Trust Digest 23 (October 7, 2013)

Trust in Public Service Crucial to Success of Gov’t Policies: PM Lee
Singapore Prime Minister Lee Hsien Loong has emphasised that a major determinant of success in implementing government policies that improve the lives of people is trust in the government, and in particular, the public service.
Key Words: Singapore, Trust in government
Trust Issues: Responsibility, Reputation, Regulation, Stakeholders

Tips From an Ageing Model
Ask almost any banker in New York or London whether banks can have strong capital ratios and still generate mouthwatering returns for shareholders, and they will probably think you a fool. A doubling of the capital a bank has will, all else being equal, halve the bank’s return on equity (ROE). For most bankers there is an uneasy tension between making banks safer and making them attractive investments. Developments in Sweden, however, suggest it is possible to have both safety and profitability.
Key Words: Banks, Sweden, Nordea
Trust Issues: Competence, Regulation

Applied Economics: The Quest for Scale Brings About a Rare American-Japanese Merger
That said, perhaps to assuage Japanese sensitivities about an American takeover, each side will name five members of an 11-strong board (the last will be agreed on jointly) and both head offices, in Santa Clara and Tokyo, will be kept. Tokyo Electron’s chief executive, Tetsuro Higashi, will be chairman. And Mr Dickerson will move to Tokyo. Sometimes saving face matters as well as saving money.
Key Words: Mergers, Takeover
Trust Issues: Motives, Stakeholders

Reform School for Bankers
Wronged as it felt, the firm was nonetheless forced to re-examine itself when it became clear that the trust of its clients was being eroded. A survey of 200 of its most important clients that was released in early 2011 showed some of them thought Goldman Sachs placed its short-term interests above those of its clients, and that its involvement in proprietary trading, among other businesses, put it in conflict with its clients. That cut to the heart of its franchise. Without the confidence of clients “it won’t matter that we know how to make money,” says one executive. “People won’t want to deal with us.”
Key Words: Goldman Sachs
Trust Issues: Communication, Reputation

For Foreign Firms, Partnering With an Indonesian May Help Gain Trust
Long-term business viability is built on trust undefined whether within the local, the national or the global community. Trust is a forward-looking indicator but, ignored, will have a negative effect on reputation (which is a backward-looking measure); if you have a poor reputation you will find it difficult to operate. Building trust in developed markets is thus crucial if emerging market champion firms are to become truly global companies.
Key Words: Trust, Emerging Markets, Indonesia
Trust Issues: Communication, Reputation, Stakeholders

LME Heeds Calls for More Transparency
The London Metal Exchange is set to start publishing information about the futures positions of hedge funds and other traders in response to calls for greater transparency.
Key Words: Commodities, Transparency
Trust Issues: Responsibility, Accountability, Transparency, Reputation, Honesty


Trust, Reputation and Regulation: Can the New Sharing Economy Find a Way to Scale?
Services like Airbnb, Lyft and others that are part of the rapidly-expanding “sharing economy” rely on trust for their peer-to-peer approach to work undefined but can they maintain that as they become more like traditional businesses?
Key Words: Sharing Economy, Trust
Trust Issues: Communication, Accountability, Reputation

Do CSR Reports Really Tell Us Anything about Businesses' Social Impact?
As anyone involved in the world of corporate social responsibility reporting can tell you, the world is awash with CSR reports these days. Some of them are really good. Many are really long. Some people even read them. But do any of them they tell us anything about the change that all of these important initiatives create?
Key Words: CSR, Ethics
Trust Issues: Responsibility, Accountability, Ethics, Benevolent Concern, Motivation

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