Part - I

Introduction

Transactions are the essence of business, the foundation of all economic activity. Transactions have to take place for any business to exist; the level of transactions and their magnitude determine its stature and success.

Transactions are built around Trust. Organizations do not buy or agree to buy based on opinions. They need something more to invest in a company or its products. That extra bit of equity is the deciding factor ultimately in going on with the transaction.

Trust in an organization is never built consciously. It just happens, through its culture, founding principles and consistency. Such organizations are the fortunate lots, who have the added equity of intangible trust.

Trust is always built along beliefs and faith. An organization that tries to achieve trust on itself by various stakeholders and customers is thus striving to achieve a strategic advantage over its competition.

So What is Trust?

Trust can be defined as "Firm reliance on the integrity, ability, or character of an entity or thing".

Trust transcends all legislations and thumb rules. It is a state of mind of mutual congruence. Trust is a fiduciary relationship that exists or that is expected in a deal. It is an implied and unstated confidence in something or someone. Trust is based on habits and not rational calculations. Trust is the confluence of moral virtues and habits.

Why Trust?

Trusting has always been man's panacea against his own weakness. When we do not know how to react, what to decide, how to conclude or how to interpret, we always seek wise counsel of a trusted person.

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* Contributed by: -
Vinod Sriramulu,
PGP - 2,
BIM, Trichy.