As trust in authorities drops, people want businesses to do more

Australians expect businesses to lead on affordability, climate change and jobs as trust in governments and authorities continues to decline.

Tom Robinson is the CEO of Edelman Australia

Businesses are seen as the most competent and ethical authorities as trust in traditional authorities, such as governments, continues to decline, according to the annual Edelman Trust Barometer report.

The impact of social media and technology has amplified Australians’ distrust in business, government, media and NGOs, with the overall trust score dropping to 49 per cent. This rating is on par with France with sits at 48 per cent and only just ahead of the US at 47 per cent,

The report revealed 62 per cent of Australians believe governments and businesses are serving a select few, have actions that hurt individuals, have systems favour the rich and that the rich are increasing their wealth as regular people struggle.

The majority of Australians believe they are being lied to by authorities, 66 per cent believe business leaders are lying, 64 per cent believe government leaders are lying and 68 per cent think journalists are reporting lies and playing a complicit role in supporting this system.

However, the report revealed a significant opportunity for businesses to provide stronger societal leadership, particularly in areas such as affordability, climate change, and discrimination.

“There’s a belief that business is not going far enough to address key issues which we’re dealing with right now as a country,” said Edelman Australia chief executive Tom Robinson.

“Areas like affordability, climate change, misinformation, protecting the future of job skills through retraining, also tapping discrimination.

“The expectation is that trust now starts at home – in your local communities and your work, and many businesses, particularly those ASX 200 significantly sized businesses, they’re big employers, they play active roles in many locations that they operate, and that’s where the expectation starts.”

This finding showcases a desire from people for businesses to do more to support society and to help improve their living standards. However, counter to pushes for corporate activism, Mr Robinson said the emphasis is on affordability and cost-of-living ahead of purpose-based strategies.

The report highlights the inherent links between trust, economic optimism and grievance and the correlations between increased trust and economic optimism, which together can outweigh grievance.

“When you have high grievance, you have very low trust and you have very little economic optimism. So it’s important and it’s incumbent upon business to instil that optimism, because it creates this sense of fair go and opportunity for all only serves to improve the optimism that ultimately also helps people invest and buy things at the shelf and grow productivity and businesses.”

The report also highlighted a dramatic increase in hostile activism, particularly among 18-34 year olds with 52 per cent believing it is a viable means to drive change.

Nearly 1 in 3 Australians approve of using hostile activism – which is defined as including: online attacks on people, intentionally spreading disinformation, threatening or committing violence, or damaging public or private property.

This finding is supported by an increase in the fear of discrimination with nearly two thirds of respondents concerned about experiencing prejudice, discrimination, or racism – a 10 point surge over the last 12 months.

Australian women in general are the most afraid of experiencing prejudice, discrimination or racism and women aged over 55 years are the demographic that most fear discrimination.

Optimism for the future is also flatlining, with just 17 per cent of Australians believing the next generation will be better off economically.

The report, which is now in its 25th year, serves as a warning sign for Australian leaders heading into the Federal election.

“Australians are simply not feeling optimistic about our future prosperity and this lack of hope is one of the key factors driving a sense of grievance,” said Mr Robinson.