Capitalism in Disrepute, But Business Is Still Trusted?

February 2020

Despite what appears to be a strong global economy, the annual Edelman Trust Barometer finds that major pillars of society — government, business, NGOs and the media — are still widely distrusted. Capitalism itself, generally viewed as the source of economic strength, is itself held in disrepute.

Among findings of the 2020 Edelman Trust Barometer:

• Fifty-six percent of respondents worldwide agree that “capitalism as it exists today does more harm than good.” This attitude isn’t confined to younger respondents in the 18-to-34 age group, either. Fifty-three percent of respondents 55 and older express this belief, as do 59% of those 35 to 54.
• Even so, business, at 58%, is the most trusted institution. “Business has leapt into the void left by populist and partisan government,” says Richard Edelman, the organization’s CEO, in a company press release. With more and more people expecting business to help fix social problems, “it can no longer be business as usual, with an exclusive focus on shareholder returns.”
• Seventy-three percent of employees say they want the opportunity to change society, and nearly two-thirds of consumers identify themselves as “belief-driven buyers.” So, Edelman says, business leaders “understand that their mandate has changed.”
• Ninety-two percent of employees expect CEOs to speak out on social and political issues, including the ethical use of technology and income inequality.

Trust today is earned by two attributes: competence and ethical behavior. “It is no longer only a matter of what you do — it’s also how you do it,” Edelman says.

Business is rated higher than government in competence by an eye-popping 64% to 10%. Government is seen as both incompetent and unethical, though it gets higher marks for protecting the environment and addressing the income gap. Local government is trusted more than the federal government.

Media is viewed as incompetent and unethical, too. Although 57% of participants said they believe the media doesn’t do a good job separating fact and opinion, 58% still depend on it for news coverage.

The 2020 survey sampled more than 34,000 respondents, including 1,150 general population respondents from 28 markets and 200 “informed public” respondents in each market, except the U.S. and China, which have 500 informed respondents, meaning college-educated adults who follow business and public policy news.