The Trust Deficit

A new report undertaken by Populus for DLA Piper records the responses of over 50 senior

Board members of FTSE 100, FTSE 250 and some of the UK's largest privately owned companies.

The Trust Deficit investigates how attitudes to trust have changed, particularly following the global financial crisis, and highlights the notion that all businesses start with a deficit of trust, which must be actively redressed to achieve confidence and trust among their stakeholders and the wider public. Trust is undoubtedly a major issue for UK and international business leaders and can so easily be eroded, whether through accident or malpractice.

The Trust Deficit has highlighted some key findings:

• The environment in which companies are currently operating has changed fundamentally over the last decade and especially in the aftermath of the global financial crisis.

• The terms of engagement between companies and their stakeholders have changed. Individuals are increasingly feeling more empowered to judge and comment on a company’s actions. Technology has accelerated this process.

• Globalisation has also made maintaining and restoring trust more complex. In global economy corporate actions in one country are frequently judged by those elsewhere who may hold different standards and norms of behaviour.

• The collective view from the Boardroom is that trust, at a senior level, is intrinsically based on personal relationships.

• Overt 'trust strategies' through vehicles such as Corporate Social Responsibility ("CSR") programmes or initiatives are viewed with caution by business leaders.
• The increased level of regulation that has followed the global economic crisis is viewed by many senior board members with scepticism.

Notes to editors

Commenting on the findings, Sir Nigel Knowles, Joint CEO of DLA Piper said:

"I believe that this report reveals the challenges that all business leaders now face and provides fascinating insight into how companies are seeking to build trusting relationships with their stakeholders."

Populus

Populus, which was established in 2003, is pollster to The Times and works for a wide range of clients, including the Premier League, PepsiCo and Asda. In 2010 Populus launched Populus Data Solutions headed by former ICM Direct MD Patrick Diamond providing online and CATI field and tab services to a growing list of agencies.