Tips To Build Trust Equity and Strengthen Stakeholder Relationships

A good solid handshake — this symbolic gesture was once enough to prove trust and goodwill when closing a deal.

Trust is unfortunately not so easily won in today's business landscape. Concerns around cybersecurity, data privacy, social perception and the dissemination of misinformation can now equate to deep-seated trust gaps between businesses and stakeholders.

However, this era of distrust does not have to define your business relationships with customers, employees, investors, partners, suppliers and the public. Find out why building trust equity is important and ways to strengthen relationships with your stakeholders.

Why Trust Equity Matters

The value of trust equity lies within its ability to increase — or decrease — the value of your business.

Consider these measurable implications trust has in the world of business. The most trustworthy public companies, for example, consistently outperform in their sector while 30% of a company's value is at risk when trust is broken with public and external stakeholders.

Tip #1: Transparency and Communication

Building trust equity — the amount of trust a business has accumulated with its stakeholders — grows over time with consistent, ethical and transparent actions. By prioritising transparency and open communication, you can proactively build your reputation and establish trust.

Consider scheduling recurrent meetings with stakeholders to keep them in the loop with clear, timely and accurate updates regarding business decisions, progress and even setbacks and challenges. But don't simply present, encourage open dialogue and feedback to create an inclusive environment.

Tips #2: Consistency and Reliability

Your stakeholders are more likely to trust your business if you consistently uphold promises and commitments. This includes ensuring the quality, time and even ethical expectations you commit to — and are expected by your stakeholders — are being met. This builds your reputation for reliability.

Offering support and encouraging feedback from those vested in your product, service or operations proves you value your stakeholders and will be accountable if expectations aren't being met. Be sure to acknowledge setbacks and provide solutions for issues your stakeholders may have.

Tip #3: Corporate Social Responsibility

Trust covers more than the quality or price point of a product or service. It includes trust that your business is operating in a socially and ethically responsible way.

Understanding what's important to your stakeholders — perhaps it's sustainability, diversity or charitable support — can be critical to strengthening and maintaining your relationship with them. Consider developing corporate initiatives that align with the values most important to your stakeholders. If you don't yet know, make a point to find out. Invite them into conversations about your corporate social responsibility initiatives and find a shared set of values you can support.

The takeaway? Investing your time to build trust equity can lead to stronger stakeholder relationships and financial success. While you're busy building trust, let WMC Accounting help manage your business and provide advice tailored to you. Contact us today to set your business on the path to success.