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As trust in governments tumbles, expectations of business leaders have never been higher
January 19, 2023
These are interesting times for business leaders. Once, as long as you kept the shareholders happy, the job was done. Obviously, your customers liking your products and services was a bonus – as was keeping your employees reasonably content – but if the finances were robust and you didn’t rock the boat too much, all was good. Avoid any Gerald Ratner moments, work hard and reap the rewards.
Today, it’s all rather more complicated. Customers are prone to caring about your ethics and digging around the grubby details of your supply chain; and even if they’re not, some other do-gooder will call out your greenwashing and share it online. Employees want to feel proud of the companies they work for, so never mind the headlines, not paying your corporation tax rankles within the ranks, and talent will hot foot it elsewhere leaving a trail of negative Glassdoor reviews in their wake. And still you have to keep the shareholders happy.
Expectations of business leaders are high today. And as trust in governments tumbles, it’s businesses that are filling the void for citizens around the world. Edelman’s Trust Barometer has been pointing in this direction for some years, but this year’s report laid it out clearer than ever. Institutional imbalance is increasing such that business is now the only institution that is seen as both competent AND ethical.
As governments – and media – are seen as sources of false or misleading information, the trust void is being filled by business and they are considered sources of trustworthy information. But people also want more societal engagement from business. The standout areas where people think business isn’t doing enough include climate change, economic inequality and energy shortages. Yes, business should be honest and transparent – and held to high standards by customers and citizens – but how many CEOs want to tackle some of the biggest political and societal conundrums of the century? And still keep their shareholders happy.
Of course, the problem with reports like this, is the condensing of complex global matters into bullet points. One point suggests this increased trust in business while another shows that the rich and powerful are seen as one of the biggest dividing forces. But aren’t many of the rich and powerful also business leaders? Can you be a dividing force and societally engaged? These are quite existential questions for someone hired to sell more soup.
This societal engagement is putting businesses at risk of being politicised with Edelman ultimately arguing that it is trustworthy information that will insulate businesses from being seen as politicised.
So, whether today’s business leaders much want to lead the charge in many of these areas – or indeed are able to – is open for discussion. And whether the public is right to put its trust in organisations whose primary purpose is to make money is yet still more debatable. But sharing and communicating trustworthy information is to be supported and celebrated.
When public relations is being criticised it’s for projecting false images or peddling untruthful representations of businesses or people. The best public relations never sits in this territory. Rather it is very firmly fixed on promoting what those businesses are genuinely doing – a platform to communicate the work and expertise and brands.
There is a clear direction of travel in terms of people’s expectations and good business behaviour comes in all shapes and sizes – and with significant responsibility. From a business communications perspective, being open and honest is foundational and clear messaging is central to earning trust.