Edelman’s 2023 Trust Barometer: Last One Standing
The Edelman 2023 Trust Index has been released, one of the most important pieces of annual data.
It’s important because risk is at the heart of every decision we make…sometimes consciously and sometimes out of rote habit…but every decision about the future is about risk. Which makes trust a part of every decision as detailed in my whitepaper on reputation.
We don’t even think about it. We order at a drive-thru…we trust they are going to make our food. We pay in front for a pickup order…we trust the food will be there. We make a left turn with the light…we trust others will follow the light. Once you think like this, you can’t stop seeing it.
More relevantly, trust is found when you live near a factory…when you go to the doctor…when you buy a product…when you drink a glass of orange juice…
A brief digression, here’s a study on the most trusted brands by business category. It’s interesting and probably takes the issue to an extreme…I’m glad to know Werther’s is the most trusted caramel candy but would be more interested in knowing the least trusted caramel candy.
Edelman measures trust on a two-axis graph. (Consultants are addicted to two-axis graphs). The axes are ethics and competence.
Which makes total sense. We have all seen unethical companies and we have seen companies that “mean well” but can’t execute.
The big picture on trust is not good
Edelman demonstrates that mistrust leads to polarization, and the U.S. is badly polarized. In fact, as you can see here, the US is one of six countries that are “severely polarized,” which means that strong majorities of people feel there a) is polarization and b) it is entrenched.
But it’s a global issue. I won’t beat the dead trust horse. You can check out the rest of the numbers here.
Class is now a key issue
On the aggregate measure of trust (carried across all types of organizations), Edelman found that people in the top 25% of incomes had a trust index of 63% in the US. Among those in the 25% income bracket, it was 40%. That 23-point gap is the second largest in the world, behind only Thailand.
It makes me think of Jerry Maguire when Renee Zellweger looked at Tom Cruise sitting up in first class with the supermodel.
The big headline: Business is the most trusted entity
This is likely the insight you have seen elsewhere. Since 2020, business has risen 20 points in the trust index. Furthermore, people want more social engagement from business, not less.
This is an uncomfortable moment, because it comes at a time when businesses are trying to wade into social issues less often…for good reason. Wading into controversial ideas in a polarized world often means alienating half of the market and sometimes ends up alienating all of it. Axios has this story on companies going silent after the Memphis killing, noting that there is less public pressure to comment than there was before. Much of that pressure was internal anyway, so why not release a statement to your internal audiences?
It seems, well, like an entrenched problem. Is there a way out? Here is what Edelman proposes:
1: Business must continue to lead
I’m not sure business exactly wants to be the leader, but there it is. There will be a whole post next week on this topic, but for now, just consider that leading is more than putting out a “thoughts and prayers” statement whenever something bad happens. In fact, a strategic solution might have companies not doing that at all.
2: Collaborate with the government
Wow. This is another big lift. Business mistrusts the government too…maybe for competence and maybe for ethics. I get the idea. The EPA started under Nixon. And if business doesn’t want to be the last trustworthy entity holding up the mantle of civil society, then maybe it could get out of that by rehabilitating some of the other players. Let’s say, though, that business used its leverage and lobbying power to introduce acceptable yet productive climate change regulations. What are the odds that something like that would survive attacks from climate deniers and people who want to punish the private sector?
Last note: it’s not unreasonable to ask the government and NGOs to get their shit together.
3: Restore economic optimism
This is one where I think there is potential and maybe the only feasible step of the four that Edelman has proposed. It is important to remember that you need the right kind of optimism. Not, “hey everything is great.” More like, “things are rough but we’re going to succeed.” Think FDR or Reagan. Americans have shown themselves to be resilient, but we seem to have lost the thread on that. I haven’t given up on the idea we can find it again.
4: Advocate for the Truth
Again, I don’t know. The problem is that the truth is up for grabs right now. The polarization that exists is because people are living in two different worlds. No one knows the difference between an opinion and a fact. But, the idea is that business is trusted and could use that trust to “referee” these disagreements? I get it and I can see how this could be done, but it would have to have substance and a long-term investment. Wading in and throwing a replay flag isn’t going to change anything.
Conclusion:
It’s discouraging and the future is not looking good. Business has a role, but I think it’s less on the speaking-out side and more on the side of sustained, transparent and tracked initiatives on diversity, environmental stewardship, and community development.