The Trust Crisis & Social Responsibility

Ajay Kumar | Anwesha Roy | Nelson Natividade Dsilva | Satya Sheel Rohilla | Tanaya Chowdhury
04A | 09A | 22A | 36A | 45A
Content

 Trust and its facets

 Importance of trust in Business
 Stakeholders to build trust
 Corporate social responsibility to build trust
 Fundamental promise of Business
 Restore trust through CSR
 Myths to build and rebuild trust
 Real case 1 : Tata
 Real case 2 : Gravitas
"Trust is like the air we breathe --
when it's present, nobody really
notices. When it's absent, everyone
notices." -- Warren Buffett
What Is Trust?

 “ Trust is an individual’s or group’s willingness to be

vulnerable to another party based on the confidence
that the latter party is benevolent, reliable,
competent, honest, and open.”
Five Facets of Trust

Benevolence • confidence that one’s well being will be protected

by trusted party

Reliability • the extent to which one can count on another

person or group

Competency • the extent to which the trusted party has knowledge

and skill

Honesty • the character, integrity, and authenticity of the

trusted party

Openness • the extent to which there is no withholding of

information from others
The Importance Of Trust In Business

 Business strategist David Horsager speaks internationally on the bottom-line

impact of trust. He has developed a system with which he teaches leaders
how to build the Eight Pillars of Trust:
 Clarity – People trust the clear and mistrust the ambiguous
 Compassion – People put faith in those who care beyond themselves
 Character – People notice those who do what is right over what is easy
 Competency – People have confidence in those who stay fresh, relevant, and
capable
 Commitment – People believe in those who stand through adversity
 Connection – People want to follow, buy from, and be around friends
 Contribution – People immediately respond to results
 Consistency – People love to see the little things done consistently
Words of “Doug Young, Behler-Young
President”
 It is crucial to understand that trust is fundamental to the
genuine success of any kind. The trust you have with your
team and colleagues, the trust you place in your vendors to
make deliveries correct and on-time, and the trust that you
work to earn from your clients.

 "The importance of honesty and integrity has always been

critical at Behler-Young.  My grandfather and one of the
original founders, Wayne (Brig) Young said, 'Success and
growth will come to the company which offers a good
product at a fair price and practices honesty and integrity
in all of its dealings.'  In my experience, this is ethically
important, but it is also smart business." - Doug Young,
Behler-Young President. 
Who are the stakeholders?

Society. Customers

Employees Investors
Society : Corporate Social Responsibility

 “It takes 20 years to build a

reputation and only 5 minutes to
ruin it.”-Warren Buffet
Importance of CSR

 Growth. Growth can be expressed in terms of New Markets, New Products, New
Customers, Market Share, and Innovation. When this is created, it can deliver higher
brand loyalty, reputation, and goodwill with stakeholders.
 Return on Invested Capital (ROIC). ROIC is generated when there is operational
efficiency and workforce efficiency.
 Risk Management. Achieved when risk is lowered when compliance with regulatory
requirements are achieved.
 Management Excellence. Management Excellence can have an impact on leadership
development, adaptability, and long-term strategic view
Four Fundamental Promises of
Businesses
 Economic Responsibility
Being profitable is the only way for a company to be able to
survive long term, and benefit society
 Legal Responsibility
Employment laws, competition with other companies, tax
regulations and health and safety of employees
 Ethical Responsibility
Being fair in all situations and also avoiding harm
 Philanthropic Responsibility
“Give back” to the community the company has taken from
Restore Trust through CSR

Step 1: Make your CSR believable.

Step 2: Stop preaching the CSR message; start attracting CSR followers.

Step 3: Make your CSR effective.

How to build and rebuild trust

 Trust is less fragile than we think. Companies can be

trusted in some ways but not others and still succeed. And
trust can also be rebuilt.
 Building trust depends on ;

Clear Smart Definitive

Purpose strategy action
Top 5 Myth vs Reality
for Building and Rebuilding Trust

Myth: Companies
Myth: Trust is Myth: Trust is
are judged for their
Myth: Trust has no Myth: Trust is managed from the fragile. Once lost, it
purpose.
boundaries. objective. outside in can never be
regained.
Reality: Trust is Reality: Companies
Reality: Trust is Reality: Trust is
subjective. are judged for their
limited managed from the Reality: Trust
purpose and their
inside out waxes and wanes.
impact.
Managing the Customer Trust Crisis

 According to the new Trends in Customer Trust report by Sales force Research, 59% of customers
believe their personal information is vulnerable to a security breach. Even worse, 54% don’t believe
that companies have their best interests in mind.
 Making trust your number one value isn’t just the right thing to do; it’s also good business. Our
study finds that 95% of customers are more likely to be loyal to a company they trust while 92% are
more likely to purchase additional products and services from trusted businesses.
• Understand the Personalization Paradox: 84% say being treated like a person — not a number — is
very important to winning their business.
• Cultivate Trust with Transparency: 91% of customers trust more transparent companies
• Deliver Value in Exchange for Data: only 35% of baby boomers and traditionalists are comfortable
with companies using information about them in exchange for personalized engagement — a figure
that jumps to 64% for millennial and Generation Z customers.
• Build Trust for the Future: 60% of customers say they are concerned about their information being
compromised — or otherwise misused — by artificial intelligence (AI).
Managing the Customer Trust Crisis – Implementing
Fairness in Four Dimensions
• Procedural Fairness :Whether good processes, based on
accurate data, are used to make decisions and are applied
consistently, and whether groups are given a voice in decisions
affecting them.
There is nothing so
• Distributive fairness: How resources (such as pay and
promotions) or pain points (such as layoffs) are allocated.
unequal as the equal
treatment of
• Interpersonal fairness: How well stakeholders are treated.
unequals. ~ Aristotle
• Informational fairness: Whether communication is honest and
clear. (In a 2011 study Jason Colquitt and Jessica Rodell found
that this was the most important aspect for developing trust.) 
Crisis Of Trust: The Glue Between
Brands, Customers And Employees
 Qualtrics conducted Research study, it is found that 69% of Indian
respondents believe it’s important for brands to take care of their
employees and customers, and to not take advantage of the crisis, likes
of COVID-19, to maximize profits.

To that end, the study found that peoples’ trust in the government
increased by 72% but only 50% of the people claimed that their trust in
brands with which they engaged regularly had increased.

Taking care of employees was the top-ranked attribute at 37%, closely

followed by not taking advantage of maximizing profits during a crisis at
36%. Taking care of customers ranked third at 32%.
 WhatsApp came out on top as the most preferred communication channel
at 63%, followed by Facebook at 58%, and online media at 55%. Bottom of
the list comprised of the popular entertainment app TikTok (18%), Print
media (23%), and Radio (24%).
 Real Case 1 : Tata Group
Background
Tata Group is an Indian multinational conglomerate manufacturer of automobiles,
airplanes and other products, headquartered in Mumbai, Maharashtra, India.
Founded in 1868 by Jamshedji Tata, the company gained international recognition
after purchasing several global companies. It is one of the biggest and oldest
industrial groups in India. Each Tata company operates independently under the
guidance and supervision of its own board of directors and shareholders.
Value & Purpose
Integrity, Responsibility, Excellence, Pioneering, and Unity.
Employee Benefits
Tata Company & their CSR footprints:
 Customer Satisfaction

Nurturing relationships through transformation

EV Charging
Customer engagement and feedback
Customer-centric technology development

Sustainable and local sourcing

Impact on Other Capitals
Real Case 2 : Gravity Payments
Background
 Founded: February 2004,
Seattle, Washington, United
States
 Gravity Payments is a credit
card processing and financial
services company.
 Mission Statement-Our
mission is to change the way
business is done by putting
purpose and people above
profit.
 Cut his own wages from
$1.1M down to $70,000 per
year.
 Minimum wage of $70,000
for all positions.
Impact
 They’ve nearly doubled the size of the workforce and
grew revenue by 300%
 70% of his employees reported that they paid down their
debt, and home ownership grew 10X as well.
 Their customer attrition fell 25% below the national
average
 These employees were made to believe that they were
valued by the company.
 The company invested in them. They were able to bring a
better version of themselves to the workplace every day
because they had fewer worries about paying rent,
affording childcare, and buying groceries.
 They chose to stay because they saw a leader who made
sacrifices by investing his trust and money to all
employees instead of pushing for higher profit margins.
Fiction Vs Fact-Gravity Payments
Fiction Vs Fact-Gravity Payments
Fiction Vs Fact-Gravity Payments
Stories from
Employees