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The Rising Stakes of Falling Trust

It may be perceived as a “soft” asset, but when trust in an organization drops, that shift may hit the bottom line.

By Christopher Roark | March 06, 2019 at 08:54 AM

From reports of tainted food and product recalls to cyber breaches resulting in theft of consumer data, incidents that reduce customers’ trust in businesses are becoming increasingly visible to the general public. That makes trust-related risks a fast-growing area of vulnerability that could threaten companies’ ability to compete. Consider, for example, how a highly publicized product defect that harms consumers might affect a business’s long-term success.

The heightened transparency of our digital world makes trust a hyper-flammable, ever-present concern that extends far beyond media headlines and brief dips in reputation. Instead, an incident that compromises the trust of key stakeholders can have a significant and lasting impact on a company’s bottom line.

In Accenture Strategy’s new research report on companies’ competitive agility, called “The Bottom Line on Trust,” we calculate the extent to which a decline in trust tangibly impacts a company’s financial performance. The results are astounding. We analyzed more than 7,000 companies around the world, operating across 20 industries, and we found that more than half of those organizations had experienced a major drop in trust during the past two and a half years. Moreover, we determined, based on available data, that as a result of these lapses in trust, the companies missed out on a combined total of at least US$180 billion in potential revenue.

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