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

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, a vast majority of institutional investors believe that a multi-stakeholder model will deliver better long-term financial returns.

For public company boards, the mandate 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 multi-stakeholder 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.