- Edelman Australia unveils the 2022 Edelman Trust Barometer.
- Record-high public trust evaporates during tumultuous 12 months
- No institution trusted as pandemic enters third year
- Australians crave more, not less, engagement from business on top societal issues.
The 2022 Edelman Trust Barometer reveals sharp declines in trust across all Australian institutions, eroding the record-high levels of public trust recorded in 2021.
Only 52% of Australians say they trust government to do the right thing (\down 9 points year-on-year) and 58% trust each business (down 5 points) and NGOs (-4 points).
Media, which saw a surge in trust in 2021, fell by 8 points to 43%, making it the only institution in Australia distrusted by a majority of the population.
Australia also continues to have one of the largest income-based trust inequality gaps globally, with an 18-point gap between high- and low-income respondents.
The latest data also reveals a stark contrast between the four institutions, with Australians seeing government and media as more divisive than unifying for society, whereas business and NGOs are more likely to be seen as unifying than divisive.
When asked whether each institution serves to divide or unify society, more than half of Australians see media (55%) and government (52%) as divisive.
But more Australians see business and NGOs more unifying than those who consider these institutions playing a dividing role.
The Barometer also found that Australians see business as most capable of executing plans that achieve results for society (59%) and government least capable of doing the same (43%).
“This time last year, public trust was riding high amid optimism that Australia stood ready to bounce back from the pandemic. We asked ourselves at the time whether these levels of trust were sustainable and if Australia was experiencing a ‘trust bubble’,” says Michelle Hutton, CEO Australia and Vice Chair of Asia Pacific, Edelman.
“It’s clear from this year’s results that the trust bubble has burst, and it seems the past 12 months have set Australia down an increasingly divisive path. But amid rising distrust of traditional leaders, there emerges an opportunity for business to play a unifying role by embedding societal action at its operational core.”
This year’s data uncovers a failure of societal leadership that has made distrust the default among Australians.
Mirroring declining trust in media, is an erosion of trust in society’s traditional leaders, with only 43% of Australians trusting both government leaders and CEOs, falling 9 and 5 points year-on-year, respectively.
A majority of Australians worry that journalists (65%), government leaders (61%) and business leaders (61%) are actively trying to mislead them by saying things they know are false or grossly exaggerated.
The 2022 Trust Barometer shows that trust in all media sources has fallen, with traditional media only trusted by 48% of Australians (-5 points), search engines by 47% (-4 points), owned media by 33% (-5 points) and social media by only 24% of Australians (-8 points).
Australians’ concerns about disinformation and fake news remain high with 73% worried about false information or fake news being used as a weapon.
A majority of Australians (55%) say their default tendency is to distrust something until they see evidence it is trustworthy.
Another 61% say it has gotten to a point where Australians are incapable of having constructive and civil debates about issues they disagree on – a foundational trait of a functioning and productive society, especially in democratic nations.
The Barometer also revealed broad-ranging stakeholder expectations for business to take a stand on issues that align with their values and beliefs.
Fifty-six per cent of Australian consumers will buy or advocate for brands based on their belief and values; 57% of Australian employees will choose a place to work based on their beliefs and values, and 64% of investors will invest based on their beliefs and values.
The expectation for business to take a stand on social issues is putting greater pressure on CEOs to personally lead on change and be visible.
Eight in ten believe CEOs should be visible discussing policy with external stakeholders or work their company has done to benefit society.
Australians also expect CEOs to inform and shape conversations around subjects specifically related to jobs and the economy (72%), wage inequality (72%), technology and automation (68%), prejudice and discrimination (64%) and climate change (61%). However, CEOs are expected to stay out of politics.
In the 2022 report, business is now the only institution that is perceived as both competent and ethical – bestowing upon it a clear mandate for driving social change. Australians want business to be doing more, not less, when engaging on all societal issues.
Forty-four per cent of Australians say business should be doing more when it comes to climate change, compared to 10% who think business is overstepping when it comes to the environment. Similarly, 42% want business to do more on workforce reskilling and 40% of Australians think business needs to take greater action on economic inequality.
Employers continue to enjoy strong levels of trust with their employees, with nearly three quarters of Australian employees (74%) saying they trust their employer, compared to 58% of the general population of Australians who trust business in general.
Employers’ communications are also highly trusted (70%), eclipsing communications from government (63%), media reports with named sources (58%) and advertising (51%).
The importance of quality and reliable trustworthy information cannot be overstated. Providing ‘quality information’ was found to be the number one most powerful trust builder. This not true just for business (3%) and NGOs (3.2%), but even more so for government (6.1%) and media (6.6%).
“In the year ahead, transparency and social action will be the currency with which business will earn the trust of their people and the public," Hutton says.
"Expectations are high and Aussies are looking to their leaders – and here lies the opportunity for business. 2022 must be the year of action; business has a larger-than-ever mandate to use its resources and scale to create value beyond the balance sheet. Many have declared bold ambitions in recent years, and society is now watching closely to see who will deliver.
"As firms work to create value for society, they have an opportunity to build trust with stakeholders along the way through operational transparency and authentic communication."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.