How businesses can build trust and make a positive impact on the world

New research has revealed where distrust lies across the world. Businesses have the power to inspire change and ease anxieties, but action must be taken first.

Edelman’s Trust Barometer 2023 outlined where people’s distrust lies and what fears are causing anxiety for people across the world.

Economic fears are playing a major impact on people worldwide. According to Edelman, 89 per cent of people globally are worried about losing their job.

Meanwhile, providing for families is also playing a role in causing anxiety, with just 30 per cent of Australians believing they will be better off in five years. Of the 28 countries surveyed, 24 are at all-time lows for economic optimism.

Fears for the future are breeding distrust. In Australia, 45 per cent of respondents believe the country is more divided now than in the past. This is compared to a 53 per cent global average.

However, business leaders have been recognised as a unifying force, with 41 per cent of people globally agreeing. The rich and powerful were seen as the most dividing force, at 62 per cent, and teachers the most unifying, at 64 per cent.

All this anxiety and hostility has made its way into the workforce and is influencing what employees think of each other. According to the report, 80 per cent of respondents would not be willing to work with someone who personally disagreed with their point of view.

The consequences of this polarisation may be extreme, with the top five effects listed as:

1. Worsening prejudice and discrimination
2. Slower economic development
3. Violence in the streets
4. Inability to address societal challenges
5. I will suffer financially

Organisations may need to start considering the messages they promote more as consumers are increasingly siding with brands that align with their values. The report found that 63 per cent of consumers will advocate for brands based on their beliefs and values.

Employees feel the same, with 69 per cent saying that societal impact is a strong expectation or deal breaker when going for a job. Companies may need to ramp up their environmental, social, and governance (ESG) policies and promote the change they’re making to the world if they’re to continue to attract consumers and skilled workers.

Some of the top ESG considerations for candidates when going for a job are:

• Business reflects my values
• Has a greater purpose
• Meaningful work that shapes society
• Opportunities to address social problems
• Stops specific business practices if employees object
• CEO addresses controversial issues I care about

Employees want more societal engagement from their employer. According to Edelman, the top societal issues that workers want their employers to address are:

1. Climate change (53 per cent)
2. Economic inequality (50 per cent)
3. Energy shortages (50 per cent)
4. Healthcare access (47 per cent)
5. Trustworthy information (45 per cent)
6. Workforce reskilling (44 per cent)

However, there is a fine line that must be walked, as people worry that businesses may become too political when addressing societal issues. This can damage reputations with some. In Australia, 46 per cent of respondents said that businesses run this risk when addressing issues.

However, there are issues that people want their leaders to take a stance on more than others. The top issues that people want to be addressed by their CEOs are:

1. Treatment of employees (89 per cent)
2. Climate change (82 per cent)
3. Discrimination (80 per cent)
4. Wealth gap (77 per cent)
5. Immigration (72 per cent)

Organisations that want to appeal to people and become more trustworthy must work to do so. Edelman said being a reliable source of information, basing actions on science, and not aligning exclusively with one political party are the best ways to achieve this.

To improve the economic optimism of people, respondents believe it is up to CEOs to pay a fair wage, ensure their community is thriving, and pay corporate taxes.

Edelman noted that businesses have the most power of any group to inspire change in the world. Leaders should recognise this and leverage their power to help ease economic concerns and make change through ESG policies.