What does it mean to be a “trusted brand”? For years,advertising agencies and businesses large and small have understoodthat word of mouth is the most powerful marketing campaign ofall. When someone recommends a product or service, they arenot just saying they liked it; they are putting their ownreputation and credibility on the line. If the other person doesnot like the product or service, it not only affects their futurebuying decision – it also affects the trust they have for theperson making the recommendation. For years, hospitals have usedpatient satisfaction surveys to gauge their performance on customerservice. The key question used as the gold standard of how they aredoing is, “How likely are you to recommend the hospital to a friendor family member?” If former patients are willing to put their ownreputation and trustworthiness on the line to recommend a hospital,it must really be an outstanding place. Thus reputation and trustdrive business credibility and profits.

We need only look back a short period of time to see how theerosion of trust has destroyed well-established organizations, aswell as the effect it has had on public perception of corporateculture. From the Enron scandal to the sub-prime banking fiasco,mistrust of corporations large and small is rampant, and for goodreason. The more recent issue with Volkswagen's misguidedfuel economy numbers is yet to be played out, but VW has estimatedit will cost the company $7.3 billion in the long run. In the shortrun, VW stock plummeted more than 35% and the company reported awhopping $1.9 billion loss in the third quarter, down from almost a$3 billion profit a year ago. These examples have led the public tosee corporations largely as having a sole purpose – to make money –without a higher obligation to society. Moreover, it appears thatthose companies with higher levels of trust and a strongerreputation can weather challenges better, as the recent Chevroletignition issue exemplifies.

How then do organizations build their reputation andtrustworthiness in order to increase resilience if not for salesand profits? It all revolves around culture and values. Honesty,integrity, caring for their employees and the environment, combinedwith a quality product and perceived value, are key drivers inbuilding a strong trusted brand. In fact, according to the EdelmanTrust Barometer, “treating employees well” and being a “goodcorporate citizen” are in the top 10 factors most important to acorporate reputation. Building external trust, however, cannot beaccomplished without first establishing internal values that drivetrust within the organization and building a corporate culture oftrust starts with, like most things, the leadership.