The IABC Handbook of Organizational Communication: A Guide to Internal Communication, Public Relations, Marketing, and Leadership

Trust and Organizational Excellence

High-trust organizations have increased value, accelerated growth, enhanced innovation, improved collaboration, stronger partnering, better execution, and heightened loyalty. A 2002 study showed that high-trust organizations outperformed low-trust organizations by 286 percent in total return to shareholders (stock price plus dividends) (Kramer & Cook, 2004). A 2005 study supported these findings suggesting high-trust organizations earned more than four times the returns of the broader market over the prior seven years (Covey & Merrill, 2008; Covey, 2008). By contrast, low-trust organizations appear to face a bleak future. Recent examples, ranging from Enron to Bear Stearns, Lehman Brothers, AIG, and Toyota, ...