The Troubling Topic For Trust In Business

Julie Starr • April 19, 2022

Trust is a topic that has been focused on in a number of different conferences, articles, and management books. Trust is claimed to be some almost magical economic elixir that explains everything from enhanced happiness to productivity gains. However, in reality, it is just as challenging and complicated to measure at an organizational, individual, and team level. Luckily, there have been discoveries in neuroscience that have provided us with actionable, peer-reviewed, rigorous, and fresh insight into what trust is, how to measure it, and most importantly, how businesses can create and enhance trust to improve their performance. 



In this blog post, will take a look at the science behind trust and how leaders can cultivate it by giving more in business. 

Understanding trust

There is only one place to begin, and this is by understanding what trust is. In 2001, Steve Kanck and Paul J. Zack released a biologically based model that provided us with the first comprehensive mathematical derivation of trust. It showed us that we can lower the transaction expenses that are linked with investment decisions through sheer trust. It was all about improving the confidence in what the other party would do. This involved using 41 different countries, and the outcome was that the strongest predictor economists had ever found was trust. Since then, trust was deemed an economic lubricant, which lowered the friction that usually happened during economic activity. This same relationship can be applied to organizations when it comes to describing interpersonal interactions between the workforce.

Oxytocin

One of the turning points when it comes to trust in business and in leadership was the discovery of oxytocin and the role it plays. This is where the neuroscience of trust really comes into play. Oxytocin is a neurochemical , and trustworthiness is predicted by the amount of oxytocin produced. Therefore, the study of this chemical enabled us to understand things from a different perspective. One study involved giving synthetic oxytocin to patients. In this research, it found that those participants were twice as likely to show optimal trust by sending all of their money to someone else and they also trusted strangers with 17 percent more money. There has since been further research into this chemical that shows that it works by increasing our empathy and emotional connection to someone else, which again, increases trust. After all, we are motivated to help other people when our empathy is enhanced. So, what does this mean for your business? Well, it is all about creating an environment whereby trust is high, and this means an environment whereby more oxytocin is created. 

Start by reducing stress

One of the most important elements when it comes to creating reciprocity within the working environment, which of course, enhances productivity is to lower stress . This is because there are a number of neurochemicals that either inhibit or promote the brain’s release of oxytocin. One of the chemicals that inhibits oxytocin from developing is epinephrine, which is a stress hormone. When we are experiencing periods of high stress, epinephrine will spike the blood pressure and heart rate, which stops us from connecting to other people and feeling empathy. Therefore, in high-stress environments, creating the trust that is needed for your business to flourish is impossible. Interestingly, though, oxytocin release increases when there are moderate levels of stress, and so it is all about finding a balance. We like a challenge and we will often turn to others to assist us. If you create a workplace that is challenging without tipping people overboard, you can create the perfect environment for trust. People will feel the need to lean on one another and help one another, which will promote autonomy, which in turn promotes innovation to build a strong team. 

Building a high trust culture

When you take all of this into account, building a high trust culture whereby reciprocity lies at the core of productivity is all about designing a work environment whereby oxytocin can be released a lot of times throughout the day. Therefore, you can put together a set of actionable ways to design a business culture that bolsters and sustains interpersonal trust by understanding the brain circuit that oxytocin activates. This should include the likes of recognizing accomplishments through price, enabling participative decision-making and celebrating mistakes as opportunities to learn, and stimulating oxytocin through timed group challenges.

It does not matter whether you run an insurance company, like West Point Insurance Services , or you have a retail clothing store, you need to make sure that there is trust across your business. Trust will enable other areas of your business to flourish as a consequence. You will find that your workforce is more productive because they will not be second-guessing everything they do. Instead, they will be able to do their jobs with full confidence, and the difference that this can make is truly astounding. 

Remember that trust takes time to build but it can take seconds to destroy

While we are on the subject of trust, it is imperative to realize that while trust can take a while to build, it can also be destroyed in just a matter of seconds. This is why you cannot afford to take your eye off the ball when it comes to this area of your company. No one wants to have to embark on the process of rebuilding trust, as it is definitely not something that is easy to do. 

Final words on the troubling topic of trust in business

All things considered, we hope that this blog post has helped you to get a better understanding of the power of reciprocity in business and workplaces. There is no denying that this plays a critical role. However, trust is something that is incredibly difficult to measure and understand, which is why you need to look at it from a neuroscience point of view. 

The Business Case for Sustainability: Communicating Your Strategy in an Evolving Landscape

By Julie Starr • February 17, 2025
A shifting political landscape can create uncertainty for businesses committed to sustainability, but one thing remains clear: the need for transparency and strategic communication has never been greater. As the federal government moves to roll back environmental and social policies, companies must proactively define their sustainability strategies, ensuring stakeholders—employees, customers, investors, and partners—understand their commitments and the business value they create. The Power of Clear Communication Sustainability is not a trend; it’s an imperative driven by economic, environmental, and social realities. Despite policy shifts, the forces of market demand, global regulation, and risk mitigation continue to push companies forward. To maintain momentum, organizations should : Clarify Their Sustainability Position: Companies must articulate their approach in ways that resonate with stakeholders. Whether reducing emissions, improving supply chain resilience, or advancing diversity, equity, and inclusion (DEI) efforts, leaders should communicate clearly how these strategies align with long-term business success. Leverage Data-Driven Insights: In an era of skepticism, relying on factual, measurable sustainability outcomes strengthens credibility. Stakeholders need more than broad commitments—they need clear, quantifiable impacts. Maintain Focus on Global Markets: While federal policies may change, international regulations and customer expectations continue to favor sustainable business models. Companies operating across borders must ensure their sustainability strategies align with evolving global standards. Staying the Course in a Changing Environment While some companies may feel pressure to scale back sustainability efforts in response to shifting political winds, leading organizations recognize that progress is a long-term game. Now is not the time to retreat but to double down on: Resilient Supply Chains: With new tariffs and policy changes affecting imports, companies should evaluate how sustainability-driven supply chain diversification can reduce risk and enhance efficiency. Operational Decarbonization: The financial and strategic benefits of decarbonization—from renewable energy investments to energy-efficient operations—remain strong, independent of policy shifts. Workforce and Customer Engagement: Employees and consumers increasingly expect businesses to uphold their values. Companies that maintain commitments to social responsibility and environmental impact will strengthen brand loyalty and attract top talent. Sustainability leadership is about more than responding to regulatory shifts—it’s about defining the future. Companies that stay the course, communicate effectively, and align their sustainability strategies with business objectives will be the ones that thrive in the years ahead.

Connecting the Dots: Air Quality, Climate Messaging, and Stakeholder Engagement

By Julie Starr • February 7, 2025
I n a world increasingly affected by environmental change, it’s critical to recognize the everyday impacts of air pollution beyond the commonly cited respiratory and cardiovascular risks. A recent study, published in Nature Communications , reveals that even short-term exposure to air pollution can impair cognitive function, affecting focus, emotional recognition, and task performance. This groundbreaking research underscores the urgent need for effective climate communication and stakeholder engagement to address air quality issues. At Taiga Company, we specialize in climate-focused stakeholder engagement, helping organizations bridge the gap between scientific findings and actionable change. Our services provide a crucial platform for educating stakeholders—including businesses, policymakers, and communities—on the dangers of air pollution and the strategic steps needed to mitigate its effects.  The Link Between Air Quality and Cognitive Function The study found that exposure to high concentrations of particulate matter, even for just an hour, reduced participants' ability to maintain focus, process emotions accurately, and avoid distractions. Such cognitive impairments can have profound implications in workplace productivity, education, and public safety. For instance, employees working in environments with poor air quality may experience diminished concentration, leading to decreased efficiency and increased errors. Similarly, students exposed to air pollution may struggle with academic performance due to impaired attention and emotional regulation. These insights reinforce the idea that air pollution is not just an environmental concern but a societal and economic one, requiring a holistic approach to policy, corporate responsibility, and community engagement. The Role of Climate Messaging in Air Quality Awareness Despite overwhelming scientific evidence, public awareness of air pollution’s cognitive and behavioral impacts remains limited. This is where strategic climate messaging becomes essential. Effective communication can: Translate complex scientific research into accessible, actionable insights for diverse audiences. Drive policy advocacy by equipping decision-makers with data-backed arguments for stricter air quality regulations. Encourage behavioral change among businesses and individuals by highlighting solutions, such as cleaner transportation, sustainable energy sources, and indoor air quality improvements. However, simply disseminating information is not enough. Stakeholder engagement ensures that communities, businesses, and policymakers are not just informed but also motivated and equipped to take action. Moving Forward: A Collective Responsibility The study’s findings make one thing clear: air pollution is not just an environmental issue—it’s a cognitive and social issue with wide-reaching consequences. As we navigate an increasingly complex climate landscape, it’s crucial to integrate air quality concerns into broader discussions on sustainability, health, and productivity. At Taiga Company, we believe that effective stakeholder engagement is the key to transforming awareness into action. By educating businesses, policymakers, and communities, we can drive the changes necessary to create a healthier, more sustainable future for all. To learn more about how Taiga Company can help your organization develop impactful climate communication and stakeholder engagement strategies, contact us today.
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