Facebook is not alone in its battle against wavering consumer trust
For a case study demonstrating the relationship between trust and employee satisfaction, consider Campbell Soup. In the late 1990s, the company was suffering from a toxic, unengaged culture and plummeting share prices. Then Douglas Conant joined as CEO in 2001 — and made trust his priority. “Before you have the moral authority to lead your team, you have to inspire trust," he told
."Trust is the one thing that changes everything. In a high-trust culture, it's so much easier to get things done."His approach worked: Nine years later, there were 17 engaged employees for every disengaged employee, according to the Gallup Employee Engagement Index. Among the 350 top leaders at Campbell, the engagement ratio was a stunning 77 to one.
Putting that into further perspective, when Accenture surveyed consumers who had switched companies in the past year, 46% attributed their decision to a loss of trust. “Today’s customers have more choices than ever,” explained the consulting company. “Companies that cannot deliver on brand promise or transparency will lose customer trust and, consequently, business.”
While companies need not be perfect, they must prioritize trust over profits — even when it is difficult. Take the case of Tylenol: In 1982,. Jim Burke, the CEO of parent company Johnson & Johnson, quickly recalled 31 million bottles and began an aggressive marketing campaign. Although the recall and relaunch cost more than $100 million, it mitigated damage to the company’s most important long-term asset: the public’s trust.
Further research underscores Lyman’s findings. A Cornell University study of 6,500 Holiday Inn employees discovered that, when measuring the level of trust employees had in their managers, a one-eighth point improvement on a five-point scale correlated with a 2.5% rise in revenues — equating to more than $250,000 per year, per hotel.
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