Companies can no longer (if they ever could) talk themselves out of a problem they behaved themselves into. In the past, the truth got to the public sooner or later, but bad news didn’t travel as fast or hurt as much as it does today. There has been, it seems a kind of death penalty enacted against corporate misbehavior, both in the minds of lawmakers and the general public. There are many compelling arguments over whether this development is a good one or not. One thing is certain: the risk of corporate death has stimulated many more activities in our companies around ethical behavior. Perhaps that is why you are reading this very blog right now!

Ultimately, this is all about whom we trust and whom we don’t. I’d like to examine this idea of trust a bit further. HOW is centered around the idea that our behavior ultimately differentiates us in today’s market place. How we do things matters as much as what we do. I completely agree with this. How we are treated — and beyond that, how products and services meet our needs — create a foundation for trust. If your behavior or product is irrelevant to my needs, we probably won’t get to the point of even thinking about trust. You might call this the brutal reality of trust.

But there is also another side of trust — a less immediate, less tangible, even loftier dimension. Some call it purpose. I call it cause — the why in the trust equation. If how plays the role of the brain in the trust system, why is the heart. How creates a strong values-driven culture; why helps deliver value beyond the product. The synergy between the two forges a stronger kind of trust.

The problem is that we like to pick sides. We tend to focus on one side of the equation or the other. Business typically recruits our minds, and non-governmental organizations our hearts. We even talk about business or pleasure. Why can’t we have both? I am inspired by the companies out there that deliver physical, emotional and spiritual benefits to me – companies like Whole Foods, Patagonia, Timberland, Interface and Chipotle. I believe we will see more companies extend their offerings into the realm of the spirit. It is to this end that I put both my hope and faith in the future of capitalism.

Last 5 posts by Mats Lederhausen
• It's Quality, Not Quantity - June 12th, 2009
• Business' Increasing Proximity Risk - March 16th, 2009
• We Get What We Reward - February 10th, 2009
• Does Your Purpose Outweigh Your Products? - October 17th, 2007