Barometer Shows High Distrust Levels in Institutions
Barometer Shows High Distrust Levels in Institutions

The 2020 Edelman Trust Barometer shows that the majority of Irish respondents distrust government, NGOs, the media and business, do not see their economic prospects improving over the coming years and believe that in its current form, capitalism does more harm than good.

The annual Edelman Trust Barometer, now in its twentieth year, surveys over 34,000 respondents in 28 markets. The latest edition, which was carried out ahead of last weekend’s general election in Ireland, provides a unique insight into the mood of the Irish public.

The Irish findings show a record 17-point gap in trust levels of the four institutions between respondents who are wealthier and more frequent consumers of news and the rest of the general public. Wealthy respondents have high trust levels in NGOs and business, while they view government and the media neutrally. There is a very different view of the institutions among the general public; only NGOs are viewed as neutral, with the lowest levels of trust in government and the media. This is largely due to perceptions of unfairness, with government and business seen as the least fair institutions, serving the interests of the few.

Public Pessimistic Despite Strong Economy
Public Pessimistic Despite Strong Economy

In spite of strong economic growth and near full employment levels in Ireland, the 2020 Trust Barometer also shows that increasing numbers of Irish people are pessimistic about their economic prospects: just 37% said they believe that they and their families will be better off in five years’ time, compared to 47% last year. This 10-point drop is the biggest decrease in the 15 of the 28 markets where respondents said they were pessimistic about the future.

“At a time of high employment and economic growth, trust in government, business, media and NGOs should be surfing high on the wave of prosperity. That is not the case and it would appear that trust has decoupled from national economic prosperity – with none of our institutions in Ireland trusted by the general public.

We find ourselves living in a type of trust paradox with high economic performance on the one hand and issues of belief in our institutions on the other. It is against this backdrop that the Irish public voted in last weekend’s general election,” said Joe Carmody, Managing Director, Edelman Ireland.

As an open economy, issues relating to globalisation are also causing concern for the Irish public. With technology projected to replace or profoundly change many jobs in the future, Irish people are concerned about whether they will be adequately trained for the roles of the future. Reflecting this sentiment, 79% of Irish respondents said they were worried about losing their job due to the possibility of a looming recession, proliferation of AI and automation and the impact of the gig economy. In this context, the majority of Irish respondents (57%) agree that in its current form, capitalism does more harm than good.

“There can be no doubt that capitalism has proven to work for society. No system in the history of economic and political management has emerged that has outperformed responsible capitalism. Without profit there is no opportunity to reinvest, to innovate or to allocate the resources that society needs to protect itself and to prosper. However, the 2020 Trust Barometer findings deliver a clear message that the Irish public is questioning the fairness of the system - and this sentiment may provide some context for how the electorate voted in last weekend’s general election,” Mr Carmody added

When it comes to addressing these fundamental societal challenges, only 36% of the general public said that they trusted government to do what is right, with just 38 per cent saying that they trusted CEOs to address these issues.

“These findings show that a conversation needs to take place, particularly among the business community, about whether companies are prepared to be more accountable to stakeholders including employees, customers and suppliers rather than just prioritising the needs of shareholders,” Mr Carmody said.

“For businesses, it is no longer only a matter of what you do—it’s also how you do it. Trust is granted on two distinct attributes: competence - delivering on promises - and ethical behaviour - doing the right thing and working to improve society.

“Companies know that long-term growth requires them to be part of the solution to restore trust and to help prepare society for the future. As we face into a new decade, the battle for trust will be fought more on the field of ethics than on the field of competence.”

While the vast majority (91%) of those surveyed in Ireland believe stakeholders rather than shareholders are most important to the long-term success of a company, Irish people expect businesses to deliver financial returns: 72% agree that a company can do both—make money and improve the communities where it operates.

Increasingly, CEOs are also expected to lead from the front: 90% believe that business leaders should be vocal on issues that impact people’s future, including training for jobs of the future, automation’s impact on jobs, technology’s impact on ethics, Income inequality, diversity, privacy and climate change. Three in four believe CEOs should lead on change, rather than waiting for government to step in - a 12-point increase in the last two years.

Business is also expected to empower employees to be part of the solution. People trust that which is local, and so employers continue to be the most trusted relationship amongst almost three-quarters of workers. They want jobs that empower them to play a role in shaping the future of society (66%) and to have a voice in planning that future (67%).

“The existential questions of the next decade - income inequality, sustainability, information quality and AI - all require higher levels of co-operation between all institutions and critical to this is the relationship between business and Government,” Mr Carmody concluded.

“Only one in three believe that business does a good job of partnering with Government. In the tension that exists for profit and the well-being of society there will always be what business wants and what society needs and the question is how to bridge that gap. The Trust Barometer points to what partnership can look like. Government (40%) is expected to protect workers in the gig economy and business (42%) is expected to retrain workers to prepare them for the future, pointing to the opportunity for both to work together to provide reassurance on jobs."

For further information please contact:

Richard Brophy / Gill Curran Edelman: 01 678 9333/ dublin@edelman.com

About Edelman
About Edelman

Edelman is a leading global communications marketing firm that partners with many of the world’s largest and emerging businesses and organisations, helping them evolve, promote and protect their brands and reputations. We have deep expertise in consumer trends, research, analytics and insights, corporate reputation, health, technology, crisis, energy, and government affairs. Please visit www.edelman.ie for further information.

About the Edelman Trust Barometer
About the Edelman Trust Barometer

The 2020 Edelman Trust Barometer is the firm’s 20th annual trust and credibility survey. The survey was powered by research firm Edelman Intelligence and consisted of 30-minute online interviews conducted between October 19 and November 18, 2019. The 2020 Edelman Trust Barometer online survey sampled more than 34,000 respondents, which includes 1,150 general population respondents across 28 markets and 200 informed public respondents in each market, except China and the U.S., which have a sample of 500 informed public respondents each. All informed public respondents met the following criteria: aged 25-64, college-educated; household income in the top quartile for their age in their country; read or watch business/news media at least several times a week; follow public policy issues in the news at least several times a week.

For more information, visit https://www.edelman.com/trust-...