What can be a direct outcome of an organization losing public trust?

When an organization loses public trust, one direct outcome is the potential for smear campaigns. This occurs because the organization may become a target for criticism or negative publicity from competitors, disgruntled stakeholders, or media, reflecting a broader attack on its reputation. As trust erodes, various parties may feel emboldened to engage in tactics aimed at damaging the organization’s image further, leading to a cycle of mistrust that can be difficult to break.

In contrast, other options such as higher employee recruitment rates, increased shareholder investment, and improved customer engagement typically thrive in environments of high trust and positive public perception. When trust is compromised, the likelihood of attracting new employees or investments diminishes, and customer engagement tends to suffer as well. Thus, smear campaigns represent a tangible and negative reaction stemming from a loss of public confidence.