The Fundamental Importance of Trust in Management
Briefly

The article discusses the dramatic impact of President Trump’s unexpected tariff announcements on both the stock and long-term bond markets, highlighting a rare instance where Treasuries, typically considered a safe haven, also weakened. This indicated a concerning loss of trust among investors regarding U.S. economic stability. The loss of trust can also occur at the micro level within companies, where individual employees may doubt management, leading to negative consequences. Research shows high-trust environments promote risk-taking and innovation among employees, indicating the necessity of building trust at all organizational levels.
A recent study shows that employees in high-trust companies feel safer and report positive attributes, contributing to enhanced innovation and performance.
The weakening of the U.S. long-term bond market showcased a significant decline in investor trust in the country's economic stability following unexpected tariffs.
Read at Psychology Today
[
|
]