Digitization is accelerating across global business, and more than half the global population is now online. These two trends are closely related, and raise important questions about trust between private companies and individuals who interact in non-tangible digital environments. Indeed, “digital trust” is quickly becoming an imperative as a result; this in turn is driving the creation of Chief Trust Officers (CTrOs), the latest addition to the C-Suite.

 

As with personal relationships, trust becomes more important as we invest more and more of our time, efforts, money, and even wellbeing in private accounts, relationships, and institutions. These “investments” are characterized by vulnerabilities we allow to exist based on the degree to which we trust those parties. In digital business, those vulnerabilities and that trust become more difficult to visualize; we rarely know exactly how private companies are using our data, for example, or whether that data is truly secure.

 

Modern concepts of trust extend beyond personal data and individual transactions as well. We trust businesses to operate ethically, to act upon key societal issues like environmental sustainability, to become proactive about improving equity, and to act with the best interests of humanity in mind.

 

For companies, delivering on these expectations is growing in importance; doing so requires dedicated leadership to be successful as a result. Now, “industries that require significant levels of trust… will appoint a new chief trust officer,” predicts Forrester, where “at least five firms have already taken this step, and we expect that another 15 firms in the Global 500 will [do so] in 2022.”

 

Even so, not all business leaders understand how trust is evolving among their customers, employees, and partner ecosystems. This leaves then at a competitive disadvantage as other companies adapt. In this article, we identify why trust is so important and outline ways in which companies can drive more trust for their organizations within these different areas of influence.

 

Defining “Trust” and the Role of the Chief Trust Officer (CTrO)

 

Issues of trust are becoming a top priority among business leaders, especially in terms of:

 

• the rapid growth of data that must be protected and fairly managed
• the importance of partner ecosystems that require the ethical exchange of data and money
• the increase in online customer accounts

 

As business moves away from tangible exchanges of goods and services, customers, partners, and even employees need both visibility and assurances before they will offer companies their trust.

 

Unfortunately, traditional C-Suite roles do not sufficiently address this issue. Although the trust role is related to roles like data, information security, and technology leadership, none of these roles aligns with the cultural, brand, and ethical requirements only a dedicated trust role can sufficiently address.

 

The chief trust officer (CTrO) leads this strategy, helping corporations formalize and activate their trust initiatives for a more future- and growth-oriented business approach. Leading companies that employ a CTrO are better equipped to coordinate the critical but mercurial aspects of trust across business functions as a result—including information security, finance, human resources, sourcing, and others.

 

Why Trust Leadership is So Important Today

 

Trust is now a formal cornerstone of corporate success. Companies who excel in their trust initiatives become more competitive as well, especially through the introduction of a CTrO. As Forbes describes, “The appearance of the CTrO into corporate governance and management is a harbinger of a new business climate driven by a changing internet climate and culture driven more by accountability than previous generations.”

 

“Trust is complex, ephemeral, and essential, and more businesses are realizing that new digital initiative has a chance of success without trust,” Forrester describes. Indeed, trust initiatives may become among the most important aspects of corporate agendas, especially since trust touches so many aspects of the business. Companies who have already embraced a CTrO model therefore positioned to become digital and brand leaders in their industries.

 

5 Ways Trust Reinforces Lasting Business Success

 

 

In 2022 and beyond, global business leaders will take clear and decisive action to build trust within their customer and partner ecosystems. These initiatives will yield real business results, such as long-term customer loyalty, operational efficiencies, and reduced risk. Consider the following five advantages a CTrO can deliver as you determine whether or not the role is right for your corporate leadership.

 

1. Privacy

 

A perceived lack of privacy among consumers—whether a real lapse has occurred or not—can have a dramatic impact on business performance. For example, global trust in the tech sector fell from 77% to 68% from 2012 to 2021, the World Economic Forum reports. Deteriorating trust in the handling of personal data has real implications in emerging, competitive sectors such as online learning, remote conferencing, telehealth, and subscription-based eCommerce as a result.

 

A CTrO will address trust gaps associated with real data emergencies as well as public perception of data privacy issues. But data privacy is often the core responsibility of the chief data officer (CDO) or chief privacy officer (CPO); it is only one dimension of the CTrO’s evolving role.

 

2. Transparency

 

By design, neither consumers, business customers, nor partners can see into all aspects of how a corporation operates. However, these parties need enough information about the company’s both existing operations and long-term strategy to offer that company their trust. A CTrO ensures those parties receive the right type and amount of information, with assurances they will continue to do so in the future. The CTrO will ensure those operational aspects are ethical and sound in terms of best practices as well.

 

3. Partnerships

 

Partner ecosystems are becoming increasingly important in corporate environments. Market research, product development, and even workforce management increasingly fall to business partners—as do a variety of data exchanges. These ecosystems will create trillions of dollars of value in the years to come.

 

Digital systems make these partnerships fruitful, with highly secure touchpoints that keep data safe and available only to the parties involved. But as partner ecosystems become more complex, trust extends beyond data security; it touches decision making, brand elements, and ethical practices among partners as well. A CTrO can visualize these elements and determine if there are trust issues—or advantages—that might affect customer perceptions or long-term relationships of all kinds.

 

4. Ethics

 

The world’s citizens increasingly hold corporations responsible for ethical sourcing, hiring, workforce management, and production—as part of their own operations, but also within their supply chains and partner ecosystems. Ethics can either help or hurt a company in any of these capacities as a result.

 

Companies with CTrOs realize that ethical concerns such as fair pay, equity in hiring practices, and working with ethical partners and suppliers can be an advantage for their companies. Ethical behavior in commerce—such as donating profit or products to worthy causes—can create brand advantages as well. CTrOs are well-positioned to help in executive decision making to realize these benefits, and avoid unethical controversies.

 

5. Sustainability

 

Forrester predicts that in 2022, “leading companies will seize trust to benefit the planet [and] empower the organizations and individuals they serve.” Indeed, true trust among consumers and business partners depends on companies’ willingness to provide solutions for environmental sustainability.

 

More and more, consumers can see right through companies who pay only lip service to these initiatives. They favoring companies who incorporate sustainability into their long-term business models instead. In 2020, two-thirds of North Americans favored eco-friendly brands, Barron’s reports.

 

CTrOs are more likely to perceive this trend not as an impediment, but as an opportunity. In coordination with other executive leaders, CTrOs are well-positioned to both realize those sustainable long-term business practices and successfully communicate their value to the market and the world.

 

Secure Your Own Culture of Trust

 

A proactive strategy to engender trust is now a business necessity. “It requires leadership and governance from board level to ensure that it becomes part of the very fabric of the business,” as IDC describes. A CTrO is critical to this goal—but creating a lasting culture of trust requires more than simply an individual and a title. As McKinsey explains, “the other important thing is to cascade this through the rest of the organization, understanding that change management is important as well.”

 

Partner with Uvation for Your Future Trust Initiatives

 

Uvation can help you prepare your trust leadership strategy so you can secure a competitive advantage starting today. Contact one of our corporate leadership experts for a free consultation.