The Responsible Business series is a program on key responsible business topics to further education, discussion and debate. Closing the trust gap was the first in this series and looked at what business needs to do to improve and drive trust with stakeholders and consumers.

1. RESPONSIBLE BUSINESS
SERIES
CLOSING THE
TRUST GAP
JILL RISELEY
26 OCTOBER 2018

2. A QUICK OVERVIEW:
What’s TRUST?
Noun: firm belief in
the reliability, truth,
or ability of
someone or
something.
1. Why trust is the new essential asset for
business
2. Trust trends – globally and locally
3. The impacts of trust decline
4. Quick overview of ways of measuring trust
5. 5 things to drive trust in business
Followed by:
A discussion with Mirvac about its trust
journey with Sarah Clarke.
Trust is based on competence, benevolence,
integrity, transparency, reliability and identification.

3. TRUST – THE ESSENTIAL
BUSINESS ASSET

4. TRUST AS AN ASSET: INTANGIBLE ASSETS NOW
MAKE UP >80% OF AVERAGE COMPANY VALUE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1975 1985 1995 2005 2009
Intangibles
Physical and financial
Components of S&P 500 market value
Source: Ocean Tomo (2010), “Intangible Asset market Value Study” used courtesy of Dowse CSP.

5. WHY TRUST MATTERS FOR BUSINESS
• Research shows Australians are traditionally
among the world's most ethically active.
• Global RepTrak™ studies found 60% of
consumers willingness to buy, recommend,
invest in, or work for is driven by perceptions of
the company and only 40% driven by the
perceptions of the products and services.
Who you are is more important than what you
sell.
• Australians expect companies to go beyond
just economic performance. The gap is
widening between what consumers expect
companies to do in CSR and company
performance (or perceived performance)
(Globescan).
A 2015 study by the World Economic Forum
found five general benefits through trust
creation:
• Better business terms, processes and
conditions
• Enhanced innovation and entrepreneurship,
which contributes to competiveness
• More loyal, productive and engaged
employee relationships
• Stronger external relationships up and down
the value chain
• Greater resilience to withstand shocks and
crises more effectively.
Trust contributes to the bottom line.

6. 2016
72

7. TRUST TRENDS

10. In 2018, gap
in Australia is
still 15 points.

11. 2016 Edelman Australia

13. 2017

14. 2017

18. AUSTRALIA: DECLINE IN TRUST IN ALL INSTITUTIONS:
Australians continue to lose trust in business (and other institutions).
2018 Trust Barometer (33,000 respondents across 28 countries)
found:
• Only 45% of people trust businesses.
• 6 in 10 people believe CEOs should take the lead on change
ahead of government, more need to stop hiding and stand up
for societal causes.
• 49% of people think companies only think about themselves.
• 66% of people think CEOs are driven by greed.
• 56% of people said they have no respect for CEOs who remain
silent on important issues.

23. IMPACTS OF THE TRUST
GAP

24. A watching brief in a changing world…

25. A LACK OF TRUST DIRECTLY IMPACTS ON YOUR
RELATIONSHIPS WITH STAKEHOLDERS….

26. WAYS TO
MEASURE TRUST

27. WAYS TO MEASURE TRUST: RESEARCHES AND ACADEMICS BELIEVE TRUST IS
BASED ON:
Competence – Do stakeholders believe you will deliver quality products
and services?
Reliability – Do stakeholders believe you will consistently do as you say?
Integrity – Do stakeholders believe you will do ‘the right thing’?
Transparency – Do stakeholders believe you are open and accountable?
Benevolence – Do stakeholders believe you care and have their interests
at heart?
Identification - Have stakeholders heard of you before?

28. WAYS TO MEASURE:
Trust questions can be built into existing research and engagement ie: materiality
assessments – or summarized:
• Do stakeholders believe you listen to them?
• Do stakeholders want to collaborate with you?
• Do stakeholders believe you will deliver on what you say you’ll do?
OR USE EXTERNAL FIRMS:
• Edelman Trust Barometer
• External firms can measure stakeholder trust levels: Roy Morgan, Gallup, Nielsen or
Anderson Analytics
• Institute for Public Relations (US): https://instituteforpr.org/guidelines-for-measuring-trust-
in-organizations-2/

29. 5 WAYS TO BUILD TRUST

30. In Australia,
there is
significant
opportunity
to increase
trust through
meeting the
expectations
on key
drivers.
2016 Australian Results:

31. #1: BE A RESPONSIBLE BUSINESS!
Starting with your own house (top 5 selected by respondents in 2017
Edelman):
• Pay tax – don’t move profits offshore to avoid tax.
• Don’t pay executives hundreds times more than workers
• Move jobs offshore to cheaper labour markets.
• Pay bribes (it’s illegal anyway!)
• Overcharge for products that people need to live.

32. #2: BE A SUSTAINABLE AND SOCIALLY RESPONSIBLE BUSINESS
How do you articulate clearly and consistently to stakeholders:
• What is the purpose of your business besides profit?
• How your company contributes to society?
• Take a stance on social issues – business is expected to act.
• Support local communities.
• Protect and improve the environment.
77% of Australians felt “A company can take specific actions that both increase profits
and improve the economic and social conditions in the community where it
operates.”

33. # 3 – USE YOUR CEO TO COMMUNICATE THE SOUL OF THE BUSINESS.
• 80% of Australians believe that CEOs should be personally visible in
discussing societal issues.
• 65% of Australians expect CEOs to take the lead on change rather
than waiting for government.
• Unscripted and authentic drives trust more than prepared and
rehearsed.
The gap is widening between public expectations and CEO perceived
performance.
And your CEO probably knows already! According to PWC - 63% of
Australian CEOs rate trust as a major business issue. (2017)

34. #4 USE EMPLOYEES AND EXPERTS TO TELL YOUR STORY
• Use your employees to tell the company story - 74% of Australian
employees trust their employer (large jump in 2018).
• Experts are trusted – the media is not.
• NGOs are trusted advocates for your company.
• Engage with your stakeholders directly.

36. #5 MAKE HAY WHILE THE SUN SHINES!
“Trust takes years to build, seconds to break, and forever to repair.”
Build trust when stakeholders believe you are authentic and not facing a
crisis.
“Never trust the advice of a man in difficulties.” – Aesop

37. QUESTIONS?

38. TALKING WITH MIRVAC
ABOUT THE TRUST
JOURNEY

39. Jill Riseley – International Associate
E: Jill.Riseley@corporate-citizenship.com
T: +61 (0) 419 374 235
W: www.corporate-citizenship.com
Twitter: @CCitizenship
LinkedIn: https://www.linkedin.com/company/corporate-citizenship
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