5 Steps to Build Public Trust in a Business
CHICAGO (TheStreet) -- For years, corporate America has had a public image problem, one that has only gotten worse since the economic collapse. In the wake of Enron and AIG (AIG), many Americans suspect large corporations of doing whatever it takes to make a quick profit, regardless of the effect on workers or the economy as a whole.
The good news for small businesses is that they're largely exempt from this skepticism. A poll conducted by NBC News and The Wall Street Journal earlier this year found only 13% of respondents had "a great deal" or "quite a bit" of confidence in large corporations. That number jumped to 54% for small businesses.
|Corporate America has an image problem: Many suspect large corporations of doing whatever it takes to make a quick profit. But small businesses also have to watch out for their image.|
It may be easier for a small company to build confidence, since customers often know the owner personally and can see firsthand how the business is run. But mistrust of corporate America has worrisome implications for all of us."Trust is as big an issue for small businesses as it is for large corporations, especially for new ventures," says Brian Moriarty, director of the Business Roundtable Institute for Corporate Ethics, which brings academics and business leaders together to promote and facilitate ethical training. "General mistrust in business hurts all companies, no matter what their size." For example, the belief that financial-services companies are willing to sell shoddy investments to pump up their own profits -- whether true or not -- trickles down over time to cast suspicion on small-town financial advisers. Mistrust of the pharmaceutical industry's marketing techniques can eventually lead to suspicion about payouts to independent medical practices. Companies that have been successful for a long time build a level of trust simply by thriving; if they manufactured dangerous products or had subpar customer service, they wouldn't stay in business. But small businesses with less of a track record don't inspire the same confidence. "With a newer company or startup, the strength of the brand promise is much less well known than it is with a company like Wal-Mart (WMT)," Moriarty says. "Trust breeds trust, but it takes time and experience to build."
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