How Trust Actually Works—It’s More Than Keeping Your Word

A leading online retailer once bet everything on two-way trust: they sent out shoes with a generous, no-questions-asked return policy and offered free shipping both ways. Industry critics said it would be a logistical and financial disaster—customers would cheat, returns would soar, and costs would spiral. But the company’s leadership trusted that most people are honest and reasonable. In practice, returns did increase, but satisfied customers told friends, loyalty soared, and the business grew much faster than any rival. Eventually, competitors scrambled to match the policy.

Trust started not with a contract but with leadership doing the right thing even when no one was looking or when no immediate benefit was obvious. Openness about intentions and business interests built further credibility—people could see that the company stood to benefit if everyone else won, too. The culture rewarded generous actions and fostered a sense of shared ownership, not just accountability. When mistakes happened, solutions were built together and the commitment to transparency never wavered.

The behavioral science behind this is known as the 'reciprocity norm,' and research shows people are more likely to return generosity than to exploit it. But trust, once broken, is very hard to rebuild, so the long-term impact depends on consistent, open, and reciprocally beneficial action.

Try going out of your way to trust someone this week—a coworker, a classmate, or even an online partner. Be clear about what’s at stake and honest about how you stand to benefit. Look for ways everyone can gain, not just you, and check in regularly to adjust if things go off course. When you lead with transparent actions and mutual benefit, trust takes root, and good outcomes start to multiply.