{"id":129221,"date":"2024-09-04T11:48:50","date_gmt":"2024-09-04T15:48:50","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=129221"},"modified":"2024-09-09T12:16:40","modified_gmt":"2024-09-09T16:16:40","slug":"stakeholder-confidence","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/stakeholder-confidence\/","title":{"rendered":"Salesforce’s Transparent Method to Gain Stakeholders’ Confidence"},"content":{"rendered":"\n

Do you worry about losing your stakeholders’ trust? Why should you be completely open about how your business is doing?<\/p>\n\n\n\n

According to Marc Benioff, all stakeholders must have confidence in your business, its leaders, employees, and each other. The way he gained the trust of stakeholders for Salesforce was by being transparent about the company’s operations.<\/p>\n\n\n\n

Read below for more details on how Salesforce keeps its stakeholders confident in the business.<\/p>\n\n\n\n\n\n\n\n

How Salesforce Promotes Confidence<\/h2>\n\n\n\n

Benioff learned about the importance of stakeholders’ confidence by witnessing other companies undergo public crises of confidence\u2014for example, Salesforce helped Toyota recover from the controversy that ensued when it knowingly failed to address safety issues with vehicles it manufactured, and Google suffered from mass public disapproval due to executives\u2019 inappropriate handling of sexual harassment issues. Benioff also reasons that this confidence gives Salesforce a competitive edge\u2014the company is more likely to attract and retain customers and employees if it has their confidence.<\/p>\n\n\n\n

(Shortform note: In The Speed of Trust<\/em><\/a>, <\/em>Stephen M.R. Covey explains why confidence is essential to a company\u2019s health: In business contexts, trust magnifies the results of your efforts<\/a>, which means you don\u2019t have to work as hard to accomplish your goals. To illustrate, consider the financial impact of Toyota\u2019s failure to address safety issues: In addition to hefty fines<\/a> and lawsuits<\/a>, the company had to invest in expensive recalls and repairs<\/a> to gradually regain some\u2014but not all\u2014of their customers\u2019 trust, all of which amounted to a significant strain on resources exacerbated by damaged sales potential. Similarly, the loss of stakeholders\u2019 trust in Google following its misdeeds<\/a> may have cost the company upwards of $180 billion<\/a>.)<\/p>\n\n\n\n

The primary way that Salesforce inspires stakeholders\u2019 confidence is via accountability supported by transparent communication.<\/strong> Benioff says this often happens in relatively small ways\u2014for example, executives livestream some of their meetings so that all employees have access to important company information, and the company has a website customers can consult to find out about the current operational status of Salesforce products and services, including any incidents or maintenance activities that may affect their availability.<\/p>\n\n\n\n

(Shortform note: Covey says in The Speed of Trust<\/em><\/a> <\/em>that transparent communication inspires trust when it features authenticity<\/a> (demonstrated by being open about uncomfortable topics), humility<\/a> (demonstrated by taking responsibility<\/a> for one\u2019s mistakes), and accountability<\/a> (demonstrated by clarifying expectations). Business leaders often employ these tactics in times of crisis, when stakeholders\u2019 confidence is paramount to the company\u2019s continued success. For example, Howard Schultz communicated transparently<\/a> about his return as Starbucks\u2019 CEO during the 2007-2008 financial crisis, a journey he details in Onward<\/em><\/a>. <\/em>By employing these tactics proactively and regularly\u2014not just in times of crisis\u2014Salesforce may build a reservoir of confidence from which it can draw later if needed.)<\/p>\n\n\n\n

Stakeholders often demand accountability and transparent communication from Benioff about large and contentious issues, too. One major example of this came in the form of a 2018 open letter to Benioff about Salesforce\u2019s deal with US Customs and Border Patrol (CBP). Salesforce provided software to CBP for mundane purposes, like human resources management, and employees were concerned that Salesforce software was being used to facilitate the separation of migrant children from their parents, a Trump-era border policy widely deemed inhumane. The open letter called for Salesforce to re-evaluate its relationship with CBP and impose a system that would ensure Salesforce\u2019s software could not be used nefariously in the future.<\/p>\n\n\n\n

Benioff explains that this controversy was difficult to handle because stakeholders\u2019 confidence needs seemed conflicted. While employees needed to have confidence in Salesforce\u2019s ethics to stand behind their work, customers needed to have confidence that Salesforce wouldn\u2019t abandon them if their values didn\u2019t align with employees\u2019 values. To resolve the issue, Salesforce issued a statement clarifying that its software was not being used to separate migrant families and promising to donate to organizations helping affected families. Salesforce didn\u2019t drop CBP from its client list, but to meet employees\u2019 demands, it instituted an Office of Ethical and Humane Use to develop a strategy ensuring responsible use of Salesforce products.<\/p>\n\n\n\n

Salesforce\u2019s Entanglement With a Humanitarian Crisis<\/strong>

Former President Donald Trump\u2019s policy of separating migrant families at the US-Mexico border<\/a> involved forcibly removing children from their parents or guardians when they crossed the border illegally or sought asylum. As part of a system meant to deter immigration from Mexico, children were placed in detention centers while their parents faced legal proceedings. Over 5,000 families were separated. In time, officials found that they were poorly prepared to eventually reunite families; in some cases, reunification proved impossible<\/a>. The policy sparked domestic and international outrage due to the trauma it inflicted on children and families, which many experts deemed a humanitarian crisis<\/a>.

Benioff alleges that since CBP didn\u2019t use Salesforce software to facilitate the separation of migrant families, he was morally justified in retaining Salesforce\u2019s contract with the agency. But critics of this decision argue that it\u2019s impossible to reconcile<\/a> Benioff\u2019s supposed opposition of this policy with the ethical implications of providing any form of support to the CBP, regardless of which specific software applications were utilized in the process. Furthermore, some critics say Benioff was uninformed about the issue<\/a>, while others argue that by continuing to work with CBP, Salesforce and Benioff enabled <\/em>and profited from <\/em>migrant family separation, since its contract made CBP run more efficiently<\/a>, per Salesforce\u2019s announcement.

Benioff elected to keep Salesforce\u2019s contract with CBP, which inspired a protest at Dreamforce<\/a> and a major nonprofit\u2019s refusal to accept Salesforce\u2019s donation<\/a> to families affected by the separation policy. Benioff stated that he felt underqualified<\/a> to make this decision, which led him to hire Paula Goldman to head the Office of Ethical and Humane Use. During her tenure, Goldman has weighed in on decisions like whether to greenlight facial recognition software<\/a> and how to regulate the use of generative AI<\/a>. Technology reporter Kara Swisher explains that it\u2019s increasingly common for tech companies to hire ethics experts<\/a>, but notes that this approach may prove ineffective if, say, their advice isn\u2019t heeded.<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"

Do you worry about losing your stakeholders’ trust? Why should you be completely open about how your business is doing? According to Marc Benioff, all stakeholders must have confidence in your business, its leaders, employees, and each other. The way he gained the trust of stakeholders for Salesforce was by being transparent about the company’s operations. Read below for more details on how Salesforce keeps its stakeholders confident in the business.<\/p>\n","protected":false},"author":14,"featured_media":129297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,34,14],"tags":[1579],"class_list":["post-129221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-communication","category-management","tag-trailblazer","","tg-column-two"],"yoast_head":"\nSalesforce's Transparent Method to Gain Stakeholders' Confidence - Shortform Books<\/title>\n<meta name=\"description\" content=\"Have you yet to gain your stakeholders' confidence? 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