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Acknowledgements of third party source materials are contained on the relevant slides.Slide3

Exploring Trust

How <IR> can help you be a trusted

organization

Daniel TischImmediate Past Chair, Global Alliance for PR and Communication Management CEO, Argyle Communications (Canada)@DanTischSlide4

Overview and trust in today’s world

Helen

TuddenhamLearning and Behaviours leader, PwCSlide5

Overview

Trust: what is it and why is it important?

What does it take for an organization to be trustworthy?Who needs to trust you and what is important to them?

How you demonstrate that you are trusted?How does managing trust work in the real world?How can <IR> help you to build and sustain trust?Slide6

The world today

02

Google, Amazon and Starbucks: The rise of ‘tax shaming’

Facebook manipulates user feeds

Doing what is legal

Doing what is right

Vs.

Puma SE: Environmental report

H&M: Paying global living wageSlide7

More CEOS believe that trust levels have improved in their industry than believe it has deteriorated

Half of CEOs identified lack of trust as a threat to their growth prospects (2013: 37%)

PwC 17

th Annual Global CEO surveySlide8

What is trust and why is it important?

Helen Reeve Morris

Ethical Business Conduct Advisor, PwCSlide9

Exploring trust

Group exercise

In table groups discuss the following questions:What is trust?

What does it mean to you?Be prepared to feedbackSlide10

“Firm

belief in the

reliability, truth, or ability

of someone or something”Oxford English DictionaryTrust is earned by being trustworthy

What is Trust?

Measure

Monitor

Report

Repair

Build

SustainSlide11

Question:

Which type of crisis had the largest impact on the share price on day one?

BEHAVIOUR

(more than 50% drop)Business case for being trusted: Share price

Types of crises

Information

Behaviour

Corporate

Operation

Source:

Freshfields

Bruckhaus

Deringer

(2012).

Knowing

the

risks

,

protecting

y

our business:

C

risis management

. Accessed online:

http

://www.freshfields.com/uploadedFiles/SiteWide/News_Room/Insight/Campaigns/Crisis_management/Knowing the risks interactive.pdf.PDF

. Slide12

Business case for being trusted: Innovation

The most innovative companies

COLLABORATE three times more often than the least innovative ones

What is one of the key barriers for not collaborating with other companies?TRUST!

“

GE Global Innovation Barometer

”. Global Research Findings & Insights. GE, January 2013,

http://

www.ge.com/sites/default/files/Innovation_Overview.pdf

Source: “Breakthrough innovation and growth”, PwC, August 2013, www.pwc.com/innovation_survey. Slide13

What does it take to be trustworthy?

Transparency and honesty

Control distrust and demonstrate trustworthiness

Continuous focus

Adapt if needed

Culture and behaviour

Using key influencers

Measure

Monitor

Report

Repair

Build

SustainSlide14

The Trustworthy Organization©

Adapted from the “Trustworthy Organization” Dr Andrew Tucker

Values

Experience

TRUST

Competence

Experience

ValuesSlide15

Trust as a business asset

Question:

Who needs to trust your organization?Slide16

How much trust is enough?

What is important to the following stakeholders?

(RED) Customers(GREEN) Employees

(BLUE) Regulators(YELLOW) Providers of financial capital (Investors)(PINK) MediaConsider the question by reference to the trustworthyorganization and your business. Slide17

Engage in open and transparent dialogue – use <IR> as a means to do this

Recognise it is not possible to please all stakeholders all of the time

Need to determine the “trust tipping point” – how much trust is enough?However, destroying trust with one stakeholder group will quickly impact others

Balancing the demands of all stakeholdersSlide18

Case study:

NestléSlide19

Nestlé’s new narrativeSlide20

Integration & communication

Source: NestleSlide21

Correlation with reputation?

Nestle was ranked among world’s

10

most reputable companies

for the

first time in 2013Slide22

Key messages

The importance of trust in today’s world

Trust acts as a buffer and increases the risk resilience of an organizationTrust is tangible and requires management like any other asset - it can be measured and monitoredOrganizations can deliberately build / repair / sustain trust

<IR> provides a means to develop trustworthiness through transparency and accountability in reportingIt is not easy to become trusted - but it is very easy to lose trustSlide23