Bonus Episode: What Happened To Our Sense Of Trust?
Mar 8, 2025
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Trust is dwindling globally, especially in corporate environments. Many employees feel disconnected from their leaders, with a striking lack of confidence in CEOs. The podcast delves into three dimensions of trust and the crucial role it plays in leadership and organizational success. Key strategies for building trust include active listening and fostering open communication. Real-world examples highlight the fallout when trust is compromised, making a compelling case for why leaders must prioritize rebuilding this essential quality.
The decline of trust in institutions, as highlighted by the Edelman Trust Barometer, reflects a broader crisis impacting both societal and organizational dynamics.
To rebuild trust within organizations, leaders must focus on authenticity, ethical values, and active listening to foster open communication and respect.
Deep dives
The Erosion of Trust in U.S. Institutions
Trust in U.S. institutions has significantly diminished, impacting perceptions both domestically and internationally. European conversations reveal a collective uncertainty regarding the reliability of the U.S. as a partner, especially in the face of political discord and leadership issues. According to the Edelman Trust Barometer, institutions such as the Supreme Court and various governmental branches have experienced increased skepticism, reflecting broader concerns about the integrity of American democracy. This decline is not solely attributed to any single political figure but is indicative of a larger crisis that includes the fallout from the pandemic and changing global dynamics.
Challenges of Organizational Trust
Organizational trust mirrors societal trust, highlighting its crucial role in navigating today's complex business environment. Numerous external pressures, such as economic shifts, regulatory changes, and competitive dynamics, challenge a company's ability to remain united and focused. The need for alignment at every level of an organization is essential for success, yet trust is fragile—reflected in findings that a significant number of employees doubt the honesty of their CEOs. Companies like Philips illustrate how strong cultural values are vital for transformation, yet without trust in leadership, overcoming internal challenges can become daunting.
Key Elements of Building Trust
Three core elements essential for cultivating trust within organizations are authenticity, ethical values, and active listening. Leaders must demonstrate authenticity by being truthful; employees are adept at sensing insincerity, which erodes trust quickly. Ethical values serve as a compass in decision-making, impacting how teams and customers perceive a company’s integrity. Lastly, effective leaders prioritize listening to their teams, fostering an environment where open communication and respect for diverse opinions become the foundation for trust, ultimately leading to stronger organizational cohesion and performance.
After an intense week in Europe at an HR Technology conference, I want to share my deep perspectives on Trust, which is in very short supply these days. Not only do European leaders mistrust the US right now, the Edelman Trust Barometer shows that 2/3 of employees no longer trust the CEOs of their own companies.
In an effort to help you think this through, I share the three dimensions of trust and give you some important things to think about in your own career and in your role as an HR professional, leader, friend, or advisor to other leaders in your company.