“Mistakes Were Made”: How admitting corporate failures can lead to trust and success

by Ethan McCarty:

After five years of conducting the Integral Index in partnership with The Harris Poll, I’ve come to believe something deeply countercultural in today’s corporate world: admitting mistakes is one of the most powerful tools a leader has to build trust.

We’re often taught that good leadership is about vision, confidence and certainty. But our latest research reveals something different. When organizations own up to their missteps, they don’t lose credibility; they gain it. Employees respond with trust, loyalty and a stronger sense of connection to the company.

This single variable, willingness to admit fault (among leaders), had one of the strongest correlations with positive behavior (among employees in our entire 2025 Index).

The Power of Saying “We Got It Wrong”

Only 60% of employees believe their company is willing to admit when it has made a mistake. But among that group, we see something remarkable: a 39-point increase in positive employee behaviors, like staying through tough times, defending the company in public or going the extra mile for a colleague. When they believe this, we see a stronger sense of loyalty to the company and a stronger belief in the work they are doing. 

To put it plainly: employees don’t expect perfection. They expect honesty. And when they get it, they show up, not just physically, but emotionally and reputationally, for their organizations.

The Trust Gap Is Real

One of the most sobering findings this year is the 37-point trust gap between senior leaders and frontline employees on whether their organization admits mistakes. That gap tells me something important: many leaders think they’re being transparent, but their teams don’t see or feel it.

This disconnect is the result of too many polished statements and not enough plainspoken truth. Employees are smart. They know when something went wrong. What they want is a leadership team willing to own it, explain it and, crucially, learn from it.

In a world flooded with corporate jargon and spin, a moment of humility from leadership stands out like a lighthouse.

Culture Is What We Do When the Going Gets Tough

If you ask me where culture lives, I’ll tell you: it lives in how we handle the hard stuff. Layoffs. Strategy pivots. Product recalls. Missed targets. The organizations that treat those moments as opportunities to deepen trust (not just protect brand equity) are the ones building the most resilient cultures.

Take communication during change. Only 54% of employees believe that major changes are communicated clearly with reasons explained. That’s not just a failure of messaging. That’s a missed opportunity to earn trust.

When companies communicate change clearly and in a way that aligns with their values, we see a 30+ point jump in employees’ likelihood to stay, support colleagues or advocate for the company.

Leadership Isn’t About Being Right, It’s About Being Real

I’ve had the privilege of working with CEOs, frontline managers, and everyone in between. And I’ll say this: the best leaders I know are learners. They are willing to say, “I don’t know” or “We missed the mark, let’s try a new approach,” because they understand that credibility doesn’t come from being flawless. It comes from being human.

Employees want leaders who are in touch with what’s happening on the ground. But only 50% of non-managers believe their CEO is aware of day-to-day realities. We have to close that gap not with better optics, but with better listening, more visibility and, yes, the courage to admit when we’ve fallen short.

Mistakes Aren’t Weaknesses, They’re Culture Moments

Here’s what I believe, and what our data proves: when you own a mistake, you create a moment of cultural clarity. You show employees that values aren’t just words on a wall, they’re the framework for how you navigate challenges.

That’s not just good ethics. That’s good business. That’s employee experience with integrity at its core.

Let’s make it normal, expected, even, for leaders to say, “We got it wrong. Here’s what we’re doing about it.” Because every time we do, we’re not just correcting a course. We’re strengthening a culture.

And in the long run, that’s what employees remember. Not that you were perfect, but that you were real.

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Ethan McCarty is CEO and Co-Founder of Integral and a Strategic Columnist.

Written by: Editor