The FINANCIAL -- A decrease in stakeholder trust can have a substantial impact on a company’s competitiveness, according to new research from Accenture. The Accenture Competitive Agility Index found that over half (54 percent) of the companies analyzed have experienced a major drop in trust, which conservatively equates to a missed opportunity of $180 billion in potential revenues, based on available data.
The Bottom Line on Trust — a first of its kind analysis of more than 7,000 companies around the world operating across 20 industries — now proves that trust is a critical component of competitiveness, as important as growth and profitability.
According to the research and analysis done by Accenture Strategy, when a company faces a material loss of trust among its key stakeholders — customers, employees, investors, suppliers, analysts and the media — the result is a drop in that company’s Index score by two points on average across industries. Every one-point drop in an Index score equals a negative impact on revenue growth by three percent and EBITDA by five percent, on average across all industries.
About the Competitive Agility Index
Developed by Accenture Strategy, the Competitive Agility Index scores 7,030 companies across 20 sectors based on data from the past two and a half years across three interdependent dimensions of competitiveness: growth, profitability, and sustainability/trust. The Index relies on both publicly available data, including historical data and future consensus data, and innovative sustainability and trust measurements. Accenture Strategy worked with Arabesque to source data and create a new proprietary measure of trust.