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Trust as Capital: Relationships and the Firm
Abstract
Trustworthiness is described in the Baha'i writings as "the chief means of attracting confirmation and prosperity." This paper treats trust not as a soft virtue but as a hard economic asset, and considers how firms built on accompaniment and reliability outperform those built on extraction.
Placeholder scholarly paper. Replace with the final manuscript and attach the PDF in R2 before launch.
Abstract in brief
We argue that trust functions as a form of capital -- accumulated slowly, destroyed quickly, and decisive in determining which firms endure. The paper reviews the relevant Baha'i texts on trustworthiness and connects them to the economics of repeated games, reputation, and relational contracts.
Argument
A firm's balance sheet does not show its most valuable asset. The willingness of customers, suppliers, and employees to extend good faith -- to assume competence and honesty until proven otherwise -- lowers every cost the firm faces. This is trust as capital, and it compounds.
Conclusion
Treating trust as capital reframes ethical conduct as investment rather than expense. The firm that accompanies its people and keeps its promises is not being sentimental. It is being shrewd.
Author, C. (2026). Trust as Capital: Relationships and the Firm. Better Company Papers.