

Barbara Kimmel: We all know that the erosion of corporate trust is a big problem. What are companies doing to combat this, and is it enough?

Michael Hopkins: Today just about 90% of large corporations produce social or sustainability or CSR or corporate citizenship reports since they are well aware that reputation can be lost in a heartbeat.  Many add that all these reports are simply green or white washing and, of course, there is some truth in that.  However, imagine a company of more than 100,000 people and then note how difficult it is to keep your own close family of, say, 10-15 people to agree to work together for the good of the whole family.  In a large company it is, of course, incredibly difficult to get everyone following best trustworthy practice.  Even if the CEO is trustworthy and swears by social responsibility at events such as Davos, down the chain of command to the operational level all sorts of shortcuts are taken to improve the bottom line.  Then imagine how difficult it is to convince employees that it is not the pursuit of profits at any cost that is good for you and the company but how profits are made.

Barbara Kimmel: Is the global “trust” climate improving or worsening? What actions will turn things around?

Michael Hopkins: I am forever an optimist especially since hard numbers for whether the global climate is improving or worsening are hard to find.  Globescan does an annual report on trends in Sustainability as does Price Waterhouse and both give optimistic figures on progress on such things as climate change, democracy around the world etc.  The one global figure I often use is life expectancy, which is improving right across the world even in dear old USA, which is a laggard in some respects but has shown improvements.  You can’t live long without such hard to measure issues as trust and level of living.  The recent resignation of Hillary Clinton was notable for the review of her work (nothing major accomplished gloat the press) and yet her final remark rings true: “Although we weren’t able to shatter that highest, hardest glass ceiling this time, it’s got about 18 million cracks in it.”  So what actions will turn things around assuming they need to be turned around is simply that – the millions of kindnesses and measures of respect one finds right across the world.

Barbara Kimmel: Can you provide a few examples of companies that are doing the “right” thing in your opinion? What steps are being taken by these companies that sets them apart?

Michael Hopkins: I am asked this a lot and my response is often the same and that is it is simply hard to pronounce since to use a cliché ‘one swallow does not a summer make’.  For instance, the oft-praised Nike has worked hard to achieve decent labor practices across its supply chain.  Yet Nike does not produce anything itself, all is from sub-contracted suppliers.  Thus poor labor practices can surface in remote locations that Nike didn’t even know worked for it.  It has suffered on this count but has vigorously addressed labor issues right across its supply chain.  I am also impressed by the small group at the US Chamber of Commerce who pursue corporate citizenship, albeit imperfectly, but I am glad my former young associate accepted my mentoring and is now documenting with Google and Microsoft the many splendid things that companies are doing to improve development right across the world and yes, I’ll mention her name, Taryn Bird.

Defining what is meant by ‘best’ is also not easy, for instance it may surprise readers but there is no objective way in which to set a ‘living wage’ despite demands for many to do so.  The ILO’s labor policies have recently been augmented by a pressing concern for ‘decent work’- laudable in theory but almost impossible to define.

Barbara Kimmel: Anything else you would like to add as a closing comment?

Michael Hopkins: One can find trust right across the world.  I have been lucky to have lived and worked in over 120 countries.  In any of these countries, 99% of the people are wonderful yet so few give the rest a bad name.  Don’t be fooled!  I look out of the window as I write here in Nairobi and see bustling and extremely friendly activity from smiling, friendly and trustworthy Kenyans.  Yet, before setting foot in the country I am warned against sporadic violence, armed robbery, kidnapping, gang warfare etc.  which of course exists prompted by appallingly bad distribution of income and wealth.  All countries must be extremely careful not to fall into the Orwellian trap of the few having a lot and the many with little or nothing – please watch out America!

Barbara Kimmel: Michael, you have had a truly outstanding career. Thank you for sharing your thoughts with us.

Michael Hopkins can be contacted at: mjdhopkins@mhcinternational.com

Do you have questions or comments? Email Barbara@trustacrossamerica.com

 

 

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Jan
30

 

Barbara Kimmel Interviews Jim Gregory, CEO CoreBrand

Barbara Kimmel: Jim- tell us a bit about your background, qualifications and expertise. If you have written a book, please provide the title.

Jim Gregory: I am the CEO of CoreBrand. My company focuses on building corporate brands and we are pioneers in the measurement of corporate brands. We have a proprietary database know as the Corporate Branding Index® that includes 20 years of consistent research of 1000 companies across 54 industries. This allows us the unique ability to connect the corporate brand to market capitalization. I’ve written four books on the subject, the most recent being The Best of Branding.

Barbara Kimmel: Trust Across America’s mission is to rebuild trustworthy business behavior across the globe.  How would you generally define trustworthy business behavior? 

Jim Gregory: Trust is built through the process of consistently meeting the needs of your key constituencies over time. Each constituency views trust from their own perspective and their own needs. Understanding how trust is built is critical for creating corporate value.

Barbara Kimmel: In your opinion, what are some of the specific components of trustworthy business behavior?

Jim Gregory: There are three elements of trust that can be managed by a corporation.

1) Business Processes must be in alignment with the overall brand strategy.

2) The Culture and Behavior of the company must adhere to the brand guidelines.

3) The Communications, whether planned or unplanned, should consistently reflect the brand over time.

Barbara Kimmel: We all know that the erosion of corporate trust is a big problem. What are companies doing to combat this, and is it enough?

Jim Gregory: We know from our proprietary research and models that trust is directly related to brand power, which is directly connected to market capitalization. Education of management and consistently reinforcing the importance of trust is the best way to rebuild corporate brands.

Barbara Kimmel: Is the global “trust” climate improving or worsening? What actions will turn things around?

Jim Gregory: Trust in corporations has been declining since 2004. CoreBrand’s research of Corporate Brand Equity as a Percentage of Market Capitalization for the average Fortune 1000 company shows a decline from 7.4% in 2004 to 5% in 2012. We believe this decline is leveling off and we are hoping for a rebound in 2013.

Barbara Kimmel: Can you provide a few examples of companies that are doing the “right” thing in your opinion? What steps are being taken by these companies that sets them apart?

Jim Gregory: Google’s brand has been consistently growing for years. Now they are ranked as the number one company to work for, and they have great programs in place to support this ranking — that is consistency.

Barbara Kimmel: Anything else you would like to add as a closing comment?

Jim Gregory: CoreBrand tracks 1000 companies across 54 industries. If your company is one of them we have information to share with you. If it isn’t one of them we will consider adding your company to our research survey. Please let us know more about your corporate brand.  Our data can also be combined with Trust Across America’s FACTS® Report to provide further depth and perspective on the trustworthiness of our company.

Barbara Kimmel: Thank you Jim for your ongoing research on the construction and measurement of trustworthy brands.

Jim Gregory can be reached at jgregory@corebrand.com

and more information about CoreBrand can be found at:

www.corebrand.com

Do you have questions or comments? Email Barbara@trustacrossamerica.com

Barbara Kimmel is the Executive Director of Trust Across America, global leaders in information, standards, data and Who’s Who in trustworthy business. www.trustacrossamerica.com

 

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