In his new book, The Seven Rules of Trust, Jimmy Wales takes a deeper look at the principles behind earning and sustaining public trust. One area of focus: radical transparency.
The topic is top of mind for many leaders who are now navigating moments of uncertainty or reputational risk.
“You spend your life as a leader trying to get everybody excited and motivated in a positive way about your company, but then when you've screwed up and a mistake has happened or you haven't planned well, it is hard for people emotionally to sort of go, you know what? We actually are in the wrong here,” Jimmy says. “We need to do something about it.”
In the book, Jimmy explains the value of honesty and humility in the eyes of the public, sharing a story about Brian Chesky, CEO and co-founder of Airbnb.
Airbnb faced a crisis in 2011 when a woman who’d rented out her apartment returned home to find it in disarray. The guests looted her belongings, cut up her clothes and pillows, burned her sheets and scattered bleach powder throughout the home. In response, Airbnb’s lawyers advised Chesky to stay silent and let them handle the fallout along with the company’s customer relations team.
Chesky did the opposite, releasing a public statement, taking responsibility for the incident, and auditing the company’s processes. The efforts had a redeeming impact on Airbnb’s image.
Jimmy notes, “Transparency almost always boosts your reputation because people don't mind if you screwed up - we all screw up in life - but if you own it then you actually make the changes you need to make, I think it can be very powerful.”
