Business leaders recognise importance of trust, but don't prioritise it: Deloitte
A new survey conducted by Deloitte's Global Boardroom Program reveals that while business leaders acknowledge the importance of trust in their organisations, they don't always prioritize it in their board governance strategies.
The study, titled "How boards are nurturing and measuring stakeholder trust," found that 94% of respondents considered trust as vital for their organisation's performance, but only 39% considered their organisations as having a high level of trust maturity.
One of the survey's key findings is that ESG (environmental, social, and governance) matters are becoming a major driver of trust, with 61% of respondents viewing ESG as a priority in the next three years.
The survey also showed that while both the CEO and the board are responsible for managing trust in an organisation, boards need to do more to put trust on the agenda. Only 28% of respondents reported that their boards discussed trust twice a year or more, and 10% said they don't discuss trust at all.
Deloitte Global Enterprise Trust Leader, Michael Bondar, states that for businesses, earning and maintaining stakeholder trust is essential for ongoing success, not just in terms of reputation, but also as a major driver of financial performance.
Boardroom Program Leader for Deloitte Southeast Asia, Seah Gek Choo, emphasizes the importance of making trust a business priority by ensuring that an organisation's purpose is fully contextualized and that clear values and specific behaviours are defined to build trust with stakeholders.
The survey polled 177 directors and C-suite executives from 30 countries and highlights the need for businesses to prioritise trust and make it a crucial part of their governance strategies.
Business leaders should work together to operationalise trust, discuss it regularly, and view it as a fundamental aspect of organisational success.