How businesses can rebuild trust after the pandemic, according to Edelman

Summary

In this CNBC interview, Richard Edelman, CEO of Edelman, discusses the importance of trust in business and innovation. He emphasizes that while business remains more trusted than government, there's a growing distrust due to unclear communication about the benefits of new technologies. Edelman highlights the need for better regulation, local leadership in building trust, and the role of non-traditional authority figures. The conversation also touches on geopolitical tensions, particularly in the Middle East, and their impact on global business strategies.

Takeaways

• 📊 The Trust Barometer highlights a significant decline in trust, especially concerning how new innovations are being managed and adopted by society.
• 🌐 There is a perceived lack of sufficient government regulation and understanding of new technologies, leading to public nervousness about areas like mRNA, AI, GM foods, and green energy.
• 🗳️ People feel that scientists are communicating more with elites rather than the general public, creating a disconnect and a need for more inclusive dialogue.
• 🔄 The importance of making people appreciate the benefits of innovation for society is underscored, as there is currently a negative perception in the Trust Barometer across 28 countries.
• 🏢 Business is still seen as the leading and most trusted institution, but there is a warning signal that trust is deteriorating and needs to be rebuilt.
• 🔬 Scientists should lead discussions on innovation, but non-traditional authority figures like pastors and pharmacists should also be involved to build local trust.
• 🌍 Trust has become more local and peer-to-peer rather than top-down, indicating a shift in how influence and credibility are perceived.
• 📉 Developed economies are being outpaced by developing ones in terms of trust in institutions, suggesting a need for innovation to level the playing field.
• 🏛️ Acceptance of good regulation by businesses is emphasized as crucial for ensuring that innovation benefits everyone and is seen as fair.
• 🌐 The World Economic Forum in Davos is focusing on themes such as the mass class divide, the infodemic, and the imbalance between business and government.
• 🗳️ The upcoming 50 elections and the state of democracy are set to influence business decisions and the global political landscape.

Q & A

What is the main focus of the discussion in the latest report with Richard Edelman?

The main focus is on the trust barometer and its importance in the context of business innovation, adaptation, and adoption, as well as the decline in trust in various institutions such as business, politics, media, and government.

Why is trust in innovation so critical according to Richard Edelman?

Trust in innovation is critical because people are nervous about new technologies and innovations, and there is a perception of insufficient regulation and a lack of communication from scientists to the general public.

What does Richard Edelman suggest is the current state of trust in the trust barometer across 28 countries?

According to the trust barometer, there is a significant decline in trust, with two-thirds of people saying that the management of new technologies and innovations is being poorly handled.

How does Richard Edelman view the role of business in rebuilding trust?

Richard Edelman suggests that business should focus on making people appreciate the benefits of innovation for society, accept good regulation, and ensure that innovation is good for everyone.

What factors have led to the decline in trust in institutions as mentioned by Richard Edelman?

The decline in trust is attributed to people not understanding the tangible benefits of new technologies to them, a sense of PTSD from the pandemic, and a lack of effective communication from institutions.

What does Richard Edelman believe are the central themes of the World Economic Forum in Davos?

The central themes include the unacceptable mass class divide, the infodemic of misinformation, the imbalance between business and government, and the importance of democracy and elections.

How does Richard Edelman see the role of scientists and non-traditional authority figures in rebuilding trust?

He believes that scientists should lead the discussion on innovation, but non-traditional authority figures like pastors and pharmacists should also be informed and involved to build trust locally.

What impact does Richard Edelman think the recent US politics, such as the Iowa caucuses, will have on business thinking?

He suggests that the political landscape, with Republicans being less likely to adopt green energy innovations, may lead to more nationalism and less global trade, affecting business decisions.

How does the geopolitical situation, particularly in the Middle East, influence business decisions according to Richard Edelman?

The geopolitical tensions and transformations in countries like Saudi Arabia and the UAE present major market opportunities and influence business decisions in the region.

What is Richard Edelman's perspective on the future of conflicts and their impact on business?

He believes that conflicts will continue, but they will not deter business opportunities as people in these regions want to be part of the global economy and are investing in transformation.

How does Richard Edelman view the role of Saudi Arabia in the global economic landscape?

He sees Saudi Arabia as one of the most important central countries, along with India, Brazil, and Indonesia, acting as a swing vote between different global economic blocks.