Trust plays a predominantly decisive role in almost every feature of coordinated human activities. From politics and business operations to sports and scientific research, trust is more than ever essential. Trust also reinforces the successful dissemination of knowledge, and informs practical deliberation and strategic planning that rely on information beyond what we can individually double check. In essence, without trust, our objectives would be difficult to achieve and our knowledge would be sternly limited. Trust is a kind of reliance on another person or organization that, when violated, provokes not only disappointment but also a feeling of betrayal.
Within our perpetual evolving world of digital technologies, trust is key to thriving in business. In terms of cybersecurity, digital trust entails having confidence in the reliability, integrity, and cybersecurity of digital technologies and the data they handle. As we rely more and more on various digital platforms for communications, commerce, connection, the importance of digital trust cannot be emphasized enough.
Conceptual Understanding of Digital Trust
Broadly conceptualized, digital trust is the implicit confidence in the integrity and cybersecurity of data and personal information during online interactions. Concisely conceptualized, digital trust is the bedrock upon which meaningful relationships between businesses and their customers are mutually built. It encapsulates various dimensions, among others:
Cybersecurity: Ensuring the confidentiality, integrity, and availability of data is crucial for establishing trust. Customers need to have confidence that their personal information is protected from unauthorized access or misuse, and tampering.
Transparency: Being open about data processing practices, privacy policies, and the collection, use, and sharing of customer data fosters reciprocal trust. Transparency instills confidence and reassures customers that their interests and choices are being respected.
Reliability: Consistency and dependability in delivering products, services, and support contribute to building and retaining trust. Businesses must fulfill their promises and commitments to maintain credibility and reliability.
Ethical Behaviour: Conducting business with integrity and responsibility is of the utmost importance in building and retaining trust. Organizations that prioritize ethical practices, fairness, and accountability in their business operations cultivate long-term relationships with customers.
Why Does Digital Trust Matters for Business?
Customer Loyalty: Establishing trust with customers not only increases the likelihood of retaining them, but it also allows gaining their confidence in the organization’s services. Loyal customers not only contribute to revenue but also act as brand advocates, spreading positive word-of-mouth and attracting new customers.
Competitive Advantage: Trust is a crucial differentiating factor in the market you operate in. Businesses that prioritize digital trust usually gain a competitive edge by positioning themselves as reliable partners in an environment where data breaches and privacy concerns are common.
Risk Mitigation: Building trust helps mitigate risks associated with data breaches, cyberattacks, and regulatory non-compliance. By implementing robust cybersecurity measures and bolstering industry best practices, businesses can protect their reputation and minimize potential liabilities.
Innovation and Collaboration: Digital trust plays a pivotal role in promoting collaboration and innovation through the establishment of partnerships between businesses, customers, and stakeholders. When individuals feel a sense of cybersecurity and confidence in disclosing ideas and information, it creates an environment conducive to co-creation and effective problem-solving.
Developing and Implementing Digital Trust
Invest in Cybersecurity: Implement robust cybersecurity measures to safeguard customer data from threats such as phishing, hacking, and malware. Conduct regular cybersecurity audits, employ encryption techniques, and enforce strong authentication/authorization measures like multi-factor authentication, least-privilege and need-to-know based access, to bolster the cybersecurity of your digital assets.
Adhere to Privacy-by-Design Principles: Demonstrate respect for user privacy by seeking consent for their data processing, only collecting necessary data, adopting data-masking and anonymization procedures, and providing concise but meaningful privacy policies. Allow users full control over their data and empower them to effectively manage their privacy preferences and monitor their effectiveness.
Communicate Transparently: Foster an environment of openness and honesty regarding your data practices, encompassing the collection, usage, and sharing of data. Offer transparent disclosures concerning any incident and ensure timely updates and resolutions.
Deliver Consistently Your Products and Services: Guarantee consistency and reliability in the provision of your products, services, and customer support. Strive to meet or surpass your customers’ expectations by fulfilling your commitments and delivering seamless experiences across all interaction points.
Cultivate Ethical Culture: Cultivate an organizational culture that upholds ethics, integrity, and accountability. Provide comprehensive training to your employees on ethical conduct and empower them to make principled decisions in their daily operations.
Engage with Your Customers: Actively engage with customers through diverse channels to solicit feedback, address concerns, and foster mutually beneficial relationships. Demonstrate genuine interest in your customer feedback and utilize it to enhance the quality of your products and services.
Results of a Worldwide Survey on Digital Trust
The overall results of a McKinsey 2022 worldwide survey focusing on more than 1,300 business leaders and 3,000 consumers globally suggest that establishing trust in products and experiences that leverage AI, digital technologies, and data not only meets consumer expectations but also could promote growth.
Briefly explained, below are the main outcomes of that survey:
- 85% of consumers want to know a company’s data and AI policies before buying its products or services.
- 58% of consumers will consider switching brands when a company’s data practices and digital trust policies are unclear.
- 94% of survey respondents believe trustworthiness and data protection to be nearly as important as price and delivery time.
- 53% of consumers look specifically for companies that have a reputation for protecting data.
How to Earn Digital Trust?
The World Economic Forum launched the Digital Trust Initiatives to help solve the digital trust challenge. The key question such an initiative asked was: How can leaders make better, more trustworthy decisions regarding technology? The Insight Report produced by the World Economic Forum represents the first response to that question. Developed by the Digital Trust Initiatives, the Insight Report introduces a Digital Trust Framework as a tool to guide decision-making for leaders. Summarized below are the 4 key elements of that Digital Trust Framework:
- Digital trust is individuals’ expectation that digital technologies and services – and the organizations providing them – will protect all stakeholders’ interests and uphold societal expectations and values.
- Only by deciding and acting for digital trust can leaders and organizations meet their obligations to society and individuals.
- The digital trust framework defines shared goals or values that inform the concept of digital trust, including:
- Security and reliability
- Accountability and oversight
- Inclusive, ethical and responsible use.
- The digital trust framework also defines dimensions against which the trustworthiness of digital technologies can be operationalized and evaluated:
- Cybersecurity
- Safety
- Transparency
- Interoperability
- Auditability
- Redressability
- Fairness
- Privacy.
Conclusion
Digital trust plays a vital role in the digital economy as it determines how businesses engage with customers and stakeholders. By placing a high emphasis on cybersecurity, transparency, reliability, and ethical conduct, businesses can establish and sustain digital trust in an era of growing interconnectivity and data reliance. Allocating resources towards building digital trust not only boost customer loyalty and competitive edge but also addresses risks and promotes a culture of innovation and collaboration.
Furthermore, because consumers highly value digital trust, organizations best positioned to build earnestly digital trust are more likely than others to see a rise of at least 10% of their annual growth rates and their bottom lines. As a final point, in compliance with the dimensions of the digital trust framework, the only way for organizations and business leaders to meet their ethical obligations towards society and human beings is to consolidate concrete actions and proactive decisions valuing digital trust initiatives.
References
- Bhaskar Chakravorty, Ajay Bhalla & Ravi Shankar Chaturvedi (February 25, 2021). Harvard University Press—Harvard Business Review (HBR): How Digital Trust Varies Around the World, 17 pages, Massachusetts, USA. (link)
- ISACA Now. (May 13, 2022). New ISACA Guide Outlines Key Components of Digital Trust Implementation. ISACA Global Digital Trust Professional Association and Learning Organization with business offices in North America, Europe and China. (link)
- Marius von Spreti and Peter J. Wirnsperger (September 19, 2023). Deloitte (Munich, Bayern, Germany). Future of Digital Trust: What Driving Forces and Trends Are Shaping Digital Trust until 2035 and What Are Their Implications On our Digital Future? 28 pages. (link)
- Pieter Rensburg, Ascertia (October 18, 2023). What Is Digital Trust and How Can It Be Established? Ascertia, an InfoCert Company. (link)
- McKinsey & Company. Worldwide Survey: Why Digital Trust Truly Matters? September 12, 2022. (link)
- World Economic Forum Insight Report 2022. Earning Digital Trust: Decision-Making for Trustworthy Technologies, 40 pages, November 2022, Geneva, Switzerland. (link)
- Word Economic Forum—Digital Trust Initiatives. (link)
Contributions
Special thanks to the National Research Council of Canada for their financial support
Author: Raine Chang and Fred Boissière
Executive Editor: Alan Bernardi
Reviser, Proofreader & Translator: Ravi Jay Gunnoo
