Why it’s Time to Rethink How Companies Build Trust

Companies are under enormous pressure to respond to social issues—climate, inequality, human rights—but too often, their efforts amount to little more than spin. Stakeholders see right through it. Trust erodes. And the backlash is real.

Alison Taylor, professor at NYU Stern and executive director of Ethical Systems, explains why performative activism doesn’t cut it anymore—and how companies can stop trying to please everyone and start doing what actually matters.

Why do so many companies get this wrong?

Too often, they think reputation can be managed through marketing. They make big statements, post supportive messages, and slap a rainbow logo on their site—but the real issue is that their internal actions don’t line up. When that happens, people notice. And it backfires.

We saw this clearly after George Floyd’s murder. So many companies publicly condemned racism, but Black employees were quick to point out how little had changed internally. It’s not just a PR risk—it’s a credibility crisis.

So how should companies decide when to speak up—and when to stay quiet?

The smartest companies take a strategic approach. They don’t speak out on every issue. Instead, they ask: is this connected to our values, our operations, our people? If it’s not, stay quiet. But if it is—act on it before you talk about it. Quiet, behind-the-scenes action can be far more powerful than loud promises.

Public recognition can help in some cases—like setting emissions targets. But if you haven’t done the internal work, broadcasting your intentions is just going to open you up to criticism. The key is alignment between what you say and what you do.

What’s the first step in moving beyond performative action?

Materiality. Companies need to stop trying to solve every global problem and instead focus on the few issues that intersect directly with their business and stakeholders. You can’t run 30 initiatives at once. Focus on the ones where you can truly drive impact—like ethical sourcing or employee wellbeing.

Before you speak out, ask yourself nine questions. Is this issue aligned with your values? Is it relevant to your operations? Can you actually make a difference? If the answer’s no—don’t go there.

How to work out what really matters to your business

Before committing the company’s voice to any issue, leaders should reflect on these nine guiding questions. 

If the answer to any of them is “no,” it’s likely unwise to proceed:

1. Is the issue central to your business’s values, code of conduct, or other existing public commitments?
2. Is the issue an environmental or social priority, according to a rigorous materiality assessment?
3. Does the issue pertain to commitments you have made to your workforce, such as diversity and inclusion or human rights commitments?
4. Has your company done all it can to ensure it isn’t making the problem worse through its actions or business model?
5. Does your company have relevant capacity and expertise to contribute to solutions for the issue?
6. Is this a new issue that has a proximate relationship to the company’s goals or operations?
7. Is there a clear way your business can make a positive contribution in collaboration with others?
8. Will acting on the issue support a positive operating environment for business in general? Would it support democratic participation, fair competition, equality of opportunity, and basic human rights?
9. Can the company make a statement that’s consistent with its values, prior actions, political spending, and environmental and social priorities?

Want to hear more from Alison Taylor and other experts on how to navigate rising stakeholder demands and build long-term credibility?

FUTURE(S) is a 6-part eBook series exploring the biggest trends shaping work in 2025—from AI and activism to leadership and trust. Don’t miss Alison’s segment in “Is impact the new bottom line?” for a deeper look at how companies can stop posturing and start delivering.

This piece was adapted from the work of Kaila Caldwell and Alison Taylor in FUTURE(S).