Board’s Guide to Trust—Building Trust With Institutional Investors

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In brief: 2020 has tested the stewardship skills of company leaders and directors alike. Companies have continued to face mounting pressure to address the needs of a spectrum of stakeholders—not just shareholders. Today, the vast majority of institutional investors believe that a multistakeholder model will deliver better long-term financial returns than other governance models. For public company boards, the directive is clear: directors must be fully attuned to their investors' priorities and the vulnerabilities of falling short of their expectations.

Today, board accountability is increasing in parallel with that of management, as shareholders, employee activists, and the rising importance of ESG considerations place boardroom oversight under a more critical lens. Directors need to be far more attuned to multistakeholder concerns than in the past and fully aware of related risks to the company’s business. This brief highlights findings in the latest Investor Trust survey, which are pertinent to boards.

How boards can use this resource to:

• Understand the key elements of investor trust
• Identify actions to improve trust
• Monitor progress and track investor expectations 

Relevant audiences: Board members and corporate secretaries of public companies, especially board chairs, lead directors, and board committee chairs