g their personal and business brand leadership. As the 2023 Edelman Trust Barometer Global Report states, trust has become a ‘must have’ in complex organisations and societies. Now is the time for leaders to rise above the distrustful climate and show society what true leadership looks like.  This piece will dive into how trust is essential for leadership that moves business forward, and how leaders can intentionally build trust with their teams and customers to better their own personal and business brand leadership. Leadership trust: essential for success To understand why trust in leadership is essential for business success, it is first important to understand what trust is and why it is important. Trust is defined by the Edelman Trust Barometer as the “ability of individuals, companies, and institutions to build relationships of confidence and collaboration with others”. In other words, trust is about creating strong relationships with customers, partners, employees and other stakeholders. Trust builds loyalty and confidence, leads to better communication, and improves overall performance and operations. Trust is especially important for business leaders. A generous supply of trustworthiness fuels the ability of leaders to energise alliances, build coalitions and radically innovate. In other words, trusted leaders are more likely to engage and inspire others and come up with creative solutions that can help businesses thrive and grow. In the modern world, trust is no longer something that businesses simply have or do not have, but something that must be actively cultivated and maintained. Trust is, therefore, the ultimate renewable resource and must be nurtured, protected and cultivated like any other asset. Why trust in leadership declines Interest in the topic of trust in leadership has surged in the past decade, as widespread distrust in leadership has cast doubts upon many organisations all around the world. To study this complex issue, we must look into the various factors causing a crisis of faith in the corporate sector. These causes can be broken down into three main groups: the failure to evaluate the CEO and other senior leadership; a disconnection from external stakeholders; and a lack of trust in internal processes.  At the heart of declining trust in leadership is the lack of proper evaluation of the CEO and other executives who set the business’ strategic direction. Evaluating top executives is necessary not only to ensure that organisations are run properly but also to ensure trust in the leadership from outside stakeholders. Exploring the causes of declining trust in leadership is essential to understanding the state of corporate trust today, and whether or not it is beneficial for the success of businesses. CEOs, CFOs and other corporate leaders, including the board, are looked to as symbols of integrity and can set an example of ethical decision-making. However, recent scandals, including cases of executives engaging in corporate fraud and other unethical behaviours, have caused leaders to come into question. As trust is eroded in leadership, uncertainty arises and companies can become burdened with mistrust from stakeholders, attracting negative media attention and potentially causing backlash from investors or customers. Exploring why trust has been waning in leadership is the first step in creating a culture of trust and open dialogue that can turn mistrust into opportunity. Leadership trust and business performance Leadership trust is undeniably important for any business to thrive. It is this trust between leadership and their employees that sets the tone for employee engagement and performance. The level of trust that employees feel toward their top leaders and managers can have a significant impact on how motivated and willing workers are to contribute their ideas and make their full effort to accomplish the organisation’s goals. Without trust between leadership and employees, any organisation will struggle when it comes to employee morale, productivity, and commitment. People need to know that their leaders trust their capabilities and have faith in their decisions. They must have the confidence that their input matters and is taken seriously. When these elements are lacking, employees can become disengaged, demoralised and unmotivated, creating an environment of low performance. In addition to this, without strong connections between departments, projects and ideas, businesses will be unable to unify their teams toward one common goal. Digital technology and shaping trust In recent years, digital technology has caused a dramatic shift in the way we interact and do business. Pre-social media, companies were largely able to manage the reputations they let out into the public sphere, but digitisation means that anyone, from anywhere can comment on a brand.  Digital technology has allowed organisations to establish trust in ways that were not previously possible. Companies are now able to leverage the reach of fresh content to make sure that from the second something is posted, their message is heard by customers or stakeholders around the world. Furthermore, digital technology has allowed companies to stay connected with customers and stakeholders in real time, responding to their needs quickly and accordingly. Real customer service is one of the most important trust makers in the corporate world, and digital technology allows companies to extend their reach, monitor customer experiences, and ensure that conversations are held at an appropriate level. Having a strong digital presence is a key component of a company’s trustworthiness. Social media tends to give customers and stakeholders a glimpse of a company’s core values and brand message. Blogs, press releases and other content show that the company is committed to creating meaningful and ongoing engagement, and even if their direct contribution to trust is small, it can be beneficial in that it keeps a brand at the forefront of customers’ minds. Digital technology can also be used to allow customers to review a product or service, enabling companies to prove that their services are of quality. Furthermore, surveys and polls can be used to leverage customers’ input in the decision-making process, creating an increased sense of transparency and trust. Digital technology offers companies a flexible and effective way to build trust with customers, stakeholders, and internal teams. While the implications of the role of digital technology in creating trust can seem daunting, it is paramount for any company looking to stay ahead of the competition and ensure a good return on investment. Trust and employee engagement Research has established a strong link between trust and employee engagement. When employees feel they can trust their supervisors, they are more likely to be engaged and passionate about their work. This leads to improved commitment and productivity of the employees, resulting in improved customer service, reduced staff turnover, and more effective teamwork.  Trust promotes collaboration and open dialogue among employees, enabling them to express their ideas and opinions, which enable innovative solutions for improvement in the workplace. Leaders need to demonstrate trustworthiness and work on building trusting relationships with their teams to create a culture of accountability and ownership amongst the staff. Fostering trust with employees will help create a positive environment, and lead to decreased stress levels, fewer mental health challenges, improved morale, and better organisational performance. Trust and customer loyalty Business leaders know that establishing a sense of trust between themselves and their customers is essential for maintaining customer loyalty and a profitable company. In our modern online world, trust is essential in digital transactions, but old-fashioned face-to-face versions of it remain important as well, even more so as it gradually becomes more rare. Trust is the essential ingredient of customer loyalty, especially for SME brands and start-ups. When customers trust the company they are buying from, they will be far more likely to remain loyal. Since trust and loyalty are so closely related, business leaders need to create an environment conducive to both. This can include displaying (and practising) clear values on the company website and investing in human-centric customer service. Doing so will demonstrate to customers that the company is reliable and trustworthy. It is also essential that companies prioritise customer loyalty when it comes to customer service. This means companies must be willing to go above and beyond when it comes to helping their customers. If customers have confidence in a company’s leadership and feel that their purchase or engagement with the company will be reliable, secure and satisfactory, they are more likely to remain loyal customers and recommend the company to others. How to rebuild and strengthen leadership trust Developing strategies to rebuild and strengthen leadership trust is an important step for any business that wants to succeed and thrive.  To start rebuilding trust, leaders need to follow this simple process; Assess their current trust level  Evaluate the reasons trust has been broken  Create action plans to help repair and restore trust authentically. Transparency is key here; leaders need to show that they are open and honest by communicating clearly and frequently. They need to identify and remove any obstacles inhibiting trust, such as unprofessional behaviour, ego-centricity or poor attitudes from themselves or their teams. They also need to be aware of any potential bias in decision-making. Active listening plays a key role here, so that everyone feels that their voice is heard and their concerns are taken seriously. If trust is to be established, leaders must also practise constructive feedback and ensure that everyone is held accountable for their actions. When mistakes are made, be sure to address the problem without finger-pointing. Instead, focus on finding solutions and reinforcing desirable behaviours when things are going right. Showing employees that successes are acknowledged and rewarded will further strengthen trust. Leaders must recognise that trust is not a one-time thing; it needs ongoing maintenance and effort. Taking steps to build trust by using the strategies above will ultimately lead to a healthier work environment and better business prospects. The role of media in shaping public trust Media plays a vital role in promoting public trust. It’s not just about the content of what is written, but also how it’s delivered. Media has the power to shape people’s opinions and attitudes. For leaders to be seen as genuine and sincere, they must present their message in a way that is clear, concise and easily understood. An effective leader must use media to make their message heard. They can craft a message that will resonate with the public, shape attitudes and foster positive trust. With engaging headlines, emotionally charged language and compelling visuals, leaders will be more successful in creating an authentic image that can be trusted. This can be further enhanced through active dialogue and engagement with the public through social media. Relevant topics, discussions and articles that are engaging and well-crafted can help develop public trust. But leaders must also be aware of the potential risks associated with media and manage them efficiently.  Leadership trust and investor confidence Studies have shown that business organisations with a high level of trust and transparency from their leaders garner higher investor confidence. This leads to a greater return on investments and a greater sense of stability. It is also important for leaders to foster relationships with current and potential investors by understanding their interests and needs. Proactively reaching out and engaging with decision-makers is key, too. This can be done by establishing regular meetings and keeping them informed about upcoming developments, changes and opportunities.  To measure how leadership trust is affecting investor confidence, organisations can survey their key stakeholders to gain feedback on how leaders are perceived. Companies should solicit feedback on what could be improved and develop a strategy to address those needs.  Corporate social responsibility and trust As companies compete in an increasingly global economy, gaining the trust of their stakeholders becomes increasingly important. Corporate social responsibility (CSR) initiatives, such as environmental sustainability, ethical practices, diversity and inclusiveness, and responsible economic activity, are proven ways for companies to strengthen their relationships with their partners and customers – and to demonstrate their commitment to high ethical standards. CSR has also become an integral tool for building trust in leadership and creating transparency in the business relationship between companies and their stakeholders. The strategic investment of resources to implement such activities also establishes a foundation of trust with stakeholders. Companies benefit from investing in initiatives that support community and environmental causes, as these activities build social capital and address critical issues facing society. CSR also plays an important role in demonstrating a company’s ethical values and enhancing the reputation of its leaders. Such initiatives instil trust in customers as well as new hires, creating a virtuous cycle of trust within the company. Ultimately, this translates into more effective business operations, prolonged relationships with stakeholders, and a successful organisation. Narratives can rebuild public trust  Crafting a narrative to rebuild public trust in authentic leadership is a complex yet necessary process for leaders with an eye to the future. It starts with recognising that trust in leadership is an asset, both for long-term success and for building lasting relationships. If the public is not given a voice, not offered transparency, or not shown respect, then trust quickly erodes. Trust can also be gained through stories, where a leader tells of their accomplishments and shares the journey of how they got there. Not only does storytelling provide an avenue to build public trust, but also it helps provide an understanding of the leaders’ core values and priorities, providing an emotional context for the audience. In conclusion, rebuilding public trust in authentic leadership requires a strong and consistent commitment to ethical and socially responsible behaviour. There needs to be evidence of support for equity, diversity, environmental justice and respect for human rights, while also assurance that the public is able to review the organisational decision-making process. In this way, leaders can demonstrate a commitment to the values that underlie trust in authentic leadership. As the 2023 Edelman Trust Barometer Global Report states, “Trust is the currency of today’s economy.” When customers, partners and employees trust a company’s leadership, it can only lead to a positive impact on the company’s overall performance. This story originally appeared in Inside FMCG Magazine’s October issue.