Trust and Transparency as a Business Advantage: Becoming the Leader that People Want to Follow

People don’t follow titles. They follow leaders they trust. In a world where it’s hard to believe everything we see and hear, how can leaders build trust and transparency with key stakeholders, employees, and customers?

Traditionally, trustworthiness and transparency were once considered personality traits or, at best, soft skills. Today, these are essential leadership traits for navigating a fast-changing business landscape defined by digital transformation, remote work, ESG demands, and increasing scrutiny from employees, customers, and the public. For C-suite leaders who are under more pressure and public attention than ever before, these qualities form the foundation of strong, future-ready leadership. 

Trust fuels performance. Transparency fosters alignment.  

When employees trust their leaders, they’re more engaged, more willing to go the extra mile, and more resilient in the face of change. And when leaders are transparent about decisions, priorities, and challenges, it helps everyone stay focused on shared goals, reducing confusion, second-guessing, and misalignment. 

Jiyeon Kim, Managing Partner of Signium Korea, offers her insight:

“Together, these powerful qualities create the conditions for collective growth and cultural strength, from the inside of an organization, outward. But in a world where leadership trust is hard-earned and easily lost, building these values into the DNA of an organisation takes intention, persistence, and courage.” 

How Do Trust and Transparency Fit into Business?  

Trust in leadership is the belief that those in charge act with integrity, competence, and the best interests of others in mind. Transparency refers to openness in communication, decision-making, and access to information. While distinct, the two are deeply interconnected: transparency builds trust, and trust allows for greater transparency. 

According to the 2025 Edelman Trust Barometer, 76% of employees globally trust their employer, making “my employer” the most trusted institution, surpassing NGOs, media, and government. However, this still represents a slight decline from 79% in 2024, indicating a subtle erosion of trust.  

Trust isn’t automatic. It’s built on empathy, ethical leadership, and shared values – especially in uncertain times. The 2025 report highlights a growing sense of grievance among employees, with 61% feeling that institutions serve the interests of a select few.  

The 2024 Edelman Trust Barometer report also reveals a significant trust gap between executives and associates, with only 19% of associates trusting their CEO to tell the truth about the organization, compared to 52% of executives. This disparity demonstrates the need for leaders to engage in transparent and consistent communication across all levels of the organization.​ 

“Of course, shared purpose still matters,” says Kim. “But employees today are placing greater value on things like fair pay and the chance to develop their skills. Essentially, people want to feel valued and that they’re being given a fair opportunity to advance their careers. Companies that invest in their people and ensure clear and honest communication are the ones earning – and keeping – trust.” 

When trust and transparency are embedded in leadership, the ripple effects extend far beyond team sentiment. These values have a measurable impact on how people show up, how long they stay, and how confidently they adapt to change. 

• Enhancing employee engagement 

Transparency around company performance, changes, and decisions helps employees feel included and aligned. When people understand the “why” behind leadership choices, they engage more deeply with their work. 

• Building loyalty and retention 

High-trust, high-transparency cultures experience less churn. Employees and managers are more likely to stay with companies where leadership is honest, even when delivering difficult news. Replacing an employee can cost up to 2x their annual salary, making loyalty not just a cultural win but a financial one. 

• Reducing uncertainty 

Periods of restructuring, layoffs, or economic headwinds are inevitable. Transparent communication during these times – even if incomplete – builds credibility. Even saying “We don’t know yet” is more powerful than silence. 

During the early stages of the pandemic, companies like Airbnb set a powerful example of transparency in crisis. When CEO Brian Chesky announced the layoff of 25% of the company’s workforce, he did so with a public letter that was striking in its clarity and compassion. He explained the business impact of the pandemic in honest terms, acknowledged the emotional weight of the decision, and made it clear that people were the priority, not profits.  

Airbnb offered extended severance, healthcare support, and career resources for those affected. The move earned Chesky widespread respect and reinforced Airbnb’s values, resulting in a notable surge in employer brand trust during one of the company’s most difficult moments. 

Four key leadership habits that cultivate trust 

Trust isn’t built in a single moment. It’s shaped by what leaders do consistently, day in and day out. The most trusted leaders don’t just talk about values like transparency and respect; they win the hearts of their people through small, persistent actions that ripple through their teams. Here are four leadership habits that generate authentic trust in the workplace. 

1. Lead by example 

Trust is not built through policies – it’s modelled. When leaders show accountability, uphold ethical standards, and remain consistent in word and action, they instill a sense of psychological safety across the organization. 

Take Mary Barra, CEO of General Motors. When she stepped into the role in 2014, GM was grappling with a significant crisis: a faulty ignition switch linked to multiple fatalities and injuries. The company’s culture at the time was characterized by silos, a lack of accountability, and a tendency to suppress dissenting voices.  

Barra confronted these issues head-on, initiating a cultural overhaul that emphasized transparency, safety, and open communication. She implemented regular town halls, encouraged feedback from employees at all levels, and made decisive leadership changes to address the underlying problems. Her commitment to ethical leadership and consistent communication played a pivotal role in rebuilding trust both within the organization and with the public. ​ 

2. Encourage open communication 

Trust thrives in environments where voices are heard without fear. Regular check-ins, feedback tools, and open-door policies can foster that environment. Leaders should normalize transparency around difficult topics, not just wins. 

Communication studies show just how much open communication matters at work. Clear, effective communication has been linked to a 72% boost in productivity for business leaders and a 56% increase in job satisfaction among knowledge workers. What’s more, employees who feel included in detailed workplace communication are nearly five times more likely to report increased productivity.  

“The message is clear,” says Kim. “Open, inclusive communication is a powerful driver of performance. When leadership keeps their people adequately informed and invites transparent two-way communication, people feel a greater sense of freedom to do their work with confidence that their leaders have their backs.”  

3. Build relationships 

Trust transcends titles and reporting lines – it grows through genuine human connection. Leaders who take the time to really get to know their team members foster a sense of belonging that can’t be engineered. Simple actions like remembering personal milestones, showing up for celebrations, or creating space for casual, informal interactions lay the groundwork for lasting trust and camaraderie. 

Even in remote or hybrid settings, the opportunity to connect is still there – it just takes a little creativity. Virtual coffee chats, peer shout-outs, shared Slack channels for non-work banter, or even rotating “buddy” check-ins can help create the kind of social glue that keeps teams strong, even across screens. 

4. Empower employees 

Great leaders use delegation as a means to display trust and show people that their contributions matter. It empowers teams by demonstrating belief in their judgment and competence. By involving employees in decision-making processes, recognizing their achievements, and providing opportunities for growth, leaders can cultivate a sense of ownership and trust within their teams. 

Crafting effective communication that creates trust with stakeholders 

Transparent leadership isn’t just about what you say – it’s about how, when, and to whom you say it. “For C-suite executives who engage on an international level, this is a critical skill to have,” says Kim. “Communicating effectively with diverse stakeholders who could be from any corner of the world requires tact, tolerance, and empathy. These traits begin with leaders being willing to listen as much as they speak.”  

Here are four key ways leaders can build trust with stakeholders through thoughtful, well-rounded communication. 

1. Tailoring communication styles 

Different stakeholder groups have different priorities. Investors want data-backed forecasts. Employees seek reassurance. Clients expect clarity. Leaders must shift tone and focus accordingly, without compromising honesty. 

When in doubt, storytelling and strategic framing in a clear, honest way help people connect with what’s being shared. 

2. Regular updates and reporting 

When leaders make a habit of sharing what’s going on, good or bad, it builds confidence. Whatever the touchpoint – whether it’s a monthly update, a town hall, or a personal note from the CEO – these moments help people feel included. Making company information easy to access via digital dashboards and real-time reporting also shows that leadership has nothing to hide. 

3. Active listening 

Effective communication encompasses listening carefully, as much as speaking. When leaders pause to hear what stakeholders, employees, and customers have to say, they earn trust while gathering the insights necessary to tailor business decisions and operations according to market realities.  

Focus groups, pulse surveys, and open Q&A platforms help leadership stay attuned to stakeholder sentiment. 

4. Leveraging technology 

From Zoom town halls to Slack integrations, digital tools can bridge the gap between leadership and stakeholders. Blockchain-based platforms are now being explored in governance for secure record-keeping and contract transparency. 

In fact, blockchain’s use in corporate governance is growing, particularly for smart contracts and audit trails. This technology offers irrefutable trust in transactions without requiring third parties like lawyers or auditors to verify every step. 

Business is personal: Trust is the currency of human interaction 

Trust and transparency are the currency of long-term credibility, culture, and growth. In building environments where communication is honest, accountability is celebrated, and technology is used to share rather than shield, leaders position themselves not just to manage but to inspire. 

In a volatile world where it’s hard to trust what we hear and see, that kind of leadership is more than admirable. It’s essential.  

It’s also deeply human. 

Kim shares her thoughts:

“At the core of every high-performing business are people: people who want to be seen, heard, and valued. Leaders who understand this don’t just lead better teams; they build happier, more stable organizations by earning people’s trust. By doing so, they create the conditions where innovation thrives, where culture becomes a competitive edge – not just a buzzword – and where people choose to stay, grow, and contribute their best.”