Building Trust in Turbulent Times: What CLOs Can Learn from Political Trust-Building

In today’s high-stakes environment, a Chief Legal Officer (CLO) is undeniably one of the most complex and multifaceted in any organization. A CLO must wear many hats, often switching between legal advisor, strategic partner, and transformation leader. But at the heart of each role lies a single, unifying necessity: trust. Cultivating trust—within the organization, with key stakeholders, and in the broader business community—is essential for the CLO to serve effectively as both guardian and guide for the organization.

This responsibility resonates with what we’ve all recently experienced in the political arena, where public trust plays a crucial role in the stability and functionality of government. Just as political leaders must inspire trust to advance policy and uphold governance, CLOs must also develop a strong trust foundation to influence decision-making, protect the organization’s reputation, and drive change initiatives.

After a contentious presidential election, trust becomes even more relevant. The divisive nature of such elections can erode public confidence in institutions, leading to skepticism about the integrity of leaders not only in government but across sectors. For CLOs and executives, this post-election landscape is a timely reminder of the importance of trust-building within their organizations. Just as the public needs to believe in political leaders’ stability and fairness, business stakeholders need assurance that their leaders are acting with transparency, integrity, and fairness.

Building and maintaining trust with internal and external stakeholders in this climate isn’t just a “soft” skill; it’s a strategic asset that fosters resilience, loyalty, and cohesion—qualities essential for navigating challenging times and emerging stronger. Here are some lessons CLOs can glean from building trust in U.S. political institutions and how these insights can be applied to develop and reinforce internal trust.

Transparency as a Non-Negotiable

In politics, transparency is a critical element for winning public trust. In an age where information is readily accessible, citizens demand to know how decisions are made, and when transparency falls short, trust erodes. For CLOs, cultivating trust with stakeholders requires a similar commitment to transparency. When making critical decisions, CLOs can build credibility by providing context for their choices and clarifying the decision-making process.

Consider a high-stakes internal investigation: how much can be disclosed without compromising confidentiality? Finding the balance between discretion and transparency may feel like a tightrope, but erring on the side of open communication whenever possible strengthens the CLO’s role as a trusted advisor. Being transparent about the “why” and “how” behind decisions doesn’t just satisfy curiosity; it reassures stakeholders that each decision is grounded in principles and informed judgment.

Balancing Accountability and Advocacy

U.S. political leaders are held to high standards of accountability. The same principle applies to the CLO. CLOs serve as stewards of the company’s ethical and legal integrity and must demonstrate accountability in all actions. However, the CLO’s accountability extends beyond a watchdog role—effective CLOs are both guardians and advocates. They should protect the organization from legal risks while actively advancing its strategic objectives.

This duality can be seen in the delicate balance between upholding compliance and driving transformation. CLOs, in their capacity as advocates, are responsible for helping the business navigate legal requirements without stifling growth or innovation. For example, advocating for legal risk considerations in a merger or acquisition while maintaining a fair perspective on potential upsides allows the CLO to build trust with risk-averse and growth-focused stakeholders.

Strategic Communication with Key Stakeholders

Just as politicians tailor their messages to diverse constituencies, CLOs must effectively engage with a range of stakeholders, from the C-suite to the board to various business units. Building trust across this spectrum requires a nuanced approach to communication—balancing formality with approachability, clarity with conciseness, and strategic insight with accessibility.

Regarding critical business initiatives, like launching a new product or pursuing a transformative acquisition, the CLO must communicate legal implications that resonate with each audience. This may involve discussing regulatory compliance and potential reputational impacts for the board. For the operations team, the emphasis might be on practical implications and risk mitigation measures. Mastering this skill isn’t just about good communication; it’s about building trust by meeting each stakeholder where they are.

Exercising Judicious Decision-Making Amid Scrutiny

Public officials are constantly scrutinized, and each decision can have significant consequences. CLOs are no strangers to this pressure. As strategic leaders with deep access to sensitive information, CLOs are expected to demonstrate sound judgment on issues of high significance. Trust-building often relies on getting these high-stakes decisions right—not just from a legal perspective but also from a moral and business ethics standpoint.

A CLO who continually exercises good judgment strengthens their credibility and earns the confidence of those they serve. When tough calls are required, such as opting to disclose a cyber incident to maintain transparency or recommending a conservative course of action that may impact short-term profits, CLOs who prioritize long-term integrity over short-term gain show they are worthy of trust.

Embracing Change and Leading Transformation Initiatives

In government, embracing change can be critical to maintaining public trust, especially in periods of uncertainty or transition. CLOs similarly play a crucial role in driving transformation within their organizations, whether it involves digital innovation, reshaping compliance structures, or leading diversity and inclusion initiatives.

Change inevitably brings uncertainty, but CLOs who lead transformation with a clear vision, a steady hand, and open lines of communication can help foster a culture of resilience. Initiatives like restructuring the legal department for greater efficiency or adopting new technology for contract management demonstrate to the business that the CLO is forward-thinking and committed to evolving in ways that align with the company’s goals.

The Importance of Consistency and Follow-Through

Trust in the political sphere depends heavily on consistency and follow-through. The same goes for the CLO. Stakeholders need to know they can rely on the CLO’s word. Promises made in board meetings, actions pledged to the CEO, and commitments to external stakeholders must be honored to maintain the CLO’s credibility.

Following through may be as simple as sticking to an agreed timeline for an internal policy rollout or as challenging as maintaining a steady commitment to diversity goals in hiring practices. For stakeholders, each promise kept is a brick in the wall of trust, and each unfulfilled promise is a crack that could compromise the entire structure.

Trust-building is the Foundation of Effective Leadership

We know this much: cultivating trust isn’t a one-time achievement but an ongoing process. CLOs are uniquely positioned to be both protectors and partners, guardians and guides. By focusing on transparency, accountability, strategic communication, consistent judgment, transformational leadership, and consistency, CLOs can build a foundation of trust that supports their individual roles and the organization as a whole.

In the end, trust empowers a CLO to navigate the complexities of their role with confidence, credibility, and the backing of their stakeholders. It allows a CLO to respond to the organization’s needs and proactively steer it toward a secure and resilient future. Just as public trust stabilizes governments, the trust CLOs cultivate within their companies provides a foundation for sustainable growth and resilience. In turbulent times, this trust may be the organization’s greatest asset.