People Want Business Leaders to ‘Break the Cycle of Distrust’ and Address Societal Issues, According to New Report

After another year marred by the COVID-19 pandemic and rapid spread of disinformation, a new report reveals that business leaders could be key to breaking out of “a vicious cycle of distrust fueled by government and media.”

It Trust BarometerEdelman’s annual study titled “The Future of Communication” published its results on Tuesday. The firm had conducted more than 36,000 surveys online in countries across the globe between November 1 and 24 2021. The firm found that public trust eroded even further in the past year among world governments and the media—largely due to mishandling of the pandemic, lack of progress on climate change and increased partisanship among media organizations. However, companies are developing vaccines and finding cleaner energy sources. The report also highlighted a growing desire by the private sector for a bigger role in the societal issues. This is despite increasing concerns about the company’s commitment to fairness and working practices.
[time-brightcove not-tgx=”true”]

“Business must now be the stabilizing force delivering tangible action and results on society’s most critical issues,” CEO Richard Edelman said in a press release. “Societal leadership is now a core function of business.”

According to Edelman, every stakeholder group surveyed expects business to help “fill the void” on issues such as climate change, economic inequality, workforce reskilling and racial injustice. John Kerry, U.S. climate ambassador has made already Appelled on the private sectorTo help solve climate change problems, large parts of the funding required for global clean energy transition is provided by companies such as Unilever or Alphabet. These companies have also set environmental goals. The report suggests that these are good signs as businesses have higher trust than other institutions. An EssayEdelman, who published the accompanying report, stated that business leaders need to continue their active policy positions and be models for long-term thinking in other institutions.

Nearly 60% of the survey’s respondents also said they buy brands based on values, and nearly two-thirds of investors look to back businesses aligned with their values. The study revealed that non-governmental organizations (NGOs), are considered the most ethical, and businesses the best.

Meanwhile, Edelman wrote that government and media have entered a “distrust spiral” and are considered by the public to be neither ethical nor competent. Two years ago, just before the outbreak in 2020, the same survey found the government the most trustworthy institution. That was at a moment when many people sought to prevent the spreading of the virus. A failure to do so, Edelman wrote, combined with “a stark partisan divide” in the news media has contributed to a rapidly decreasing level of trust among the public.

Learn More Executives Believe It’s Possible to Make a Difference in a World where Big Business Controls the State of the World

“The media business model has become dependent on generating partisan outrage, while the political model has become dependent on exploiting it,” he said. “Whatever short-term benefits either institution derives, it is a long-term catastrophe for society.”

As governments are now facing these consequences many people already predict that outcome. A mere 4 percent of the respondents believe that government is capable of executing and achieving results. The poll also revealed that 55% of people living in each democracy were worried about their financial future. In addition, Edelman says class divides became more apparent with this year’s survey: people with higher incomes were found to have slightly increased trust in public institutions, while trust among those with lower incomes either plateaued or plummeted, which Edelman attributes to the lack of job opportunities due to automation and inadequate working conditions for those holding frontline jobs.

According to the study, business is required to fulfill the role of government, deliver concrete actions and restore trust among all social institutions. Private enterprises aren’t designed for this purpose. “As business steps up, we need to move from outrage to optimism, fears to confidence, insinuation to fact,” Edelman wrote.