The role of corporate communications in building trust in leadership

y What we can learn from Bill, Al and Herb?

³Confidence in an exchange partner¶s reliability and integrity´. (Morgan and Hunt 1994)

‡ Philanthropy is also important to Gates. century. ‡ He and his wife. have endowed a foundation with more than US$24 billion to support philanthropic initiatives in the areas of global health and learning. Melinda. advances in these critical areas will be available for all . with the hope that as we move into the 21st people.

y more than US$2 billion to improve learning opportunities.2 billion to organizations working in global health. Internet Access and training to public libraries in low-income communities in the United States and Canada.y To date. including the Gates Library Initiative to bring computers. y more than US$477 million to community projects in the Pacific Northwest. the Bill and Melinda Gates Foundation has committed: y more than US$3.´ . y more than US$488 million to special projects and annual giving campaigns.

y General y Organisational context y Synonyms y Cooperation (?) y One can cooperate with another party without necessarily trusting the person. . y Predictability (?) y A person may be predictable in one¶s mission or goals but unpredictable in their value systems. y Confidence (?) y One can have confidence in a person¶s ability to achieve a desired outcome without trusting the personal integrity of the person.

y Leadership y cornerstone of modern business y responsible for building of trust within the organisation¶s culture y Trust y Built through the way a leader develops the culture of communication for internal and external stakeholders. y Based on the leader¶s: y Integrity y Consistency y Loyalty .

y Trust is an organisation¶s ³social capital´ y Similar to other capitals y Values y Organisational values y Beliefs and convictions that guide behaviour and support vision. employee empowerment and quality of life y Values help to communicate what is important and what will be recognized and rewarded.g. y E. of corporate values are customer needs. .

g. then resentment would persist and trust vanish. y By modelling the values. leaders clearly communicate expectations and improve the employees¶ perception. .y Trust occurs: y Values are followed and supported by the leaders. Hewlett Packard¶s case y Perception of a fair compensations system y If employees were largely underpaid while the executives received extravagant benefits. y E.

it takes a lot of experience in improved leadership behaviour to improve trusting level once more.y Trust in integrity. consistency and loyalty depends very much on experience in interpersonal relationship between trustee and the trustor. . y Once distrust occurred.

y More people perceived CEO as the Chief Communications Officer (CCO) as espoused by Pincus and deBonis in their four principles model that CEOs must adopt: y y y y Consistency Compassion Organisation Selectivity .y Trust-building lies in the ability of organizational leadership to professionally communicate to their internal and external stakeholders at both the head and heart level.

sharing the common purpose of forming and crystallizing meaningful relationship.y The importance of this communication- leadership-trust triumvirate is that leadership and communication are hand-in-glove process. .

Communication y Aims to create a relationship of understanding y Purpose y Message y Source y Expected outcome Leadership y Aims to construct relationships of commitment y Leader y Organisation y Cause y Stay committed .

´ (Humes . in a company conference room.pp. you are auditioning for leadership. And the art of communication is the language of leadership. 1991.y ³Every time you speak ± whether it¶s in an auditorium. or even at your own desk. The difference between mere management and is communication.13-14 ) .

y Influences on how business is conducted: y Information technology y Burgeoning knowledge flow y Outcomes y A disempowerment of central control y Empowerment of workforce y (core value = letting go) y A necessity in today¶s world y How do you manage people you cannot see??? .

y Be able to rise above the details to see the lay of the land. .y Leader¶s role y Responsible for ensuring the overall vision is achieved. y Broad understanding of how things fit together. y Good business sense.

Davis & Schoorman (1995) defined trust as: y The willingness of a party to be vulnerable to the actions of another party based on the expectation that the other will perform a particular action important to the trustor. irrespective of the ability to monitor or control the other party. .y Mayer.

y Blois (1999. . pp 197-8) concludes that trust is the acceptance of vulnerability in order to reduce social complexity.y Morgan and Hunt (1994) define trust as ³confidence in an exchange partner¶s reliability and integrity´.

BUT the willingness to take a risk.y Trust is not taking risk per se. y Willingness and perceived expectations of mutual benefit is largely portrayed through the communication skills of both parties ± but particularly that of the leader. y If no options exist do we convince ourselves to trust? .

y Ability y Benevolence y Integrity y These are coupled with the: y trustor¶s propensity to trust y These are moderated by: y perceived risk y risk-taking inherent in the relationship y Commitment is the necessary link .

y Charisma y Cynicism y Corporate Culture .


he was admired by Adolf Hitler y Sir Richard Branson .Founder of ethical cosmetics group the Body Shop.The self-made entrepreneur launched the ³world¶s first spaceline´. Dubbed ³Neutron Jack´. she was a high-profile environmental campaigner before her death in 2007 . Virgin Galactic.y Henry Ford .The former chairman and chief executive of General Electric increased its value from US$13 billion to several hundred billions. it was joked that he eliminated employees but left the building standing y Dame Anita Roddick .The founder of the Ford motor company revolutionised mass production and brought car ownership to middle-class Americans. An avowed antiSemite. in 2004 and was ranked the 236th richest person in the world by Forbes magazine last year y Jack Welch .

unconventional tactics or behaviour y Some real life examples? .y Charismatic leaders: y Have a vision y Gifted in being able to share that vision y Have superb rhetorical skills y Build trust in their leadership and the attainability of their goals y Unshakable self-confidence y Strength of moral conviction y Personal example and sacrifice.

y Traditionally y Management does not trust staff y Staff must undoubtingly trust management y Some of the recent past business practices cause cynicism y Greed y Unethical leadership y Short-termism .

y Reengineering y Decentralisation y Downsizing y Outplacement y Deployment y Reality of virtual organisations y Personnel-reducing techniques y Short-term CEOs y µFlavour of the month¶ strategies y Results in a fear-distrust cycle .

y Less motivated staff y Low productivity y High turnover y Lack of support from internal and external stakeholders y Loss of competitive advantage .

y Leaders must place a higher value on trust y Must be able to communicate this to staff y Develop corporate culture of trust .

practices and ways of thinking that they have come to share with each other through being and working together. symbols. stories. sounds. . and artefacts. Diversity of definitions  Here¶s one for you The culture of any group of people is that set of beliefs. At the visible level the culture of a group of people takes a form of ritual behaviour. myths.  Communication is necessary to develop a trust- based corporate culture. customs. It is a set of assumptions people simply accept without question as they interact with each other.

must foster and nurture that trust.y Almost every aspect of business has or is in the process of monumental change ± hence the role of the leader is also changing. . through communication. y Today you will not be doing business for long without trust ± the leader.