Inclusive management and holistic trust drivers key to improved leadership
Edelman Trust Barometer study indicates decrease of trust in government and business leaders across industries calls for revamped trust-building and leadership skills. February 08, 2013 | Lalitha SivanesanThe 2013 Edelman Trust Barometer study includes a component which deals with 13 years of data on the financial and banking industry, and notes that there has been a marked decrease in trust in banks over the last five years. In 2013, over two-thirds of the market registered trust levels below 50%. Trust in the industry hit rock-bottom for many European countries, especially for Germany, UK and Ireland, which measured 23%, 22% and 11% respectively. This is likely due to the EU debt crisis and depreciation in member countries’ currencies. Traditionally, trust in banks in emerging markets has been solid, but Russia and Brazil have bucked the trend, dropping below the 50% mark in 2013. India and Mexico continue to register levels of trust of more than 70%. Interestingly, the survey found that banks in China registered the highest levels of trust at 83%, an 11% increment over 2008, contrary to other countries involved. In terms of banks’ performance report card, which measures the relationship between trust and performance, banks in developed markets, such as the US and UK, performed below 40% for most areas, including lending to small business, providing home loans, offering reasonable credit cards, trading and investing in government debt, and overseeing initial public offerings for companies. Across the board, all banks have been rated above 50% for ensuring the privacy and security of customers’ personal information, with the exception of UK banks. China scored above 50% in all areas. The study highlights that the trust deficit in banks is linked to culture. It reports that 59% of issues relating to banking/financial services scandals are internal and within a bank’s control, with corporate corruption contributing 25%, a corporate culture driven by compensation or bonuses accounting for 23%, and 11% arising from conflict of interest. The study furthe... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Capital & Strategic Issues, Risk and RegulationCapital & Strategic Issues,Risk and Regulation, Capital & Strategic Issues,Risk and Regulation, Keywords:Edelman Trust Barometer, Trust Drivers, Performance Clusters, Grounded Leadership Edelman Trust Barometer, Trust Drivers, Performance Clusters, Grounded Leadership
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