In the lead-up to Christmas and before the hellish bushfire season was scorched into our memories, many Australians were feeling positive about the state of things. In fact, trust among the informed public, those who stay abreast of public policy issues and consume news several times a week, was at an all-time high. That’s according to the Edelman Trust Barometer, which marked thirty years this February with an event at the Museum of Contemporary Art in Sydney. But the sun had barely set on 2020 when the needle on the barometer started to flicker, before catapulting in the opposite direction at break-neck speed. The Government’s response to the bushfire crisis was deemed grossly inadequate, and that hard-earned trust evaporated almost overnight.

The flow-on effect didn’t just hit the Government. It resulted in diminished trust for the media, NGOs, and the business community. But Edelman Australia CEO Michelle Hutton says it’s that last group with the greatest opportunity to show leadership and regain the trust of the Australian public in 2020.

Time for business to lead
“I think businesses have always looked to government to lead and we can’t do that any longer. More and more, businesses are realising that and they are taking action into their own hands and driving debate and driving change.

“Business is now the only institution that is seen as being competent,” Michelle said.

The Trust Barometer, comprised of 34,000 survey responses across 28 countries, showed business holds a 56-point edge over government when it comes to competency. Australians agree that business can get things done, citing general value for its owners, driving economic prosperity, and leading innovation as the areas where business excels. But neither government nor business are viewed as ethical, a quality with three times more value than competency.

Ethics at the forefront
“Australians think that as business leaders you are running a really competent business. You’re making the numbers; you’re doing a good job in delivering products and services. However, no one thinks you’re doing a good job around ethics. In fact, people think you are unethical.

“Business leaders today should really be focused on looking to see how they can increase that score around ethics and then talk about the good things they’re doing,” Michelle said.

Michelle, who was previously Managing Director of Edelman in London, points to Ikea’s low-cost solar panel range launching in April as a shining example of a business with ethics front of mind. Ikea has already spent more than $4 billion on making its stores focused on cleaner energy, powering its buildings across the globe. In Australia alone, 20,000 solar panels have been installed across its sites, contributing to a total of 900,000 worldwide. 

The number of businesses with ethics at the core of their value proposition is on the rise globally. In Australia, Russell Investments exchange traded fund (ETF) provides exposure to a responsible investment portfolio that is enhanced for environmental and social considerations. The ETF, one of a number of similar funds on the market, excludes companies involved in tobacco, alcohol, gambling, pornography and armaments, as well as producers of carbon-intensive fossil fuels.

The communications industry is answering the call to help businesses communicate the good things they’re doing. For example, PR agency Sling & Stone recently launched a sustainability specialisation to “help brands solve the most pressing environmental issues of our generation.”

The role of media
But one of the key challenges, according to Michelle, is getting buy-in from the media to report the good news coming out of the business community.

“There’s concern in Australia from business leaders around some mastheads not being as open and supportive to cover positive stories of this nature. And there’s concern around the role that media needs to play here to report on the good news and what businesses are doing to rebuild trust in the system,” Michelle said.

Cross-institutional partnerships
A possible remedy for business to rebuild trust among both journalists and the wider public could lie in cross-institutional partnerships between business, government, and NGOs.

The Barometer found people believe cross-institutional partnerships are the pathway for change. Every institution can earn trust by leveraging complementary skills and focusing on their strengths.

The recent cooperation between QANTAS and the Australian Government to evacuate Australians from Wuhan amid the spread of Coronavirus is an example of a successful cross-institutional partnership garnering trust from the Australian public. QANTAS CEO Alan Joyce continues to lead discussions about the implications of the virus for both customers and the QANTAS workforce.

Michelle states, “Business leaders, although they might be taking the lead on solving a particular issue or challenge, they should be reaching out to government, reaching out to the appropriate NGOs, and looking at grass roots approaches to helping solve some of the problems.”