One question that has been echoed consistently across organisations and boards in 2026 is, “How do we maintain and preserve trust?’
With the fast‑shifting global economic and geopolitical environment where regulatory uncertainty, political transitions, currency volatility, and social pressure collide, trust has become one of the most important determinants of organisational survival.
Organisations now operate in a landscape where corporate reputation can be destroyed overnight, misinformation spreads rapidly, and customers are more empowered than ever. In this environment, organisations need to adopt an intentional approach towards building trust because trust is both a strategic asset and a competitive advantage.
The Critical Role of Trust
I recently listened to an episode of the Ni-dacity podcast which featured prolific investor, Kola Aina, as a guest. During the conversation, he shared a powerful story about a tech company that ran into problems during the pandemic and faced severe backlash when customers could not get their money back.
While explaining how his company, Ventures Platform, helped to stabilise the situation, Kola pointed out something that stood out to him from that experience about the power of effective communication. In his words, “It turned out that what was mostly missing was that even though things have gone bad and people have been owed money, if you put a plan in place and you communicate it effectively and build trust, people can actually wait to get their money.”
This reflection highlights the role of trust and strategic communication, not just for organisations facing a crisis situation but also for forward-thinking organisations that want to future-proof their operations.
The company in question had strong endorsements from respected industry leaders. Customers trusted those leaders and, by extension, trusted the company. Once communication broke down, however, a vacuum emerged. This vacuum soon became a breeding ground for mistrust which led to rumors, suspicion, and fear.
Lack of transparency and communication is one of the fastest ways to erode trust. Even though the founders were not fraudulent and the company just fell into tough times from the after effect of the pandemic, the absence of communication created a narrative of incompetence and dishonesty. This in turn threatened their social licence to operate.
This story highlights an important truth – No organisation can operate or survive without trust from their key stakeholders. Without trust, there won’t be a social licence to operate, and it will only be a matter of time before that organisation folds.
What exactly is Trust?
In simple terms, trust is the confident belief that an organisation, its leaders and employers are honest, capable and reliable. It is the foundation upon which customers, regulators, employees, investors, and communities grant an organisation the permission and licence to operate.
In Africa, where informal networks, reputation, and relationships shape business outcomes, trust is existential for any organisation.
The Formula for Building Trust
Trust is never built in one day. It is built through consistent alignment between what leaders in an organisation say and what they do over time.
A useful formula for boards and CEOs to apply to build trust is:
Trust = Character + Competence + Behaviours
Character: An organisation’s moral backbone that signals integrity, intent, and ethical leadership.
Competence: Focusing on capability and results, which is what an organisation does and how well it does it.
Behaviours: The visible actions consistently taken by the organisation that reinforce the true essence of that organisation. Such behaviours include transparency, communication, accountability, responsiveness, etc.
Without character, competence and the reinforcing behaviours that inspire confidence, trust cannot be built and sustained.
Practical Actions for Boards and CEOs
These are some tips boards and CEOs can use to build trust:
- Keep promises. Nothing destroys trust faster than making and breaking a promise.
- Communicate early and frequently. Silence creates suspicion and the spreading of false narratives.
- Build internal trust first. Your employees are your first ambassadors, and they need to trust the leadership of the organisation.
- Strengthen governance. Weak governance structures weaken trust.
- Be transparent about challenges. When things go wrong, transparency is important. While stakeholders can forgive mistakes, they rarely forgive concealment.
Trust is the Glue of Organisational Life
This quote by Stephen R. Covey perfectly sums up the power of trust:
“Trust is the glue of life. It is the most essential ingredient in effective communication. It’s the foundational principle that holds all relationships.”
For organisations, trust is also the glue of organisational performance, corporate success and long-term relevance. While it is essential, it is also fragile and extremely difficult to rebuild.
Boards and CEOs must therefore treat trust as a strategic priority that should be measured, monitored, protected, and reinforced at every stage of the organisation’s lifecycle. And the starting point for this is effective and strategic communication.
