![]() We did it because diversity and inclusion are core to our purpose at PwC, and we wanted to apply greater rigor, accountability, and transparency into how we were continuing to drive our firm’s representation and culture of belonging. For example, one year ago, we at PwC took the important step in releasing our workforce demographics for the first time. To do so, tomorrow’s business leaders should set a clear strategy to build a culture of trust and transparency throughout the company. It’s time to galvanize around trust and transparency. So, what are the key takeaways for the business community? 1. Our survey found that in most companies, all C-suite roles were at least partly responsible, which makes accountability and alignment difficult. Why this misalignment in priorities? It may be because right now there is no one role in the C-suite that truly owns trust. However, fewer than half of businesses responding to our study have implemented formal initiatives related to accountability. They want businesses to take responsibility for their failures quickly and demonstrate action to address those failures. Consumers want oversight from leadership. This gap in what consumers say increases trust and what businesses are actually doing is also evident in the area of accountability. However, many businesses have not yet taken the time to connect the dots between their ESG-related actions and how they impact the average consumer. Consumers do indeed care about companies’ environmental and societal impact and if they are ethically governed. Our survey found that how companies manage their value chains, deploy responsible artificial intelligence, and report on ESG actions are all highly rated trust factors by business leaders, but of lesser importance to consumers. Of equal importance is identifying where business leaders and consumers disagree. ![]() There are many examples of businesses that have made a great deal of progress across these areas over the years, and many continue to improve. Admitting mistakes quickly and honestly.In our recent survey, we found that consumers and companies agree on four actions that help establish trust: These opportunities illustrate why it’s so important for business leaders to understand what drives trust. But some companies may be tempted to exaggerate ESG claims, causing governments and regulators to examine assets with green or socially conscious labels. Many of us direct our savings to environmental, social, and governance (ESG) investments, trusting that our money won’t be used to harm the planet. We all give some companies our personal data, trusting that they will protect it and use it responsibly, yet data breaches and questionable uses of consumer data take place every day. Unfortunately, trust violations are common too. ![]() I’ve also seen executives’ pay docked if they fail to meet diversity targets for their workforce - increasing trust that inclusion is a requirement, not a PR campaign. I’ve seen companies raise wages of the lower paid. I’ve seen financial institutions commit to customers that their money will never go to investments that could hurt the environment - increasing trust that ethical business practices guide them. I’ve seen large health care companies invest real money to target the social, environmental, and economic factors that affect health - increasing trust by striving to improve health outcomes for their customers and communities. Leaders can achieve this by assessing what earns trust, setting matching priorities, monitoring progress, and taking quick action to admit and fix problems when they occur. The opportunity now for business leaders is to protect the progress that has been made and to manage trust as carefully as we do our balance sheets. So, yes, the business community stepped up in significant ways, yet we all recognize that there is more work to do. ![]() Advocating for social justice, protecting communities and the economy by keeping people safely at work, continuing the supply of household goods, fast-tracking vaccine production, providing small business loans, raising wages, and charitable commitments all had an impact on trust and reputation. Our survey found that this endorsement of business can be at least partially attributed to the commitments and actions so many in the business community made during the pandemic. A PwC study yielded similar results, finding that 63% of consumers say they have trust in U.S. for the fourth year in a row, according to Edelman’s Trust Barometer. Which organizations do you trust? Government? The media? Business? The Covid-19 pandemic has had a keen impact on how consumers feel about institutions, and it may surprise you that business is actually the most trusted institution in the U.S. ![]()
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