Corporate reputation will increasingly be defined by collective achievements

*Also authored by: Catriona Biggart and Grace Shin

One of the main themes of Davos World Economic Forum this year is Rebuilding Trust. Davos is talking about the shift towards multipolarity in geopolitics, growing competition between global powers and policy shifts towards protectionism.

Whether you believe in the grand philosophy of the sum of all parts or the more colloquial there is no I in team, both have never been more relevant.

The number of cases where organisations and nations on their own have tried and failed to tackle some of these macro issues  - climate change, security, inequality, misinformation - would be too long to list here. Everyone is broadly in agreement that collective and collaborative efforts are needed not only to solve these issues but to build trust in systems again.

The picture is currently bleak: trust in most US institutions has declined. According to PwC, last year only 30% of consumers globally trusted brands and 94% of brands themselves found at least one challenge when building trust with stakeholders. 

Trust and reputation go hand in hand. The more people trust you the better your reputation will be. Simple maths. With more effective collaboration to solve some of these bigger issues, the more people will trust private and public institutions and their reputation will be enhanced. This is far from easy to achieve - which is why it’s not the first time that trust is centre stage at Davos. It has been high on the agenda for several years.

There are many reasons why successful collaboration is difficult to achieve but one of the main ones is that collaboration is often synonymous with the psychological (and operational) barriers of an organization: the fear of the unknown and uncharted territories, loss of control and compromises in decision making. 

The concept of coopetition is another example of the difficulty of effective collaboration: for two bitter rivals to come together to solve a bigger issue requires bold, selfless and an altruistic mindset. There is no wonder why much has been written about ‘the dark side of inter-firm coopetition’; when cooperation between rivals leads to more harm than good. 

The time is over to think small. Big starts with big collaboration. The battle for trust and reputation will be won by those who realise this. The reputation of an organisation will increasingly be defined by its collective achievements, not just what it does on its own.

Let's hope Davos pushes this and walks the walk. Not just talk the talk. We need to see action. 

The Impact on Sustainability

Technology available today could contribute to a reduction of 66% of the global emissions required to achieve net zero by 2050. This a good start, with arguably more to be done. But it is heavily reliant on collective action and responsible business practices. From corporations looking to grow a circular economy, to those developing solutions that guarantee a secure, safe and affordable energy supply, attendees at Davos will debate how current solutions can be exploited for the greater good, and it will look at where investment must be directed to stay on course. 

All businesses - and indeed individuals within each business - have a role to play here. Their actions must inspire trust from their stakeholders. By green-hushing, or downplaying their climate-positive actions for fear of reprisal, they are hiding from the limelight, damaging trust and eroding goodwill. Instead, they should be shouting from the rooftops about the positive impact their actions have had - commercially, socially and reputationally. Jumping on the bandwagon would instead mean collective positive action from businesses looking for the same positive outcomes. 

We would hope that leaders at Davos can encourage the entire business community, from C-suite and investors to employees and shareholders, to practice responsible business. If cutting-edge technologies can lead to financial success as well as an improvement for the greater good then surely there are few industries that would push back?   

We hope that Davos walks the walk and not just talks the talk. 

The Impact on Policy

Meanwhile, this year marks the first Davos for a new Labour Government with Chancellor Rachel Reeves leading a delegation of ministers and advisors, hoping to win the hearts and minds of the world’s investors amongst a challenging economic backdrop.

This year's Davos themes— Reimagining Growth, Investing in People, and Industries in the Intelligent Age—closely mirror the Government’s domestic agenda. The Government has, so far, been keen to be seen as embracing the potential of innovative technology as a lever for economic growth and boosting the workforce. This has been most recently demonstrated with the AI Opportunities Plan along with a review on barriers to technology adoption for businesses. 

Davos potentially offers an opportunity for businesses to demonstrate how they can contribute to these goals, particularly by bridging gaps between public and private sectors. The challenge, however, lies in showcasing one’s role in driving growth and innovation, as well as addressing societal needs, all whilst understanding Labour’s nuanced position on public services. Companies must show how they can support critical sectors like health and education without fueling concerns about over-privatization. For businesses, the ability to genuinely offer solutions that align with government values will be crucial.

Like with everything, it all comes back to trust, and trust is a very precious currency in today’s political age. Davos has been accused in the past of simply being an international talking shop that takes attention away from domestic priorities - indeed, this was one cited reason for why Boris Johnson went as far as banning ministers from attending completely under his administration. Tangible actions that achieve public cut through will be key.

To learn more about how Clarity can help your brand build trust, visit here.

Image provided by unsplash and Damian Markutt