Trust and Leadership

Below are some quotes from Chairman Alan Greenspan of the US Federal Reserve Board in relation to trust.

Efficiency is of course a key measure of corporate governance ..... breakdowns in governance could ........ significantly erode business efficiency ................

Well-functioning markets require accurate information to allocate resources, and market participants must have confidence that our predominately voluntary system of exchange is transparent and fair........

...... market system depends critically on trust--trust in the word of our colleagues and trust in the word of those with whom we do business. Falsification and fraud are highly destructive to free-market capitalism and, more broadly, to the underpinnings of society.......

In the end, a CEO must be afforded full authority to implement corporate strategies, but also must bear the responsibility to accurately report the resulting condition of the corporation to shareholders and potential investors.

........unless the laws governing how markets and corporations function are perceived as fair, ....economic system cannot achieve its full potential.


Work hard. Save your money. Prosper. But most important, be honest in your dealings.


"It is decidedly not true that 'nice guys finish last,'"

"Material success is possible in this world, and far more satisfying, when it comes without exploiting others,"

"The true measure of a career is to be able to be content, even proud, that you succeeded through your own endeavors without leaving a trail of casualties in our wake."

"In virtually all our transactions, whether with customers or with colleagues, with friends or with strangers, we rely on the word of those with whom we do business,"

"If we could not do so, goods and services could not be exchanged efficiently."

At root was the rapid enlargement of stock market capitalizations in the latter part of the 1990s that arguably engendered an outsized increase in opportunities for avarice.

An infectious greed seemed to grip much of our business community

It is that the avenues to express greed had grown so enormously.

But even if the worst is over, history cautions us that memories fade.

We look at it from a pragmatic viewpoint, again using Nash principle of optismising group outcome. When we have trust ( and it is a one-to-one relationship ), the cost of doing business will greatly be reduced. However, we need to build in a system of mutual deterence to ensure that heavers are rewarded, and slackers are discouraged from undemining the efficient function of the model. Again we need to articulate, communicate and execute ( ACE )this ideal in order for a well-functioning market to thrive.

http://www.federalreserve.gov/boarddocs/hh/2002/july/testimony.htm
http://www.reviewjournal.com/lvrj_home/2005/
May-16-Mon-2005/business/1676170.html