Importance of Trust in Business: Interview with Dr Bruno Roque Cignacco

Interview on the topic “Importance of trust in business” with Dr Bruno Roque Cignacco, the author of the book “The Art of Compassionate Business” 

Trust plays a vital role in fostering cooperation and strengthening relationships in business. Dr Bruno Roque Cignacco explores this topic in his book The Art of Compassionate Business, offering research-based strategies for building credibility through transparency, value creation, autonomy, and participation while avoiding behaviours that erode stakeholder confidence.  

In the second edition of your new book “The Art of Compassionate Business” you discussed the importance of trust in business. Could you please tell me more about this topic? 

There seems to be a generalised lack of trust on a societal level, which also affects business organisations. Numerous companies perform unethical activities (e.g., environmental pollution, manipulation of customers, employee exploitation, etc.), which also contribute to this phenomenon.  Some specialists have defined trust as the capacity of being vulnerable before others and expecting them to behave positively. When others meet one’s expectations, one’s trust toward them is heightened. In business, trust fosters co-operation among people and helps develop stronger relationships with them.  

In business, what are specific things a company can do to bring about more trust? 

This is a fascinating question. In my book, I discussed various research-based suggestions for companies to become more trustworthy, as follows: 

• Adding continual value to others: Trustworthy companies are continually trying to improve the lives of their stakeholders (e.g., customers, employees, suppliers, etc.). For instance, a trustworthy company is more prone to offer its employees attractive salaries, but also additional benefits (healthcare, flexible worktime, remote working, etc.). This type of company will appreciate its staff members’ contributions openly (e.g., thank-you notes, recognition awards, bonuses, etc.). In the case of customers, a trustworthy company will aim to continually develop better products (e.g., superior design, better materials, etc.) and also offer customers incentives when they purchase these very products (e.g., free trial, free delivery, free training, etc.). When a company regularly increases the value offered to its stakeholders, its reputation is significantly enhanced, and it is more likely to be endorsed by these very stakeholders (e.g., positive customer reviews, positive comments on Glassdoor, etc.).
• Fostering autonomy:  Companies can foster more independence, for instance, in the workplace. For example, managers can delegate more. For example, managers can delegate more and avoid micromanaging their subordinates. In other words, these managers trust their employees, which prompts them to trust these managers more, in return. In relation to customers, companies can bolster autonomy regarding their customers, allowing them to make decisions without exerting any pressure on them. To that effect, organisations should avoid using manipulative stratagems (e.g., creating false scarcity of products to make them more attractive to customers). 
• Being transparent: Whenever developing agreements with stakeholders, companies should be transparent about their intentions, and avoid engaging in any opportunistic behaviour. For instance, companies should avoid developing win-lose deals, where these organisations win at the expense of others (e.g., customers, employees, etc.). Companies should only develop win-win agreements, where the needs of each party are fully met.  In addition, a transparent company will avoid making exaggerated claims; this type of company will always aim to deliver what was promised. For instance, if a company promised to offer its products to customers on a specific date, this organisation should avoid late deliveries, as they can potentially erode its trustworthiness.  Transparent companies are honest regarding the traits and benefits of their products (e.g., quality levels, design, estimated lifespan, etc.), avoiding distorted promotion which can mislead customers. 
• Encouraging participation: Companies that empower stakeholders to give their views on relevant topics are more likely to become more trustworthy. For instance, companies can prompt customers to provide ideas regarding new products to be developed by these very organisations (e.g., crowdsourcing, contests, etc.). In some workplaces, there can be suggestion boxes and surveys which encourage staff members to provide valuable insights, which can help improve products, services, processes, and systems within these organisations. 

Thanks for your comments. Is there anything that you suggest in your new book that companies should avoid to become more trustworthy?

• Fostering the dark side of politics: In many organisations, there are detrimental behaviours that generate distrust, such as one-upmanship, favouritism, slandering, turf wars, harassment, and bullying, among others.  These damaging behaviours prompt people to adopt a defensive and non-co-operative attitude towards others. In these workplaces, staff are less likely to work collaboratively with others. They are more prone to avoiding sharing resources with them. This type of behaviour brings about more distrust in the work environment. 
• Behaving in a non-compassionate manner: In some workplaces, staff members act in an unkind manner toward their colleagues, without acknowledging their emotional states. In these work environments, people are prone to take others for granted and fail to show appreciation (e.g., offering compliments, etc.). In these workplaces, staff members are less prone to assist others when they face difficulties. All these behaviours bring about an environment of distrust. 
• Being only profit-oriented: Some organisations are excessively oriented towards profits, without caring about the potential detrimental social and environmental effects of their business activities. These companies are only interested in the quantitative parameters (e.g., profits, market share, etc.), without aiming to bring about a positive impact on the social environment (e.g., volunteering projects, charitable endeavours, etc.) and the environment (e.g., use of renewable sources of energy, green manufacturing processes, etc.). Oftentimes, these companies pursue these economic parameters (e.g., profits, etc.) by all means, bringing about a negative impact on their stakeholders (e.g., deceiving customers, exploiting employees, etc.). These behaviours render these companies untrustworthy. 

Thanks for your insightful ideas. Any final comments from your book on this topic? 

In trust-based environments, people are less prone to becoming defensive and more inclined to share resources with others. When people trust others, they are also more open to receiving feedback from them. In business, research has clearly shown that trust-based bonds can lower some costs (fewer formalities and contracts are often needed) and foster more productivity, support, and co-operation, while reducing stress levels. Lastly, people working for companies are more prone to become more trustworthy when they regularly ask these self-reflection questions: 

• How can we add more value to various stakeholders? 
• How can we be more transparent regarding our business projects? 
• How can we develop more win-win agreements with our stakeholders? 
• How can we adopt a more compassionate attitude towards others? 

About the Interviewee

Dr Bruno Roque Cignacco (PhD) is an international business consultant, TEDx speaker, and researcher. For over 30 years, he has advised and trained hundreds of companies on international trade activities and international marketing. He also trains companies on topics related to compassionate business and human-oriented leadership. He is a university professor and a senior fellow of the Higher Education Academy (HEA, UK). He is also the author of business and personal development books published in different languages. The second edition of his new book “The Art of Compassionate Business. Main principles for the human-oriented enterprise” is available at  www.routledge.com/9781032445427