The COVID-19 pandemic has helped restore trust in government while eroding it in corporate CEOs.
That’s among the key findings in this year’s Edelman Trust Barometer report, which is published annually by the public relations firm on the state of public trust in major Canadian institutions like government, businesses and the media.
And while previous years have increasingly seen respondents place more trust in corporations and executives to lead change as belief in government as a change agent waned, COVID-19 has spurred a reversal of sorts.
Trust in government, according to the Edelman barometer, is now at a “record high” of 63% while the scorecard for businesses ranged from 53% (for providing needed products to the public) down to 42% (for successfully preparing for the eventual recovery).
Worse yet for business leaders, while 60% of the 1,200 report respondents said CEOs need to take the lead in addressing the pandemic and its challenges, only 28% felt those leaders are doing an “outstanding job” in meeting the demands placed on them by the pandemic. That ranks CEOs last among other peers in this area such as government officials (55%) and global health authorities (51%).
“While trust is up, the pandemic has dramatically shifted the expectation in business leadership – as well as the measurement for outstanding performance,” said Lisa Kimmel, chairwoman and CEO of Edelman in Canada and Latin America, during the company’s May 12 release of the report. “It’s very different today versus even just a few short months ago. Business leaders are now expected to play bigger, meaningful roles to address economic challenges society is facing.”
Kimmel added that, according to the trust barometer, what the Canadian public wants in exchange for their trust isn’t complicated.
While 49% of respondents confirmed they fear losing their jobs in the post-pandemic malaise, an even greater percentage (76%) fear job loses stemming from automation, globalization, workforce restructuring or an economic downturn. Moreover, 67% said saving as many lives as possible should be Ottawa’s highest priority versus 33% who said saving jobs/restarting the economy should be the priority.
“These are truly the areas where you will see a drive in trust if you are focused on these things,” Kimmel said. “In essence, there’s a new blueprint: businesses need to focus on solutions, not on selling. The challenges presented … by this crisis demonstrate that new behaviours are going to be required. You are required to act in a much more nimble way than how you have ever before. Bold actions will be required.”
Speaking at the panel discussion following the announcement, several top Canadian executives weighed in on the results. They noted that this is a wake-up call for Canada’s business elites to step up in the same fashion that Ottawa has – especially in terms of communicating their focus on serving the public rather than only a company’s shareholders.
Gary Wade, president of Unilever Canada (NYSE:UL), said he is disappointed that only 48% of the poll’s respondents believed that Canadian CEOs are doing enough for the safety of their employees, because he felt companies like Unilever have made it a clear priority in facilitating people’s return to work.
Wade noted that the Edelman poll continued to show a gap in trust for institutions and companies between the “informed public” – respondents who are college-educated, among the top 25% in household income and report significant media consumption – and the general public.
The danger in that, he said, is that the general public will feel more left behind by the pandemic if CEOs don’t make their messaging and efforts clear to everyone in society.
“I think – as a society, as humans, as individuals – what we are going through in the last few weeks is really helping us assess what is important,” Wade said. “I think, as businesses and as CEOs, we need to take a stronger stance on helping all Canadians … in the roles that we play, to show that we are invested in people, that safety is important. Our roles are about lives and livelihoods. We need to communicate to Canadians that we are in this for everyone.”
Joe Natale, president and CEO of Rogers Communications Inc. (TSX:RCI.B), agreed that the model for good corporate management leadership has changed post-COVID.
“When I was going through school and starting my career, it was hammered into our heads that a corporation’s primary responsibility was to its shareholders, full-stop,” Natale said during the panel. “Somewhere along the way, the notion of corporate social responsibility was bolted onto that message as an adjunct; and the modern thinking now is completely evolved again. We have a responsibility to balance the needs of all stakeholders: employees, the community, government, shareholders. That’s the responsibility, more than ever.
“It goes back to the essentials of purpose: what values dictate your direction and the priority as a whole?”
Rhea Dubois-Phillips, general manager of Edelman Vancouver, noted that the respondent numbers on CEOs and businesses may be lower because public focus in the last few months has been primarily on the federal and provincial governments and their policy measures in combating the virus. As such, with Canadian governments largely meeting and beating expectations, the “trust bump” for politicians has not translated to business leaders, who have been relegated to the background.
Dubois-Phillips added that, as business-reopening plans are underway in most jurisdictions, that situation is set to change dramatically again.
With safe reopening policies atop the minds for many, the role that CEOs take in delivering an adequate response will provide executives with a major opportunity to gain a similar trust bump similar to Ottawa’s during the pandemic’s early days. But that will depend on whether CEOs provide Canadians with job stability, health safety and a clear path forward.
“Only about 12% of employees in the poll feel ready to return to the workplace,” she said. ”There’s a lot that needs to be done before you regain that trust. There is going to be a lot of expectation for CEOs to communicate that they are taking care of their employees first. Everything from protocols for elevators and how the workspace will look to hygiene at the workplace and safe physical distancing.”
The price, if Canadian CEOs don’t step up to the challenge, is long-term damage to the brand in an era where customers expect corporate responsibility.
“I think it’s a huge possible risk,” Dubois-Phillips said. “If you are leading a brand or a consumer-facing company, you risk losing customers if you are not seen as being collaborative or putting the needs of your employees and customers ahead of shareholder value.
“I think everybody is watching to see how leaders handle themselves and what their priorities are in a time of crisis, and companies that still maintain shareholder value as being the most important will be penalized for that in the long run.” •
