Unconventional Insights For Managing Stakeholder Trust
Source: Harvard Business School
Employees that don't trust their organizations are less loyal, less motivated, and less productive. Customers who perceive a breach of trust are more likely to switch to a competitor. When trust is lacking in supplier relationships, more resources need to be devoted to contract enforcement and monitoring, the result of which is increased transaction costs. Organizations that lose the trust of their investors may be the quickest of all to perish. Clearly, managing stakeholder trust is an essential task for organizations. Because there are many different stakeholder groups, each with its own particular needs and perspective, this task can be quite difficult.