It has often been lamented on how trust has been getting eroded from business. There is now a dire need to work on this. For this a proper framework needs to be fitted for each key stakeholder group. There are economic, legal and ethical promises for each. The first major stakeholders are the customers. They need to be provided with life- enhancing services and products. Industry regulations and customer protection laws need to be abided by. Risks need to be disclosed, while mistakes to them must be remedied. The next group is the employees. The right talent management practices need to be followed so that labour anti- discriminatory practices are followed, safety concerns are addressed and everyone gets treated fairly. Due provisions must be made for employees’ management training needs. Investors come next. Their risks need to be managed, while also ensuring the provision of the due returns. Material information needs proper disclosure and fiduciary duties followed. Insider trading must be a complete no. Employees too need to be trained on how to connect with investors. The last major group is the broader society. Employment and economic opportunities must be on top of the pile. Local and federal level laws have to be followed. The business must also show its care for the environment and public health. One could start off by setting the industry standards.

Source:https://hbr.org/cover-story/2019/07/the-trust-crisis

Uploaded Date:26 August 2019