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To thrive in today's unpredictable branding environment, companies need to build trust capital. In general, most companies focus on three forms of organizational wealth: financial capital, intellectual capital, and human capital. However, there is an important fourth component: trust capital.

Finance capital is the money a branded company uses to buy what it needs to make its products. It is also the money that is used to provide its services to the industry on which its activity is based.

Intellectual capital is the combination of three things. For one, Intellectual Capital is the organization's intellectual property, including trademarks, patents, licenses, and trademarks. Second, Intellectual Capital is the branded company's unique processes, databases, and infrastructures. Third, Intellectual Capital is the branded company's specific customer, franchisee / owner-operator, and supplier relationship that is used to harness, build, and maximize the company's wealth.

Human capital are the collective skills, knowledge or other intangible assets of the branded company. Human capital is the “people talent” of branded business that helps create economic prosperity.

Trust capital is the trust of the stakeholders in the leadership, credibility, integrity and responsibility of a branded company in order to fulfill its value proposition to its stakeholders. Trust capital is an intangible asset that increases the power of marketing spend and decreases the cost of new branding.

Trust capital is what the organization falls back on in difficult events, mishaps or crises. Trust capital is a valuable asset in situations where a brand has to defend itself in unexpected, unfortunate situations. Generating and accumulating trust capital in a trust reserve provides a pillar of trust that helps in managing crises of character. Trust Capital helps ensure sustainable profitable growth.

In an uncertain world where trust is dwindling and even disappearing, trust capital is an important part of the organizational prosperity of branded companies. Trust as a valuable asset takes time to build. It doesn't happen when you say, "Trust me."

Trust is earned in the long term. However, trust can be quickly lost. Facebook, VW, WeWork, and Boeing are good examples of how easy it is for trust to turn into suspicion in a matter of moments. How management behaves after a crisis or a mishap is crucial: Actions speak louder than words. However, a full reserve of trust from Trust Capital stabilizes the situation and helps companies return to their trustworthy relationships with stakeholders.

Trust Capital is based on three pillars:

(1) A brand is a promise. Promise what you can deliver and keep what you promise.

(2) Be consistent. Quality isn't how well you do on average. Quality is how consistently you meet expectations.

(3) Be true to your values. Be honest about your true nature and beliefs. Be authentic.

Trust capital is an intangible asset that strengthens customer loyalty. People prefer to do business with companies they trust. What should brand companies do to build trust capital? Here are four things you need to take now.

First, create an agenda of trust.

Getting the right results by doing the right things the right way is important. To generate trust capital, CEOs must have a strategic corporate platform based on a trust agenda. This agenda of trust addresses the following issues:

• How will we build trust in our regions, our brands, our employees, our shareholders, our franchisees, our partners, our suppliers and our local communities?
• How do we ensure that corporate responsibility is incorporated into all of our decisions?
• Are we a good global and local corporate citizen?
• How sustainable are our actions? An agenda of trust ensures that a sustainability opportunity is a priority. This means meeting the needs of customers, communities and businesses without compromising the needs of future generations.

An agenda of trust enables an organization to be a steadfast force forever without standing still.

Second, the CEO must be the CTO, Chief Trust Officer.

The CEO cannot delegate the leadership required to build corporate trust capital. It is the responsibility of the CEO. The CEO is the Chief Trust Officer. The chief trust officer is a fundamental, ongoing managerial responsibility. Trust building starts at the top.

The role of Chief Trust Officer is more than a title. Studies show that more trust is a key factor that leads to more preference and loyalty and generates high quality sales growth.

Third, do what you say you will do.

Do what you say you will do This is the foundation on which trust is built. It's a cliché to say that actions speak louder than words. It's a cliché because it's so true. Nothing kills trust more than promising and failing to deliver. Fed Ex built its business on the promise that documents and packages would be delivered the next day. Many trust Fed Ex more than the US Postal Service. Some people don't trust flying a Boeing 737 Max? The previous Boeing CEO swore the plane was safe, although internal technical documents prove otherwise. American Airlines silently adds Boeing 737 Max equipment to its flight plan. Do you trust American Airlines?

Fourth, build leadership, credibility, integrity, and responsibility.

Leadership has to be demonstrated and not just asserted. The brand business has to be a thought leader. Are you the industry innovator? And do you grow in size? In the 1980s, IBM was the technology giant. However, Apple was considered the most innovative. In the 90s, Hoover, Electrolux and Eureka were the biggest vacuum cleaner brands. Dyson was considered the most innovative.

• Credibility means that your statements and actions are plausible. Be reliable. Be able, knowledgeable, and an expert in your field. Offer a superior resolution to ailments. Be a trusted source of information. The former CEO of Ford Motor Company was unable to formulate a plan for the branded business. People continue to question Facebook's credibility as what it said did not do justice to its actions.
• Integrity means focusing on the interests of the customer. Be responsible for actions. Be ethical. VW has intentionally programmed its diesel engines so that emission control is only activated during the tests. Drivers who believed they had bought environmentally conscious vehicles were actually driving emissions polluters.
• Responsibility offers competitive advantages. Demonstrate good global corporate citizenship. Corporate social responsibility is not a separate department within the organization. CSR is not a department. It's a way of doing business. Some companies make it a core part of their business. Some companies like Patagonia and Stella McCarthy fashion house have responsibility as a core value.

Together, financial capital, intellectual capital, human capital, and trust capital ensure that a branded company can successfully achieve high quality sales growth. Trust Capital becomes the most critical of these. Furthermore, under the agonizing experiences of the pandemic, we want branded companies that we can trust.

In our ever changing and insecure world, trust is under attack. Building trust must be a brand priority. Raising trust funds is critical to high quality sales growth for sustained profitability and success. Nothing else matters without trust.

Contribution to Branding Strategy Insider by: Larry Light, CEO of Arcature

The Blake Project can help you build a trusted brand: The Brand Positioning Workshop

Brand Strategy Insider is a service from The Blake Project: A strategic brand consultancy specializing in brand research, brand strategy, brand growth and branding

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