Edelman Trust Barometer: Inequality undermines trust, fear eclipses hope

The annual Edelman Trust Barometer 2020 is a grim read. Trust in institutions has reached a new low in the UK. However Ipsos MORI suggests that the issue is far more nuanced.

The average level of trust among the UK population in NGOs, business, government and media has reached a low of 42% according to the 2020 Edelman Trust Barometer.

The UK has slipped to second from bottom of a list of 26 countries above Russia.

Edelman segments the public into the informed public (aged 25 to 64, colleague educated, top 25% earners and high levels of media literacy) and the mass population.

Ipsos Mori has a more nuanced perspective on trust. Its view is that the public is fed up with authority and that this manifests itself as a collapse in trust. It’s an interesting counterpoint to Edelman.

“The obsession with trust reflects a trend we call the crisis of the elites. Unlike a crisis in trust, it is fair to say that elites do feel under more scrutiny than ever,” said Ben Page, CEO, Ipsos MORI.

“We find that a much more nuanced conversation has to be had – less about trust per se, and more about what organisations and individuals need to do to be trustworthy in a particular context.”

Mind the gap: inequality undermining trust in society

Edelman has a much starker point of view. The trust gap between the informed public and mass population in the UK has reached a high of 18%. It is among eight markets where distrust has reached a high.

Income inequality is the primary driver of mistrust according to Edelman. High levels of income equality correlate with low trust in government.

More than half of respondents to the Edelman Trust Barometer believe that capitalism does more harm than good in the world.

83% of people are worried about losing their job. The gig economy (61%), looming recession (60%), and lack of training (58%) are cited as the top three issues.

There is a growing unease about the rate of change of technology.

66% worry that technology makes it impossible to know if what people are seeing or hearing is real. 61% believe that the government does not understand emerging technologies sufficiently to regulate them.

Trust gives organisations a licence to operate in the markets which they serve. It’s the basis of advocacy and recommendation according to Edelman.

Ethics and competence are the building blocks of trust. No institution is seen as both ethical and competent. Only business is perceived as competent and NGOs as ethical.

“Trust today is granted on two distinct attributes: competence (delivering on promises) and ethical behaviour (doing the right thing and working to improve society). It is no longer only a matter of what you do - it’s also how you do it,” said Richard Edelman, CEO, Edelman.

Opportunity for business

This widespread failure of competence has led to business being viewed as a catalyst for change in society.

Companies are being called on to serve all stakeholders not just shareholders. This reflects the growing focus in corporate communications on purpose. CEOs are expected to lead from the front on societal issues such as technology rather than waiting for government..

The Edelman Trust Barometer is a longitudinal survey of attitudes to trust measured over the past two decades.

More than 34,000 participants responded to a survey in 28 markets between 19 October and 18 November.