In a new book, the PepsiCo India CFO says trust is necessary for a fulfilling professional journey

Trust is the bedrock of any successful relationship, personal or professional. Over three decades, I’ve witnessed both the efficiencies of high-trust workplaces and the dysfunction of environments lacking it. In one setting, people may trade endless emails over trivial matters, while elsewhere, even the toughest issues are solved with a quick call or face-to-face chat. Building genuine trust with stakeholders is pivotal for success, and it requires both time and intent. Every new role, often in a different location, began with a ninety-day period focused on understanding stakeholders. I call it a “trust account” – you make deposits over time and it compounds.

In Dubai, while leading a diverse team across Asia, the Middle East and Africa, I learnt that transparency and respect go a long way. I adapted my style to suit each team member’s preference – some preferred phone calls, others email. Despite our varied backgrounds, our shared goal of delivering high-quality insights to senior management unified us. Over time, the team saw me as someone they could rely on, especially under pressure. It allowed us to operate at what Stephen Covey calls “the speed of trust”.

Working with CEOs, I’ve learnt that trust is especially crucial in transformative periods. Recently, I collaborated with Ahmed El Sheikh who was the earlier CEO of the PepsiCo business in India and South Asia, a leader known for inspiring teams through challenging times. Ahmed was already in the role when I arrived, during a period of significant change. He believed in “One Team, One Dream” and was assessing whether I shared this mindset. By emphasising transparency and prioritising the team, I earned his trust. With his empowerment, we moved swiftly, making decisions based on mutual confidence and aligned goals.

Trust is the glue that holds families, friendships and society together. Parents instinctively trust their children, knowing constant oversight isn’t feasible and would only strain relationships. In friendships, once trust is broken, it’s almost impossible to fully repair. Imagine a society without trust – it’s hard to fathom.

Stephen MR Covey captures this idea well: :Trust always affects two measurable outcomes: speed and cost.” When trust diminishes – whether in a relationship, a team or a company – everything slows down and costs rise. Extra checks and redundancies are like a “low-trust tax”, adding expenses and delays across the board. Simply put, in low-trust environments, everything takes longer and costs more.

The reverse is equally powerful: When trust rises – in relationships, teams, companies, industries and client interactions – speed increases and costs decrease. With established trust, everything moves faster and costs less. Stephen MR Covey calls this the “high-trust dividend”. It’s a straightforward, measurable advantage. Research supports this: A Watson Wyatt study found that high-trust organisations outperform low-trust ones by 286 per cent in total shareholder returns, including stock price and dividends – three times higher returns.

Covey underscores the tangible benefits of high-trust environments: In America’s “100 Best Companies to Work For”, trust makes up 60 per cent of the criteria and these high-trust organisations outperform the market by 288 per cent. This nearly threefold advantage highlights trust as a critical business multiplier.

Consider Falguni Nayar’s Nykaa, one of India’s top e-commerce platforms, built on transparency with both customers and suppliers. By focusing on authentic products, fair pricing and strong customer service, Nayar earned consumer trust in a market plagued by counterfeits. Her commitment to empowering women by promoting financial independence, supporting female entrepreneurs and offering inclusive beauty products through Nykaa also bolstered her credibility, making Nykaa a trusted household name.

Trust’s impact extends to outsourcing: A study by Warwick Business School found that trust-based outsourcing relationships outperform contract-based ones by 40 per cent, a substantial advantage termed the “40 per cent dividend”.

Under Punit Renjen’s leadership, Deloitte emphasised long-term strategy, ethics and inclusion, setting him apart as the first Indian CEO of a Big Four firm. By prioritising transparency and accountability, Renjen built client trust and promoted a diverse and inclusive workplace, furthering employee confidence. His commitment to sustainability and corporate responsibility cemented his standing as a reliable, forward-thinking leader.

In schools, trust’s impact is clear: high-trust institutions are 3.5 times more likely to see test score improvements compared to low-trust counterparts. Trust acts as a “dividend” – a powerful, quantifiable asset – while distrust operates as a costly “tax”.

So, what does it take to build trust? While management theories abound, here are some core principles drawn from my own experience on how to foster strong, trusting relationships in the workplace.

In any business culture, authenticity and transparency are invaluable. Over time, I’ve found that leaders who show genuine intent build stronger bonds. Early in my career, I sought to fit in by appeasing others, saying what was popular rather than what I truly thought. I remember a time when I had just started working in a power utility company in Kolkata. I had many ideas to improve the productivity of the staff but didn’t have the courage to speak up for fear of antagonising a powerful trade union. Another time, having joined a new business team, I was hustled into supporting a new proposal that wasn’t making financial sense. I was keen to get accepted into the team and so I went along with them. In hindsight, I should have voiced my disagreement. I am sure all professionals can relate to these kinds of situations. Taking the non-confrontational route sometimes leads to short-term acceptance; it ultimately costs us respect.

By committing to transparency and focusing on the issue rather than personalities, I’ve built credibility and rapport. For example, as CFO, I often pushed for cost-cutting or growth measures that some found uncomfortable, but being clear and honest about these aims garnered respect.

Authentic leaders understand the importance of a balanced approach – direct in intent but mindful in delivery. This means not just addressing the issues but genuinely listening to the personal and professional challenges team members face. This creates a foundation of trust that is difficult to replace.

Consider Arundhati Bhattacharya, the first woman to lead the State Bank of India (SBI). She tackled non-performing assets and economic uncertainty with transparency and resolve, implementing reforms and digitisation strategies that reinforced SBI’s position as a trusted institution. Her focus on transparency helped employees and stakeholders see the bigger picture, making her a credible leader who inspires trust.

Communication plays a very important part in building transparency and trust. At PepsiCo, we are always getting formal feedback via 360-degree surveys or manager connect scores.

Simple questions such as the ones below go a great way in building trust:

What is your opinion?

• Do you think we are doing the right thing?

• I am not sure if I got this right. Would love to hear your thoughts.

• Is there something I can do to help you with your work?

• How do we solve this? Any suggestions?

• You have been very quiet. It would be great to hear your take on this topic.

• How do you think the review went? What could we have done better?

Behaviours like being overly formal or unapproachable, not listening or showing favouritism are trust killers. Staying humble, approachable and true to oneself sets a foundation of trust that strengthens relationships and drives lasting impact.

Excerpted with permission from The Career Edge: The Unwritten Rules of Success, Kaushik Mitra, Penguin India.