More trust will equal an estimated 10% increase in profit
More trust will equal an estimated 10% increase in profitTowards the end of last week EP was approached by ten Senior Players who argue they lack trust with their leadership. Why is this happening and how do we solve it. Customers lack trust in suppliers. Employees lack trust in leadership and even leaders are struggling as they are constantly having to push for higher profits which means cuts need to be made to retain margin. What if we were to tell you that there is a way to increase profit by an estimated 10% by believing in the importance of trust and creativity. The positive theory of business ethics is to do the right thing and when doing that you will also maximise long-term profit.Today many businesses are not doing the right thing. It’s not their fault, it’s something that has been eroded over time and in such small ways that it's hard to really see the change when in it. This is the decline in trust.EP has over the last week presented the case on the need for more trust in business at four different events this week and in turn ten senior players noted they understood and have told us that they don’t trust their leaders. They argue that by focusing on their responsibility to maximise profit, to do anything else would feel like a cheat to the investors and stakeholders. It’s a really interesting argument because in a competitive world, they don’t have any wiggle room and have had to focus on this. In the process, there is a decline of trust in business ethics.Make no mistake this is an issue that will not go away as both customers and employees are wanting change.We believe this can be solvedBoards have rightly focused on the business model and where it’s going – pushing it to the n'th degree which in turn has created this mistrust. As process and technology has enhanced certain systems it has also removed the ability for one person to stand up and take responsibility. To look at the long game and say, hold on, is this the right thing for our long term goals?By adopting this stance, businesses take responsibility of their ethics and look at the real picture – the customer and the employee. Personal responsibility and not blaming the profit-focused system.Why trust?
In most businesses trust is something we want and something we seek out and we use our personal interactions to choose where we place our trust.We trust those who tell the truth when it’s easier to lie. When someone keeps a promise when it’s easier to have gotten away with breaking it.How and why?
- Higher productivity
- Stronger cultures
- Increased wellbeing
- Greater retention
- Real pride in the business