Trust is the cornerstone of any successful organization. But in the digital era it is also increasingly hard to define and manage. Skepticism is the norm and concepts like transparency and privacy are almost always reported negatively. Breaches. Scandals. Fraud.
With public perception overwhelmingly sitting at one end of the spectrum, how do modern companies build and maintain trust with customers and employees? At the core of this question is the impact of transparency, ethics, and maintaining strict values.
What do businesses need to do (and avoid doing) in order to keep their people happy? Can a lack of trust shatter the customer and employee relationship? Let’s explore this further.
People are desperate for transparency
Trust in businesses is perceived to be at an all-time low. Modern worries about data security and greenwashing are piled on TO longstanding concerns like discrimination and politics.
Transparency isn’t about hiding fewer things; it’s about acting with integrity and being honest about what you’re doing. In other words, having nothing to hide.
For an eCommerce brand, this could mean talking openly to customers about where their products are made, how they’re shipped, and their real environmental impact. With respect to employees, transparency could be about the direction the company is taking or its progress on existing issues.
A lack of transparency is increasingly collated with ‘having something to hide’. Whether that’s right or wrong, it’s the reality companies have to deal with today.
What is the role of ethics in business?
Ethics is the moral compass that guides every action within an organization. It’s about doing the right thing, even when no one is watching. Ethical behavior goes beyond compliance with laws; it’s about recognizing and taking responsibility for actions that affect customers, employees, and the community.
It’s a pillar of trust-building, both internally (with employees or shareholders) and externally (with customers, fans, or partners).
Ethics is the moral compass that guides every action within an organization. Click To TweetEthical business in action
Patagonia openly shares its supply chain practices, ensuring that products are made under safe, fair, legal, and humane working conditions. They invest (and reinvest) heavily in their people and processes and are radically transparent about what they do.
Salesforce, the global software giant, is another example. They have a firm status as one of the world’s most ethical brands. According to their Executive Vice President, “At Salesforce, we believe the business of business is improving the state of the world. Executing that philosophy means we put action behind our words and dedicate ourselves to maintaining the highest ethical standards in everything we do.”
Lots of businesses are talking the talk (Hello, Employee Value Propositions!). But the winners are walking it, too.
Transparency in customer and employee relations
Transparency is a mode of operation, not a one-time action.
Companies like Buffer have taken this to heart by openly sharing their pricing models, business strategies, and even employee salaries. This level of transparency has not only won them loyal customers but also set them apart as industry leaders.
Customers need to know, like, and trust you in order to buy from you and remain loyal. Acting with transparency does wonders for that trust.
Similar rules apply for employees. They have more opportunities than ever and fewer compunctions about fleeing a sinking ship. Don’t fob people off by saying, “We’re working on the maternity leave policy” but admit “We’re 3 weeks behind schedule, but we’re presenting our case on July 31st to…”
You get the idea. If you have shortcomings, own up to them. Employees would rather hear honest bad news than vagaries or worse, lies.
Trust comes from everyone pulling in the same direction
Here are 7 ways to run a thriving ethical business without spending a dime on expensive trainings or workshops:
- Honesty—Be truthful whatever you’re doing
- Integrity—Stand by your convictions
- Transparency—Be open and clear about your actions
- Fairness—Treat people equally
- Respect—Value everyone’s opinion
- Responsibility—Take ownership of your actions
- Compassion—Show empathy towards others
This isn’t just the CEO’s job either. This is a cultural shift that needs to be integrated across the entire company. Traits on this list should feature heavily on any job description.
Conclusion
In a world where trust is hard to come by, transparency and ethics are more than just buzzwords; they’re imperatives. They’re the building blocks of trust, shaping how customers and employees perceive entire organizations. Whether you’re a startup or a Fortune 500 company, the principles remain the same: Be transparent, act ethically, and trust will follow.
Does your company inspire trust amongst it’s employees and customers? Reach out to them to understand where you stand, and ask them what they’d like to know. It’s only once you start the conversation that you can put action behind your words and show both, your employees and customers, that you are willing to work to earn their trust.
Sogolytics can help you get the conversation started. Let’s get on a quick call, and we’d love to show you just how our platform can add value to your business.
