Role of the chief trust officer

June 2023  |  TALKINGPOINT | BOARDROOM INTELLIGENCE

Financier Worldwide Magazine

June 2023 Issue

FW discusses the role of the chief trust officer with Beena Ammanath, Kwasi Mitchell and Emily Werner at Deloitte Consulting LLP, Michael Bondar at Deloitte Transactions and Business Analytics LLP and Kim Rivera at OneTrust LLC.

FW: How would you characterise the key issues for companies around information, trust and perception in today’s business world? What factors are driving the ‘trust deficit’, and how would you define stakeholder trust?

Bondar: One could say that we have entered the ‘trust age’, a time where information – or misinformation – is omnipresent and perception is everything. Trust should be top of mind for C-suite executives and government leaders. Due to a confluence of factors the importance of trust is likely greater today than ever before. In my opinion, we are witnessing extreme democratisation and polarisation of media, extraordinary geopolitical uncertainty, growing threat of climate change and highly accelerated pace of digital transformation, accompanied by rising concerns over ethical use of technology, cyber security and data privacy. These factors, along with evolving customer, worker and shareholder expectations, have catapulted this trust to the top of the leadership agenda. Ninety-four percent of boards and 85 percent of chief executives consistently and overwhelmingly agree trust is critical and action on it is needed, according to the 2022 Deloitte Global Boardroom Survey, and the Fortune CEO Survey, respectively. There is also recognition that trust levels are at all-time lows and further declining across industries and sectors. Yet few organisations have taken the necessary meaningful steps to earn trust proactively. Only 14 percent have taken steps to evaluate and measure trust. In part it is because, at first glance, trust appears to be an amorphous and nebulous concept. So, defining trust in the context of business and each specific organisation has been a barrier to progress. We define trust in the context of business as the intricate balance of an organisation performing with a high degree of competence and positive intent. Competence is keeping your promises – delivering products and services – while illustrating high capability and reliability. The intent is the motivation, the rationale, the why behind actions – exhibiting humanity and transparency.

Ammanath: In classes, meetings and ceremonies we are asked to put away our phones – and for many of us, that feels like being asked to turn off one of our senses. We have likely reached a point where we cannot just ‘put down’ technology because it informs and affects much of what we do. We live in an era in which our livelihoods, health, status, reputations and even relationships are often shaped by technology. We are now in a place in our lives where the ubiquity of technology leaves us with little choice but to trust it, even in the face of rising technology hacks, preventable data privacy challenges and opaque algorithms. Yet it is not the technology that is good or bad, it is how it is applied, governed and how its risk is mitigated. That means trustworthy and ethical technology should become the responsibility of those who make and deploy it. To achieve success, trust should be central to the functions of an organisation with intentional alignment across people and processes. Finally, trust should be measurable, just as we would measure other indicators of the health of an organisation.

FW: Could you explain the benefit of earning trust? Tactically, what can organisations do to build, measure and maintain trust with their stakeholders?

Bondar: The benefit of earning trust may appear to be immeasurable and intangible, but we have found the opposite to be true. Proactively earning trust requires understanding what it is, what the expectations are to earn from stakeholders and how trusted the organisation is in their eyes. Therefore, quantitative insights are needed to evaluate levels of trust, gaps and opportunities for the organisation internally, externally and in the context of its industry peers and benchmarks. Enterprise trust assessment is based on a 360-degree view of an organisation, evaluating performance across domains, ranging from leadership to customer experience, supply chain resilience to cyber posture, and the increasingly important sustainability and climate credentials. Supporting these domains, are 90-plus drivers of trust – underlying organisational actions – that should be executed with a high degree of competence and good intent. The key takeaway is that trust is tangible, measurable and possible to earn even in times of crisis where trust may have been compromised or lost.

Werner: We have invested heavily into understanding trust – how to evaluate it, predict it and help organisations earn it. And those that can earn trust successfully see results, both financial and behavioural. Highly trusted companies outperform their peers with an up to four times increase in market value. Customers who trust a brand are likely to purchase new products or services, likely to spend more and twice as likely to defend the brand. Workers who trust their employer are more likely to be motivated at work and 50 percent less likely to look for a new job. There may also be a downside when trust is lost: organisations impacted by trust events fall 26 to 74 percent behind their industry peers in value and market capitalisation.

FW: With some economic experts predicting a global downturn, what is the role of trust in times of uncertainty?

Rivera: While I remain optimistic about our global economic future in the long term, many economists predict a downturn in the next 12 to 24 months. As we navigate a potential global economic downturn, the role of trust should not be overstated. Recent events have shown that trust can make or break a business during times of uncertainty. In fact, many studies have found that companies that prioritise building trust with their stakeholders during a crisis are more likely to recover faster and outperform their competitors in the long term. Although the consensus of most specialists is that any downturn will be mild, economic uncertainty has a ripple effect of provoking fear in the workforce, which then results in delayed or lower consumer spending and uncertainty in the investment markets. In many ways, levels of trust echo market confidence data with trust being more difficult to retain during troubled times. The key for leaders is to maintain honesty and transparency with their customers and employees. Once leaders understand the different dimensions or levers of trust that are critical for their own brand and their own workforce, they must prioritise activities which build and preserve trust equity and help make sure these are clearly communicated as part of an overall purpose and value structure. During times of economic uncertainty, building and maintaining trust with stakeholders is essential for businesses to survive and thrive. By prioritising trust, businesses are likely to recover faster, retain loyal customers, and attract and retain top talent.

FW: Given that purpose and integrity are key elements of trust, what role does and should a ‘purpose office’ within an organisation play in the universe of trust?

Mitchell: When an organisation clearly defines its purpose and stands up a purpose office to deliver on it, it is likely to have less disruption between what it says – its purpose – and the actions it takes – its integrity. Many organisations are being pressed by their employees, clients and customers to demonstrate an impact, and that requires the structure and expertise of a team focused on purpose to drive that forward. A purpose office and the business can work together to help ensure integrity is core to their business practices both internally for their people and externally with clients and within the communities they serve, helping to ensure it becomes an innate and inseparable part of decision making at every level.

Ammanath: As a technologist, I have somewhat of a different lens on the issue of trust and integrity. Fundamentally, I believe that technologies such as artificial intelligence (AI) are powerful tools with untapped potential to improve business and society as a whole. But there are also risks in deploying technology to make decisions and to expect people to view technology as something that should, and can be, ethical. That is why a growing number of organisations and leaders are doubling down on developing ethical technology guidelines and eminence. An organisation’s purpose office has a role to play, and this is why it is important to invest in technologies that are safe, transparent and unbiased. These powerful technologies should not only help solve problems, but be governed and applied to do so with the appropriate intent.

FW: To what extent is digital trust an integral component of an organisation’s overall trust profile? What will best address today’s digital trust needs, and what investments in digital trust solutions are the most effective bets to prepare for tomorrow?

Ammanath: Establishing ethical technology structures, policies, practices and frameworks for ethical technology assessment provides companies with the freedom to act quickly and decisively, while maintaining an alignment with organisational purpose. This alignment with purpose has allowed many organisations to create a common definition and mindset around ethical technology that is anchored to an overarching set of values. Technology risk management should be viewed as a foundational priority, rather than a roadblock – one that helps build a trustworthy and hopeful future. The degree to which technology upholds our trust can affect the quality of life we share.

Rivera: As organisations become increasingly reliant on technology, digital trust has emerged as a critical component of overall trustworthiness. Digital trust is a foundation for successful customer engagement, employee satisfaction and business partnerships. The best way to address today’s digital trust needs is through a comprehensive digital trust framework that addresses cyber security, data privacy and compliance. This includes implementing measures such as data protection and encryption, regular security assessments and employee training to create a culture of security. To prepare for tomorrow, effective investments in digital trust solutions include those that prioritise automation, AI and machine learning to streamline processes and enable continuous monitoring of data security. As technology evolves, so must our digital trust solutions. The organisations that invest in innovative digital trust solutions today will be well-positioned to build trust and thrive in the digital age. Many technology projects move too quickly and do not allow sufficient time to address complex ethical issues that may surface. We believe, first and foremost, in the value of integrity, of doing what is right and good for customers and for the planet at large. When we prioritise investments in technology, we look for those that not only help us perform more efficiently and more effectively, but also those that help build greater trustworthiness with customers.

Bondar: Many organisations are somewhere along the path of their digital transformation journey. Digital transformation touches the customer, the back office and everything in between. This means that digital trust is now part of the equation in the way an organisation interacts with its stakeholders. Taking a comprehensive and aggressive view of the vulnerabilities and potential points of trust loss in each of these ‘user stories’ becomes essential. To identify where bets should be made and where trust is most fragile and at greatest risk, ask what is most meaningful to your stakeholders and thus likely most important to protect. Data privacy and protection, a strong cyber security posture, a highly intuitive ability to digitally and seamlessly engage with stakeholders in a variety of ways, including in the metaverse in the near future, and providing transparency when things go awry and breaches occur, are some of the key things that stakeholders expect and where bets should be made.

FW: Could you outline the function and typical responsibilities of the chief trust officer (CTrO)? What factors have contributed to the elevation of this role across the corporate world in recent years?

Bondar: In our experience, the mission of the chief trust officer (CTrO) has largely focused on safeguarding trust with various stakeholders, by instituting appropriate policies and procedures, deploying relevant digital solutions and establishing effective governance models in areas of information and cyber security, data privacy and technology usage. While this has been the initial focus of the role – which is still relatively nascent – we have seen it begin to evolve, further touching upon areas such as compliance and ethics. The evolution of the role is driven by the recognition of the importance, breadth and interconnected nature of the topic. This requires the CTrO to not only focus on their direct area of responsibility, but also to collaborate with other C-suite leaders to effectively drive trust throughout the organisation. Important topics require and are provided organisational focus, dedication and effective leadership. If ‘everyone owns trust in an organisation’, that likely means that the topic is underserved, undervalued and that effectively nobody is responsible for this critical item. To some extent, establishing and effectively empowering a CTrO signifies the organisation’s commitment to trust as one of its values and priorities.

FW: To what extent is a stricter regulatory environment driving companies’ need for a CTrO? How is this trend impacting business strategies, and CTrOs’ influence in shaping them?

Bondar: Achieving regulatory compliance for organisations is table stakes, a must-have, a non-negotiable. However, the regulatory landscape of today has become much more dynamic and rapidly evolving, impacting what companies do, how they do it and where they do it. This evolution has required a higher level of agility, preparedness and a more proactive stance to be taken by organisations. In fact, one could argue that the most successful organisations have become adept at looking around the corner and taking proactive measures well in advance of regulatory changes and pressures weighing on them or requiring them to respond. Almost by definition, organisational strategies are directly impacted by adherence to regulatory requirements, and this of course touches upon the CTrO. While the examples are plentiful, a well-known one is the EU General Data Protection Regulation (GDPR) and the requirements for handling personal data that companies must adhere to. This set of regulations drove companies to transform their systems and processes, requiring significant time and resources to complete successfully.

Rivera: A stricter regulatory environment and rising stakeholder expectations are undoubtedly driving companies’ need for a CTrO. With increasing regulations around data privacy, cyber security and ethical technology use, organisations are realising the importance of building trust with their stakeholders by complying with regulations and avoiding reputational damage. Businesses are also recognising that building trust and implementing ethical practices are now core to their broader strategy. The CTrO is becoming an essential player in shaping these strategies, as they are responsible for creating and implementing trust frameworks that align with the organisation’s broader goals and values. And CTrOs are also working more closely than ever with other executives, including the chief information officer (CIO) and chief information security officer (CISO), to ensure that digital systems and processes are secure and trustworthy. They are collaborating across departments to promote a culture of trust and transparency within the organisation. A CTrO can help a business develop trust-centred policies aligned with company and employee values. Companies that view compliance initiatives like privacy, governance risk and compliance (GRC), ethics, and environmental social and governance (ESG) programmes as compliance outcomes that build trust will gain a competitive edge and support a healthy, thriving employee base. In our view, every interaction with a business represents an opportunity to build or lose a customer’s trust. Companies should focus on the aspects of customer trust that can be controlled, such as privacy, transparency and ethical decision making, and ensure control of what is outside of outside threats, such as third-party breaches, regulatory change and market shifts. A consistent, systemic approach to trust is a competitive advantage that is difficult to copy. As technology and data continues to evolve, investing in CTrO and digital trust solutions will become even more critical for organisations to succeed in the long term. CTrO’s will be well-positioned to help their organisations combine their values and business priorities with effective programmes for operationalising, driving and maintaining trust.

FW: Since there is no ‘one size fits all’ approach to ethics and values, which are often coloured by personal perspectives, how can companies align on a common ethics and values framework that will gain consensus? How can a company define those values, and what guard rails should be put in place?

Bondar: Values are the absolute foundation, the bedrock of an organisation. Company values should be well-defined, effectively communicated and consistently practised through every action by the most senior leadership. The tone must be set at the top. Subsequently those same values should be cascaded throughout the organisation. However, this concept likely be more successful if there is genuine appreciation that the company is rooted in these values and that senior leadership truly operates that way – only then can other employees be expected to function in that same manner. Organisational ethics frameworks are similar in that sense. And they build off, or on top of, the organisational values and expand into areas of technology and operations. Setting the north stars, the boundaries and guardrails, and propagating them consistently through each part of the organisation is critical. Any framework, and especially those focusing on adherence to a code of ethics and organisational values, is only as strong as the point where it is most loosely interpreted or inadequately applied.

Ammanath: My advice for companies is to first define the principles you want to adhere to. Whether building AI in house or sourcing it from a vendor, companies need to first define the principles they want to align to and run the technology across that set of defined principles. There are questions that can then be asked about those principles to ascertain whether the technology follows those principles. When these principles are defined upfront, companies can get a lot clearer on what is acceptable and what is not acceptable, and measure the consequences and outcomes of applying emerging technologies.

Beena Ammanath is executive director of the global Deloitte AI Institute and leads trustworthy tech ethics at Deloitte. Helping businesses navigate trust and ethics in AI, she is an award-winning senior executive with extensive global experience in AI and digital transformation, spanning across e-commerce, finance, marketing, telecommunications, retail, software products, services and industrial domains. She can be contacted on +1 (415) 783 4562 or by email: bammanath@deloitte.com.

Kwasi Mitchell is chief purpose officer at Deloitte US. He is responsible for leading the organisation-wide strategy that powers Deloitte’s commitment to purpose and drives a broader impact for its clients, people and the communities in which it operates. He built and oversees the organisation’s first dedicated purpose office focused on addressing some of the world’s most complex societal issues. He can be contacted on +1 (571) 814 7801 or by email: kwmitchell@deloitte.com.

Emily Werner is a senior manager at Deloitte Consulting LLP and oversees the Deloitte Consulting Enterprise Trust platform where she is responsible for managing both internal and external trust research and projects. Having spent most of her career focused on enhancing experience, she brings a human-centred design approach to rebuilding trust. She can be contacted on +1 (212) 436 2942 or by email: emwerner@deloitte.com.

Michael Bondar is a principal in the risk and financial advisory business leading Deloitte’s Enterprise Trust offering. He focuses on helping clients improve company performance by building, protecting and enhancing levels of trust for organisations across a wide range of stakeholder groups. He began his career leading business process transformation and ERP implementation programmes for global clients. He can be contacted on +1 (404) 220 1992 or by email: mbondar@deloitte.com.

Kim Rivera is the chief legal & business affairs officer at OneTrust. She has 30 years of business, legal and executive leadership experience. Before joining OneTrust, she served as president of strategy, business management and chief legal officer for HP Inc. She has also served in senior executive roles in healthcare, consumer products and industrial automation. She can be contacted on +1 (844) 847 7154 or by email: kim.rivera@onetrust.com.

© Financier Worldwide

THE PANELLISTS

Beena Ammanath

Deloitte Consulting LLP

Kwasi Mitchell

Deloitte Consulting LLP

Emily Werner

Deloitte Consulting LLP

Michael Bondar

Deloitte Transactions and Business Analytics LLP

Kim Rivera

OneTrust LLC