Cannabis' Biggest Self-Inflicted Wound...
Is a trust gap.
Cannabis leaders can be their own worst enemy when it comes to corporate performance. Many commit sins of commission (making bad decisions) but also sins of omission - inadvertently enabling conditions or encouraging behaviours that reduce trust between employees, consumers, regulators, suppliers, and investors.
Trust can be defined as “the firm belief in the reliability, truth, or ability of someone or something.”
It really is the glue that binds and motivates people, enabling companies to run well and avoid risk.
Despite all the ‘feel good’ platitudes, the reality of the cannabis sector is quite different.
Trust breakdowns are common in areas like COA cheating, lying in brand communications, tolerating toxic workplace practices, misleading investors and stiffing vendors.
Building and maintaining trust is vital for every operator in the high-stakes cannabis space.
Once you lose trust, it takes a long time to reclaim it - if at all. Not surprisingly, consumers, suppliers, employees, and investors have a plethora of other hungry firms to deal with.
Much of my consulting work is about fostering trust between stakeholders. Two of my common remedies include:
- Nurturing honest communication that avoids a culture of 'fear' and secreting big problems and;
- Having governance practices that minimizes corporate risk and promote judicious decision making
Most cannabis firms fall very short with these practices.
Not Vertosa, a leading California-based cannabis and hemp specialty ingredients supplier. Their founder and CEO, Ben Larson, bakes in trust directly into the corporate OS.
3 Ways Vertosa Builds Trust
1. Foundation of Integrity
Trust starts with clarity. Vertosa has embedded trust into its DNA through a rock-solid Brand Foundation—a framework that defines its Purpose (#infusetheworld), Values, Habits, Promise and Persona. Every decision, communication, and strategic move must align with this foundation
2. Uncompromising Values
Trust thrives when values are non-negotiable. Vertosa holds zero tolerance for actions that threaten trust—internally or externally. Leaders are trained in Radical Candor and Fostering Growth, promoting an open, accountable culture.
3. Radical Transparency
Trust grows in the light. From full financial transparency with the Board to openly sharing product formulations and manufacturing insights, Vertosa has nothing to hide.
Being a trust-focused business has significant payoffs.
According to Forbes, high trust companies outperform their peers in terms of financial performance (+400%), brand loyalty (+88%), and employee engagement (+79%).
Forbes has recognized Vertosa the past 3 years in a row as one of the 42 leaders paving the path forward for the industry.
Becoming a trust-driven company takes time and effort. I can help get you there faster and with less pain.
#stakeholders #trust #marketing #brands #communications #leadership