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Building an
Environment of Trust
Frank C. Bucaro, CSP, CPAE
www.frankbucaro.com
800-784-4476
“Culture, more than rule books,
determines how an organization
behaves.”
-Warren Buffet
“ Business is a partnership
of people creating,
in many ways,
a better life for others as
well as ourselves.
If Aristotle Ran General Motors
-Tom Morris
The Environment of
Organizations
1. Determines how people act, make
decisions, and govern their affairs.
2. Directs the promises made to
shareholders, customers, employees,
partners, environment, and
communities.
Jack Lowe Jr. of
TDIndustries, LTD
“Our relationships with our customers,
our suppliers and our internal
relationships cannot adapt quickly
enough to the demands of continuous
change and continuous improvement
unless we have a high trust culture.”
Reputation then the Brand
Brand = your name is synonymous
with a certain idea.
= it’s about an emotional
connection with the
customer.
Reputation is Based on the
Answers to These Questions:
 What do you want to be known for?
 Where are you in the process now?
 What else do you need to learn/do?
 How will you know when you get there?
Challenges to Trust
1. It is hard work.
2. It cannot be attained through slick
management skills, not
manipulation, etc.
3. The building of trust is an
essentially ethical activity.
People get in trouble at
work for four reasons
1. Abuse of power.
2. Abuse of knowledge.
3. Abuse of access.
4. Abuse of relationships.
Customers Need:
 Openness
 CSR programs, i.e. high quality
products/services, volunteer activities,
environmental issues, etc.
 Ethics surveys, to employees and
customers
 Access to the business’s hotline
You Need to Ask:
How Will This Help Them…
1. Feel like they belong
2. Feel significant
3. Develop a unique identity
Social Significance
Question
How do I fit in here?
Four “C”s of getting it right
Conscience = intuition, moral code, “gut”
Choice = pros and cons of choosing
Culture = beliefs and practices
Compliance = What does the law say
Siemens CEO Peter
Loescher
“You have to have your personal values
and then you build from there. Ethical
people are guided by a moral compass.
My father taught me that there is no
conflict between success and ethics,
indeed the only guarantee for a good life
is to live as a good person.”
USA Today – 2/15/2010
Americans’ outlook for U.S.
Morality remains bleak
Gallup Poll on 5/1/2010 found:
76% of Americans say moral values in
the U.S. are getting worse.
14% of Americans say moral values are
getting better.
Ten top reasons for the moral
decline: Gallup poll- 5/17/2010
1. Declining moral values
2. Disrespect of others
3. Parents not instilling values in their
children
4. Dishonesty in government/business
5. Rising crime/violence
Gallup poll- cont’
6. Moving away from religion
7. Breakdown of the family
8. People not accountable for their
behavior.
9. People don’t care.
10. TV content
Cowboy Ethics
1. Live each day with courage.
2. Take pride in your work.
3. Always finish what you start.
4. Do what has to be done.
Cowboy ethics-2
5. Be tough, but fair.
6. When you make a promise, keep it.
7. Ride for the Brand.
8. Talk less and say more.
Cowboy Ethics -3
9. Remember that some things are not
for sale.
10. Know where to draw the line.
The Problem
Values we Profess
Disconnect
Behavior we Demonstrate
There are only four
dilemmas for humanity
1.
2.
3.
4.
Truth vs. Loyalty
Individual vs. Community
Short Term vs. Long Term
Justice vs. Mercy
Institute for Global Ethics
Norman R. Augustine
Former CEO of
Lockheed Martin Corporation
“I can think of no commitment more
important to a corporation or its survival
than its commitment to ethics.
That means not only conducting our
business affairs within the letter of the law,
but also in the spirit of the law.”
Leaders Must:
• Carry moral authority, because without it,
leadership is bland.
• Balance the demands of the market,
owners, employees, customers and
community at large.
• View ethics as one of their top
responsibilities and as an integral part of
their stewardship and service to
shareholders and customers.
Challenges for Leaders
1. Become involved in the culture, i.e.
managing the culture and assess if it
is properly serving the long term
goals.
2. Stop asking “CAN we do this” but
rather “SHOULD we do this?”
Challenges, cont’d 2
3. Focus on how your organization does
business, not just what it does.
“The high standards and values
embedded in how you do business are
more powerful differentiators to
distinguish you in the marketplace.”
“Corporate Culture: The Ultimate Driver of Business
Performance” by Dov L. Seidman
Challenges, cont’d 3
4. Reward ethical leadership, even when
it hurts and punish unethical behavior
whenever you see it.
“If you lose dollars for the firm, I will be
understanding; if you lose reputation, I
will be ruthless.” -Warren Buffet
Challenges, cont’d 4
5. Make your decision in the light of the
broader ecosystem.
Do the right thing, any time and all the
time.
Mahatma Gandhi’s Seven
deadly “sins”
1.
2.
3.
4.
5.
6.
7.
Wealth without Work
Pleasure without Conscience
Knowledge without Character
Business without Ethics
Science without Humanity
Religion without sacrifice
Politics without principles
Business Should
Focus on:
PURPOSE: Why are we here?
MISSION:
What do we do to fulfill our
purpose?
VALUES:
How do we work together
to fulfill our mission and
accomplish our purpose?
Ethical Considerations
o On what foundation do we base our
ethical decisions?
o People make decisions based on the
values they hold dear.
o Ethical principles are not concerned
with how things do operate, but with
how they should operate!
Ethical Considerations (continued)
o The most difficult decisions to make,
are those in which there is a conflict
between two or more principles of
which you deeply believe in.
o It is important that we determine in
advance what our priorities are,
realizing that a lot will depend on the
situation.
Two Questions to Ask
1. Is this in line with our company’s
objectives?
2. Will the decision result in the right
thing being done for the customer?
Realities of Life
1.
2.
3.
4.
5.
Life is tough.
You’re not in control.
You’re not that important.
You’re going to die.
Your life is not about you.
GIFT
Each
Day
Each
Person