Trust Across America-Trust Around the World™

Companies Ignoring the Social Fallout of Bad Customer Service

Will Find Themselves at a Competitive Disadvantage

I didn’t set out to write 3 blog posts in 24 hours, but what’s that expression about “striking while the iron is hot,” especially when the subject is trust?

This afternoon one of my sons and I headed out to run a few errands. First stop was Verizon Wireless to inquire about my data plan. There was no wait and customer service was fast and knowledgeable. Kudos to Verizon. Maybe Wednesday afternoons are the best time to visit!

Next we headed over to the home improvement store. Think The Home Depot or Lowe’s and my luck abruptly ran out. First stop was the door and window department. I needed to order a few window screens and brought the old ones with me to ensure the right purchase. Upon completion of the $70.00 order I politely asked the employee to discard the old screens. And then I heard one of my favorite lines, “Sorry our policy doesn’t permit it.”  The employee turned his back and walked away.

We proceeded to finish shopping.  I carried the screens (one was 6 feet long) while my son flat bedded 8 bags of mulch, and then off to checkout where I asked the checker whether there was a suggestion box in the store. “Suggestions? They must be made online and instructions are to be found on the back of the receipt.” She never asked if she could help me, and apparently had no interest in hearing my story, but I told her anyway.  Her response, “Customers always try to hand off all sorts of trash to store employees.” According to the checker, if the store took the garbage that all the (evil) customers brought in the door, they would have to raise their prices. She then completed the transaction, handed me the paperwork for the screens I had ordered, along with a separate sales receipt and commented that she would be happy to attach them, but the store did not provide staplers at checkout… something about a policy. As we were leaving the store, my son asked me why I had even bothered to engage the checker in a conversation.

Moral of the story… I have no loyalty to this store. My experience today was pretty typical. Next time, I’ll just shop at their competitor a few miles up the road. And all because store #1 would not discard my screens, which might  have been the right thing to do, policy aside. And finally, just a few years ago, a consumer facing a customer service issue had only a few avenues of recourse-  a letter, a phone call or a glass of wine. Now the customer has an additional opportunity  to report their story on social media, “outing” the offender should they choose to do so.

Companies recognizing that good customer service is an important component of a trustworthy organization build a competitive advantage called loyalty. They bank trust with their customers. They don’t have an intern standing by on Twitter to send a stock “I’m sorry” response when something goes wrong. They don’t need to do that. They have happy loyal customers and they have staplers.

Those interested in reading more about the history of customer service at both The Home Depot and Lowe’s, might want to read this great article from Babson.

www.babson.edu/executive-education/thought-leadership/retailing/Documents/improving-customer-experience-at-home-depot.pdf

Please share your comments and suggestions! Email: barbara@trustacrossamerica.com

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

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Leaders Often Overlook the Obvious

Remember, What You Give is Often What You Get 

The following comments are sure to reduce the level of trust among your team.

How often have you heard these?

• Who works for whom?
• Because I said so.
• Fudge it if you don’t know.
• Who do you think you are?
• Not now.
• So what? Who cares?
• Don’t make a mistake.
• Who do you think you’re talking to?
• My door is closed for a reason.
• Because I make the rules.

What would you add to this list of things trustworthy leaders should never say?

Please share your comments and suggestions! Email: barbara@trustacrossamerica.com

Barbara Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series.

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Which sounds better? High stress, meaningless relationships, frequent job loss and suspicion OR well-being, great friendships and frequent promotions?

We’ve all heard the expression “Happy Wife, Happy Life” but how about “High Trust, It’s a Must” or “Low Trust Go Bust!.” I contend that being trustworthy will not only make you happy, but wealthier in many ways than you are today.

What do we mean by being trustworthy? Let’s use this very simple definition.

Act with integrity and always keep your word.

First, let’s talk about the inherent risks of being untrustworthy: 

It takes more time and  psychological energy than it’s trustworthy counterpart and results in:

• High stress
• Low energy
• Frequent job loss
• Meaningless relationships
• Low levels of creativity
• High levels of suspicion among friends, family and coworkers
• High barriers to communication due to lack of honesty and broken promises
• Poor and slow decision making
• High transaction costs
• Win/lose situations

On the flip side, here are ten great reasons to be trustworthy:

• Psychological well-being
• Meaningful friendships and business relationships
• Faster, more efficient decision making
• Greater personal effectiveness in groups
• Greater support for your decisions
• Career promotions
• Win/win opportunities
• Role modeling trustworthy behavior
• More time for creativity and relaxation
• More money in your pocket (people want to do business with those they trust)

Be trustworthy. The benefits are far greater than the alternative. What do you think? Leave a comment.

Barbara Kimmel is the Executive Director of Trust Across America-Trust Around the World and the “Tribal Chief” of the growing Alliance of Trustworthy Business Experts. She is also the editor of the award-winning crowd sourced book series TRUST INC. In 2012, Barbara was named “One of 25 Women Who Are Changing the World.”

How can organizations expect to be trusted without the buy-in of senior leadership? Trust is not a soft skill. It’s the hard currency behind the most profitable institutions.

TRUST INC.:  A Guide for Boards & C-Suites, edited by Barbara Brooks Kimmel, Executive Director of Trust Across America – Trust Around the World, is the second book in the award-winning TRUST INC. series. It convenes over 60 experts from around the world including CEOs, academics, consultants, military leaders, and many others to share 100 strategies on building organizational trust at the Board & C-Suite levels.

Trust is not merely a soft skill or a social nicety.  Research shows that trust is as important to successful and sustainable organizations as customer service or teamwork.  One study by Watson Wyatt found that the rate of return to shareholders was almost three times higher at companies with high levels of trust than at those with low levels.

TRUST INC.: A Guide for Boards & C-Suites is organized into seven sections addressing various challenges of boards and executive leadership:

• Trust and Corporate Culture
• Trust and the Role of the Board
• The CEO Who Leads with Trust
• Trustworthy Communications
• Trust and Engagement
• Trust Builders and Best Practices
• Trust Busters and Risk

A major theme running through the book is that trust is the bedrock of great leadership, with significant implications for how the organization interacts with its stakeholders — customers, employees, vendors, shareholders, and the community.

“Any Board members or C-Suite executives who don’t evidence an unmistakable sensitivity to this societal drumbeat, do so at their own peril” writes Doug Conant, former CEO of Campbell Soup Company and currently CEO of ConantLeadership, in his contribution.  “Help build a better world.  Earn the trust and respect of all stakeholders…”on the other hand, there is no other hand.”

While each contributor has written in his or her own voice and style, they all arrive at the same conclusion — trust works. Regardless of whether the reader is the owner or Board Member of a small startup or the CEO of a Fortune 500 company, TRUST INC. provides lessons on how to reap the rewards of “trust at the top.”

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About the Editor

Barbara Brooks Kimmel is Co-founder and Executive Director of Trust Across America –Trust Around the World and editor of the 2014 Nautilus and Eric Hoffer award-winning book Trust Inc. Strategies for Building Your Company’s Most Valuable Asset. In 2012 Barbara was named one of “25 Women who are Changing the World” by Good Business International. A former consultant to McKinsey & Company, Barbara has owned the award-winning communications firm, Next Decade, Inc. for over 20 years. She majored in International Affairs at Lafayette College and has an MBA from Baruch at the City University of New York.

Trust Across America’s mission is helping organizations build trust.  For more information visit www.trustacrossamerica.com

Click here for ordering information.

June is “Talk” Month 

according to Trust Across America’s

2014 Calendar

Your stakeholders need to know what steps you are taking to build a trustworthy organization. Quarterly numbers are no longer the “be all and end all.” In fact, evidence is mounting that a trustworthy culture and profitability go hand in hand.

During the  52 weeks of 2014 you can build trust in your organization by thinking about, discussing and following the advice of the experts. Below are weekly reflections on trust for the 5 weeks in June 2014.

Week 1:  It’s going to take a substantial collaborative effort to bring trust back to the heart of how we live and work. Barbara Brooks Kimmel, Trust Across America – Trust Around the World @BarbaraKimmel

Week 2: There’s nothing more destructive to trust than deceit, and nothing more constructive than candor, Jim Kouzes & Barry Posner, The Leadership Challenge @KouzesPosner

Week 3: Doctor-patient relationships that don’t foster trust don’t work because the doctor or the patient has not sought a way to share or relinquish control. Shirie Leng, MD

Week 4: When people trust an organization, they are more likely to exhibit supportive behavior. Linda Locke @Reputationista

Week 5: Corporate trust and reputation matter, and they are the most valuable asset of every enterprise. Michael Lowenstein, Ph.D., CMC, Beyond Philosophy @Lowen42

Please share your comments and suggestions! Email: barbara@trustacrossamerica.com

Barbara Brooks Kimmel, Executive Director, Trust Across America – Trust Around the World

Editor  Trust Inc. Strategies for Building Your Company’s Most Valuable Asset (a 2014 Nautilus & Eric Hoffer Book Award winner)

What stops companies from building a culture of authentic long-term trust? As transparency increases, so does the ability of every citizen to look behind the curtain, with the click of a Google search.

I’m not trying to win a popularity contest with this blog post, at least not with corporate America. But hey, ask most C-Suite folks about trust issues in their organization and they won’t hesitate to emphatically tell you they have not a single one.

Last week I attended an event featuring two guest speakers (also sponsors) from large global companies in different industries. At the end of their respective speeches everyone in the audience applauded loudly except for me, and one other attendee. The other attendee “gets” trust like very few others. Based on their professional credentials, it’s understandable. Think nurse or military leader.

What made these speeches so excruciatingly painful?

First the canned, compliance-approved content, and second, the cult-like focus on the corporate responsibility programs of both organizations. While Trust Across America’s FACTS® Framework shows us that no company is perfect, both of the sponsor firms have recently paid massive fines for, let’s (politely) say, ethics violations. Not the first fine for either, and probably not the last, and just a mere “blip” on the quarterly earnings radar. So whom are they kidding? Judging from the applause, the vast majority of the audience.

As transparency increases, so does the ability of every citizen to look behind the curtain, with the click of a Google search.  All it takes is a few minutes and a curious mind. Corporate responsibility is an important component of a trustworthy organization but it’s only one component. I’m not suggesting that companies air their dirty laundry in public. What I am suggesting is that they stop using the corporate responsibility officer as a public relations pawn.  It may work now, but it is a short-term, unsustainable strategy.  When the next ethics “oops” occurs, it may be the one that brings down the house, and nobody is going to care about the organization’s philanthropic efforts.

What if the C-Suite were to lead with a culture of trust by creating a long-term trust-building strategy and sent their CR officer into the field to talk about that instead? What if they discussed the company’s values statement or corporate credo, and how it meets the needs of all their stakeholders?  What’s stopping companies from building their culture around authentic long-term trust? Is it the legal department?

And finally, the cherry on the weekly “trust cake” is contained in this article in which the author suggests that telling the truth undermines trust.

Next week is the start of spring. It’s also my birthday. Maybe the cake will be a bit less stale. Maybe the most popular flavor will change from artificial vanilla-coating to trust.

For more information on building trust in your organization you can read our new book, Trust Inc., Strategies for Building Your Company’s Most Valuable Asset.

Trust Inc.

Are your actions ethical? What impact are they having on others? Is unethical behavior just “business as usual?”

I recently followed a LinkedIn group thread containing the following discussion topic: In the personal life of an ethics professional, do the same standards apply as in their professional life? A debate ensued, with many taking the position that “it was just a job” no different than any other profession. In other words, “all bets were off” outside the office. As disappointing as this might seem, it was not particularly surprising.  I see similar attitudes and behavior among trust professionals. Maybe we all need an occasional reminder of what makes for ethical and trustworthy behavior, both in and outside the office. Here are a few thoughts taken from real-life examples:

1. Lose your “me first” attitude.
2. Stop belittling others.
3. Don’t claim honors and awards that you did not earn.
4. Don’t make “side deals.”
5. Do your own “dirty work.” Don’t send a soldier to do it for you.
6. Don’t help yourself to the copyrighted content of others without asking.
7. Leave your ego at the door. You may not be the smartest person in the room.
8. Tell the truth.
9. Keep your word.
10. If you are not sure your actions will be viewed as ethical or trustworthy, ask before proceeding.

I believe we all have a personal and professional obligation to hold ourselves to high standards, to be role models and to exhibit integrity and character. We have an obligation to walk our talk. We have an obligation to lead with trust. Stop and consider whether your actions are ethical and the impact they will have on others.  A lack of trust and ethics should not be viewed as “business as usual.” It’s just bad business.

For more information about organizational trust, please visit our website at www.trustacrossamerica.com You may also be interested in our new book, Trust Inc.: Strategies for Building Your Company’s Most Valuable Asset

Trust Inc.

What are some additional trust busters that you would like to see added to this list? Feel free to leave a comment!

Barbara Brooks Kimmel, Executive Director, Trust Across America-Trust Around the World

Building organizational trust requires leadership “buy-in.” The payoff includes a happier and more stable work force; faster decision making and innovation; and long-term sustainability and profitability.

This list compiles some of the myths surrounding organizational trust and leadership.

1. Trust is “soft” and does not increase profitability.
2. If an organization complies with the law, it is trustworthy.
3. Leaders need not have integrity in their personal life as long as they act the part at work.
4. Writing a corporate values statement or having a credo is a waste of time and resources.
5. Building trust into the corporate DNA will not result in faster crisis recovery.
6. Short-term profitability trumps long-term trustworthiness.
7. It’s not leader’s job to ensure that trust-building is an organizational priority.
8. Shareholders are more important than other stakeholders.
9. Corporate responsibility need not extend beyond philanthropy.
10. It’s okay to tell an occasional lie.

What myths would you add to this list? Leave a comment.

These myths and other are discussed in our new book, Trust Inc. Strategies for Building Your Company’s Most Valuable Asset.

Trust Inc.

Why does corporate America continue to turn a deaf ear when profitability need not be sacrificed in the name of trust?

The daily headlines are packed with stories about ongoing distrust in business, and rarely do we see indications that the tide is shifting.   Perhaps it’s because business leaders continue to question the relationship between trust and profitability. We’ve aggregated recent data in this article, thereby making The Case for Trust more difficult to ignore.

The Hard Costs of Low Trust

• Gallup’s research (2011) places 71% percent of U.S. workers as either not engaged or actively disengaged.
• The price tag of disengagement (Gallup) is $350 billion a year. That roughly approximates the annual combined revenue of Apple, General Motors and General Electric.
• The Washington Post reported that “the federal government imposed an estimated $216 billion in regulatory costs on the economy (in 2012), nearly double its previous record.”
• The cost of the tort litigation system alone in the United States is over $250 billion. – or 2% of GDP (Forbes, January 2012)

• The six biggest U.S. banks, led by JP Morgan Chase & Co. and Bank of America Corp. have piled up $103 billion in legal costs since the financial crisis (Bloomberg, August 2013)

• According to The Economist Intelligence Unit (2010), 84% of senior leaders say disengaged employees are considered one of the biggest threats facing their business. However, only 12% of them reported doing anything about this problem.

• According to Edelman globally, 50% of consumers trust businesses, but just 18% trust business leadership.

• And finally, in the United States, the statistics are similar, but the story is a bit worse for leadership. While 50% of U.S. consumers trust businesses, just 15% trust business leadership.

This trust gap negatively impacts a company’s revenue, market share, brand reputation, employee engagement and turnover, stock price, and bottom line profitability.

The Low Cost of Hard Trust

Building a trustworthy business will improve a company’s profitability and organizational sustainability.

A growing body of evidence shows increasing correlation between trustworthiness and superior financial performance. Over the past decade, a series of qualitative and quantitative studies have built a strong case for senior business leaders to place building trust among stakeholders high on their priority list. While none of these studies are perfect, over the next decade their results will be increasingly difficult to ignore.

In a Harvard Business School working paper from July 2013 called The Impact of Corporate Sustainability on Organizational Processes and Performance, Robert G. Eccles, Ioannis Ioannou, and George Serafeim provide evidence that High Sustainability companies (those integrating both environmental and social issues) significantly outperform their counterparts over the long-term, both in terms of stock market as well as accounting performance.

According to Fortune’s  “100 Best Companies to Work For”, based on Great Place to Work Employee Surveys, best companies experience as much as 50% less turnover and Great Workplaces perform more than 2X better than the general market (Source: Russell Investment Group)

Forbes and GMI Ratings have produced the “Most Trustworthy Companies” list for the past six years. They examine over 8,000 firms traded on U.S. stock exchanges using forensic accounting measures. The conclusions they draw are:

• “… the cost of capital of the most trustworthy companies is lower …”
• “… outperform their peers over the long run …”
• “… their risk of negative events is minimized …”

FACTS®. After years of reviewing such studies and vetting independent data providers, Trust Across America – Trust Around the World (TAA-TAW) has been blending five indicators of trustworthy business in its unique FACTS® Framework: Financial Stability, Accounting Integrity, Corporate Governance, Transparency, and Sustainability

The FACTS monthly (rebalanced) portfolio of 25 trustworthy companies significantly outperformed the S&P 500 index (64.3% vs. 30.9% from August 2012 through November 2013).

Numerous indirect indicators of trust also show a direct correlation to superior financial performance.

From Deutsche Bank:

• 100% concurrence on Lower Cost of Capital
  (“… academic studies agree that companies with high ratings for CSR (corporate social responsibility) and ESG (environment, social responsibility, governance) factors have a lower cost of capital in terms of debt (loans and bonds) and equity.”)
• 89% concurrence on Superior Market Performance
  (“,,,studies indicate companies with high ratings for ESG factors outperform market-based indices”)
• 85% concurrence on Greater Performance on Accounting –Based Standards
  (“… studies reveal these types of company’s consistently outperform their rivals on accounting-based criteria.”)

From Global Alliance for Banking on Values, which compared values-based and sustainable banks to their big-bank rivals and found:

• 7% higher Return on Equity for values-based banks
  (7.1% ROE compared to 6.6% for big banks).
•  51% higher Return On Assets for sustainable banks
  (.50% average ROA for sustainable banks compared to big bank earning 0.33%)

These studies are bolstered by analyses from dozens of other respected sources including the American Association of Individual Investors, the Dutch University of Maastricht, Erasmus University, and Harvard Business Review.

Business leaders may choose to continue to challenge the business case for trust but the evidence is mounting. There is not only a business case but also a financial case for trust.  Trust works.

Barbara Brooks Kimmel is Cofounder and Executive Director of Trust Across America –Trust Around the World and editor of Trust Inc. Strategies for Building Your Company’s Most Valuable Asset. In 2012 Barbara was named one of “25 Women who are Changing the World” by Good Business International. For more information, please contact: mailto:Barbara@trustacrossamerica.com

Copyright © 2014 Next Decade, Inc.

Would you like to help us build our Case for Trust? Enter our Case for Trust Challenge!

How does one say “Thank you” to friends and colleagues who have helped foster trustworthy relationships?

We hope you enjoy our 2014 Weekly Reflections on Organizational Trust, another collaborative effort of the contributors to our new book  Trust Inc., our Alliance of Trustworthy Business Experts, and friends of Trust Across America – Trust Around the World. (Listed alphabetically)

If you are receiving this gift, we know that trust is important to you, and we hope you will share it with your audience.

Thank you to all who have assisted Trust Across America – Trust Around the World in building organizational trust.

May we continue to make progress in 2014.

With much gratitude and trust!

Barbara Brooks Kimmel

PS- This poster prints 11×14.

 2014TrustPoster