s countries reopen and adjust to the next normal after COVID-19, shoring up societal trust and trust in democratic and market institutions will be crucial to success. People need to know they can count on governments to create the right policy environments for recovery and protect them if the virus flares back up or another crisis hits. They also need to know they can trust the companies they are working for and doing business with.
On that point, at least, business is in a good place coming out of the pandemic. The 2021 Edelman Trust Barometer (the annual survey on public trust in business, government, NGOs, and media conducted globally with more than 30,000 respondents) “shows that business is not only the most trusted institution among the four studied, but it is also the only trusted institution with a 61% trust level globally, and the only institution seen as both ethical and competent.” Swift business responses to COVID-19, from pharmaceutical companies developing the vaccine to firms of all sizes accommodating telework and creating safe workplaces, can be in large part credited for this high level of trust. In particular, people seem to trust their employers: Edelman finds 76% do, far ahead of the 61% who trust “business” in general.
This show of confidence gives businesses a unique opportunity to play a constructive role in shaping the post-pandemic recovery. Purposeful private sector leadership is imperative to further build on trust in business and strengthen social trust in democratic and market institutions. Companies around the world can achieve that goal through responsible and ethical conduct and operations, support for local communities, and public-private policy dialogue, as well as partnerships to shape what the next normal will look like.
Cooperation and Systemic Integrity
If businesses act both individually and together, they can help rebuild out of this crisis. An important way they can cooperate is through representative business membership organizations: chambers of commerce, associations, trade groups, and professional societies. Business groups in Ukraine, Lebanon, Kenya, Venezuela, and the U.S. are among those that have submitted COVID-19 response policy proposals and donated services to their governments and communities.
To maintain and further enhance societal trust post-pandemic, businesses must embrace good governance and transparency in their own operations and promote systemic integrity that safeguards a level playing field and an inclusive business environment. Many are already signing on to programs such as the Ethics 1st initiative just launched in Africa. It is a network of businesses with a shared set of compliance requirements and best practices, including anti-corruption measures. This project is attracting the attention of investors and larger multinational companies looking for partners they can trust.
Extending the Reach
Business alone cannot fix everything. However, companies of all sizes in all geographies must embrace their leadership role and work with stakeholders to drive change and capitalize on the trust the public has placed in them. The U.S. Chamber of Commerce Foundation offers another example of how the private sector and civil society can collaborate. Through its Civics Forward series, it brings together business leaders, educators, and government officials to examine the future of civic education, engagement, and discourse in America. That is helping prepare rising generations to be responsible citizens of a democracy.
The need to reinvigorate the engagement between key societal stakeholders points back to the issue of trust: democracy and markets can only succeed when they can be trusted to be transparent, inclusive, and representative. Of course, what that means in practice may become politicized. Businesses will have to be careful not to get too far ahead of public opinion on controversial issues, but also be careful not to lag. On various social issues in the United States and globally, businesses are already learning how to draw the line between civic engagement and political overreach. These lessons will be important as more businesses step into market leadership roles.
Key Moment for Business
As governments are looking to the private sector for solutions to deliver post-pandemic recovery, industries and business associations have a chance to come together and offer constructive input into policy priorities. To help their communities, businesses must be good citizens, providing jobs and economic opportunities while respecting rights and responsibilities.
Once trust is established, it can build on itself and grow quickly. People return to the same restaurants, banks, and gas stations over and over because they trust the product and service. That makes this a key moment for businesses. By doing good, businesses can do well. They can build more trust, contributing to more robust economies as well as stronger democracies worldwide.
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How the Business Sector Fosters Trust to Lead COVID-19 Recovery
Photo by Vladimir Kudino via Unsplash.
October 6, 2021
Private enterprise and business associations have a key role to play not only in the reopening of economies post-pandemic, but in shoring up societal trust in democratic and market institutions, write CIPE's Anna Kompanek and Andrew Wilson.
A
s countries reopen and adjust to the next normal after COVID-19, shoring up societal trust and trust in democratic and market institutions will be crucial to success. People need to know they can count on governments to create the right policy environments for recovery and protect them if the virus flares back up or another crisis hits. They also need to know they can trust the companies they are working for and doing business with.
On that point, at least, business is in a good place coming out of the pandemic. The 2021 Edelman Trust Barometer (the annual survey on public trust in business, government, NGOs, and media conducted globally with more than 30,000 respondents) “shows that business is not only the most trusted institution among the four studied, but it is also the only trusted institution with a 61% trust level globally, and the only institution seen as both ethical and competent.” Swift business responses to COVID-19, from pharmaceutical companies developing the vaccine to firms of all sizes accommodating telework and creating safe workplaces, can be in large part credited for this high level of trust. In particular, people seem to trust their employers: Edelman finds 76% do, far ahead of the 61% who trust “business” in general.
This show of confidence gives businesses a unique opportunity to play a constructive role in shaping the post-pandemic recovery. Purposeful private sector leadership is imperative to further build on trust in business and strengthen social trust in democratic and market institutions. Companies around the world can achieve that goal through responsible and ethical conduct and operations, support for local communities, and public-private policy dialogue, as well as partnerships to shape what the next normal will look like.
Cooperation and Systemic Integrity
If businesses act both individually and together, they can help rebuild out of this crisis. An important way they can cooperate is through representative business membership organizations: chambers of commerce, associations, trade groups, and professional societies. Business groups in Ukraine, Lebanon, Kenya, Venezuela, and the U.S. are among those that have submitted COVID-19 response policy proposals and donated services to their governments and communities.
To maintain and further enhance societal trust post-pandemic, businesses must embrace good governance and transparency in their own operations and promote systemic integrity that safeguards a level playing field and an inclusive business environment. Many are already signing on to programs such as the Ethics 1st initiative just launched in Africa. It is a network of businesses with a shared set of compliance requirements and best practices, including anti-corruption measures. This project is attracting the attention of investors and larger multinational companies looking for partners they can trust.
Extending the Reach
Business alone cannot fix everything. However, companies of all sizes in all geographies must embrace their leadership role and work with stakeholders to drive change and capitalize on the trust the public has placed in them. The U.S. Chamber of Commerce Foundation offers another example of how the private sector and civil society can collaborate. Through its Civics Forward series, it brings together business leaders, educators, and government officials to examine the future of civic education, engagement, and discourse in America. That is helping prepare rising generations to be responsible citizens of a democracy.
The need to reinvigorate the engagement between key societal stakeholders points back to the issue of trust: democracy and markets can only succeed when they can be trusted to be transparent, inclusive, and representative. Of course, what that means in practice may become politicized. Businesses will have to be careful not to get too far ahead of public opinion on controversial issues, but also be careful not to lag. On various social issues in the United States and globally, businesses are already learning how to draw the line between civic engagement and political overreach. These lessons will be important as more businesses step into market leadership roles.
Key Moment for Business
As governments are looking to the private sector for solutions to deliver post-pandemic recovery, industries and business associations have a chance to come together and offer constructive input into policy priorities. To help their communities, businesses must be good citizens, providing jobs and economic opportunities while respecting rights and responsibilities.
Once trust is established, it can build on itself and grow quickly. People return to the same restaurants, banks, and gas stations over and over because they trust the product and service. That makes this a key moment for businesses. By doing good, businesses can do well. They can build more trust, contributing to more robust economies as well as stronger democracies worldwide.
