Trust is the foundation that holds every successful organization together. In this blog, Jeremy Capell dives into how trust fuels resilience and why transparency is the key to building it. He shares how leaders can strengthen both internal teams and external relationships by being open, accountable, and consistently doing the right thing—even when it’s hard.
In today’s business environment, trust is one of the most valuable assets an organization can have. It underpins every relationship—with customers, employees, investors, and partners. Yet, trust is not easily earned, and in an era of instant communication and heightened scrutiny, it can be lost in the blink of an eye.
The foundation of trust is building a culture of doing the right thing and being transparent. Organizations that embrace openness and transparency—acknowledging challenges, sharing their decision-making processes, and standing by their values—not only foster trust but also build resilience. Transparency is not just a public relations tactic; it’s a strategic necessity for navigating uncertainty and earning stakeholder loyalty.
The business case for trust and transparency
The impact of trust on business performance is significant. According to the Edelman Trust Barometer, 88% of people say transparency is the most critical factor in building trust. When organizations are perceived as trustworthy, they enjoy higher customer loyalty, stronger employee engagement, and more robust investor confidence.
Consider these examples:
- Customer Retention: Trustworthy companies see higher customer retention rates, as stakeholders are more likely to remain loyal even during periods of disruption or uncertainty.
- Employee Engagement: Employees are more motivated and productive when they trust their leadership and believe in the organization’s mission.
- Investor Confidence: Transparency about risks and opportunities reassures investors, creating stability even in volatile markets.
On the flip side, a lack of transparency can be disastrous, even if they follow good business processes. When organizations are seen as opaque or deceptive, they risk losing stakeholder trust, damaging their reputation, and facing long-term financial consequences.
Transparency as a driver of resilience
Resilience is the ability of an organization to adapt and thrive in the face of challenges. Transparency strengthens resilience by fostering alignment, accountability, and collaboration across all levels of the organization. Here’s how:
1. Open communication builds alignment
When leaders communicate openly about challenges, goals, and progress, they create alignment within their teams. Employees understand the organization’s priorities and their role in achieving them. This sense of purpose is especially important during times of change.
For example, during the COVID-19 pandemic, organizations that provided clear, honest updates about their plans and challenges were better able to maintain employee morale and customer trust. By contrast, those that remained silent or issued vague statements often faced backlash.
2. Transparency creates accountability
Transparency holds organizations accountable to their stakeholders. By sharing metrics, progress reports, and lessons learned, leaders demonstrate their commitment to continuous improvement. For instance, many companies now publish sustainability reports detailing their efforts to reduce carbon emissions and improve social impact. These reports not only build trust but also reinforce accountability.
3. Openness encourages collaboration
Transparency fosters a culture of collaboration by breaking down silos and encouraging open dialogue. When employees and partners feel informed, they are more likely to contribute ideas and solutions. For example, cross-functional teams that share data and insights can address challenges more effectively than isolated departments.
Challenges to embracing transparency
While transparency offers significant benefits, implementing it can be challenging. Common barriers include:
- Fear of Negative Perception: Leaders may worry that sharing challenges or setbacks will damage the organization’s reputation. However, stakeholders often appreciate honesty and are more forgiving when organizations acknowledge their mistakes.
- Lack of Infrastructure: Transparency requires systems to collect, analyze, and share information effectively. Without the right tools and processes, efforts to improve transparency may fall short.
- Cultural Resistance: In some organizations, a “need-to-know” culture may hinder efforts to embrace openness. Shifting this mindset requires strong leadership and clear communication about the value of transparency.
Overcoming these barriers requires intentional effort. Leaders must model transparency in their actions, invest in the necessary infrastructure, and foster a culture that values openness.
Case studies: Trust and transparency in action
Retail sector: Navigating supply chain disruptions
A global retailer faced significant supply chain disruptions during a period of high demand. Instead of hiding the issue, the company communicated openly with customers, explaining the reasons for delays and providing regular updates on expected timelines. This transparency maintained customer loyalty and even strengthened the company’s reputation for honesty.
Financial services: Rebuilding trust after a crisis
A financial institution experienced a data breach that exposed sensitive customer information. The organization’s immediate response was to notify affected customers, provide details about the breach, and outline the steps being taken to prevent future incidents. While the breach was a setback, the company’s transparent approach helped retain customers, rebuild, and in some cases further advance trust with customers.
How leaders can foster transparency
Leadership is critical to creating a culture of transparency. Here are three strategies for fostering openness:
1. Lead by example
Leaders set the tone for transparency within an organization. By being open about their own challenges, decisions, and values, they encourage others to do the same. For example, hosting regular Q&A sessions where employees can ask candid questions demonstrates a commitment to open communication. Leaders should also encourage open feedback from customers. Providing clear avenues for customer input—whether through surveys, open forums, or direct engagement on social media—shows that the company values honest dialogue. A culture of transparency should extend beyond internal teams, fostering trust with customers and stakeholders by openly addressing concerns and acting on constructive feedback.
2. Invest in tools and systems
Transparency requires infrastructure to support the sharing of information. This might include dashboards that track progress on key initiatives, tools for gathering employee feedback, or platforms for real-time updates. These systems make transparency tangible and actionable.
Companies are also investing in dedicated leadership roles to ensure trust remains a priority. More organizations are appointing Chief Trust Officers and building dedicated teams focused on accountability, ethics, and transparency. By allocating resources and executive leadership to trust, businesses signal their long-term commitment to openness and integrity. These investments reinforce the idea that trust isn’t just a value—it’s a business imperative.
3. Celebrate success and learn from failures
Transparency is not just about sharing challenges—it’s also about celebrating achievements and learning from mistakes. Recognizing team efforts and discussing lessons learned creates a culture of continuous improvement.
Celebrating successes also builds a sense of pride in doing the right thing. When organizations acknowledge ethical decision-making, responsible leadership, and transparency-driven achievements, they reinforce the importance of trust in their workplace. Employees feel more connected to the company’s values, and customers see a business that stands by its commitments.
The future of trust and transparency
As stakeholder expectations evolve, transparency will become even more critical to organizational success. Customers will demand greater accountability, employees will seek alignment with their values, and investors will prioritize companies that demonstrate openness and integrity.
Emerging trends, such as real-time data sharing and AI-driven insights, will shape the future of transparency. For example, blockchain technology is already being used to increase supply chain transparency, allowing customers to trace the origins of their products. Similarly, AI-powered analytics can help organizations identify and address risks more effectively.
Trust and transparency are not just buzzwords—they are essential components of resilience and long-term success. Organizations that embrace openness will build stronger relationships, foster innovation, and navigate challenges with confidence. By prioritizing transparency today, leaders can create a foundation of trust that will sustain their organizations for years to come.
Trust and transparency don’t just happen—they’re built through everyday actions. As Jeremy points out, organizations that lead with honesty and listen to feedback create lasting resilience. Take the first step today: open up conversations with your team, communicate clearly with customers, and commit to building a workplace built on trust.