Posts Tagged ‘ rebuilding trust ’
Toyota: Too Little? Too Late?
Wednesday, February 10th, 2010This morning I saw the first Toyota commercial in which the firm not only acknowledged the problems in their vehicles that have resulted in not one, but two extensive and expensive recalls, but they apologized for not living up to their longstanding reputation for quality. The commercial I saw was clearly an attempt to tug on the emotions of its consumers while also informing customers about the specific actions Toyota is taking to repair the affected vehicles and rebuild trust in their brand. Unfortunately, the response may be too little too late.
In my work I have said that it is not always the crisis event itself (in Toyota’s case a faulty product), but it is the handling of a crisis that often most threatens a firm. Toyota is the latest example of this. (more…)
In the wake of the financial crisis: rebuilding the image of the finance industry through trust
Thursday, December 3rd, 2009“In the Wake of the Financial Crisis: Rebuilding the Image of the Finance Industry through Trust” by Erika Hayes James links the financial crisis with positive organizational management. When stable corporate entities, such as Merrill Lynch and Lehman Brothers, enter bankruptcy, a crisis is definitely occurring. A crisis is defined as a low-probability, high-impact event that poses a threat to a company’s security. What has now become known as “the financial crisis” has affected banks, but also insurance companies such as AIG, and automakers such as GM, Ford, and Chrysler. Perhaps because of what some would call the source of the problem, the subprime mortgage lenders, and their predatory lending practices, an environment of corporate distrust has emerged.
Trust is built when expectations are met over time. Companies acquire trust by fulfilling the public’s needs and avoiding negative outcomes. When a crisis happens, trust is disturbed. Confidence in the abilities of a company and a perception of honesty from its leaders are important to stakeholders. When stakeholders can rely on management to do the right thing, a relationship of trust exists. When that trust is betrayed, however, negative feelings and unproductive behavior can occur on both sides.