Is your industry trusted?
The level of trust within an industry acts as a filter for public perception, determining whether your communications are perceived as genuine or not. It is thus imperative to understand the general sentiment surrounding your industry before planning your marketing and PR strategy. Let’s take a closer look at some stats for 2023.
Businesses are the only trusted institution – expected to act on ESG matters
According to the 2023 Edelman Trust Barometer, businesses have emerged as the only trusted institution globally. With a trust level of 62, businesses have surpassed NGOs (59), governments (50), and media (50).
This shift in trust dynamics emphasises the growing expectation for businesses to lead on societal issues and address the challenges faced by society. Businesses are now seen as having a greater responsibility beyond financial returns, with the public expecting them to make a positive impact on society and actively contribute to solving social and environmental challenges.
This presents an opportunity for businesses to build trust and engage with their stakeholders by addressing societal concerns and demonstrating ethical behaviour.
Industry ranking by level of trust
The 2023 Edelman Trust Barometer provides valuable insights into the level of trust across different industries. Here is an overview of the industry rankings based on trust scores.
Industries high in trust
Technology, Education, and Food & Beverage lead the game in terms of trust due to several factors. Technology companies are often associated with innovation, positive impact, and transparent practices. Education and food & beverage industries are trusted for their role in nurturing future generations and providing safe, quality products and services that enhance well-being.
Industries neutral in trust
Fashion and Financial Services are categorised as neutral in terms of trust. This indicates that public perception and trust in these industries may vary depending on specific factors such as brand reputation, ethical practices, and transparency. While some fashion brands and financial institutions may be trusted by certain segments of the public, others may face scepticism due to issues like sustainability or past financial scandals.
Industries low in trust
Social Media is ranked as the most distrusted industry, with a trust level of 44%. This is primarily due to concerns surrounding privacy, data security, and the spread of misinformation on social media platforms. Instances of data breaches, algorithmic bias, and the amplification of harmful content have eroded public trust in this industry.
Challenges of PR in distrusted industries
Operating in a distrusted industry poses unique challenges for PR professionals. One such challenge is the need to address public scepticism and rebuild trust. Negative perceptions and public sentiment can be influenced by various factors, such as past incidents, unethical practices, or concerns related to industry-specific issues.
The above is an example of how the public reacts to communications related to a distrasted industry: the CEO of one of the biggest fossil fuel producers in the world was appointed president of Cop28, which is the major global event focusing on climate action, including fossil fuel phase-out. You might be wondering, isn’t there a conflict of interests? And rightly so. No wonder, this has sparked a wave of criticism on social media.
Strategies for rebuilding trust
PR efforts in distrusted industries require a proactive approach to address concerns, engage with stakeholders, and regain public trust. It is essential to be transparent, acknowledge issues, and demonstrate a commitment to addressing them.
To rebuild trust in a distrusted industry, consider implementing the following strategies.
Transparency
Be open and transparent about your organisation's actions, policies, and practices. Communicate openly with stakeholders, address concerns, and demonstrate accountability.
Check the example of Volkswagen ending up in a ‘dieselgate’ scandal due to not being fully transparent.
Proactivity
Take a proactive approach to address issues and concerns before they become major reputational challenges. Acknowledge problems and engage with stakeholders to find solutions.
Check the examples of Starbucks and Dick’s Sporting Goods being reactive rather than proactive.
Clear and authentic communication
Ensure your communication is genuine, transparent, and addresses stakeholders' concerns. Avoid scripted responses and focus on actively listening to stakeholders and providing accurate information.
Purpose-driven approach
Establish a deeper purpose beyond profit. Demonstrate a commitment to social and environmental responsibility. Align your organisation's values with the expectations and concerns of your stakeholders.
Ethical practices and responsibility
Uphold ethical practices within your industry. Act responsibly, considering the impact of your actions on society and the environment. Prioritise sustainability, fairness, and inclusivity.
Conclusion
Trust is a crucial factor in shaping public perception and stakeholder engagement. In the current landscape, businesses have emerged as the only trusted institution globally. However, trust levels vary across different industries, and those operating in distrusted industries face unique challenges. By understanding the dynamics of trust, implementing effective PR strategies, and actively working towards rebuilding trust, organisations can enhance their reputation, engage stakeholders, and shape a positive public perception.
Remember, trust is not static; it requires continuous effort and a commitment to ethical practices, transparency, and responsible actions.
