The world is experiencing a "crisis of trust" with most people no longer confident that global and economic systems are working for them, and the ensuing upheaval likely will keep fueling the election of populist leaders such as Donald Trump, public relations executive Richard Edelman told a Chicago business audience Tuesday.
Edelman has been surveying trust in the U.S. and other countries for 17 years in his role as CEO of the communications company that bears his name. He told business leaders gathered at an Executives Club of Chicago luncheon that disenchantment with authority has become so pervasive in the U.S. and globally that only 15 percent of people remain confident in established leaders and believe the system is working.
While government and the media have experienced the greatest deterioration in trust, only 37 percent of the general population now thinks business chief executive officers are credible, he said. He told the executives that they are viewed "as faceless" and "job killers; not creators," he said.
He criticized business executives for being like turtles, who hide rather than "stepping up and standing up."
Edelman, who surveyed 33,000 people in 28 countries, said the erosion of trust started with the 2008 recession, and has been building in waves like a tsunami.
People widely believe that the system is not fair, that wealth is not distributed fairly throughout the system, and that leaders will fail them, he said.
According to Edelman, in the United Kingdom 60 percent of people think the system is failing. In the U.S. it’s 57 percent, and in France and Italy it’s 72 percent, he said. When asked about their confidence in leaders, 60 percent worldwide said they thought people like themselves were credible. But their confidence fell to 29 percent for government officials and 37 percent for chief executives.
In this environment, Edelman said, it is going to be crucial for businesses to go directly to the people to build trust and support.
"You need to build coalitions," he said. Rather than simply hiring lobbyists to fight for positions such as the ability to operate in global markets or hire immigrants, he said, businesses are going to have to explain to consumers why those positions help individuals and then build support among the masses.
"Explain to the college kid that they won’t be able to afford a car" if the car must be built with expensive U.S. labor versus $8 an hour labor, Edelman said. He also suggested companies use their websites to educate people about the costs of production and then welcome people to chat about pros and cons.
gmarksjarvis@chicagotribune.com
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