Cover Trust is the cornerstone of successful leadership, particularly for organisations navigating the challenges of AI adoption and sustainability (Photo: Thirdman via Pexels)
Trust is the cornerstone of successful leadership, particularly for organisations navigating the challenges of AI adoption and sustainability (Photo: Thirdman via Pexels)
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In the dynamic scene of corporate leadership, one element stands as the foundation of success: trust
It’s an intangible asset, yet its presence—or absence—can make or break an organisation’s stability. In this exclusive interview, PwC Malaysia’s assurance partner and building trust programme sponsor, Pauline Ho, offers notes and insights on how trust is the cornerstone of successful leadership, particularly for organisations navigating the challenges of artificial intelligence (AI) adoption and sustainability.
Drawing from a survey conducted by PwC Malaysia and Asia School of Business between August 14 and September 8, 2023, with more than 11,000 respondents, she paints a picture of high-trust organisations where employees are not just more likely to embrace AI and innovation but are also more engaged with sustainability goals.
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“A high-trust organisation is one where employees feel emotionally connected to the company's goals and are willing to adopt new technologies like AI,” she explains. This connection not only fosters innovation but also drives employee engagement and sustainability efforts. But how does one cultivate such an environment?
Ho suggests a delicate balance of transparency, empathy, and ethical decision-making. Leaders must be willing to show vulnerability, acknowledge their limitations, and create systems of two-way communication. They must also navigate the complex landscape of AI adoption with both authority and humility, addressing fears of job displacement while actively involving employees in reshaping the future of work.
Here, she shares strategies for building authentic relationships to foster trust in an age of rapid technological change and heightened environmental awareness. Her insights remind us that in the pursuit of innovation and sustainability, our most valuable resource remains human: the trust we build with those we lead.
Above According to a survey by PwC Malaysia and Asia School of Business, female employees are more likely to adopt AI for work than their male counterparts (Photo: Vlada Kapovich via Pexels)
According to a survey by PwC Malaysia and Asia School of Business, female employees are more likely to adopt AI for work than their male counterparts (Photo: Vlada Kapovich via Pexels)
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What are some indications that you work in a high-trust organisation? Or how do you tell that you work in a high- or low-trust organisation?
A workforce in a high-trust organisation is: 13 times more likely to believe that the company will reward efforts fairly in the future; eight times more likely to adopt AI in the workplace; seven times more likely to support the company’s efforts to conserve the environment; and six times more likely to seek out new ways to learn and innovate.
A key finding from our report is that a workforce in a high-trust organisation relates to a higher willingness to adopt AI in the workplace. But securing employee buy-in is just the start. It’s crucial for leaders to actively involve employees in reshaping the new era of work. Resistance to AI often stems from fears of job displacement and uncertainties about how roles will evolve.
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Our study also finds that employees working in a high-trust organisation are emotionally connected to the overarching sustainability goals of the business. So, here’s another self-test: Do you know what the company’s sustainability goals are? Will you look for ways to adapt to the changing tides whilst staying aligned with these goals?
In relation to this, one question you can ask yourself that will tell you whether you work in a high-trust organisation is this: Does my employer provide relevant reskilling or upskilling programmes to equip me to have more control and opportunity as my role evolves?
How do you define transparency in leadership, and why is it crucial for building trust within an organisation?
One of the tenets of trust is the willingness to be vulnerable. A high-trust organisation is one where employees are more willing to be open and vulnerable to leaders’ decisions, but it doesn’t stop there. There is an opportunity for leaders to set the tone by creating a system of two-way communication, where leaders share what’s on their minds and actively listen to and understand employees’ struggles. On the flip side, demonstrating vulnerability, such as acknowledging that leaders do not always have all the answers, helps build deeper trust and fosters a more genuine connection with employees.
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The adoption of new technologies is often a real test for leaders in engaging their stakeholders. Leaders have to balance between appearing credible with authority whilst maintaining humility and honesty about both successes and failures in the face of significant change.
It’s crucial for leaders to actively involve employees in reshaping the new era of work. Resistance to AI often stems from fears of job displacement and uncertainties about how roles will evolve.
How do you ensure that ethical decision-making is embedded in the culture of an organisation? What are some of the challenges leaders face in maintaining ethical standards?
Tone from the top matters when it comes to fostering an organisational culture. A strong corporate governance is fundamental to ensuring ethical decision-making within an organisation. Leaders must consistently demonstrate ethical behaviour and set clear expectations for their team.
In my discussion with other business leaders, one of the biggest challenges an organisation faces is finding the right set of people who share the same vision, purpose and values. It’s not about gathering a team of people who think like you. On the contrary, it is about creating an environment where people from diverse backgrounds can work together, guided by the organisation’s north star.
Maintaining ethical standards requires ongoing vigilance and a commitment to continuous improvement. As new technologies like AI emerge, leaders need to ensure that ethical standards evolve accordingly to adapt. For example, implementing AI in an organisation’s processes requires careful consideration of data privacy and algorithmic bias. Similarly, addressing issues like greenwashing requires a robust control framework.
It’s crucial to pay attention to suppliers and business partners to ensure that sustainable practices are integrated throughout the supply chain, as companies are increasingly held accountable not only for their actions but also for those of their contractual partners. Leaders must, therefore, be consistent in their actions and decisions, regularly reviewing and updating policies and practices to address new challenges and risks. The key is to stay proactive and adaptive to uphold our ethical principles even in the face of rapid change.
Above The sentiment surrounding GenAI is largely optimistic with 87 per cent of employees in Malaysia believing it will enhance their skills, improve work quality, and boost creativity (Photo: Fauxels via Pexels)
The sentiment surrounding GenAI is largely optimistic with 87 per cent of employees in Malaysia believing it will enhance their skills, improve work quality, and boost creativity (Photo: Fauxels via Pexels)
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How does practising empathy contribute to building trust, and what are some practical ways leaders can demonstrate empathy in their daily interactions?
Practising empathy in leadership is not just about being kind; it’s about creating a trustworthy environment where employees feel understood, valued, and supported. Leaders often work in environments where the information they receive is heavily filtered and may not reflect the true experiences of their employees. To truly bridge the empathy gap, leaders must get in touch with their humanity and step out of their executive bubble.
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On the other hand, there has been an increasing trend of leaders experiencing compassion fatigue, where leaders often empathise with the team while forgetting to also take care of their well-being. The key term here is enabling flexibility. We acknowledge that people work at different paces and are productive at different times. By prioritising flexibility, we build trust within our organisation, ensuring that our people feel supported and valued in their roles.
On the other hand, there has been an increasing trend of leaders experiencing compassion fatigue, where leaders are often empathising with the team while forgetting to also take care of their own wellbeing. The key term here is enabling flexibility.
What were some of the most surprising insights gained from this study?
Interestingly, our survey found that female employees are more likely to adopt AI for work than their male counterparts. Yet, in Malaysia’s technology sector, women account for a mere 35 per cent of the workforce, indicating a persistent underrepresentation.
Women are also less optimistic than men about the impact of emerging technologies such as AI on their careers. If megatrends such as AI are to truly meet the future needs of society, more balanced gender representation in AI design will be critical to mitigating the perpetuation of unintended and embedded biases.
Above Pauline Ho, PwC Malaysia’s assurance partner and building trust programme sponsor
Pauline Ho, PwC Malaysia’s assurance partner and building trust programme sponsor
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The study highlights that employees in high-trust organisations are significantly more likely to adopt AI and support sustainability initiatives. Can you elaborate on how trust influences these behaviours?
According to the Asia Pacific Workforce Hopes and Fears Survey 2024 (Malaysia highlights), the sentiment surrounding GenAI is largely optimistic. 87 per cent of employees in Malaysia believe it will enhance their skills, improve work quality, and boost creativity. But adoption in the workplace is limited: only 55 per cent have used GenAI in the past year, and only 25 per cent use it daily. Clearly, there is a gap between potential and actual usage.
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These findings drive home the need for leaders to bring their people along when it comes to GenAI. In high-trust organisations, leaders can bridge this gap by being transparent about AI. This includes understanding, explaining and managing the inevitable tensions between short-term job losses and long-term job creation potential from AI. Similarly, high-trust organisations are more effective in driving sustainability initiatives.
Reinvention plans won’t succeed without a united workforce. Being transparent, purpose-driven, and trusted regarding strategies and decisions can help employees feel more comfortable experimenting and innovating with AI and sustainability efforts. Trust boosts morale and drives meaningful engagement and proactive behaviour towards organisational goals.
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Lynette loves travelling and dancing to Latin music almost as much as she enjoys period films and pastry desserts. She is constantly in search of the perfect nude lipstick and finds her best ideas through walks in nature.
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As the Editor-in-Chief of Tatler Malaysia, Lynette leads the content teams for print, digital and social media platforms of the brand. She has over 20 years experience in media, having been editorial director and editor-in-chief for lifestyle titles such as Cleo, ELLE, Esquire, Men’s Health, and Women’s Health.
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