Initiatives to establish and maintain trust with various stakeholders, including providers, workers, customers and investors, are at the top of the executive program at many organizations. But most companies do not actually understand how to handle stakeholder trust efficiently. In fact, the writers' research suggests that many trust-building initiatives and approaches that organizations invest in may be of questionable value. Others might really be counterproductive. Handling stakeholder trust is not easy because there are numerous stakeholder groups, each with its own specific needs and viewpoint. That is, trust is multidimensional, and it is not obvious which measurement executives should focus on when dealing with any particular constituency.
The authors conducted a study of stakeholder trust in four distinct organizations, to answer such questions. They examined the relevance (if any) of various factors: benevolence, integrity, managerial competence, practical competence, transparency and value congruence. Basically, the study inquired to whom -- and what issues. Some of the results were sudden, and a few were even counterintuitive, resulting in the following crucial insights: Transparency is overrated; ethics is not enough; the proper type of competence issues; building trust with one group can ruin it with another; and value congruence issues across the board. The new framework challenges some existing beliefs and sheds light on places that businesses would be wise not to discount. A more profound knowledge of stakeholder trust will help companies reap numerous benefits, including improved cooperation with providers, increased motivation and productivity among enhanced loyalty from customers, workers and higher amounts of support from investors.
Unconventional Insights for Managing Stakeholder Trust Case Study Solution
PUBLICATION DATE: July 01, 2008 PRODUCT #: SMR286-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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