Week of 11 January 2021
Move over governments: Business now only institution seen as both competent and ethical
According to Edelman’s 2021 annual Trust Barometer, 2020 can be summed up in three stark words: “Declaring Information Bankruptcy.” Throughout the course of the year, global crises from the pandemic to systemic racism to political instability wreaked havoc on peoples’ trust in government, media and authoritative information sources. At the same time, the credibility of the private sector grew — it emerged as the “only institution seen as both competent and ethical”, a big shift from last year when respondents expressed a deep mistrust in capitalism. What hasn’t changed is that people expect more from both government and business leaders when it comes to tackling social issues like inequality, climate change and global health.
Insight and analytics consultancy Edelman has come out with the 21st edition of its annual Trust Barometer which captures the public’s trust in and perceptions of credibility of institutions and concepts like business, government, democracy, capitalism and more. The survey polled over 33,000 adults in 28 different countries between October and November 2020, with some follow-up surveys conducted in the U.S. after the presidential elections.
The report sums up 2020 in three words: “Declaring Information Bankruptcy.” What does this stark phrase mean in practice? We’ve pulled out some of the biggest themes and takeaways of Edelman’s research below.
“Pandemic puts trust to the test”
- In spring 2020, after the worst effects of the global pandemic were starting to become apparent, governments suffered a major loss in public trust: in May 2020, government was the most trusted institution out of the media, NGOs and business, but by October and November it became one of the least trusted.
- At the same time, business moved up from one of the least trusted institutions in 2019 to the most trusted in 2020; it was more trusted than the government in 18 out of 27 countries and emerged as the “only institution seen as both competent and ethical”—a fairly significant shift from last year’s Trust Barometer where growing inequality was undermining society’s trust in capitalism.
“A new mandate for business”
- People are placing more social responsibility on the shoulders of business: 68% of people believe that CEOs “should step in when the government does not fix societal problems” and 66% believe that CEOs “should take the lead on change rather than waiting for government to impose change on them”
- Meanwhile, 65% of people think that CEOs “should hold themselves accountable to the public and not just to the board of directors or stockholders” and more consumers and employees believe that they should “have a seat at the table” when it comes to business’s impacts on society
- Trust in business increased in the majority of countries. That said, overall trust declined in every sector identified by the survey, with the biggest losses in credibility in the technology, professional services, automotive and fashion sectors; what’s more, only 46% of people trust social media—the least of any sector
- The “most powerful countries [lost] trust capital”: trust in both governments and companies declined in four major economic powers, Germany, the UK, the U.S. and China.
“Pandemic further fuels fears”
- “Contracting COVID-19” became one of the top 5 concerns or fears that people had in 2020, joining job loss, climate Change, hackers and cyber-attacks, and losing my freedoms as a citizen
- COVID-19 compounded fears over job loss: 56% of people worried that “the pandemic will accelerate the rate at which companies replace human workers with AI and robots”
- There was also a global perception that COVID-19 deepened inequalities, so that those with the least resources were most vulnerable to risks and were “unfairly burdened” with the worst effects of the pandemic
“Pandemic further fuels fears”
- “Contracting COVID-19” became one of the top 5 concerns or fears that people had in 2020, joining job loss, climate Change, hackers and cyber-attacks, and losing my freedoms as a citizen
- COVID-19 compounded fears over job loss: 56% of people worried that “the pandemic will accelerate the rate at which companies replace human workers with AI and robots”
- There was also a global perception that COVID-19 deepened inequalities, so that those with the least resources were most vulnerable to risks and were “unfairly burdened” with the worst effects of the pandemic
We are facing a “raging infodemic”
- According to the report, “trust in all information sources [hit] record lows” in 2020
- 59% of people believe that “journalists are purposely trying to mislead people by saying things they know are false or gross exaggerations”
- 59% of people also think that “most news organizations are more concerned with supporting an ideology or political position than with informing the public”
- 61% believe “the media is not doing well at being objective and non-partisan,” with the highest levels of media mistrust in Japan (80%), South Korea (77%), Colombia (76%), Argentina (75%), Italy (75%), Spain (73%), Brazil (72%), the UK (69%), Nigeria (67%) and Mexico (66%)
- People tend to trust information most if it comes from their employers and least if it comes from social media—but the majority of people need to see information at least once or twice to believe it
“High Stakes for Public Health and the Economy”
- Only a third of respondents are interested in getting the vaccine as soon as possible, and 31% are willing to get it within 6 months to a year
- Workers are closely split on whether to continue working from home or returning to the workplace
Read the full report here: Edelman, 2021 Trust Barometer (January 2021)
Edelman, Introduction to the 2021 Trust Barometer (January 2021)