why measuring trust is important in organizational reputation

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In today’s world where corporate leaders operate in an intense and complex global business environment, facing high demanding set of well-informed stakeholders, and wrestling with the latest stage of technological innovation and transformation, trust and organizational reputation are considered to be a company’s most vital assets and must be managed and handled with utmost care(Bente et al, 2012 ). Especially in organizations like the energy industry where projects are capital intensive and also prone to challenging environmental issues, corporate leaders within the energy industry are always looking for ways to impress stakeholders to invest , build trust and thus enhance their reputation within their community and the international market (Hwee Hoon Tan et al.2009). Although, managing reputation in this new environment requires organizations to respond skilfully to potentially dangerous issues and disruptions, while staying focused on their long-term growth and market goals. The measurement of the level of trust within an organization provides it with the opportunity to improve its marketing efficiency and build a long lasting reputation. Therefore, we must understand that trust and reputation work concurrently, and they need to be enhanced and safeguarded. Furthermore, it is noteworthy that an outstanding reputation does not automatically translate to a better bottom line; however a bad reputation may poise an adverse effect for an organization’s future, as a negative strike on an organization's reputation often results in a decline in consumer trust and any erosion in trust equals a negative hit to business growth. This paper aims to look at the understanding of trust, organization reputation and in conclusion answer the qu... ... middle of paper ... ...ummary, a problem can be solved when we don’t understand the precise problem such is the case of trust and reputation. A significant reason why this has been the case is because we haven’t measured it, or have only measured it at the first domain, when, in fact, trust can be effectively measured in these three domains or categories. As we become better at measuring trust, we also become better at increasing trust. As we do this we turn this so-called intangible into a hard-edged, economic driver, enabling us to increase the dividends in our organizations and also our reputation. The practical relevance of this is that trust is the strongest predictor of consumer satisfaction (Rawlins, 2007). Due to its importance, trust should be measured and included as a critical indicator on the dashboard of any organization concerned about its global relationship and reputation

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