Investing in trust pays dividends —it yields material financial returns and mitigates risks. This was the focal point of an in-depth discussion led by Xiaowei Liu, during an exclusive book launch and dialogue hosted by Edelman Smithfield APAC. Drawing on her 26 years of experience in public relations and stakeholder engagement, Xiaowei shared vivid stories illustrating how trust impacts key business outcomes, from accelerating approvals on multimillion-dollar developments to supporting market re-entry strategies and securing support for mergers and acquisitions. Her message was clear: trust is a vital asset to drive profitability and long-term growth.
Currently the Asia Director at the World Energy Council and The Conference Board, Xiaowei also has extensive experience managing external relations at Shell APAC, where she led a team of over 100 communicators. In her recent book, The Art of Influence, she addresses the "say-do gap"—the disconnection between corporate messaging and actions that can lead to issues like greenwashing and stakeholder skepticism. For businesses, the key to overcoming these pitfalls lies in authentic, consistent trust-building.
Here are the key insights from the discussion:
- Building Trust Inside and Out: Trust isn’t just external; it's foundational for internal team dynamics. Communicators break down silos and act as bridges, facilitating trust both within the business and with external stakeholders. This means adopting a people-first approach that prioritizes genuine, long-term relationships over transactional interactions.
- Trusting our Local Experts: Global strategies must account for local nuances. Xiaowei shared a powerful example from her experience handling the acquisition of a popular local brand. By reframing the deal as a "merger" instead of an acquisition, counterparty and public sentiment shifted significantly, underscoring the importance of culturally sensitive communication.
- Trust as a Long-Term Investment: Trust isn't built overnight. It is a long-term investment that’s built from consistent, principled actions. Xiaowei referenced Edelman’s five pillars of trust noting that companies that keep their promises and have a positive impact on society build enduring trust capital—a key component of long-term success.
- “Business Smart, Function Smart”: Effective communication is not just about mastering our craft as storytellers—it's also about deeply understanding our business and how we generate value. Communicators must bridge complex strategies and technologies with clear, engaging narratives to truly support organizational goals. Mastery of business and financial fundamentals positions communication professionals as invaluable partners to leadership.
- Human Interaction at the Core: Xiaowei emphasized the role of personal relationships in trust-building. Trust often grows through direct human interactions and consistently doing the right thing, as demonstrated in her work winning over skeptical NGOs and local communities. Her refusal to pay a journalist to cover an event lost her a headline but won the trust of many other outlets in the room.
- Sustainability as a Trust Investment: While sustainability initiatives can be costly, their long-term value in building trust and deepening stakeholder relationships often far outweighs short-term expenses. While standards and quality data are crucial, communicating these efforts in relatable, human terms helps audiences connect with the broader significance of ESG (Environmental, Social, and Governance) or sustainability issues.
For more insights from Xiaowei Liu’s discussion, her book The Art of Influence is available in Kindle format here.
Daniel Lee and Sin Yu Lim, APAC ESG Practice, Edelman Smithfield