This article comes in connection with the Volkswagen scandal, known as Dieselgate. This is a remarkable example of how ‘trust capital’, one of the most valuable intangible assets for any organisation, can be built up over decades and destroyed, or seriously shaken, in seconds.
In this article, I invite my readers to answer the following question: Can trust, once broken, be (re)earned?
To complement this reflection, I suggest reading an article I wrote in this column: ‘Partnerships Born in the CEO’ 1.
According to the Edelman Trust Barometer 2025, companies remain the most trusted institution globally, while governments and the media are facing a significant erosion of trust. Among the sectors, technology leads the way with 75 per cent trust, followed by health (68 per cent) and education (64 per cent). The fossil energy sector, on the other hand, faces greater challenges, with only 48 per cent trust. This global scenario reflects the strategic relevance of trust as a competitive differentiator.
1. What is trust?
In my opinion, trust is:
- An individual2 and voluntary choice
- that we make at every moment
- to, in a specific context,
- to be vulnerable to others,
- taking risks,
- based on the expectation that the other will always act in good faith (i.e. be trustworthy).
Integrity, or good faith, is an essential foundation.Sticking to consistent values and practising them coherently creates a sense of security
2. Signs of trustworthiness3
The most trustworthy leaders, organisations and brands share fundamental traits that serve as the basis for building and maintaining trust over time. Integrity, or good faith, is an essential foundation. Sticking to consistent values and practising them coherently creates a sense of security. Allied to this is commitment: people trust those who show dedication, especially when faced with challenges or adversity. Consistency also plays a crucial role – predictable and reliable actions reinforce trust over time, as in the case of McDonald’s, which offers a standardised experience anywhere in the world.
Competence is another indispensable pillar. It demonstrates the ability to perform effectively and with relevance, but always specific to the context – a person can be trusted as a teacher, but not as a surgeon. In addition, empathy, which reflects genuine care for the well-being of others, creates deeper connections by prioritising relationships over immediate gains.
Clarity is also essential: transparent communication about goals and benefits inspires trust, while ambiguity generates doubt. Character, evidenced by adherence to ethical principles and consistency in difficult times, consolidates credibility. Finally, connection and contribution are indispensable. Solid relationships based on mutual respect and the delivery of tangible value strengthen the bonds of trust, ensuring that expectations are met, or even exceeded.
3. Examples of systems based on trust
3.1 The ‘Honour Bar’ system
The Honour Bar, very common in South African boutique hotels and lodges, is a classic example of a purely trust-based system, where customers serve themselves drinks or snacks and pay autonomously, without direct supervision. The simplicity of the concept lies in the trust that customers will pay the amount corresponding to what they have consumed.
This model offers clear advantages. From an operational point of view, it eliminates the need for employees exclusively dedicated to collection, making the system more efficient. It also strengthens the establishment’s reputation by demonstrating a relationship of trust with customers – a factor that can generate greater loyalty.
3.2 The Volkswagen case – Dieselgate
3.2.1 The Rise: An Empire Built on Trust
Volkswagen was widely recognised for its quality, innovation and commitment to sustainability. Models such as the Golf and Passat epitomised efficiency and durability, while advertising campaigns highlighted diesel engines as an ecological and sustainable solution. These efforts solidified its position as market leader, with indices such as Consumer Confidence corroborating its reputation for excellence.
However, as the popular saying teaches us, ‘not all that glitters is gold.’
Trust and leadership are the basis for strategic decisions in organisations
3.2.2 The Fall – (Un)trust: When Trust is Broken
In September 2015, the US Environmental Protection Agency (EPA) revealed that Volkswagen used fraudulent software to manipulate pollutant emission results in regulatory tests. During normal driving, vehicles were emitting up to 40 times more pollutants than permitted.
The impact was devastating: 11 million vehicles were affected, leading to billion-dollar fines (more than 30 billion euros), a 30 per cent loss in share value and an unprecedented credibility crisis. Consumers, regulators and investors felt betrayed, and the brand was discredited in rankings such as the Edelman Trust Barometer.
The psychology of trust shows that betrayals of this magnitude trigger intense reactions of anger and mistrust, creating a cycle that is difficult to reverse.
As another saying goes, ‘trust is like crystal: once it’s broken, it will never be the same.’
3.2.3 Rebuilding: The Long Road to (Re)Trust
(Re)earning trust takes more than words.
Volkswagen embarked on a strategic transformation, adopting measures ranging from accountability to corporate reinvention.
- Acknowledging mistakes and apologising: it publicly admitted its guilt and set up compensation funds for injured consumers, especially in the US.
- Investing in sustainability: it has taken the lead in electric vehicles, earmarking more than 70 billion euros for clean technology and committing to carbon neutrality by 2050.
- Revamping governance: replaced executives and implemented strict compliance policies to avoid new scandals.
- Transparency and cooperation: worked together with regulators and created recall programmes to fix affected vehicles.
- Reconnecting with consumers: campaigns focused on responsibility and sustainability were launched to rebuild relations with the public.
However, as the saying suggests, ‘(re)trust is like mending a garment: it may work, but the marks stay.’
3.3 Impact of Trust on Business
Trust is a strategic asset that transcends reputation. Companies led by trustworthy CEOs attract 30 per cent more investment and show a 106 per cent higher return for shareholders, according to the Harvard Business Review. In addition, high levels of trust reduce turnover by 50 per cent and increase productivity by the same amount.
Brands perceived as trustworthy can charge up to 7% more for their products, and organisations with high internal trust are 11 times more innovative, according to Forbes Insights. In addition, 78 per cent of consumers prefer companies aligned with ESG (Environmental, Social, and Governance) practices, reinforcing the impact of trust on corporate sustainability.
3.4 Conclusion
In this article I’ve mentioned that trust is an individual and voluntary choice that we make at every moment to be vulnerable to others in a specific context, taking risks based on the expectation that the other person will always act in good faith.
Outward signs of trust include integrity, commitment, consistency, competence, empathy, clarity, character, connection and contribution.
We point out that systems such as the Bar of Honour, based on pure trust, not only simplify operations, but also contribute to creating a welcoming and transparent environment, promoting a unique experience that resonates positively with the values of trust and autonomy.
We explored the cycle of Trust – Trust, (Untrust and (Re)Trust – in the Volkswagen-Dieselgate case and learnt several lessons: that trust is fragile and can be easily destroyed, even if it takes decades to build. That ethical practices and transparency are not optional; they must be non-negotiable pillars. And that innovation and trust go hand in hand.
And we concluded that it is possible to rebuild it, but this requires a lot of time and consistent action – and only a minority of companies have managed to fully recover from reputational crises.
Remember: trust isn’t just moral; it’s an economic engine. It’s the most valuable currency we can offer. Invest in it with purpose and you’ll see returns not only in financial results, but also in stronger connections, more motivated teams, more loyal consumers and a lasting positive impact. The challenge is ambitious, but the future belongs to those who continually inspire and generate trust.
1https://www.diarioeconomico.co.mz/2020/1
2 In the Ubuntu philosophy, summarised in the phrase ‘I am because we are’, trust is seen as a community web. This view contrasts with Western systems, which often prioritise individualism.
3 And, on the negative side, unreliability.
