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    Restoring faith in leadership in the 'age of grievance'

    Leadership

    Restoring faith in leadership in the ‘age of grievance’

    by Sat Dayal Published March 20, 2025 in Leadership • 6 min read • Audio availableAudio available

    According to the 2025 Edelman Trust Barometer, trust in employers is declining for the first time. Here are practical measures to get back on track.

    In a volatile world where trust has become both an asset and a liability for business leaders, the 2025 Edelman Trust Barometer paints a sobering picture: trust in institutions has not grown despite political changes and economic shifts. Instead, we face a “Crisis of Grievance” – a widespread sense that the actions of business and government are hurting us, serving a select few in a system that favors the rich, and where the rich are getting richer. This sense of grievance against business, government, and the rich is held by 61% of the public.

    Grievance comes at a cost. The more aggrieved we are, the more likely we will show a zero-sum mindset: the feeling that what helps people who don’t share our politics comes at a personal cost. Leadership is at a crossroads. While trust in business remains higher than in government, media, and NGOs, the study shows that employer trust is declining among employees for the first time globally (See chart 1).

    Chart 1

    Employees and the wider public expect businesses to do more: more on job skills and better working conditions, more on societal impact, and, in general, a lot more empathy. Through 25 years of the Trust Barometer, we have seen how trust has shifted from authorities to peers (2005), reinforced a mass class divide (2016), and taken center stage in the battle for truth (2018). Yet, in recent years, we’ve also seen business become the most trusted institution (2021).

    To navigate this newest of new realities, organizations and their leaders must actively work to address grievances by building and sustaining trust. Here’s how:

    1. Strengthen leadership credibility

    Trust in CEOs and business is lower among those who feel a high sense of grievance. The report finds a 34-point gap in CEO trust between those who hold a low and high sense of grievance (See chart 2). Leadership trust is not just about competence – it’s about perceived fairness and ethics.

    What businesses can do:

    • Lead with empathy. Employees and consumers want leaders who listen and respond to their concerns. Open forums, direct engagement, and leadership accessibility build credibility.
    • Show accountability. Acknowledging mistakes, taking corrective action, and setting measurable goals for improvement can reinforce trust in leadership.
    • Act on employee feedback. Employees who feel unheard will more likely be skeptical of leadership. Regular feedback loops through surveys, town halls, or direct dialogue can help businesses course-correct in real time.
    • Encourage ethical decision-making. Providing training on ethical leadership and reinforcing values-based decision-making helps create a culture of integrity.
    Chart 2

    2. Address economic fears and job insecurity

    According to the findings, employees increasingly worry about globalization, automation, and economic downturns threatening their livelihoods. Business leaders must recognize that building trust isn’t just about messaging – it’s about taking action to drive change.

    What businesses can do:

    • Invest in workforce development. Training, upskilling, and reskilling programs reassure employees that they have a future in the company and industry.
    • Commit to fair wages and job security. Competitive pay and transparent job stability policies foster a sense of security.
    • Prioritize internal trust. Employees who trust their employers are more likely to be positive towards the broader institution of business. Open communication about organizational changes, market conditions, and company strategy can mitigate uncertainty.
    • Promote financial literacy. Helping employees manage financial challenges through education and support programs can build resilience and confidence in the company. 

    3. Take responsibility for societal issues, but remain authentic

    The public’s expectations of businesses extend beyond delivering products and services. According to the report, people believe business leaders are not doing enough and should do more to address climate change, affordability, misinformation, and discrimination – this is particularly strong among those with a higher sense of grievance (See chart 3).

    What businesses can do:

    • Align actions with business strengths. Organizations should focus on areas where they can make a difference. For example, a technology company should prioritize digital inclusion, while a retailer may seek to address supply chain ethics.
    • Avoid ‘performative activism’. The public is skeptical of companies that make bold statements but fail to back them up with action.
    • Be transparent about motivations. Business leaders must clearly articulate why they are engaging in societal issues, whether it’s a moral imperative, a business necessity, or both.
    • Foster local partnerships. Collaborating with community organizations enhances credibility and ensures impact at the grassroots level.
    Chart 3

    4. Build trust in AI

    At a time when artificial intelligence is high on the agenda for many organizations, the Trust Barometer highlights suspicion toward this technological transformation, particularly among those who feel highly aggrieved. Trust in AI drops by 22 points among individuals with high grievance levels. Without clear safeguards and ethical considerations, businesses risk alienating customers and employees.

    What businesses can do:

    • Develop ethical AI policies. Ensure transparency in how AI is used, particularly in hiring, consumer data, and decision-making processes. Educate stakeholders. Businesses should proactively communicate the benefits and limitations of AI and other emerging technologies.
    • Include diverse perspectives. AI and technology governance should incorporate input from employees, customers, and external experts to ensure fairness and accountability.
    • Enhance digital literacy. Educating employees and consumers about AI and technology fosters trust and responsible adoption.

    5. Make trust-building a shared responsibility

    The Crisis of Grievance is not just a corporate issue but also a societal one. The report suggests that for those with high grievance, business is seen as 81pts less ethical and 37pts less competent compared to those with low grievance. And while businesses can lead the way to create meaningful change, this must be a collaborative effort with governments, media, and NGOs.

    What businesses can do:

    • Work with policymakers. Engage in policy discussions that promote economic fairness and social stability. Partner with NGOs. NGOs are perceived as the most unifying institution among those with high grievance, making them valuable allies in restoring trust.
    • Support credible media. Businesses must prioritize transparency in their communications and work with trustworthy media partners to combat misinformation.
    • Encourage civic engagement. Supporting employees’ participation in societal issues, including volunteering and advocacy, strengthens the relationship between businesses and communities.
    Chart 4

    The path forward for business leaders

    At a time when four in 10 see hostile activism as a viable means to drive change, the 2025 Edelman Trust Barometer sends a clear message: trust can never be taken for granted. Business leaders must navigate a more skeptical, frustrated, and uncertain world where trust is fragile and expectations are higher than ever.

    The solution demands not simply better messaging or branding but authentic action, economic responsibility, and ethical leadership. Organizations that invest in their people, demonstrate integrity, and engage meaningfully in societal issues will be better positioned to rebuild trust and drive long-term success.

    In an era where grievances shape public perception, trust is no longer a passive asset but an active commitment. With greater trust comes greater optimism for the future and lower levels of grievance (See chart 4). Business leaders who understand and address the root causes of distrust will strengthen their organizations and contribute to a more stable and positive future for all.

    • Click here to read the full report.

    Authors

    Sat Dayal

    Managing Director of Edelman London’s Technology Practice

    Sat Dayal is Managing Director of Edelman London’s Technology Practice. He has represented technology brands and leaders since the dot-com era, including early mobile, cloud, and digital media brands. He is Edelman London’s Diversity, Equity, and Inclusion lead and is also responsible for activating Edelman’s global citizenship agenda in the EMEA region.

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