famous warren buffet He once said: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about it, you will do things differently.”
Data has significant power in the contemporary digital economy. The competitive landscape is changing, and the ability to effectively collect and use large amounts of data gives companies a competitive advantage.
But with that opportunity comes risk and responsibility. When it comes to customer relationships, data responsibility is the price of admission and turning data into value, securely and ethically, is the business imperative for years to come, at least. Trust, and specifically the concept of “digital trust”, has become fundamental to an organization’s growth strategy.
For more information, visit OneTrust.com
It takes a lot of effort to establish trust with customers and other stakeholders and it can be lost in an instant. With that in mind, TechCentral hosted a recent webinar, sponsored by OneTrust, to break down the notion of “trust”, its benefits and business impact, and share ideas on how to achieve trust in practice. Watch the full on-demand webinar below.
A valuable currency in today’s digital economy
Technological progress has presented us with abundant opportunities. From artificial intelligence and big data to cryptocurrency and blockchain, we are constantly faced with an impending technological revolution, transformative developments, and fundamental changes in the way we do things.
At the same time, we live in an age where “digital trust,” defined as trust in an organization to protect consumer data, enact effective cybersecurity, offer trusted products and services, and provide transparency around AI and data usage, is at an all-time high. low time.
The inherent trust that exists in the physical world, because we can see and know who we are interacting with, has not been replicated in the digital world. Because of this, it is imperative that companies demonstrate that they are trusted by their stakeholders—customers, suppliers, partners, and employees alike—in order to gain a competitive advantage in an age of digital transformation.
First of all, trust is a vital factor in building strong customer relationships. When customers trust a company, they are more likely to remain loyal and continue to engage in repeat purchases. Trust fosters customer satisfaction by creating a sense of confidence in the quality, reliability, and integrity of products or services. Satisfied and loyal customers contribute to increased sales, positive word-of-mouth referrals, and long-term profitability.
Watch the webinar
Second, trust is essential to foster collaboration and establish alliances with other companies or stakeholders. When organizations trust each other, they are more likely to engage in mutually beneficial collaborations, joint ventures, or strategic alliances. Trust facilitates the sharing of resources, knowledge and experience, which leads to innovation, greater market reach and shared success.
Finally, trust is also a critical element in building a positive work culture. When employees trust their organization’s leadership, colleagues, and processes, they are more engaged, motivated, and committed to their work. Trusted environments promote open communication, collaboration, and transparency, which can boost employee productivity, creativity, and satisfaction. Additionally, organizations that prioritize trust are more likely to attract and retain top talent.
In an increasingly “online” economy, trust gives companies a significant competitive advantage. In today’s crowded marketplace, where consumers are spoiled for choice, trust can act as a differentiator and attract customers who prioritize integrity and reliability when making purchasing decisions.
The role of risk management, security and compliance in establishing trust
One of the most transparent ways for organizations to demonstrate digital trust is to establish a foundation of effective regulatory compliance, demonstrating that they maintain the integrity of systems, protect confidential information, and ensure ethical and legal practices.
- Risk management: This involves identifying, evaluating, and mitigating potential risks that may affect an organization’s operations, reputation, or stakeholders. By proactively addressing risks, organizations demonstrate their commitment to safeguarding the interests of their stakeholders by avoiding disruption, financial loss, or reputational damage.
- Security: Organizations must implement robust security measures to prevent unauthorized access, data breaches, cyberattacks, or other security incidents. When stakeholders see that an organization has invested in strong security protocols, they are more likely to trust the organization with their personal information or business transactions.
- Compliance: Organizations that demonstrate compliance with laws, regulations, and industry standards build trust by showing their commitment to ethical behavior, fairness, and responsible practices.
The role of privacy, third party risk management and ESG in maintaining trust
By taking an integrated and strategic approach to risk management, security and compliance, organizations establish a foundation for success when trying to build trust. But the ecosystem is more complex than this. The relationship between companies and consumers has undergone a radical transformation in recent years. Consumers expect customers to reflect their values, engage with them as partners, and keep their private information private. This is where the role of privacy, third party risk management and ESG becomes critical in establishing trust.
- Privacy: In an increasingly data-driven world, people are concerned about the security and handling of their personal information. By prioritizing strong privacy practices, such as secure data storage, transparent data handling practices, and obtaining informed consent, organizations demonstrate their commitment to protecting the privacy rights of their customers, employees, and partners, inspiring trust and providing assurance that personal information will be handled responsibly. .
- Third party risk management: In today’s interconnected business landscape, organizations often rely on external vendors, suppliers, or partners to fulfill various functions. However, these relationships carry inherent risks that can affect the organization and its stakeholders. By implementing effective third-party risk management practices, organizations can demonstrate their commitment to protecting the interests of interested parties.
- Environmental, social and governance: By prioritizing ESG practices, organizations build trust by aligning their actions with the broader interests of society. Ethical practices, such as promoting diversity and inclusion, respecting human rights, and ensuring fair labor practices, build trust with employees, customers, and communities. Environmental responsibility, including reducing the carbon footprint, conserving resources and supporting green initiatives, showing a commitment to a sustainable future. In addition, strong governance practices, transparent decision-making processes, and accountable leadership help build trust.
Trust complements governance models and operationalizing this concept is critical to generating efficiency gains and perhaps even competitive advantage. However, determining how to build trust can seem complex and daunting for many organizations, especially those without an established trust program. As a starting point for helping organizations establish and exhibit trust, it is essential to build the principles of privacy, security, risk, and compliance by design into technology stacks from the moment development begins. When companies meet all the conditions for good data governance and management, they lay the groundwork for establishing trust through data ethics. As companies continue to grow and evolve into the enterprise landscape, they can focus on building more dedicated security and risk management functions to maintain ongoing trust.
Accepting the trust dynamics presented by the digital economy is not insurmountable. It is a proactive and holistic risk management journey that leads to sustainable business growth. It is entirely possible for organizations to gain trust, comply with regulations and policies, and gain the insights needed to deliver the personalized experiences that move customers and businesses forward.
OneTrust is the business platform that defines categories to make trust operational. More than 12,000 clients, including half of the Fortune Global 500, use OneTrust to make trust a competitive differentiator, implementing core agile workflows in privacy and data governance, GRC and security, ethics and compliance, and sustainability programs. and ESG. For more information, visit OneTrust.com.
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