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. 

Why Telling Your Sustainability Story Matters — And How Taiga Company Can Help

By Julie Starr • December 17, 2024
In today’s world, sustainability is no longer a buzzword—it’s a business imperative. Consumers, investors, and stakeholders are demanding more transparency and accountability from brands. They don’t just want to know what you sell; they want to know who you are, what you stand for, and how your work contributes to a better world. That’s where your sustainability story comes in. Sharing your achievements in environmental, social, and governance (ESG) initiatives isn’t just about meeting expectations—it’s about building trust, fostering loyalty, and inspiring action. At Taiga Company, we specialize in helping organizations authentically communicate their sustainability achievements in ways that drive measurable impact and align with their goals. Why Sharing Your Sustainability Achievements Is Good for Business Build Trust with Stakeholders Sustainability storytelling builds credibility and trust. Whether you’re addressing investors, employees, or customers, sharing your sustainability milestones demonstrates your commitment to accountability and long-term value creation. For example: Highlight your efforts in achieving science-based targets, reducing carbon emissions, or adopting circular economy practices. These stories resonate with audiences looking for businesses that align with their values. Differentiate Your Brand In a competitive marketplace, sustainability can set you apart. Brands that communicate their achievements in regenerative agriculture, water stewardship, or biodiversity conservation position themselves as industry leaders and innovators. Think of it this way: A well-told sustainability story is not just a report—it’s a statement of leadership, authenticity, and purpose. Drive Stakeholder Engagement Sustainability stories invite dialogue. By showcasing meaningful milestones, like successful recycling initiatives or community reforestation projects, you foster stronger relationships with stakeholders who want to be part of your mission. Engagement isn’t just about storytelling; it’s about inspiring action. Whether through social media campaigns, press releases, or executive thought leadership, your achievements can encourage others to collaborate and support your goals. Attract Purpose-Driven Talent and Customers Today’s workforce and consumers seek brands with purpose. Communicating your impact helps attract talent and customers who align with your mission. A transparent, well-executed sustainability strategy speaks volumes about your leadership and values. At Taiga Company, we specialize in results-driven communications that empower purpose-led brands to share their sustainability achievements with confidence and clarity. Our services ensure your story resonates with the audiences that matter most. Your sustainability achievements deserve to be seen, heard, and celebrated. Whether it’s reducing carbon emissions, innovating in sustainable packaging, or leading water stewardship initiatives, telling your story is an opportunity to inspire trust, drive action, and shape a better future.

Why Going Green Is No Longer Optional for Industry Leaders

By Julie Starr • December 16, 2024
Alright, so here’s the deal, sustainability isn’t just a buzzword anymore. Sure, at this most most industries, yes, even the most unsustainable industries have this general idea, right? Well, you’re always going to find some businesses in some niches (and yes, industries too) who think that it doesn’t apply to them. But no, it applies to all niches and all industries, and yes, it’s a business requirement. Now, across every industry, the companies that are embracing green practices are the ones that are thriving. Why? Well, because customers, investors, and employees are all paying attention. If a business isn’t making an effort to be sustainable, it’s not just falling behind, it’s losing out. Overall, sustainability isn’t just about saving the planet; it’s about saving your business. Yes, this needs to be hammered in, so industry leaders, here’s why you’re just not excused. Green Practices Mean Growth Yep, it’s that plain and simple, So, sustainability isn’t just about doing the right thing, it’s about doing the smart thing. Businesses that prioritize green practices are cutting costs, staying competitive, and building trust with their audiences. So, reducing waste, switching to renewable energy, and sourcing materials ethically aren’t just good for the planet, they’re great for the bottom line. Simple enough, right? Well, take packaging, for example. Cutting down on unnecessary plastics doesn’t just make customers happy; it slashes production and disposal costs. So, switching to energy-efficient operations isn’t just environmentally friendly, rather, it saves a fortune on utilities. There don’t need to be roadblocks seen, rather they should be opportunities! There’s Plenty to Gain Okay, so sustainability isn’t just for industries with obvious environmental impact, it’s critical in healthcare too. Again, no excuses here. Hospitals and clinics use massive amounts of energy, and the waste from single-use supplies piles up fast. The same can be said for labs, and pharmacies too. Actually, go ahead and take specialty drugs as an example. Now, most people know that these life-changing treatments are for serious conditions, but they often come with sky-high costs. But why? Well, the production and distribution processes can be incredibly resource-heavy. But even sustainable practices can help lower prices, such as energy-efficient manufacturing or even cutting down on excess packaging. It might be hard to see, but little changes can make massive impacts on costs (and what’s being spent on both ends). Tech Easily Shows How Sustainability Drives Innovation The tech industry has been leading the charge when it comes to sustainability, and the results speak for themselves. Actually, companies like Google and Apple are proving that being green isn’t just possible, but this can actually be pretty profitable! If tech companies can do this, then yeah, all industries are capable. So above, medicine was mentioned, but data centers are also a great example ( since they use a lot of energy). Well, nowadays, most companies are now powering these centers with renewable energy, cutting costs and emissions at the same time. No Industry Gets a Free Pass It doesn’t matter if it’s healthcare, tech, retail, or manufacturing, basically, every industry has something to gain by going green. There are small examples like retailers ditching plastic bags for reusable ones. Then there are bigger examples like factories rethinking supply chains to cut emissions and save costs. But the reality is that businesses sticking to wasteful, outdated practices are falling behind. Besides, governments are rolling out stricter regulations.
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