With the increasing demand and culture of the gig economy, businesses are getting globaI by including workforces from over the globe. This isn’t something which can be done overnight, but the increasing EOR services are enabling businesses in large to leverage the best skilled talent from anywhere around the world.
This all requires trust and when it specifically comes to building or winning global trust, it’s something which creates the launchpad for any business to fly growth. As businesses are expanding across borders to establish and maintain trust is crucial in order to foster collaboration, ensure compliance, strategise accordingly and drive sustainable growth.
Strategy & Trust
When it comes to business operations, trust is not merely a moral trait, it then becomes a strategic asset. As per a recent survey report from the Boston Consulting Group’s Trust Index, the 100 top trusted companies generated 2.5 times more value than their competitor businesses and also able to generate around 47% higher price-to-earnings multiples at the end of 2023. This clearly implies the importance of trust building in business and how tangible are financial benefits.
Moreover, trust reduces transaction costs by minimizing the need for extensive monitoring and enforcement mechanisms. It facilitates smoother negotiations, quicker decision-making, and more resilient associations. We are going through the times where supply chains are becoming global and complex, trust only helps to eradicate complexities and safeguard the machinery of international commerce to run smoothly.
Global Trust Dynamics
The 2024 Edelman Trust Barometer also revealed varying pictures of trust across different regions. While developing countries often exhibit higher levels of trust in their different business institutions, where as, the developed nations are still skeptical and diplomatic. For example, only 35% of respondents in 27 countries expressed trust in companies headquartered in India, despite high domestic trust levels. This clearly highlights the challenges faced by companies while building international credibility.
Additionally, a PwC survey also indicates a growing disconnect between executives and consumers, with many business owners overestimating the trust placed in their organizations. This substantial trust gap can inhibit customer retention and deplete brand loyalty which also emphasizes the clear need for businesses to aggressively deploy processes and practices to cultivate trust and sustain it.
Building Trust Across Borders – How It Helps A Business
To rightly cultivate trust with values and loyalty intact in international business, it becomes utmost important for companies to factor in essential elements and strategize the processes;
- Cultural Competence
Understanding, adopting and respecting cultural differences, while operating overseas is always the first step. Curating communication and business processes to align with local consumers helps build trust.
- Transparency and Consistency
Consistent messaging and transparent operation practices build credibility. Regular updates on any miss or anything which is uncommon along with openness about decisions always enhance stakeholder confidence.
- Ethical Practices
Being loyal and always adhering to ethical standards and demonstrating corporate and social responsibility always proves you as a good human & businessman, which helps strengthen trust among international businesses and consumers.
- Data Integrity
In these times, when almost everything is digital, adopting practices to safeguard data and ensuring privacy and accuracy of information are essential
Leadership Matters
Leadership in any business always plays a crucial role in adopting practices, forming an environment to cultivate trust and encouraging the whole workforce on how to promote it at any cost. Leaders must at first place create ideas and establish the values they wish to see in their organizations which clearly demonstrate integrity, accountability, and empathy.
Conclusion
When a business plans to step across borders and embrace expansion at large, things become global, which demands diversification of their workforces, partners, associates and if the key to it, which is trust, is missing, business might see tangible growth in near future, but it won’t last longer. I have been with leaders. Who operate remote teams from other nations. They have employed managers to oversee workforces locally, but they themselves are neck deep into the operations and liaison with every single team member, this all inhibits growth and it’s because they can’t afford to trust.
