Featured In: Capital Business (Capital FM), Date: March 14, 2025
Today, social media and digital platforms amplify every opinion, never mind if that opinion is right or wrong. A single post can make or break a company’s reputation. Media today is everyone, everywhere.
This therefore means that a company’s reputation is no longer solely in its control. Instead, it is shaped by its stakeholders—customers, employees, investors, partners, and the wider community. To effectively engage and do business with these stakeholders, trust MUST be in place. It is no longer a nice-to-have; rather, it’s the currency that fuels business success.
Trust drives customer loyalty, employee retention, and investor confidence. A 2023 Edelman Trust Barometer report found that 81% of consumers say trust is a deciding factor in their purchasing decisions. Yet, the risks of losing trust are immense.
Think about a brand like Shell (Kenya) that is currently in the heat of some massive backlash thanks to a single post that went viral on its fuel quality. Within hours, the conversation escalated, with customers sharing their own experiences and questioning the brand’s reliability. How quickly public perception can shift.
How the company chooses to address the stakeholder concerns will ultimately translate to value in its books (Positive or Negative).
To build trust, businesses must first identify their key stakeholders—customers, employees, investors, suppliers, communities, and regulators—and understand their priorities. To Gen Z consumers for example, sustainability and social responsibility are important non-negotiables.
So, how can businesses engage their stakeholders to build and maintain trust in this volatile landscape?
1. Open and Transparent Communication
Honesty and transparency are key to earning stakeholder trust. Share both successes and challenges openly. Companies should communicate clearly about their goals, values, and challenges. This means providing timely updates through press releases, social media, and direct engagements while addressing concerns head-on.
Could Shell proactively share third-party test results or industry standards in real-time for example?
2. Active Stakeholder Involvement
People trust organizations that value their opinions. Encouraging dialogue through forums, surveys, town halls, and social media engagement creates a sense of inclusion. For example, co-creating products with customers, seeking employee input on workplace policies, or involving local communities in corporate social responsibility initiatives strengthens stakeholder relationships.
Back to the Shell example, I recently saw a video showing that the company had engaged onsite entertainment in one of their fuel stations. While this is a good tactic on normal days, in its current state of crisis, this is ill-timed. Stakeholders want to understand what the brand is doing in regards to the fuel quality – Instead of using entertainment as a distraction, Shell could perhaps demonstrate responsibility and sincerity through meaningful engagement.
3. Authenticity and Consistency
Trust isn’t built overnight—it requires consistent and authentic interactions. Ensure your business practices reflect your stated mission and values.
If a brand promises quality and reliability, it must consistently deliver on that promise. Any gap between expectation and reality—such as the perceived inconsistencies in fuel quality—can damage long-term trust. Regular third-party audits, transparent reporting, and customer education can help reinforce credibility.
Similarly, when a brand claims to prioritize sustainability, it should back it up with real commitments, such as reducing its carbon footprint or supporting ethical sourcing. They should be measurable, visible, and consistently upheld.
Stakeholders are quick to spot inconsistencies, and any perceived dishonesty can damage trust.
4. Empowering Employees as Brand Ambassadors
Employees are a company’s most powerful advocates. Their experiences and voices shape public perception. Organizations that treat their employees well, listen to their concerns, and create a positive workplace culture naturally earn trust.
And in moments of crisis, employees are a brand’s first line of defence. If frontline staff are well-trained and informed, they can address customer concerns in real-time, preventing misinformation from spreading. A proactive internal communications strategy ensures that employees understand how to uphold brand trust.
Further, encouraging employees to share their stories and perspectives on platforms like LinkedIn humanizes the brand and builds credibility.
5. Responsiveness and Crisis Management
Issues and crises are inevitable, but how a company responds determines whether trust is strengthened or eroded.
Silence fuels distrust. A fast, responsible, and empathetic response that communicates corrective actions transparently—whether product recalls, service failures, or ethical concerns—demonstrates accountability. Stakeholders appreciate brands that acknowledge mistakes, apologize sincerely, and take corrective action.
Delayed or defensive responses only heighten scepticism. Companies should have a crisis response team and plan in place to handle such situations in real-time.
6. Social Responsibility and Purpose-Driven Initiatives
Today’s stakeholders expect companies to do more than just sell products—they want them to contribute positively to society. Companies must work to rebuild trust through long-term actions.
Brands that invest in sustainability, ethical business practices, and community impact initiatives create deeper connections with stakeholders. Purpose-driven companies like Patagonia and Unilever have built strong reputations by aligning their business models with positive societal change.
Such initiatives help reshape public perception and demonstrate corporate responsibility.
Trust Is the Currency of Business Success
In a digital world where a single review, tweet, or viral post can shape perceptions, engaging stakeholders strategically is essential. The key is to build trust before a crisis occurs because public perception can shift in an instant.
Trust is no longer just a competitive advantage—it’s the foundation of long-term success. It also extends further to play a crucial role in social sustainability.
Social sustainability is about ensuring long-term positive impact—not just for customers but for all stakeholders, including employees, suppliers, and the wider community. Companies that embrace this broader vision of trust build lasting relationships, enhance brand loyalty, and strengthen their societal impact.
Today, businesses should not see trust as just a marketing strategy, rather, it must be a core principle that drives both business growth and social progress. The question is no longer whether companies should prioritize trust — the question is about how they will ensure that trust becomes the foundation of their long-term sustainability.
How is your organization fostering stakeholder trust today?
