I have been asked for advice by CEOs and CCOs on how to manage reputation issues in the present stormy waters of geopolitical turmoil, pushback on DEI and sustainability commitments and the rise of nationalism/populism.
We have seen a progressive decline in belief in the system, with under half of our 2025 Edelman Trust Barometer respondents believing in capitalism and nearly half believing that the electoral system is broken. We are far from the triumphal “end of history” proclaimed only 25 years ago.
We observe a lack of confidence in a better future, with less than 20 percent of those in many democratic countries in the West believing that the next generation will be better off.
We know that there has been a descent in attitudes, from increased fears of job loss and downward socio-economic mobility to prevalent political polarization to the present state of grievance, with people feeling harmed by business and government and resentful of the wealthy. And at the same time, we see acceptance of hostile activism, from the use and spread of misinformation to the sanctioning of violence to bring about change in a zero-sum world.
Business leaders need to take this seriously, not to put their heads down and hope for the storm to pass, but instead to do what is in their power to reverse this trend.
CEOs can take meaningful steps towards rebuilding trust and restoring optimism by addressing these five key areas:
- Reskilling – The AI boom is causing workers to recall their experience in globalization, with job loss and wage reductions.
- Well-paid jobs – Low-wage workers have averaged only a .4 percent salary increase over the last 40 years.
- Affordable products – Covid-induced inflation has brought cost of living to the forefront.
- Sustainability – Focus on the work that makes your business or industry more resilient and competitive. And show you are following through.
- Inclusion – Make clear that wanting both meritocracy and diverse talent are not conflicting concepts. Keep it simple; this is about competing to win.
Each leader will decide what to do based on values and company history when implementing any or all of these principles. Above all, listen and acknowledge the pressures on employees and customers. All of this should be done because it is good for business. This is a new level of clarity for leaders, operating within more narrow yellow lines, but delivering on all promises made.
Earlier this week I spoke to several CEOs and C-Suite executives at The Conference Board’s 2025: A Year in Preview event about strategies to rebuild trust. In my closing, I emphasized the need for them to lead decisively and clearly state their stance on key employee concerns. “People in your companies are desperately looking for leadership. They feel buffeted, they feel nervous, because the pace of change is too rapid. You need to decide where you stand, what matters for you and your workforce. People are crying out for facts; give me something I can hold onto. Stand up for me and speak for me.”
Richard Edelman is CEO.