Why CEOs Need to Care about Trust in Business
Capitalism depends on public trust for its legitimacy, and if public trust in business is low, governments and regulators act. If companies wish to avoid extra regulation, they must address this issue. But what are the standards of compliance beyond the law that create confidence in the business sector? According to a group of directors, business journalists, and academics, chief executives can address this issue by creating company-specific standards, publicly reporting their adherence to those standards, and establishing real consequences for violations of company policies.