International Forecaster Weekly

EDELMAN TRUST BAROMETER SEES LACK OF FAITH IN INSTITUTIONS AS CREATING DANGEROUS DIVIDE - Economic Optimism Collapses 2019 – 2020 – 2021 – 2022 – 2023

People now fear for their economic future without a trust[worthy] safety net. Only 40% of respondents say they and their families will be better off in five years, a 10-point decline from 2022.”

So summarizes one of the major findings of the 2023 Edelman Trust Barometer, which adds:

“A lack of faith in societal institutions triggered by economic anxiety, disinformation, mass-class divide and a failure of leadership has brought us to where we are today – deeply and dangerously polarized.”

The latest Edelman Trust Barometer is the Edelman organization’s 23rd annual trust and credibility survey since its founding in 1952. 

Edelman, in its own words, is a “global communications firm that partners with businesses and organizations to evolve, promote and protect their brands and reputations.” 

The report’s release is intended to coincide with the start of this year’s annual World Economic Forum in Davos, Switzerland.

The research was conducted by the Edelman Trust Institute through 30-minute online interviews with over 32,000 respondents in 28 countries.

Among the principal findings and opinions contained in the 2023 survey are:

  • Business is the only institution seen as competent and ethical. Since last year's survey, trust in business gained 6 points in the U.S.
  • 53% of respondents globally say that their countries are more divided today than in the past; and
  • CEOs are obligated to improve economic optimism and hold divisive forces accountable.

Guest Writer | January 17, 2023

By Dave Allen for Discount Gold & Silver

People now fear for their economic future without a trust[worthy] safety net. Only 40% of respondents say they and their families will be better off in five years, a 10-point decline from 2022.”

So summarizes one of the major findings of the 2023 Edelman Trust Barometer, which adds:

“A lack of faith in societal institutions triggered by economic anxiety, disinformation, mass-class divide and a failure of leadership has brought us to where we are today – deeply and dangerously polarized.”

The latest Edelman Trust Barometer is the Edelman organization’s 23rd annual trust and credibility survey since its founding in 1952. 

Edelman, in its own words, is a “global communications firm that partners with businesses and organizations to evolve, promote and protect their brands and reputations.” 

The report’s release is intended to coincide with the start of this year’s annual World Economic Forum in Davos, Switzerland.

The research was conducted by the Edelman Trust Institute through 30-minute online interviews with over 32,000 respondents in 28 countries.

Among the principal findings and opinions contained in the 2023 survey are:

  • Business is the only institution seen as competent and ethical. Since last year's survey, trust in business gained 6 points in the U.S.
  • 53% of respondents globally say that their countries are more divided today than in the past; and
  • CEOs are obligated to improve economic optimism and hold divisive forces accountable.

Business Most Trustworthy

Let’s drill down on a few of these notions. First, business continues to gain trust around the world.

Among survey respondents, the response “my employer” was 25 points higher in trust than government or elected officials.

Edelman CEO Richard Edelman says, "Business is the sole institution seen as competent and ethical [and] is expected to act."

As Mike Allen points out, CEOs are now under pressure “to take the lead on a wide range of societal issues that government is no longer trusted to manage.”

Notably, the most reliable source of information that Edelman found was the company newsletter.

Edelman "…first saw data supporting the essential role of employer communications during the pandemic, when we found high demand for frequent communications about health-related topics.

"Since then, we have asked about the relative credibility of employer communications across topics and have found it is the most believable source — no matter which subject we ask about."

Trust in Government in the Sewer

Government, by contrast, "is viewed as unethical and incompetent." In fact, business holds a 54-point lead over government in competence — and 30 points in ethics.

Edelman Vice Chair and U.S. COO Dave Samson observes, "Low trust in government and media has ... aided the ascent of business." 

And now, societal leadership is a core function of business. "CEOs are expected to use resources to hold divisive forces accountable," the report says:

"72% want business to defend facts and expose questionable science being used to justify bad social policy.

“And 64% want companies to support politicians and media outlets that build consensus and cooperation."

Globally, "CEOs are expected to take a public stand and take business action on key issues, with 85% expected to play a role in strengthening our social fabric."

Causes of Polarization

To be sure, society’s social fabric has a major tear. Roughly two-thirds of respondents (an astounding 65%) say the lack of civility and mutual respect today is “the worst I have ever seen.”

Almost as many (62%) believe that the social fabric that once held “this country” together has grown too weak to serve as a foundation for unity and common purpose.

The four forces that the Trust Barometer says have led to this massive polarization are:

Economic Anxieties. Economic optimism is collapsing around the world, with 24 of 28 countries seeing all-time lows in the number of people who think their families will be better off in five years.

Institutional Imbalance. Business is now the sole institution seen as competent and ethical and is under pressure to step into the void left by government.

Mass-Class Divide. People in the top quartile of income live in a different trust reality than those in the bottom quartile – with 20+ point gaps in Thailand, the U.S. and Saudi Arabia.

The Battle for Truth. A shared media environment has given way to echo chambers, making it harder to collaboratively solve problems. Media is not trusted, particularly in social media.

We have become so ingrained in our own ideologies and senses of tribalism that if a person strongly disagreed with our own point of view:

Only 30% would help them if they were in need; only 20% would be willing to live in the same neighborhood with them; and only 20% would be willing to have them as a co-worker.

And all this despite the survey finding that polarization only worsens our fears.

The report found that if our divisions aren’t adequately addresses these are the likely consequences (in order of fear):

Worsening prejudice and discrimination; slower economic development; violence in the streets; inability to address societal challenges; and increased financial suffering.

How to Move Forward

Survey respondents in this year’s report point to four primary ways that our institutions should move forward and improve life in general:

  1. Business expected to act.As the most trusted institution, business should leverage its comparative advantage to inform debate and deliver solutions on climate, DEI, and skill training.
  2. Collaborate with government. Business and government can build consensus and collaborate to deliver results that push us towards a more just, secure, and thriving society.
  3. Restore economic optimism. Invest in fair compensation, training, and local communities to address the mass-class divide and the cycle of polarization.
  4. Advocate for the truth. Be a source of reliable information, promote civil discourse, and hold false information sources accountable.

The entire 2023 Trust Barometer can be found here. It’s truly insightful and revealing.