Trust

Trust is recognized as an important factor that mediates many aspects of human behavior (Camerer,
2003).1
Definitions of trust vary but a widely accepted one is that it is a psychological state
comprising the intention to accept vulnerability based upon positive expectations of the intentions
or behavior of another.2
Therefore, a person (the trustor) who depends on someone else (the
trustee) expects to reduce the likelihood or size of a negative outcome in some situation, such as
when that dependence is misplaced, the expected value of the outcome is lower.
1
Camerer, C. F. (2003). Behavioral Game Theory. New York, N.Y: Russell Sage Foundation.
2
Rousseau, D. M., Sitkin, S. B., Burt. R. S. and Camerer, C. (1998). Not so different after all: A cross-discipline
view of trust. Academy of Management Review, 23, 393–404.

"He who does not trust enough will not be trusted."
Lao Tzu - Chinese Philosopher and Writer
“The toughest thing about the power of trust is that it's very difficult to
build and very easy to destroy. The essence of trust building is to
emphasize the similarities between you and the customer.”
Thomas J. Watson - Chairman and CEO of IBM (1914-1956)
In order to build trust, the basic thing that we need is to continue to do good and ethical behaviours.
To succeed as a business, one must assess the quality of relationships across organization, from
leaders to employees, employees to leaders, employees to employees, and employees to customers.
Edelman Released their Trust Barometer in 2016. Based on their survey, the first most trusted
resource of information is recommendation from friends and family, while the second most trusted
resources is shared positive opinion from online search engine.
Global trust for Non-Govermental Organization (NGO), Business, Media and Government is rising
from 2015 to 2016 event during recession period. However, trust in Indonesia is decreasing except
for business. This phenomenon is due to people image that business is still a trusted institution due
to its capabilities to adapt on changes, along with its abilities to improve the economics and social
conditions while maintaining its activities and profits.
Indonesia 5 year trend show government & Non-Governmental Organization trust increase, although
still behind media and business. Non-Governmental Organization has the most trust due to its aim
for social activities without the needs to gain profit which makes people believe that such businesses
will be more honest and transparant.

For most cases in Indonesia, Chief Executive Officer (CEO) and Senior Executive are often trusted
more rather than the lower level management. Company will gain benefits if its puts more ‘brand
image’ of the high level executive on its campaigns.
Looking at current developments, it can be said that data and articles from internet are one of the
most trusted sources. This also includes the current trend of online mouth to mouth marketing as
one of the most trusted source of information, according to Nielsen. Around 92% of consumers
believe recommendations from friends and family over all forms of advertising.
Bottom up approach for trust is transparancy, which allows the employees to know the condition,
development and perceive themselves as part of the company. One of the method to build trust to
our clients and potential clients is to make them human, with personalize story to make them feel
comfortable and appreciated.
"When the trust account is high, communication is easy, instant, and
effective."
Stephen R. Covey - Educator, Author and Businessman
Trust is an intangible asset which is imperative in business. Supplier in a high-trust trading
relationship are also willing to invest in costumer-spesific and general assets because of the assumed
long-term commitment in such relationship.
Business integrity policies, as defined for the purposes of this report, include internal company
programs, functions, people, processes or controls that seek to prevent, detect and/or address
Serious Corporate Misconduct.3
"The glue that holds all relationships together, including the relationship
between the leader and the led is trust, which is based on integrity."
Brian Tracy - Chairman and CEO of Brian Tracy International
3
Organization for Economic Co-operation and Development (2015). Trust and business: Corporate Governance
and Business Integrity.

"The leaders who work most effectively, it seems to me, never says 'I' and
that's not because they have trained themselves not to say 'I'. They don't
think 'I'; they think 'we'; they think 'team.' They understand their job to be
to make the team function. They accept responsibility and don't sidestep
it, but 'we' gets the credit. This is what creates trust, what enables you to
get the task done."
Peter Drucker - Author of Managing for the Future
Effective Corporate Governance would ensure the checks and balances system that is necessary
to prevent corporate misconduct. It is important to devote more time and resources for developing
and implementing better business integrity practices, which are incorporated into a company’s
governance framework, operations, and strategy.
Companies that implemented these values will create a corporate culture where misconduct and
reckless risk-taking are not tolerated (nor rewarded) and where violations are addressed and often
also self-reported to the authorities. They tried to address the material and reputational risks of
further misconduct related to their businesses, performing an important role in preventing,
detecting and addressing serious corporate misconduct.

For further assistance & consultation, kindly contact:
Muhammad Ikhlas Modjo
E: mim@mimconsulting.co.id
P: +62 815 8200 890
Doddy Oktavianus Iskandar
E: doddy.oktavianus@mimconsulting.co.id
P: +62 813 1835 9197
Dian Oktaviani
E: dian.okta@mimconsulting.co.id
P: +62 816 184 7683
Website:
www.mimconsulting.co.id
Wisma Kodel - 11th
floor
Jl. HR Rasuna Said Kav. B-4
Jakarta Selatan 12920
T: +62 21 5290 2028
F: +62 21 5290 2027

Trust

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