Facebook is not alone in its battle against wavering consumer trust
For a case study demonstrating the relationship between trust and employee satisfaction, consider Campbell Soup. In the late 1990s, the company was suffering from a toxic, unengaged culture and plummeting share prices. Then Douglas Conant joined as CEO in 2001 — and made trust his priority. “Before you have the moral authority to lead your team, you have to inspire trust," he told
."Trust is the one thing that changes everything. In a high-trust culture, it's so much easier to get things done."His approach worked: Nine years later, there were 17 engaged employees for every disengaged employee, according to the Gallup Employee Engagement Index. Among the 350 top leaders at Campbell, the engagement ratio was a stunning 77 to one.
Putting that into further perspective, when Accenture surveyed consumers who had switched companies in the past year, 46% attributed their decision to a loss of trust. “Today’s customers have more choices than ever,” explained the consulting company. “Companies that cannot deliver on brand promise or transparency will lose customer trust and, consequently, business.”
While companies need not be perfect, they must prioritize trust over profits — even when it is difficult. Take the case of Tylenol: In 1982,. Jim Burke, the CEO of parent company Johnson & Johnson, quickly recalled 31 million bottles and began an aggressive marketing campaign. Although the recall and relaunch cost more than $100 million, it mitigated damage to the company’s most important long-term asset: the public’s trust.
Further research underscores Lyman’s findings. A Cornell University study of 6,500 Holiday Inn employees discovered that, when measuring the level of trust employees had in their managers, a one-eighth point improvement on a five-point scale correlated with a 2.5% rise in revenues — equating to more than $250,000 per year, per hotel.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Do You Trust Facebook? Zuckerberg's Leadership DilemmaSince trust is one of the most important components of leadership, other companies should learn from Zuckerberg’s struggles and instill a culture of trust. Research provides compelling evidence on a myriad of tangible benefits that accrue to companies that garner trust from their stakeholders.
Leer más »
Mark Zuckerberg's big vision for Facebook could have hugely damaging consequences — and he knows itIn putting out a fire over privacy, Mark Zuckerberg needs to be careful that he doesn't throw oil over another burning issue at Facebook.
Leer más »
Facebook Privacy Update: Mark Zuckerberg's Response To Cambridge Analytica Scandal One Year OnIt is now a year ago that the Cambridge Analytica scandal, which saw Facebook user data hoovered up for use in political campaigns, broke into the headlines. The legal and business repercussions continue to this day, but has Mark Zuckerberg actually learned his lesson?
Leer más »
Facebook Privacy Update: Mark Zuckerberg's Response To Cambridge Analytica Scandal One Year OnIt is now a year ago that the Cambridge Analytica scandal, which saw Facebook user data hoovered up for use in political campaigns, broke into the headlines. The legal and business repercussions continue to this day, but has Mark Zuckerberg actually learned his lesson?
Leer más »
Mark Zuckerberg's new Facebook plan could make it harder to stop spread of violent videosFacebook's privacy plan to end-to-end encryption on its various messaging platforms could make it harder to stop the spread of certain videos.
Leer más »
Who Will Trust Facebook Bank?Following a significant data breach, a titanic loss of consumer trust, calls by numerous politicians for regulation, and a massive service outage, Facebook wants to become a bank issuing its own cryptocurrency. Who will trust Facebook Bank?
Leer más »
The Dilemma Facing a $358 Billion Investing GiantYou can learn a valuable lesson from the nation’s largest public-pension plan: Be careful how high you set your expectations. You might have to try to meet them.
Leer más »
Fed Officials Wrestle With a ‘Dot Plot’ DilemmaFederal Reserve officials aren’t quite sure what to do about their dots. Most of them see the dot plot of individual projections for interest rates as a valuable tool, but it has increasingly contributed to investor confusion.
Leer más »
Rugby’s dilemma: take the penalty or go for a tryBuyout group CVC has bid 500 million pounds for a 30 pct stake in the sport’s Six Nations Championship. Rugby’s governing body envisages a grander global tournament without surrendering control. Who prevails depends on how desperate a few European unions are for cash.
Leer más »