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Edelman Trust
Barometer 2020
The 20th annual trust and credibility survey. Research conducted
by Edelman Intelligence, a global insight and analytics consultancy.
Methodology
Online survey in 28 markets
Informed Public
­­­­500 respondents in U.S. and China;
200 in all other markets
Represents 17% of total
global population
Must meet 4 criteria
Ages 25-64
College-educated
In top 25% of household income per
age group in each market
Report significant media consumption
and engagement in public policy and
business news
On the cover
Mass Population
­­­­All respondents not including
Informed Public
Represents 83% of total
global population
General Online Population
­­­Ages 18+
­­­1,150 respondents per market
34,000+ respondents total All fieldwork was conducted
between October 19 and
November 18, 2019
1 Fire and rescue personnel battle a bushfire near the town of Bilpin in
Sydney, Australia: David Gray/Getty Images; 2 Jamie Dimon, Chairman of
Business Roundtable, which released a new Statement on the Purpose of
a Corporation signed by 181 CEOs committed to leading their companies
for the benefit of all stakeholders: Mark Wilson/Getty Images; 3 Swedish
environment activist Greta Thunberg gives a speech at the plenary session
during the COP25 Climate Conference: The Asahi Shimbun via Getty
Images; 4 China's President Xi Jinping and U.S. President Donald Trump
at the G20 Summit in Osaka: Brendan Smialowski/AFP via Getty Images;
5 UK Prime Minister Boris Johnson talks with newly elected Conservative
MPs at the Houses of Parliament: Leon Neal/Getty Images; 6 New Zealand
Prime Minister Jacinda Ardern, who announced a ban on military-style
semiautomatic guns after a gunman killed 50 people at twzo mosques in
Christchurch, New Zealand: Marty Melville/AFP via Getty Images;
7 Emmanuel Faber, CEO and Chairman of Danone, who chairs the Business
for Inclusive Growth (B4IG) platform overseen by the OECD: Ludovic Marin/
AFP via Getty Images; 8 Former Prime Minister of Malaysia Najib Razak,
who is facing allegations of corruption linked to the multibillion-dollar state
investment fund, 1MDB: Mohd Rasfan/AFP via Getty Images.
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Edelman Trust
Barometer 2020
Executive Summary
The Evolution of Trust
A Growing Sense of Inequity
Fears Eclipse Hopes
The UK: A Parable of Distrust
Trust Is Built on Competence
and Ethics
Competence Is Not Enough
Business: Catalyst for Change
The Opportunity for Government:
Partnership
The Necessity of Action
2
4
6
7
8
9
10
11
12
Contents
1
2020 Edelman Trust Barometer
We are living in a trust paradox.
This is an era of strong economic
performance and nearly full
employment; over the past two
decades, more than a billion
people around the world have lifted
themselves out of poverty. The major
societal institutions—government,
business, NGOs and media—should
be enjoying high levels of trust. Yet
the 2020 Edelman Trust Barometer,
our 20th annual study, tells us that no
institution is trusted.
In past years, good economic
conditions have presaged rising levels
of trust, and this link still applies in
developing markets
in Asia and the
Middle East. But in
the developed world,
major violations
of the social
contract—corporate
malfeasance,
government
corruption, fake
news—have upended
this relationship. In
developed markets,
trust has become
uncoupled from GDP growth because
people feel they are not getting their
fair share of growing prosperity.
National income inequality is now the
more important factor in institutional
trust. In markets with high income
inequality, the gap between trust in
business and trust in government
is much wider (12 points) than the
gap in low inequality markets (four
points). This is a worrying institutional
imbalance.
Fears are stifling hope, as long-held
assumptions about the benefits of
hard work and citizenship have been
upended. Eighty-three percent of
employees globally are worried about
job loss due to concerns such as
the lack of training, cheaper foreign
competition, immigration, automation
and the gig economy. Over half of
our respondents said that they are
losing the respect and dignity they
once enjoyed in their country. Three
in four are worried that fake news will
be used as a weapon. Six in 10 fear
the pace of technological change;
they are no longer in control of their
destiny. Cue the growing number
of citizen-led protests and the rise
of populism.
The “mass-class” trust divide has
become chronic, reaching record
levels in more
countries than
ever, with a global
14-point gap between
informed public and
mass population
trust in institutions. In
developed markets,
less than one in three
people believe that
they will be better off
in five years. Under 20
percent of the general
population express
confidence in the system, and 73
percent are looking for change.
More than half of our respondents
believe that capitalism causes
more harm than good, and that
democracy is losing its effectiveness.
We find ourselves far from Francis
Fukuyama’s 1992 book, “The End of
History,” which touted the triumph of
liberal democracy.
Business once paid only lip service
to this kind of societal discontent
but now it has leapt into the void
left by populist and partisan
government. It’s no longer business
as usual, with an exclusive focus on
shareholder returns. Business now
The Evolution of Trust
Richard Edelman
CEO
Trust-Building
Priorities
for Business
Pay fair wages
Focus on
retraining
Partner with
government
2
People grant
their trust based
on two distinct
considerations:
competence and
ethical behavior.
sees the need to play a positive role
in global governance. The decision
by the Business Roundtable to
endorse a multi-stakeholder model
for American multi-nationals; the
initiation of Business for Inclusive
Growth focused on fair wages by
French multi-nationals;
and the signing by 177
multi-nationals to the
Business Ambition
for 1.5°C are definitive
steps toward an
essential role for
business as a means
of improving society.
These are incredibly
positive developments,
led by CEOs who understand that
their mandate has gone beyond
corporate social responsibility to
fundamental operational change.
Business has been prompted to
action by the recognition that
stakeholders now have new
expectations of the corporate sector.
A stunning 92 percent of employees
surveyed in the 2020 Edelman Trust
Barometer say that they expect their
employer’s CEO to speak up on one
or more issues ranging from income
inequality to diversity and training
for jobs of the future. Seventy-three
percent of employees expect a
prospective employer to offer the
opportunity to shape the future of
society in a positive way. Consumers
share this determination; our 2019 “In
Brands We Trust?” study found that
nearly two-thirds of consumers buy
based on their beliefs, and 81 percent
agree that “a brand I can trust” is one
of their top reasons for purchase.
Our Edelman 2020 Trust Barometer
respondents told us that customers
and employees are over five times
more important to a company’s long-
term success than shareholders.
This seismic societal shift has led us,
after 20 years of research, to evolve
our model for measuring trust. This
model supplants Professor Francis
Fukuyama’s trust construct from
early the 1990s, which was premised
on continued upward mobility,
guaranteed by a strong
legal structure, and
was the basis of the
first Edelman Trust
Barometer in the
year 2000. We have
always known that
people grant their
trust based on two
distinct considerations:
competence and
ethical behavior; for two decades
we have asked people if they trust
institutions “to do what is right.” Now,
based on new societal expectations,
we are probing deeper into “what
is right,” measuring purpose, vision,
honesty and fairness as the
dimensions of ethical behavior.
We have proved the undeniable
importance of these dimensions
for business through our Edelman
Trust Management framework. After
tracking trust in 40 global companies
over the past year, we learned that
ethical attributes drive 76 percent of
the trust capital of organizations, while
competence drives 24 percent.
This year’s Trust Barometer reveals
startling imbalances among the
institutions. Business ranks highest
in competence, holding a gigantic
54-point gap over government as an
institution that is good at what it does.
NGOs are much more trusted on
ethical behavior than government (a
31-point gap). Government is trusted
more than twice as much as business
to protect the environment and close
the income inequality gap.
The four existential issues of the
next decade—income inequality,
sustainability, information quality and
artificial intelligence—will require
higher levels of cooperation among
our institutions; no single entity can
take on these complex challenges
alone. But only about one-third of
people believe that business does
a good job of partnering with NGOs
or government. Currently business
and government are like children of
different weights on an unbalanced
playground seesaw; government,
perceived as both incompetent
and unethical, is unable to provide
the necessary counterbalance to
business, which is considered highly
effective but too self-interested.
Business must stop pushing
government away. An exemplary
model is Unilever*, which has pledged
to cut its use of virgin plastics in half
by 2025, working with partners that
include the United Nations and the
Government of Indonesia. All eyes
are now on the tech industry, which
will need to be much more open to
forward-looking regulation
of innovation.
Business must take the lead on
solving the trust paradox because
it has the greatest freedom to
act. Its immediate mandates are
clear. An overwhelming number of
respondents believe that it is the duty
of business to pay decent wages
(83 percent) and provide retraining for
workers whose jobs are threatened
by automation (79 percent). Yet
less than a third of people trust that
business will do these. The time for
talk is over. 2020 must be the year
of action.
*Edelman client
3
2020 Edelman Trust Barometer
Ethical attributes
drive 76 percent
of the trust capital
of global companies,
while competence
drives 24 percent.
people in
developed
markets believe
they and their
families will be
better off in five
years' time
56
A Growing Sense of Inequity
Despite a year of strong global
economic performance, trust in
the four institutions measured by
the Edelman Trust Barometer—
government, business, NGOs and
media—is stagnant, with no institution
climbing into trusted territory.
Business and NGOs remain tied as
the most trusted for the third year in
a row (each at 58 percent), followed
by government and media (each at
49 percent).
Delving beneath the surface, we find
a world of two trust realities. The
informed public—wealthier, more
educated, and frequent consumers
of news—remain far more trusting
of every institution than the mass
population, resulting in a record
number of markets (eight) with
all-time-high trust inequality. Trust
in business and NGOs among the
informed public is 15 points higher
than it is for the mass population; for
media, the difference is 14 points; for
government, 12 points.
Skepticism about the fairness of
our current systems is mounting.
The perception is that institutions
increasingly serve the interests of
the few over everyone. Government,
more than any institution, is seen as
least fair; 57 percent of the general
population say government serves
the interest of only the few, while 30
percent say government serves the
interests of everyone.
Globally, fears about being left
behind are pervasive. In 21 of 28
markets, the majority say they agree
with the sentiment, “I worry about
Capitalism as it exists today does
more harm than good in the world
%
1 in 3
Less than
people like me losing the respect
and dignity I once enjoyed in
this country.”
This year, the Trust Barometer
surveyed attitudes on capitalism,
revealing that 56 percent say that
capitalism does more harm than good.
Seventy-eight percent agree that
“elites are getting richer while regular
people struggle to pay their bills.” And
in 15 of 28 markets, the majority are
pessimistic about their financial future,
with most believing they will not be
better off in five years’ time than they
are today. In the U.S., this represents
a seven-point drop in optimism
since 2019.
Doubt that they are reaping their fair
share of the benefits of capitalism is
undermining people’s belief that our
institutions are willing and able change
agents or are working to ensure a
better future for all.
4
No institution is trusted
Percent trust
NGOs Business Government Media
Trust
60-100
Neutral
50-59
Distrust
1-49
+1 +1 +1 +1
49
48
49
48
58
57
58
57
Trust
60-100
Neutral
50-59
Distrust
1-49
2019 2020 2019 2020 2019 2020 2019 2020
Global 28​
China​
India​
Indonesia​
UAE​
Thailand​
Singapore​
Saudi Arabia​
Malaysia​
Mexico​
The Netherlands​
Kenya​
Colombia​
Canada​
Brazil ​
Hong Kong​
S. Korea​
Argentina​
Italy​
Australia​
U.S​.
Germany​
S. Africa​
Ireland​
France​
Japan​
Spain​
UK
Russia​
77 13
51
74
70
64
62
60
59
58
58
57
56
52
49
49
49
48
48
45
45
44
44
43
42
90
87
82
80
78
75
71
71
68
68
67
67
64
64
63
62
60
60
60
59
58
57
54
53
53
50
42
42
39
27
14
13
12
11
16
11
21
10
13
10
2
10
16
11
5
1
12
16
23
8
20
5
17
21
11
17
18
14
# of markets
with record trust
inequality at an
all-time high
2012 2020
1
8
Trust inequality sets new records
Trust Index
Global 28​
China​
India​
Indonesia​
Saudi Arabia ​
Thailand​
UAE​
Mexico​
Singapore​
Australia​
Malaysia​
Canada​
The Netherlands​
Germany​
Italy​
France​
Colombia​
Argentina​
Brazil​
Ireland​
Spain​
Kenya​
UK
Hong Kong​
Japan​
U.S.​
S. Korea​
S. Africa​
Russia​
49
Record trust inequality
65
41
51
respondents
agree that
the system
is working
for them
1 in 5
Less than
5
2020 Edelman Trust Barometer
2020
Mass population Trust gap
2020
Informed public
The very
wealthy
42
36
Freelance/gig
economy
Looming recession
Lack of training
Cheaper foreign
competitors
Immigrants who
work for less
Automation
Jobs moved to
other countries
61
60
58
55
54
53
50
How much do you trust these people
to do what is right?
Percent who trust
80
69 65
51 46
Government
leaders
Religious
leaders
CEOsCitizens of
my country
Community
members
Scientists
I do not have confidence
that ​our current
leaders will be able ​to
successfully address our
country’s challenges.
Trust
60-100
Neutral
50-59
Distrust
1-49
83
Fears Eclipse Hopes
Against the backdrop of growing
cynicism around capitalism and the
fairness of our current economic
systems are deep-seated fears about
the future. Specifically, 83 percent
of employees say they fear losing
their job, attributing it to the gig
economy, a looming recession, a lack
of skills, cheaper foreign competitors,
immigrants who will work for less,
automation, or jobs being moved to
other countries.
The pace of change is also a fear;
61 percent of the general population
say the pace of change in technology
is moving too fast, and the same
number (61 percent) fear that
government does not know or
understand emerging technologies
enough to effectively regulate them.
A lack of confidence in societal
leaders, the stewards of the future,
is pervasive. In fact, the only people
who are trusted are scientists, one’s
fellow citizens, or members of one’s
community—leaving government and
religious leaders in distrusted territory
and CEOs in the neutral zone. These
findings are emblematic of one of the
major trust trends of the past two
decades: the shift from top-down to
horizontal influence.
%
66%
of employees worry about
losing their jobs to one or
more of these causes
6
The UK: A Parable
of Distrust
Ed Williams
President and
CEO, EMEA
In the 2020 Edelman Trust
Barometer, the UK finds itself
in its lowest-ever position in the
Global Trust Index, just one place
off the bottom, with only Russia
below it. How did the birthplace
of parliamentary democracy, the
“mother of parliaments,” and a
respected voice of sense on the
world stage find itself in such an
unaccustomed place?
A toxicity has overtaken the tone
of the UK’s internal conversation.
Politicians of every party,
including the Prime Minister,
have taken to attacking the BBC,
Britain’s renowned public service
broadcaster, accusing it of bias.
Other parts of the UK media openly
attack the judiciary in a nation where
the separation of powers has been a
given for four centuries. And social
media has become a crucible of
venom, a platform used to abuse,
to delegitimize and to threaten.
Little wonder then that the general
population in Britain now distrusts
its institutions with a trust score of
only 42 percent. But the picture isn’t
entirely even. Edelman also found
a large trust gap between attitudes
of the wealthier, more educated and
more well-informed in society versus
the rest (an 18-point gap). Smaller
than the previous year, but significant
nevertheless.
But even that doesn’t tell the full
picture, as the informed public group
has some fundamental worries
of its own. Almost 70 percent of
them agree with the sentiment that
“democracy is losing its effectiveness
as a form of government.” That is
a stunning 14 percentage points
higher than the average for the
other members of the G7 group of
advanced economies. Among the UK
general population, it’s 60 percent.
It would be a mistake to think that
Brexit alone was to blame for this
lack of trust in our institutions. While
Brexit did prove to be the spark that
lit the gunpowder, the conditions
were set by years of institutional
failures - the financial crash; the MPs
expenses scandal; phone hacking
and the advent of fake news on social
platforms, and the Oxfam scandal in
Haiti – that had already rocked trust in
business, government, media
and NGOs.
British institutions failed to quickly
recognize what had happened, the
compounding of these shocks, and
how to respond to it. They were too
slow. Too bureaucratic. Not agile
enough. Then, the failure to deliver
Brexit – which had been an argument
narrowly won by a British desire to
“Take Back Control” – demonstrated
that the control they had been
promised was illusory. This turned
to disillusionment, which in turn
injected the poisonous tone into our
political discourse and consequently
damaged the informed public’s trust
in business and the media too.
In the early hours of December 13th,
2019, as the general election results
came in, we found out the response
to three years of drift: millions of
people in the general population who
no longer trusted our institutions
lent their votes instead to a man with
issues of his own around trust, though
significantly fewer, it has to be said,
than his competitor.
Boris Johnson won with a simple
message: “Get Brexit Done.” But
voters were also voting to reject the
bitter stalemate that had settled on
the UK. They backed “doing stuff”
over more argument. They voted to
turn the page.
The challenge for our institutions,
whether in Britain, or most developed
countries, is how to respond to the
change that citizens from all walks
of life are calling for. Undoubtedly,
the way in which business and
government co-operate will determine
how they are judged. Their reputations
are inextricably linked in the minds
of two-thirds of the British public,
and three-quarters of them want to
collaborate to solve social issues.
Incrementalism is no longer enough.
Instead people are looking for big,
bold change to deliver a discernible
improvement in their lives. Quite
possibly, given the erosion of trust
in democracy and capitalism, it may
also mean reform in order to make
the system work better for those our
institutions have left behind. Ultimately,
it will require the reimagining of our
institutions and systems. It is the scale
of that change – economic, political
and societal – and the shape of that
reform, that will ultimately determine
whether we can repair trust in our
core institutions.
57
Mass
population
Informed
public
3918
Trust gap
2020 Trust Index, UK
7
2020 Edelman Trust Barometer
It would be a mistake to
think that Brexit alone was
to blame for this lack of
trust in our institutions.
Trust Is Built on
Competence and Ethics
For 20 years, the Edelman Trust
Barometer has gauged trust by
asking: “How much do you trust
this institution to do what is right?”
Taking account of the general
population’s overall lack of trust and
a pronounced sense of inequity, this
year’s Trust Barometer sought to
understand what shapes the public’s
view of “to do what is right.” The
analysis identified that trust is built
on two key drivers: competence
and ethical behavior.
Further examination shows that
today no institution is seen as both
competent and ethical, explaining
stagnating trust in the face of strong
economic performance. Of the four
institutions, only business is seen
as competent, and only NGOs are
viewed as ethical.
These scores point to the lack of
confidence in leaders’ ability to take on
the most pressing national challenges,
widespread fears about the future and
mounting questions about the equity
of the systems in place. This latter
sentiment is further underscored by
the fact that of the components of
ethical behavior—being honest, having
a vision, being purpose-driven and
being fair—fairness, or lack of it, has
the greatest impact on trust.
Dimensions of trust
(Competence score, net ethical score)
ETHICAL
COMPETENT
UNETHICAL
LESS
COMPETENT
NGOs
(-4, 12)
Business
(14, -2)Media
(-17, -7)
Government
(-40, -19)
35
-35
50-50
No institution seen
as both competent
and ethical
8
Serves the
interests of
only the few
Government
Institutions seen as unfair
Percent who cite each as a reason they trust or distrust each institution
Media Business NGOs
Serves the
interests of
everyone equally
and fairly
57
30
51
32
54
29
42 40
Antoine Harary	
President, Edelman
Intelligence
Tonia Ries	
Global Executive
Director, Edelman
Intellectual Property
Competence Is Not Enough
Trust must be built through both
competence and ethics. For 20
years, the Edelman Trust Barometer
has asked respondents to answer a
simple question: How much do you
trust each institution to do what is
right? This year, our research went
further, analyzing respondents’
ratings of the competence and the
ethics of each institution in more
detail. The reason for the general lack
of trust? None of the four institutions
measured is seen as both competent
and ethical.
NGOs and business are tied, with
58 percent of respondents globally
saying they trust each. But a deeper
look reveals that NGOs, while
seen as ethical, are not seen as
competent. And business, the only
institution described as competent,
is not seen as ethical. Competence
alone is not enough to create trust
in business as an institution.
Data from the Edelman Trust
Management suite of analytics and
consulting solutions, designed to
help global companies measure and
manage their trust capital, confirms
that competence—being good at
what you do—is not enough to earn
the benefits of a trust advantage.
More than 80 percent of the 600+
companies we have analyzed earn
better scores for their competence
than they do for ethics-related trust
dimensions such as integrity
or purpose.
The data collected reveals that a
company’s ability—the degree to
which it is seen as good at what
it does—explains only 24 percent
of its measurable trust capital. In
comparison, integrity, purpose
and dependablity drive 76 percent,
making it very clear that more
than competence, ethics-related
dimensions drive the lion's share of
company trust capital.
This ethics shortfall may be
partially explained by the emphasis
companies have traditionally placed
on communicating their performance,
competence or product quality more
so than their commitment to ethics
and integrity, or their purpose and
vision for the future. The Edelman
Trust Management data shows
that the proportion of stakeholders
who “don’t know enough” to judge
a company’s ethics is significantly
higher than those who are unfamiliar
with a company’s competence.
At the same time, stakeholder
expectations have risen. Consumers
expect the brands they buy to reflect
their values and beliefs, employees
want their jobs to give them a
sense of purpose, and investors are
increasingly focused on sustainability
and other ethical commitments as
a sign of a company’s long-term
operational health and success.
Business is already recognized for its
ability to get things done. But to earn
trust, companies must make sure
that they are acting ethically, and
doing what is right. Because for
today’s stakeholders, competence
is not enough.
more important to
company trust than
competence
3x
Ethics:
9
2020 Edelman Trust Barometer
2020 Edelman Trust Barometer
92
Business:
Catalyst for Change
In a world of concerns about fairness,
the 2020 Edelman Trust Barometer
points to a clear set of actions for
businesses that want to gain trust.
Chiefly, business should recognize
the imperative to serve the interests
of all stakeholders; 87 percent say
that customers, employees, and
communities are more important than
shareholders to a company’s long-
term success. These beliefs are now
beginning to be acted on by business,
in initiatives like the Business
Roundtable’s endorsement of a
multi-stakeholder model for American
multi-nationals, and the signing by
177 multi-nationals to the Business
Ambition for 1.5°C, among others.
Reflecting the perceived lack of
leadership on societal issues, 92
percent of employees think it's
important that CEOs speak out on
one or more issues, with training for
jobs of the future at the top of the list.
When it comes to addressing issues
and shaping the future, engaging
employees in the solution is also
critical. Seventy-three percent of
employees say they would expect a
prospective employer to give them
the opportunity to shape the future
of society.
Business is not expected to go it alone,
however, and in some cases would
benefit from the trust edge that other
institutions have. For instance, when it
comes to protecting workers in the gig
economy, government is actually more
trusted than business (40 percent vs.
32 percent)—signifying a need for the
leadership and commitment of both.
Indeed, across the board,
collaboration is key to regaining trust.
For business, government and NGOs
alike, partnering with other institutions
to solve the pressing issues of our
time is one of the most important
steps to regaining people’s trust—and,
in turn, moving the world to a more
trusted state.
%
Stakeholders are more important than
shareholders to long-term company success
It is important that my
employer’s CEO speak
out on one or more of
these issues:
87%
Percent who ranked each group
as most important
Communities
Shareholders
13
Customers
38
Employees
37
12
training for jobs of the
future • ethical use of tech •
automation’s impact on jobs •
income inequality • diversity •
climate change • immigration
10
The Opportunity for Government:
Partnership
The outlook for trust in government
in 2020 is alarmingly bleak. Less
than half of the respondents to the
2020 Edelman Trust Barometer
trust government to do what is right.
Fifty-seven percent say government
serves “the interests of only a few.”
Government leaders are among the
least trusted people. And on the
two central drivers of people’s trust—
competence and ethics—government
lags far behind the other institutions.
But a closer look behind the numbers
reveals several important insights
for government and perhaps even
a glimmer of hope for the future.
While the gaps are significant, the
opportunities are huge. The way
forward is for government to revitalize
its role as an essential partner to
business, act and communicate with
more transparency and focus on
how it can improve people’s lives in
tangible ways at the local level.
Government is trusted as a leader in
areas that it is typically expected to
manage: transportation, immigration,
social services and protecting people
from harmful products. But critically,
that trust also extends to issues
that have the most direct impact on
everyday life, such as inclusion and
reducing income inequality. Even
in sustainability, where business is
generally seen as leading innovation,
Trust Barometer respondents trust
government the most—more than
twice as much as business.
Given government’s trust edge on
several of the most pressing societal
challenges, business should want
to collaborate with government
on solving them. Our study shows
that people trust both institutions
the most to solve the issues of
workforce retraining and protecting
workers in the gig economy. By
making these issues an immediate
focus in collaboration with business,
government can overcome the
perception that it serves the interests
of only a few.
Regulation also should be viewed as
a good opportunity for partnership.
Sixty-one percent of people do not
believe that government understands
emerging technologies enough to
regulate them effectively. However,
the tech industry should remember
that the best government regulation
is created in tandem with industry.
In fact, established companies tend
to welcome regulation and provide
input on the process because they
understand government’s role in
protecting them, their customers
and their business.
Restoring trust in government can
also begin at the local level. In 18 of
24 markets, local government is more
trusted than federal government;
globally, 69 percent of respondents
trust “people in my local community.”
These findings may reflect people’s
awareness that their cities and
communities are innovating to
address the issues that impact their
everyday lives, such as the effects of
climate change.
Finally, we know from experience
that without transparency and
good communication, trust is much
harder earned. Unless government
recognizes the importance of these
and practices both, people will always
assume the worst.
I am a firm believer in the promise of
government. My parents were proud
civil servants, I served in government,
and today my daughter is doing the
same. Globally, government must
take the real opportunity before it
to restore trust now if it expects to
attract the best and brightest problem
solvers of the future.
Protect workers in the
gig economy
Workforce retraining
necessary as a result
of automation
Government
40
Business
32
NGO
18
Media
9
Government
32Business
42
NGO
17
Lisa Osborne Ross
President,
Washington D.C.
Media
8
Percent who say each institution
is the one they trust most to
address each challenge
Business and
government
partnership
essential on jobs
11
2020 Edelman Trust Barometer
35​​
35​​
35​​
38​​
38​​
33​​
35​​
37​​
40​​
41​​
26​​
30​​
31​​
34​​
34​​
34​​
35​​
38​​
38​​
39
ETHICAL
COMPETENT
UNETHICAL
LESS
COMPETENT
NGOs
Business
Media
Government
35
-35
50-50
The Necessity of Action
For the first time this year, we
asked Edelman Trust Barometer
respondents to tell us how well
each institution is doing on a long
list of issues that are challenging
society. The lowest scores (at
right) point to areas that provide
the most room for improvement
in each institution’s performance.
If each institution can address
these challenges—and do them
well—they can realize double-digit
gains in trust.
The most consistent low-scorer
among NGOs, business and
government is partnership, with
each institution not seen as
a good partner to the others.
Collaboration then becomes
a major opportunity for our
institutions to advance society—
and build trust.
When institutions are trusted,
achieving both competence and
good ethical behavior, as shown
in the graph at right, they are
more in balance and more closely
aligned. Government, while still
not as competent as business,
now occupies a slightly higher
ethical position than business,
which, in its role as watchdog and
regulator, it should ideally hold.
In this closer relationship, the
institutions can more readily
collaborate on the pressing
societal challenges that stoke
people’s fears and work together
toward building the trust that is
needed to foster a more stable
and more productive society.
NGOs
(29, 34)
Business
(35, 16)
Media
(25, 22)
Government
(19, 17)
When institutions
are trusted, they are
more closely aligned
Transparency about funding​​
Expose corruption​​
Avoid becoming politicized​​
Partner with government​​
Partner with business​​
Partner with NGOs​​
Jobs that pay a decent wage​​
Partner with government​​
Deal with partners fairly​​
Contribute to communities​​
Reduce partisanship​​
Partner with NGOs​​
Community-level problems​​
Social services for the poor​​
Partner with business​​
Keep social media clean​​
Being objective​​
Information quality​​
Important vs. sensationalized​​
Differentiate opinion and fact​​
NGOs​​ Business
Government Media
Percent who think each institution is doing well/very well on this issue,
and potential trust gains associated with doing each well
To build trust, address biggest challenges
Trust restores balance and enables partnership
(Competence score, net ethical score)
+13 +17
+17 +20
Potential trust gain
12
Edelman is a global communications
firm that partners with businesses and
organizations to evolve, promote and
protect their brands and reputations.
Our 6,000 people in more than
60 offices deliver communications
strategies that give our clients the
confidence to lead and act with
certainty, earning the trust of their
stakeholders.
Our honors include the Cannes Lions
Grand Prix for PR; Advertising Age’s
About Edelman
2019 A-List; the Holmes Report’s 2018
Global Digital Agency of the Year; and,
five times, Glassdoor’s Best Places to
Work. Since our founding in 1952, we
have remained an independent, family-
run business. Edelman owns specialty
companies Edelman Intelligence
(research) and United Entertainment
Group (entertainment, sports, lifestyle).
Visit edelman.com for
more information.
13
2020 Edelman Trust Barometer
Copyright ©2020 Daniel J. Edelman, Inc. All rights reserved.
Printed on recycled paper.

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Edelman Trust Barometer 2020 reveals startling institutional imbalances

  • 2. The 20th annual trust and credibility survey. Research conducted by Edelman Intelligence, a global insight and analytics consultancy. Methodology Online survey in 28 markets Informed Public ­­­­500 respondents in U.S. and China; 200 in all other markets Represents 17% of total global population Must meet 4 criteria Ages 25-64 College-educated In top 25% of household income per age group in each market Report significant media consumption and engagement in public policy and business news On the cover Mass Population ­­­­All respondents not including Informed Public Represents 83% of total global population General Online Population ­­­Ages 18+ ­­­1,150 respondents per market 34,000+ respondents total All fieldwork was conducted between October 19 and November 18, 2019 1 Fire and rescue personnel battle a bushfire near the town of Bilpin in Sydney, Australia: David Gray/Getty Images; 2 Jamie Dimon, Chairman of Business Roundtable, which released a new Statement on the Purpose of a Corporation signed by 181 CEOs committed to leading their companies for the benefit of all stakeholders: Mark Wilson/Getty Images; 3 Swedish environment activist Greta Thunberg gives a speech at the plenary session during the COP25 Climate Conference: The Asahi Shimbun via Getty Images; 4 China's President Xi Jinping and U.S. President Donald Trump at the G20 Summit in Osaka: Brendan Smialowski/AFP via Getty Images; 5 UK Prime Minister Boris Johnson talks with newly elected Conservative MPs at the Houses of Parliament: Leon Neal/Getty Images; 6 New Zealand Prime Minister Jacinda Ardern, who announced a ban on military-style semiautomatic guns after a gunman killed 50 people at twzo mosques in Christchurch, New Zealand: Marty Melville/AFP via Getty Images; 7 Emmanuel Faber, CEO and Chairman of Danone, who chairs the Business for Inclusive Growth (B4IG) platform overseen by the OECD: Ludovic Marin/ AFP via Getty Images; 8 Former Prime Minister of Malaysia Najib Razak, who is facing allegations of corruption linked to the multibillion-dollar state investment fund, 1MDB: Mohd Rasfan/AFP via Getty Images. 1 2 3 4 5 6 7 8 Edelman Trust Barometer 2020
  • 3. Executive Summary The Evolution of Trust A Growing Sense of Inequity Fears Eclipse Hopes The UK: A Parable of Distrust Trust Is Built on Competence and Ethics Competence Is Not Enough Business: Catalyst for Change The Opportunity for Government: Partnership The Necessity of Action 2 4 6 7 8 9 10 11 12 Contents 1 2020 Edelman Trust Barometer
  • 4. We are living in a trust paradox. This is an era of strong economic performance and nearly full employment; over the past two decades, more than a billion people around the world have lifted themselves out of poverty. The major societal institutions—government, business, NGOs and media—should be enjoying high levels of trust. Yet the 2020 Edelman Trust Barometer, our 20th annual study, tells us that no institution is trusted. In past years, good economic conditions have presaged rising levels of trust, and this link still applies in developing markets in Asia and the Middle East. But in the developed world, major violations of the social contract—corporate malfeasance, government corruption, fake news—have upended this relationship. In developed markets, trust has become uncoupled from GDP growth because people feel they are not getting their fair share of growing prosperity. National income inequality is now the more important factor in institutional trust. In markets with high income inequality, the gap between trust in business and trust in government is much wider (12 points) than the gap in low inequality markets (four points). This is a worrying institutional imbalance. Fears are stifling hope, as long-held assumptions about the benefits of hard work and citizenship have been upended. Eighty-three percent of employees globally are worried about job loss due to concerns such as the lack of training, cheaper foreign competition, immigration, automation and the gig economy. Over half of our respondents said that they are losing the respect and dignity they once enjoyed in their country. Three in four are worried that fake news will be used as a weapon. Six in 10 fear the pace of technological change; they are no longer in control of their destiny. Cue the growing number of citizen-led protests and the rise of populism. The “mass-class” trust divide has become chronic, reaching record levels in more countries than ever, with a global 14-point gap between informed public and mass population trust in institutions. In developed markets, less than one in three people believe that they will be better off in five years. Under 20 percent of the general population express confidence in the system, and 73 percent are looking for change. More than half of our respondents believe that capitalism causes more harm than good, and that democracy is losing its effectiveness. We find ourselves far from Francis Fukuyama’s 1992 book, “The End of History,” which touted the triumph of liberal democracy. Business once paid only lip service to this kind of societal discontent but now it has leapt into the void left by populist and partisan government. It’s no longer business as usual, with an exclusive focus on shareholder returns. Business now The Evolution of Trust Richard Edelman CEO Trust-Building Priorities for Business Pay fair wages Focus on retraining Partner with government 2 People grant their trust based on two distinct considerations: competence and ethical behavior.
  • 5. sees the need to play a positive role in global governance. The decision by the Business Roundtable to endorse a multi-stakeholder model for American multi-nationals; the initiation of Business for Inclusive Growth focused on fair wages by French multi-nationals; and the signing by 177 multi-nationals to the Business Ambition for 1.5°C are definitive steps toward an essential role for business as a means of improving society. These are incredibly positive developments, led by CEOs who understand that their mandate has gone beyond corporate social responsibility to fundamental operational change. Business has been prompted to action by the recognition that stakeholders now have new expectations of the corporate sector. A stunning 92 percent of employees surveyed in the 2020 Edelman Trust Barometer say that they expect their employer’s CEO to speak up on one or more issues ranging from income inequality to diversity and training for jobs of the future. Seventy-three percent of employees expect a prospective employer to offer the opportunity to shape the future of society in a positive way. Consumers share this determination; our 2019 “In Brands We Trust?” study found that nearly two-thirds of consumers buy based on their beliefs, and 81 percent agree that “a brand I can trust” is one of their top reasons for purchase. Our Edelman 2020 Trust Barometer respondents told us that customers and employees are over five times more important to a company’s long- term success than shareholders. This seismic societal shift has led us, after 20 years of research, to evolve our model for measuring trust. This model supplants Professor Francis Fukuyama’s trust construct from early the 1990s, which was premised on continued upward mobility, guaranteed by a strong legal structure, and was the basis of the first Edelman Trust Barometer in the year 2000. We have always known that people grant their trust based on two distinct considerations: competence and ethical behavior; for two decades we have asked people if they trust institutions “to do what is right.” Now, based on new societal expectations, we are probing deeper into “what is right,” measuring purpose, vision, honesty and fairness as the dimensions of ethical behavior. We have proved the undeniable importance of these dimensions for business through our Edelman Trust Management framework. After tracking trust in 40 global companies over the past year, we learned that ethical attributes drive 76 percent of the trust capital of organizations, while competence drives 24 percent. This year’s Trust Barometer reveals startling imbalances among the institutions. Business ranks highest in competence, holding a gigantic 54-point gap over government as an institution that is good at what it does. NGOs are much more trusted on ethical behavior than government (a 31-point gap). Government is trusted more than twice as much as business to protect the environment and close the income inequality gap. The four existential issues of the next decade—income inequality, sustainability, information quality and artificial intelligence—will require higher levels of cooperation among our institutions; no single entity can take on these complex challenges alone. But only about one-third of people believe that business does a good job of partnering with NGOs or government. Currently business and government are like children of different weights on an unbalanced playground seesaw; government, perceived as both incompetent and unethical, is unable to provide the necessary counterbalance to business, which is considered highly effective but too self-interested. Business must stop pushing government away. An exemplary model is Unilever*, which has pledged to cut its use of virgin plastics in half by 2025, working with partners that include the United Nations and the Government of Indonesia. All eyes are now on the tech industry, which will need to be much more open to forward-looking regulation of innovation. Business must take the lead on solving the trust paradox because it has the greatest freedom to act. Its immediate mandates are clear. An overwhelming number of respondents believe that it is the duty of business to pay decent wages (83 percent) and provide retraining for workers whose jobs are threatened by automation (79 percent). Yet less than a third of people trust that business will do these. The time for talk is over. 2020 must be the year of action. *Edelman client 3 2020 Edelman Trust Barometer Ethical attributes drive 76 percent of the trust capital of global companies, while competence drives 24 percent.
  • 6. people in developed markets believe they and their families will be better off in five years' time 56 A Growing Sense of Inequity Despite a year of strong global economic performance, trust in the four institutions measured by the Edelman Trust Barometer— government, business, NGOs and media—is stagnant, with no institution climbing into trusted territory. Business and NGOs remain tied as the most trusted for the third year in a row (each at 58 percent), followed by government and media (each at 49 percent). Delving beneath the surface, we find a world of two trust realities. The informed public—wealthier, more educated, and frequent consumers of news—remain far more trusting of every institution than the mass population, resulting in a record number of markets (eight) with all-time-high trust inequality. Trust in business and NGOs among the informed public is 15 points higher than it is for the mass population; for media, the difference is 14 points; for government, 12 points. Skepticism about the fairness of our current systems is mounting. The perception is that institutions increasingly serve the interests of the few over everyone. Government, more than any institution, is seen as least fair; 57 percent of the general population say government serves the interest of only the few, while 30 percent say government serves the interests of everyone. Globally, fears about being left behind are pervasive. In 21 of 28 markets, the majority say they agree with the sentiment, “I worry about Capitalism as it exists today does more harm than good in the world % 1 in 3 Less than people like me losing the respect and dignity I once enjoyed in this country.” This year, the Trust Barometer surveyed attitudes on capitalism, revealing that 56 percent say that capitalism does more harm than good. Seventy-eight percent agree that “elites are getting richer while regular people struggle to pay their bills.” And in 15 of 28 markets, the majority are pessimistic about their financial future, with most believing they will not be better off in five years’ time than they are today. In the U.S., this represents a seven-point drop in optimism since 2019. Doubt that they are reaping their fair share of the benefits of capitalism is undermining people’s belief that our institutions are willing and able change agents or are working to ensure a better future for all. 4
  • 7. No institution is trusted Percent trust NGOs Business Government Media Trust 60-100 Neutral 50-59 Distrust 1-49 +1 +1 +1 +1 49 48 49 48 58 57 58 57 Trust 60-100 Neutral 50-59 Distrust 1-49 2019 2020 2019 2020 2019 2020 2019 2020 Global 28​ China​ India​ Indonesia​ UAE​ Thailand​ Singapore​ Saudi Arabia​ Malaysia​ Mexico​ The Netherlands​ Kenya​ Colombia​ Canada​ Brazil ​ Hong Kong​ S. Korea​ Argentina​ Italy​ Australia​ U.S​. Germany​ S. Africa​ Ireland​ France​ Japan​ Spain​ UK Russia​ 77 13 51 74 70 64 62 60 59 58 58 57 56 52 49 49 49 48 48 45 45 44 44 43 42 90 87 82 80 78 75 71 71 68 68 67 67 64 64 63 62 60 60 60 59 58 57 54 53 53 50 42 42 39 27 14 13 12 11 16 11 21 10 13 10 2 10 16 11 5 1 12 16 23 8 20 5 17 21 11 17 18 14 # of markets with record trust inequality at an all-time high 2012 2020 1 8 Trust inequality sets new records Trust Index Global 28​ China​ India​ Indonesia​ Saudi Arabia ​ Thailand​ UAE​ Mexico​ Singapore​ Australia​ Malaysia​ Canada​ The Netherlands​ Germany​ Italy​ France​ Colombia​ Argentina​ Brazil​ Ireland​ Spain​ Kenya​ UK Hong Kong​ Japan​ U.S.​ S. Korea​ S. Africa​ Russia​ 49 Record trust inequality 65 41 51 respondents agree that the system is working for them 1 in 5 Less than 5 2020 Edelman Trust Barometer 2020 Mass population Trust gap 2020 Informed public
  • 8. The very wealthy 42 36 Freelance/gig economy Looming recession Lack of training Cheaper foreign competitors Immigrants who work for less Automation Jobs moved to other countries 61 60 58 55 54 53 50 How much do you trust these people to do what is right? Percent who trust 80 69 65 51 46 Government leaders Religious leaders CEOsCitizens of my country Community members Scientists I do not have confidence that ​our current leaders will be able ​to successfully address our country’s challenges. Trust 60-100 Neutral 50-59 Distrust 1-49 83 Fears Eclipse Hopes Against the backdrop of growing cynicism around capitalism and the fairness of our current economic systems are deep-seated fears about the future. Specifically, 83 percent of employees say they fear losing their job, attributing it to the gig economy, a looming recession, a lack of skills, cheaper foreign competitors, immigrants who will work for less, automation, or jobs being moved to other countries. The pace of change is also a fear; 61 percent of the general population say the pace of change in technology is moving too fast, and the same number (61 percent) fear that government does not know or understand emerging technologies enough to effectively regulate them. A lack of confidence in societal leaders, the stewards of the future, is pervasive. In fact, the only people who are trusted are scientists, one’s fellow citizens, or members of one’s community—leaving government and religious leaders in distrusted territory and CEOs in the neutral zone. These findings are emblematic of one of the major trust trends of the past two decades: the shift from top-down to horizontal influence. % 66% of employees worry about losing their jobs to one or more of these causes 6
  • 9. The UK: A Parable of Distrust Ed Williams President and CEO, EMEA In the 2020 Edelman Trust Barometer, the UK finds itself in its lowest-ever position in the Global Trust Index, just one place off the bottom, with only Russia below it. How did the birthplace of parliamentary democracy, the “mother of parliaments,” and a respected voice of sense on the world stage find itself in such an unaccustomed place? A toxicity has overtaken the tone of the UK’s internal conversation. Politicians of every party, including the Prime Minister, have taken to attacking the BBC, Britain’s renowned public service broadcaster, accusing it of bias. Other parts of the UK media openly attack the judiciary in a nation where the separation of powers has been a given for four centuries. And social media has become a crucible of venom, a platform used to abuse, to delegitimize and to threaten. Little wonder then that the general population in Britain now distrusts its institutions with a trust score of only 42 percent. But the picture isn’t entirely even. Edelman also found a large trust gap between attitudes of the wealthier, more educated and more well-informed in society versus the rest (an 18-point gap). Smaller than the previous year, but significant nevertheless. But even that doesn’t tell the full picture, as the informed public group has some fundamental worries of its own. Almost 70 percent of them agree with the sentiment that “democracy is losing its effectiveness as a form of government.” That is a stunning 14 percentage points higher than the average for the other members of the G7 group of advanced economies. Among the UK general population, it’s 60 percent. It would be a mistake to think that Brexit alone was to blame for this lack of trust in our institutions. While Brexit did prove to be the spark that lit the gunpowder, the conditions were set by years of institutional failures - the financial crash; the MPs expenses scandal; phone hacking and the advent of fake news on social platforms, and the Oxfam scandal in Haiti – that had already rocked trust in business, government, media and NGOs. British institutions failed to quickly recognize what had happened, the compounding of these shocks, and how to respond to it. They were too slow. Too bureaucratic. Not agile enough. Then, the failure to deliver Brexit – which had been an argument narrowly won by a British desire to “Take Back Control” – demonstrated that the control they had been promised was illusory. This turned to disillusionment, which in turn injected the poisonous tone into our political discourse and consequently damaged the informed public’s trust in business and the media too. In the early hours of December 13th, 2019, as the general election results came in, we found out the response to three years of drift: millions of people in the general population who no longer trusted our institutions lent their votes instead to a man with issues of his own around trust, though significantly fewer, it has to be said, than his competitor. Boris Johnson won with a simple message: “Get Brexit Done.” But voters were also voting to reject the bitter stalemate that had settled on the UK. They backed “doing stuff” over more argument. They voted to turn the page. The challenge for our institutions, whether in Britain, or most developed countries, is how to respond to the change that citizens from all walks of life are calling for. Undoubtedly, the way in which business and government co-operate will determine how they are judged. Their reputations are inextricably linked in the minds of two-thirds of the British public, and three-quarters of them want to collaborate to solve social issues. Incrementalism is no longer enough. Instead people are looking for big, bold change to deliver a discernible improvement in their lives. Quite possibly, given the erosion of trust in democracy and capitalism, it may also mean reform in order to make the system work better for those our institutions have left behind. Ultimately, it will require the reimagining of our institutions and systems. It is the scale of that change – economic, political and societal – and the shape of that reform, that will ultimately determine whether we can repair trust in our core institutions. 57 Mass population Informed public 3918 Trust gap 2020 Trust Index, UK 7 2020 Edelman Trust Barometer It would be a mistake to think that Brexit alone was to blame for this lack of trust in our institutions.
  • 10. Trust Is Built on Competence and Ethics For 20 years, the Edelman Trust Barometer has gauged trust by asking: “How much do you trust this institution to do what is right?” Taking account of the general population’s overall lack of trust and a pronounced sense of inequity, this year’s Trust Barometer sought to understand what shapes the public’s view of “to do what is right.” The analysis identified that trust is built on two key drivers: competence and ethical behavior. Further examination shows that today no institution is seen as both competent and ethical, explaining stagnating trust in the face of strong economic performance. Of the four institutions, only business is seen as competent, and only NGOs are viewed as ethical. These scores point to the lack of confidence in leaders’ ability to take on the most pressing national challenges, widespread fears about the future and mounting questions about the equity of the systems in place. This latter sentiment is further underscored by the fact that of the components of ethical behavior—being honest, having a vision, being purpose-driven and being fair—fairness, or lack of it, has the greatest impact on trust. Dimensions of trust (Competence score, net ethical score) ETHICAL COMPETENT UNETHICAL LESS COMPETENT NGOs (-4, 12) Business (14, -2)Media (-17, -7) Government (-40, -19) 35 -35 50-50 No institution seen as both competent and ethical 8
  • 11. Serves the interests of only the few Government Institutions seen as unfair Percent who cite each as a reason they trust or distrust each institution Media Business NGOs Serves the interests of everyone equally and fairly 57 30 51 32 54 29 42 40 Antoine Harary President, Edelman Intelligence Tonia Ries Global Executive Director, Edelman Intellectual Property Competence Is Not Enough Trust must be built through both competence and ethics. For 20 years, the Edelman Trust Barometer has asked respondents to answer a simple question: How much do you trust each institution to do what is right? This year, our research went further, analyzing respondents’ ratings of the competence and the ethics of each institution in more detail. The reason for the general lack of trust? None of the four institutions measured is seen as both competent and ethical. NGOs and business are tied, with 58 percent of respondents globally saying they trust each. But a deeper look reveals that NGOs, while seen as ethical, are not seen as competent. And business, the only institution described as competent, is not seen as ethical. Competence alone is not enough to create trust in business as an institution. Data from the Edelman Trust Management suite of analytics and consulting solutions, designed to help global companies measure and manage their trust capital, confirms that competence—being good at what you do—is not enough to earn the benefits of a trust advantage. More than 80 percent of the 600+ companies we have analyzed earn better scores for their competence than they do for ethics-related trust dimensions such as integrity or purpose. The data collected reveals that a company’s ability—the degree to which it is seen as good at what it does—explains only 24 percent of its measurable trust capital. In comparison, integrity, purpose and dependablity drive 76 percent, making it very clear that more than competence, ethics-related dimensions drive the lion's share of company trust capital. This ethics shortfall may be partially explained by the emphasis companies have traditionally placed on communicating their performance, competence or product quality more so than their commitment to ethics and integrity, or their purpose and vision for the future. The Edelman Trust Management data shows that the proportion of stakeholders who “don’t know enough” to judge a company’s ethics is significantly higher than those who are unfamiliar with a company’s competence. At the same time, stakeholder expectations have risen. Consumers expect the brands they buy to reflect their values and beliefs, employees want their jobs to give them a sense of purpose, and investors are increasingly focused on sustainability and other ethical commitments as a sign of a company’s long-term operational health and success. Business is already recognized for its ability to get things done. But to earn trust, companies must make sure that they are acting ethically, and doing what is right. Because for today’s stakeholders, competence is not enough. more important to company trust than competence 3x Ethics: 9 2020 Edelman Trust Barometer 2020 Edelman Trust Barometer
  • 12. 92 Business: Catalyst for Change In a world of concerns about fairness, the 2020 Edelman Trust Barometer points to a clear set of actions for businesses that want to gain trust. Chiefly, business should recognize the imperative to serve the interests of all stakeholders; 87 percent say that customers, employees, and communities are more important than shareholders to a company’s long- term success. These beliefs are now beginning to be acted on by business, in initiatives like the Business Roundtable’s endorsement of a multi-stakeholder model for American multi-nationals, and the signing by 177 multi-nationals to the Business Ambition for 1.5°C, among others. Reflecting the perceived lack of leadership on societal issues, 92 percent of employees think it's important that CEOs speak out on one or more issues, with training for jobs of the future at the top of the list. When it comes to addressing issues and shaping the future, engaging employees in the solution is also critical. Seventy-three percent of employees say they would expect a prospective employer to give them the opportunity to shape the future of society. Business is not expected to go it alone, however, and in some cases would benefit from the trust edge that other institutions have. For instance, when it comes to protecting workers in the gig economy, government is actually more trusted than business (40 percent vs. 32 percent)—signifying a need for the leadership and commitment of both. Indeed, across the board, collaboration is key to regaining trust. For business, government and NGOs alike, partnering with other institutions to solve the pressing issues of our time is one of the most important steps to regaining people’s trust—and, in turn, moving the world to a more trusted state. % Stakeholders are more important than shareholders to long-term company success It is important that my employer’s CEO speak out on one or more of these issues: 87% Percent who ranked each group as most important Communities Shareholders 13 Customers 38 Employees 37 12 training for jobs of the future • ethical use of tech • automation’s impact on jobs • income inequality • diversity • climate change • immigration 10
  • 13. The Opportunity for Government: Partnership The outlook for trust in government in 2020 is alarmingly bleak. Less than half of the respondents to the 2020 Edelman Trust Barometer trust government to do what is right. Fifty-seven percent say government serves “the interests of only a few.” Government leaders are among the least trusted people. And on the two central drivers of people’s trust— competence and ethics—government lags far behind the other institutions. But a closer look behind the numbers reveals several important insights for government and perhaps even a glimmer of hope for the future. While the gaps are significant, the opportunities are huge. The way forward is for government to revitalize its role as an essential partner to business, act and communicate with more transparency and focus on how it can improve people’s lives in tangible ways at the local level. Government is trusted as a leader in areas that it is typically expected to manage: transportation, immigration, social services and protecting people from harmful products. But critically, that trust also extends to issues that have the most direct impact on everyday life, such as inclusion and reducing income inequality. Even in sustainability, where business is generally seen as leading innovation, Trust Barometer respondents trust government the most—more than twice as much as business. Given government’s trust edge on several of the most pressing societal challenges, business should want to collaborate with government on solving them. Our study shows that people trust both institutions the most to solve the issues of workforce retraining and protecting workers in the gig economy. By making these issues an immediate focus in collaboration with business, government can overcome the perception that it serves the interests of only a few. Regulation also should be viewed as a good opportunity for partnership. Sixty-one percent of people do not believe that government understands emerging technologies enough to regulate them effectively. However, the tech industry should remember that the best government regulation is created in tandem with industry. In fact, established companies tend to welcome regulation and provide input on the process because they understand government’s role in protecting them, their customers and their business. Restoring trust in government can also begin at the local level. In 18 of 24 markets, local government is more trusted than federal government; globally, 69 percent of respondents trust “people in my local community.” These findings may reflect people’s awareness that their cities and communities are innovating to address the issues that impact their everyday lives, such as the effects of climate change. Finally, we know from experience that without transparency and good communication, trust is much harder earned. Unless government recognizes the importance of these and practices both, people will always assume the worst. I am a firm believer in the promise of government. My parents were proud civil servants, I served in government, and today my daughter is doing the same. Globally, government must take the real opportunity before it to restore trust now if it expects to attract the best and brightest problem solvers of the future. Protect workers in the gig economy Workforce retraining necessary as a result of automation Government 40 Business 32 NGO 18 Media 9 Government 32Business 42 NGO 17 Lisa Osborne Ross President, Washington D.C. Media 8 Percent who say each institution is the one they trust most to address each challenge Business and government partnership essential on jobs 11 2020 Edelman Trust Barometer
  • 14. 35​​ 35​​ 35​​ 38​​ 38​​ 33​​ 35​​ 37​​ 40​​ 41​​ 26​​ 30​​ 31​​ 34​​ 34​​ 34​​ 35​​ 38​​ 38​​ 39 ETHICAL COMPETENT UNETHICAL LESS COMPETENT NGOs Business Media Government 35 -35 50-50 The Necessity of Action For the first time this year, we asked Edelman Trust Barometer respondents to tell us how well each institution is doing on a long list of issues that are challenging society. The lowest scores (at right) point to areas that provide the most room for improvement in each institution’s performance. If each institution can address these challenges—and do them well—they can realize double-digit gains in trust. The most consistent low-scorer among NGOs, business and government is partnership, with each institution not seen as a good partner to the others. Collaboration then becomes a major opportunity for our institutions to advance society— and build trust. When institutions are trusted, achieving both competence and good ethical behavior, as shown in the graph at right, they are more in balance and more closely aligned. Government, while still not as competent as business, now occupies a slightly higher ethical position than business, which, in its role as watchdog and regulator, it should ideally hold. In this closer relationship, the institutions can more readily collaborate on the pressing societal challenges that stoke people’s fears and work together toward building the trust that is needed to foster a more stable and more productive society. NGOs (29, 34) Business (35, 16) Media (25, 22) Government (19, 17) When institutions are trusted, they are more closely aligned Transparency about funding​​ Expose corruption​​ Avoid becoming politicized​​ Partner with government​​ Partner with business​​ Partner with NGOs​​ Jobs that pay a decent wage​​ Partner with government​​ Deal with partners fairly​​ Contribute to communities​​ Reduce partisanship​​ Partner with NGOs​​ Community-level problems​​ Social services for the poor​​ Partner with business​​ Keep social media clean​​ Being objective​​ Information quality​​ Important vs. sensationalized​​ Differentiate opinion and fact​​ NGOs​​ Business Government Media Percent who think each institution is doing well/very well on this issue, and potential trust gains associated with doing each well To build trust, address biggest challenges Trust restores balance and enables partnership (Competence score, net ethical score) +13 +17 +17 +20 Potential trust gain 12
  • 15. Edelman is a global communications firm that partners with businesses and organizations to evolve, promote and protect their brands and reputations. Our 6,000 people in more than 60 offices deliver communications strategies that give our clients the confidence to lead and act with certainty, earning the trust of their stakeholders. Our honors include the Cannes Lions Grand Prix for PR; Advertising Age’s About Edelman 2019 A-List; the Holmes Report’s 2018 Global Digital Agency of the Year; and, five times, Glassdoor’s Best Places to Work. Since our founding in 1952, we have remained an independent, family- run business. Edelman owns specialty companies Edelman Intelligence (research) and United Entertainment Group (entertainment, sports, lifestyle). Visit edelman.com for more information. 13 2020 Edelman Trust Barometer
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