Every day, the headlines remind us of how abandoning trust destroys both workplaces and societies. Trust can be easily broken—whether in business, politics, or personal relationships. But while broken trust makes the news, what often goes unnoticed is how strong, trust-based teams and organizations quietly thrive. Trust isn’t just a feel-good concept. It’s the foundation of collaboration, innovation, and long-term success.
Trust is the cornerstone of any successful relationship, workplace, or society. When trust is absent, fear, suspicion, and miscommunication take over, creating environments where progress, innovation, and collaboration are suppressed. The consequences of damaging trust are devastating and far-reaching, affecting everything from morale and productivity to entire economies. Let’s explore what happens when trust is lost, using real-life examples that highlight its critical importance.
Abandoning Trust and Workplace Fallout
When trust is abandoned in a workplace, dysfunction quickly follows. One of the most infamous examples is the downfall of Enron, a company that collapsed under the weight of deceit and lack of accountability. At its peak, Enron was considered an industry leader, but its leadership fostered a culture of mistrust. It engaged in unethical practices and prioritized self-interest over transparency. Employees operated in a toxic environment where open communication was suppressed. Decision-making lacked integrity. When the truth came to light, it not only destroyed the company but also led to thousands of lost jobs and widespread economic repercussions.
Without trust, employees hesitate to take risks, share innovative ideas, or collaborate effectively. They fear repercussions, dismissal, or being undermined, which cripples the organization’s ability to adapt and grow. For instance, a survey by Gallup revealed that organizations with low-trust cultures experience 50% higher turnover rates than their high-trust counterparts. This shows that trust isn’t just a “nice to have”; it’s a necessity for retaining top talent and driving long-term success.
On a smaller but equally damaging scale, consider a tech startup where the CEO micromanaged every decision. He refused to trust the team’s expertise. Employees disengaged, felt undervalued and restricted in their roles. This lack of trust led to high turnover. Skilled employees left for organizations that fostered autonomy and collaboration. Eventually, the startup lost its competitive edge, proving that trust is not only critical for team morale but also for maintaining innovation and competitiveness.
Societal Breakdown — Lessons from Abandoning Trust in the 2008 Financial Crisis
The erosion of trust doesn’t just affect individual organizations. It can disrupt entire societies. The 2008 financial crisis is a prime example of what happens when trust collapses on a global scale. Leading up to the crisis, financial institutions engaged in risky practices, prioritizing profits over ethical responsibility. When the housing market crashed, trust in these institutions plummeted. Fear spread like wildfire. Banks faced massive withdrawals, investors pulled back, and consumers lost faith in the stability of the economy.
The ripple effects of this crisis were profound. Unemployment soared, businesses shut down, and governments scrambled to restore order. Distrust in financial systems led to tighter regulations and years of slow economic recovery. More importantly, the crisis demonstrated that trust isn’t just a feel-good principle. It’s a structural necessity for the smooth functioning of economies. Without it, transactions stall, cooperation fades, and the ability to recover from setbacks diminishes significantly.
This societal breakdown also revealed the emotional toll of lost trust. Families lost homes, employees lost pensions, and entire communities were left grappling with uncertainty. Restoring trust in financial systems became a monumental task. It required years of reform and accountability measures. The 2008 financial crisis serves as a stark reminder that trust is not only foundational to economic success but also to social stability and collective well-being.
Toxic Leadership — The Cost of Mistrust
On a more personal level, leaders who abandon trust can poison everything they touch. In business the poisoning occurs in team roles, goals and relationships. Consider a leader who micromanages every detail. It undermines their team’s confidence and autonomy. In environments like these, employees often disengage, doing only the bare minimum to get by. Instead of feeling like valued contributors, they begin to feel like cogs in a machine. In society, they feel underserved and not valued.
For example, a study by Stanford University found that employees in collaborative environments—where trust is high—stick to their tasks 64% longer than those in low-trust settings. This demonstrates the direct link between trust and productivity. When trust is present, employees feel empowered to take ownership of their work. This results in better problem-solving, innovation, and commitment to organizational goals. Conversely, in low-trust environments, fear and resentment breed inefficiency, high turnover, and poor morale.
One real-life example is a prominent retail chain that saw its turnover rates spike after implementing rigid monitoring systems. The intention was to increase efficiency, but the lack of trust these measures conveyed had the opposite effect. Employees felt scrutinized and undervalued, leading to widespread dissatisfaction and resignations. The costs of recruiting, onboarding, and training replacements far outweighed any gains the company hoped to achieve through tighter controls.
Why Trust Is the Ultimate Competitive Advantage
The common thread across these examples is clear. Trust is the ultimate enabler of success, whether within a team, an organization, or an entire society. Without it, collaboration breaks down, innovation stalls, and progress halts. But when trust is present, it creates an environment where people feel safe to share ideas, take risks, and work together toward common goals.
Companies that prioritize trust—through transparency, accountability, and genuine communication—gain a significant competitive advantage. They attract and retain top talent, foster innovation, and build resilience in the face of challenges. In today’s rapidly changing world, trust isn’t just a value; it’s a business strategy.
Where to Start when Rebuilding Trust
Rebuilding trust after it’s been lost requires intentional effort. Leaders must prioritize transparency, own up to mistakes, and actively listen to their teams. It’s also essential to create systems that promote accountability without micromanaging. This helps employees to feel trusted and empowered. By fostering open communication and aligning actions with trust, organizations can begin to repair broken trust and create a culture where people thrive.
The collapse of trust has far-reaching consequences. Its restoration, however, has even greater potential. By prioritizing trust in your workplace and society, you can build stronger, more resilient systems that drive lasting success. After all, trust isn’t just the foundation of good relationships. It’ss the key to a thriving future.
The TIGERS 6 Principles Build and Sustain Trust
The TIGERS 6 Principles offer a proven framework for fostering trust and creating high-performing teams. Trust, as the first of the six principles, is not only measurable but also correctable. By identifying trust gaps in group dynamics and team interactions, managers and leaders can take targeted steps to rebuild and sustain trust over time.
Through the TIGERS’ system, leaders learn how to cultivate the kind of employee connections that foster trust—both one-on-one and within teams. These principles guide leaders in creating open, honest, and collaborative environments where trust becomes a natural byproduct of strong communication and accountability. When trust is prioritized and nurtured, teams become more cohesive, innovative, and productive. The TIGERS 6 Principles empower leaders to make trust a measurable and actionable cornerstone of their workplace culture, leading to lasting success and a thriving team dynamic.
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Copyright 2025 TIGERS Success Series, Inc. by Dianne Crampton
