Achieving and preserving stakeholder trust is an increasingly significant responsibility of the organization's management committee, given the evolving changes in public attitudes and perspectives. These shifts are well explained in the 2025 version of Trust Barometer, published by consulting firm Edelman.
In this regard, “trust” should, together with “reputation,” be considered as a significant part of unrecognized, intangible organizational assets. Both are evaluated attributes of effective business companies, but have distinct characteristics that should be recognized by the leadership of the company.
“Trust” usually refers to internal and external feelings regarding organizational ethics, integrity, and corporate responsibility. On the other hand, “reputation” usually refers to internal and external feelings regarding the quality of a company's products and services, the success of corporate strategies and initiatives, and the overall public image. There may be situations where an organization's perception of “trust” contributes (or undermines) its perception of “reputation,” but that is not necessarily a mutual situation.
The new Edelman Survey has a strong discussion of the organization's reputation as well as the larger board's commitment to oversee and encourage management efforts to cultivate trust in the organization. This has in particular given the main research conclusions explaining the “crisis of complaints” that reflects the “unprecedented global decline in employer trust.” Such a decline proposal should attract the attention of corporate leadership. Both board of directors and management.
That decline is based on a series of highly negative findings. (i) Lack of optimism for the next generation. (ii) the fear of being discriminated against. (iii) Frustration with business, government, and “rich people.” (iv) Zerosum: “Your profit is my loss.” (v) suspicion of artificial intelligence and (vi) erosion of trust in business leaders. This should be particularly concerning for the business. A considerable number of young adults willing to commit or threaten violence to bring about change.
It should be noted that Edelman's research was conducted prior to the current environment of global and domestic turbulence, affecting the stability of traditional economic, social and governmental institutions and practices. It is unclear whether the “complaints” cited in the investigation have been mitigated or worsened by development since the beginning of the year.
To restore trust and build optimism amid this “crisis of complaints,” Edelman offers businesses a four-point plan. (a) Understand and address the dissatisfaction of the organization's stakeholders; (b) Address stakeholder social concerns as necessary. (c) Work with the community, government and the media to address the root cause of complaints. (d) Prioritize trust construction within the organization.
Leading on these and similar themes, the board can provide value that supports management's efforts to maintain the trust of the organization as a long-term preservation of value.
From a “macro” perspective, that support involves ensuring that the board and management team have a common perspective on the threat (and lessons) to the organization's trust that arises from the so-called “complaint crisis.” Is there a leadership level agreement on the legitimacy of concerns, the factors that have created them, and its ultimate meaning for internal and external trust?
From a “micro” perspective, its support could include board/management efforts to enhance operational characteristics that tend to have the most direct impact on perceptions of trust. For example, ethics, fairness, compliance, quality, reliability, and integrity.
These characteristics most often manifest through workforce culture. Corporate compliance. Internal and external communications. Exercising the company's social voice. Board of Directors and Management Monitoring for Artificial Intelligence. Others, including compensation equity, quality control, enterprise risk management, vendor relationships, community engagement, and more.
There are several goals for such exercises. First, it is to confirm leadership perceptions of the distinction between trust and reputation, and why both are considered important intangible companies assets. Second, it is to identify the role of the board in exercising oversight of these assets. The third is to consider Edelman Survey lessons. And fourth, we will strengthen internal control over the most important areas of operation to maintain the company's reliability and reliability.
The key governance for the 2025 Edelman Trust Barometer “takeaway” is as follows:
• The importance of the board being attributed to trust as a valuable asset.
• Potentially corrosive effects that so-called “complain crisis” can have the trust of the organization. and
• Opportunities available to business organizations to maintain and promote trust in their institutions.
