Trust Digest 36 (January  21, 2014)

How Intel Gets Social Responsibility Just Right

Last week, at the Consumer Electronics Show in Las Vegas, Intel Chief Executive Brian Krzanich announced that Intel was the first company to reach a significant milestone: It is now manufacturing and shipping only “conflict-free” microprocessors - that is, computer chips devoid of minerals that come from those mines that pass their profits on to warlords in the Democratic Republic of the Congo and other violence-ravaged parts of Africa.
Key Words: Intel, Social Responsibility, Conflict-free
Trust Issues: Responsibility, Integrity, Ethics

2014 Edelman Trust Barometer
The 2014 Edelman Trust Barometer shows the largest ever gap between trust in business and government since we began this study in 2001. This can be attributed to a continued destruction of trust in government that began in 2011, and a steady rise in belief in business since its nadir in 2008… The question is how business can best take on this new, unfamiliar role in the public discourse. We recommend the CEO become the Chief Engagement Officer, taking responsibility for establishment of the context in which change will occur. Instead of the usual inside game played by business, which relies on lobbying regulators or elected officials, the CEO will take the case to the broader publics to make the macro case for forward progress, not just the micro case for a given product or new factory…
Key Word: Trust        
Trust Issues: Stakeholders, Accountability, Reputation

Trust in Global Financial Institutions Stronger Over 2013 but Remains Negative
Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today announced the latest results of its proprietary TRust Index showing that trust sentiment in the Top 50 Global Financial institutions finished the year stronger, but still negative, with fourth-quarter sentiment below that of the third quarter. Analysis of the Top 50 Global Financial institutions for the fourth consecutive quarter of TRust Index metrics revealed several trends observed throughout 2013, among them a regional convergence of news and social media sentiment; continued confidence in analyst expectations; and proliferation of regulatory activity.
Key Word: Trust
Trust Issues: Accountability, Stakeholders, Reputation

Barnes & Noble’s Sensible CEO Choice
The reality, though, is that promoting Huseby makes a good deal of sense. To begin with, hiring from within is generally an underrated strategy.
Key Words: Barnes & Noble, CEO
Trust Issues: Stakeholders, Competence

Why Predictive Analytics Success Comes Down to Trust

Organisations looking to make the most of predictive analytics must recognise that it takes time to build trust, and that success requires the involvement of the entire company towards a data-driven culture.
Key Words: Predictive analytics, Trust
Trust Issues: Motives, Stakeholders, Reputation, Communication

‘Building Trust’ Top Goal as Police Commissioner, Evans Says
Boston’s newly minted top cop, setting his sights on bolstering community policing, wants to get more police officers out of their cruisers and walking the streets to better engage residents and merchants. “It’s building trust. That is going to be our No. 1 goal: building trust in the community, and strengthening community policing by having walking beats, officers out of their car, and having officers on bicycles,” Police Commissioner William B. Evans, 55, said during his swearing-in today at the Salvation Army Kroc Center of Boston in Uphams Corner.
Key Words: Boston, Trust, Police
Trust Issues: Responsibility, Communication, Transparency, Reputation

Zappos Says Goodbye to Bosses
The Las Vegas-based retailer is now going even more radical, introducing a new approach to organizing the company. It will eliminate traditional managers, do away with the typical corporate hierarchy and get rid of job titles, at least internally.
The unusual approach is called a “holacracy.”
Key Words: Zappos, Holacracy, Organization
Trust Issues: Responsibility, Communication, Stakeholders

A Worrying Wobble: Bank Regulators Should Not Have Weakened Rules that Limit Leverage
The weakness of Europe’s banks does not stem from having to raise too much capital. They have simply failed to clean up their balance-sheets in the way their American peers were forced to do by regulators. They remain so thinly capitalised that they are unwilling to write down dud loans and take on the risk of new onesundefinedhence Europe’s credit crunch. If Europe’s banks met the leverage ratio, investors would trust them more. They could then finance themselves in capital markets and wean themselves off the support of the European Central Bank.
Key Words: Bank regulation, Leverage, Trust
Trust Issues: Responsibility, Accountability, Regulation

HSBC and Citigroup Suspend Currency Traders

HSBC and Citigroup each suspended currency traders on Friday amid ongoing investigations into potential manipulation of the $5-trillion-a-day foreign exchange market.
Key Words: HSBC, Citigroup, Currency Trading
Trust Issues: Ethics, Corruption

What Secrets Your Phone is Sharing about You

Fan Zhang, the owner of Happy Child, a trendy Asian restaurant in downtown Toronto, knows that 170 of his customers went clubbing in November. He knows that 250 went to the gym that month, and that 216 came in from Yorkville, an upscale neighborhood. And he gleans this information without his customers' knowledge, or ever asking them a single question. Mr. Zhang is a client of Turnstyle Solutions Inc., a year-old local company that has placed sensors in about 200 businesses within a 0.7 mile radius in downtown Toronto to track shoppers as they move in the city.
Key Words: Marketing, Sensors
Trust Issues: Communication, Ethics, Transparency

Income Gap Poses Biggest Threat to Global Community, Warns WEF

The large and growing income gap between rich and poor is the biggest risk to the global community in the next decade, the World Economic Forum said on Thursday as politicians, business leaders and academics prepared to gather in Davos.
Key Words: Income Gap, World Economic Forum
Trust Issues: Responsibility, Stakeholders, Regulation

State of Deception
In recent years, Americans have become accustomed to the idea of advertisers gathering wide swaths of information about their private transactions. The N.S.A.’s collecting of data looks a lot like what Facebook does, but it is fundamentally different. It inverts the crucial legal principle of probable cause: the government may not seize or inspect private property or information without evidence of a crime. The N.S.A. contends that it needs haystacks in order to find the terrorist needle. Its definition of a haystack is expanding; there are indications that, under the auspices of the “business records” provision of the Patriot Act, the intelligence community is now trying to assemble databases of financial transactions and cell-phone location information. Feinstein maintains that data collection is not surveillance. But it is no longer clear if there is a distinction.
Key Words: National Security Agency

Trust Issues: Accountability, Transparency, Regulation

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