WEBVTT - Edelman on 2021 "Trust Barometer"

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<v Speaker 1>This is Bloomberg Business Week with Carol Masser from Bloomberg Radio.

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<v Speaker 1>So business leaders have spoken, they've been speaking out about

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<v Speaker 1>the chaos in the nation's capital last week. They've backed

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<v Speaker 1>off political contributions, uh, from politics overall, from the president specifically.

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<v Speaker 1>We've also seen social media limiting uh, certainly the president,

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<v Speaker 1>but also thousands of others when it comes to their post.

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<v Speaker 1>So time will tell if all of this has more

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<v Speaker 1>of a lasting impact. Now. As I've said before, our

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<v Speaker 1>next guest is constantly getting gut checks from his clients,

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<v Speaker 1>and I bet he got an earful over the last

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<v Speaker 1>week and a half since the capital riot. His trest barometer, too,

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<v Speaker 1>has been a valued gut check for us and our

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<v Speaker 1>listeners in terms of how the public is feeling about

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<v Speaker 1>the business world and really the world at large. He

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<v Speaker 1>has founder and CEO of the Global Communications From Edelman,

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<v Speaker 1>Richard Edelman is back with us and he joins us

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<v Speaker 1>on the phone in New York City. Richard, nice to

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<v Speaker 1>have you here. Happy New Year, although it doesn't feel

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<v Speaker 1>so happy and reading through your massive report, Uh yeah,

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<v Speaker 1>a lot of Americans aren't happy about their leaders, and

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<v Speaker 1>they really in terms of who they trust, right now

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<v Speaker 1>how are you look. I think the most important finding

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<v Speaker 1>in the Edlement Trust parameter this year is that business

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<v Speaker 1>is the most trusted institution and that business is supposed

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<v Speaker 1>to step into the void left by government. Last we talked,

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<v Speaker 1>which was about May, government had become the most trusted

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<v Speaker 1>institution because it was wartime and we were doing lockdowns

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<v Speaker 1>and big spend to keep people afloat and you know,

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<v Speaker 1>being fired in the pandemic. And now we're in a

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<v Speaker 1>different point. Leaders of government have deeply disappointed and we

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<v Speaker 1>feel like we've been lied to. UM. There is no

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<v Speaker 1>really sign that the pandemic is ebbing, and so it's

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<v Speaker 1>been handed over to business to fix. And UM in particular,

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<v Speaker 1>CEOs have to speak up and stand up and talk

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<v Speaker 1>not just about COVID, but about systemic racism and about

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<v Speaker 1>sustainability and UM. You know, it's really adults in the room,

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<v Speaker 1>and whether it's Jamie Diamond or or or or Scott

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<v Speaker 1>Kirby of United Airlines, everybody has to talk about how

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<v Speaker 1>we get back to travel and how we get back

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<v Speaker 1>to UH normal. Well, so let's talk about, as you say,

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<v Speaker 1>business leaders now the most trusted institution here uh and

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<v Speaker 1>certainly not government. Leaders here, and we have seen members

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<v Speaker 1>of the business community backing off on political contributions, you know,

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<v Speaker 1>being very outspoken about President Trump, uh and what happened

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<v Speaker 1>in the nation's capital. Where were they though, although I

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<v Speaker 1>will say many members of the business community were pretty

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<v Speaker 1>critical of President Trump as well through over throughout the

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<v Speaker 1>past four years. But I think some would say, well,

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<v Speaker 1>why didn't why didn't business leaders speak up even more

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<v Speaker 1>um strongly to say that these things weren't right early on?

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<v Speaker 1>You know, it's it's a new learned behavior for ceo

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<v Speaker 1>s to be public figures their their normally you know,

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<v Speaker 1>trying to serve Wall Street and serve their employees, and

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<v Speaker 1>all of a sudden, with this leadership vacuum, we we

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<v Speaker 1>have a necessity of decency and of making sure Carol,

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<v Speaker 1>the biggest stat that's fascinating is my employer is the

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<v Speaker 1>most trusted institution, even fifteen points higher than business in general.

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<v Speaker 1>So and it's my employer. CEO is trusting in my employer.

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<v Speaker 1>UM Media in fact is more trusted than mainstream media.

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<v Speaker 1>So therefore, people who are employees are looking desperately for

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<v Speaker 1>quality information and that's what we're lacking in society now.

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<v Speaker 1>That's a new deal for companies. They're not used to

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<v Speaker 1>being information purveyors. But that's the demand, that's the necessity

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<v Speaker 1>right now. Richard, What how did the pandemic help create that?

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<v Speaker 1>Because I do feel like you know individuals you know

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<v Speaker 1>who were able to keep their jobs and stay employed,

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<v Speaker 1>like the lifeline and the communication between the employee, especially

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<v Speaker 1>working from home, it had to change, UM. And I

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<v Speaker 1>do wonder how the pandemic impacted the employer employee relationship.

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<v Speaker 1>It became, as you say, um, in a way, the

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<v Speaker 1>normalizing force, UM was the connection to the office, um,

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<v Speaker 1>even if you weren't in the office, and that you

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<v Speaker 1>were getting better facts from the company about return to

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<v Speaker 1>work or the opportunity to get vaccinated from the company,

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<v Speaker 1>not from the government. I mean early on the government

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<v Speaker 1>did this well, Governor Cuomo, others, regular briefings and and

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<v Speaker 1>it dissipated over the summer and it hasn't returned. And

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<v Speaker 1>the magic cures hyde roxy chlora queene. All that just deeply,

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<v Speaker 1>deeply hurt any credibility that government leaders had. And beyond that,

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<v Speaker 1>the media has all of a sudden been categorized as

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<v Speaker 1>politicized biased. Um. You know, people are in thought bubbles

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<v Speaker 1>and the media has been crippled as source of information.

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<v Speaker 1>So again, government and media typically in a crisis period

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<v Speaker 1>are the reliable sources. Not now it's business is turned. Hey,

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<v Speaker 1>I want to get back to your Edleman trust barometer

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<v Speaker 1>that you just put out the Richard. What I want

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<v Speaker 1>to ask you, becauld you do you're constantly talking with

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<v Speaker 1>CEOs from all different industries. What are the conversations you've

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<v Speaker 1>been having in the last week. Well, one is about

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<v Speaker 1>the position of America in the world. Our trust barometer

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<v Speaker 1>found that the US is actually third from the bottom

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<v Speaker 1>in terms of how its owned residents feel about its institutions.

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<v Speaker 1>So we're just ahead of Russia and Japan. Japan still

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<v Speaker 1>reeling from Fukushima and the nuclear accident in Russia as

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<v Speaker 1>it is, um and trusting brand America and trust in

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<v Speaker 1>American government has really eroded. It's only globally, and it's

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<v Speaker 1>just above China. We're down there with Italy and Spain.

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<v Speaker 1>We're not up there with Germany, Canada, et cetera. So

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<v Speaker 1>that's a big concern. I'm also hearing from CEOs about

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<v Speaker 1>how we're going to work with government and the idea

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<v Speaker 1>that some of these problems for example, up skilling, job training, etcetera.

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<v Speaker 1>That has to be done with government. Uh and and

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<v Speaker 1>similarly sustainability has to be done with government. Yeah, we

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<v Speaker 1>can get people to do cold water wash, but you

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<v Speaker 1>know the big big ideas, you know, Starbucks taking straws

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<v Speaker 1>out of the cups, that those are all big moves.

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<v Speaker 1>But there has to be a strategy over time about

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<v Speaker 1>UM car efficiency, you know, oil do they do? They

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<v Speaker 1>feel it's going to be more difficult with this incoming

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<v Speaker 1>by the administration than it was with the Trump administration.

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<v Speaker 1>I think it's going to be a different set of

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<v Speaker 1>objectives and you know, to rejoin the Paris Accord, A

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<v Speaker 1>lot of the CEOs are in favor UM to be

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<v Speaker 1>more UM front and center about infrastructure, so America is

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<v Speaker 1>more competitive. Everybody's for that. And we also have to

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<v Speaker 1>get through the next four or five months until the

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<v Speaker 1>number of people get vaccinated. And our study was so

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<v Speaker 1>scary about to the number of people who were prepared

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<v Speaker 1>to get vaccinated right away, only one third of Americans

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<v Speaker 1>and one third in a year, and one third never.

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<v Speaker 1>And that's completely against what everybody expected about the solve,

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<v Speaker 1>which is you get to vaccine. Everybody does it. No,

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<v Speaker 1>we have a lot of disinformation out there, and we

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<v Speaker 1>we have to tell people who's in the clinical trials,

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<v Speaker 1>why are they there, what's the success levels, the low

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<v Speaker 1>level of side effects, and get them to take the shot. Yeah.

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<v Speaker 1>I think this is like not playing at all. How

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<v Speaker 1>we all anticipated right with you know, for so long

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<v Speaker 1>over the summer we were talking about, you know, everybody

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<v Speaker 1>just wants the vaccine, let's just get it. But it

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<v Speaker 1>is playing out very differently. And this coming just on

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<v Speaker 1>the heels of the President kind of laying out his

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<v Speaker 1>plans and to try and get more vaccines out to

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<v Speaker 1>people much more quickly than they have because we know

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<v Speaker 1>this is key to reopening the economy. Talk to me

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<v Speaker 1>a little bit about traditional media and what the findings were,

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<v Speaker 1>because I find this interesting and I think, you know,

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<v Speaker 1>our country is doing a bunch of soul searching. I

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<v Speaker 1>think media is too in terms of how we cover things. Well.

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<v Speaker 1>I think that uh, you know, Bloomberg and others have

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<v Speaker 1>played it up the middle, and you need to lead

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<v Speaker 1>the way in not just following tweets. You know, there

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<v Speaker 1>needs to be original reporting. The media needs to have

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<v Speaker 1>the story agenda as opposed to politicians who tweet and

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<v Speaker 1>then the media follows. And also the media needs to

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<v Speaker 1>be seen as a middle ground player as opposed to

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<v Speaker 1>associating with one side or the other. And again we

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<v Speaker 1>need to be sure that what you say is true. Right. Well,

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<v Speaker 1>so okay, I'm important. I'm curious about because it's interesting

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<v Speaker 1>and I'm sure the CEO that you talked with, I mean,

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<v Speaker 1>everybody has been leaning in for years is about digital

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<v Speaker 1>platforms and social media strategies and the importance of them

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<v Speaker 1>right in terms of getting corporate messages out are reaching

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<v Speaker 1>consumers at the same time. UM, I wonder if there's

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<v Speaker 1>any consensus or anything that you're hearing in terms of

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<v Speaker 1>the responsibilities of the big tech and the big social

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<v Speaker 1>media companies here who have all of a sudden now

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<v Speaker 1>stepped in and you know, kind of limiting the president

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<v Speaker 1>and certain other platforms. But I just do wonder what

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<v Speaker 1>you're hearing and what might be Carroll part part part

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<v Speaker 1>of it. Part of it is our own problem, which

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<v Speaker 1>is information hygiene, which is to say, check multiple sources,

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<v Speaker 1>don't share stories until you're sure that what is in

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<v Speaker 1>something is accurate. Um, And we have to do better.

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<v Speaker 1>Only a quarter of the people do at in our

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<v Speaker 1>studies say that they share stories right away without checking

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<v Speaker 1>the source, and only say they actually go to multiple sources.

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<v Speaker 1>And so we're causing our own problem. Uh. Also, I

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<v Speaker 1>think that business in particular and government as well, contribute

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<v Speaker 1>to the social media flow, make sure that quality material

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<v Speaker 1>is getting in front of people so they can make

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<v Speaker 1>good decisions, as opposed to just going off of what

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<v Speaker 1>one person's experience was on the basis of you know,

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<v Speaker 1>some bad event, right, which is the truth? That's not

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<v Speaker 1>that's not true. It's an experience, but it doesn't make

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<v Speaker 1>a truth correct. That's a conversation we've been having a lot.

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<v Speaker 1>I certainly in my personal life, but even around the news.

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<v Speaker 1>I mean, truth is truth and the truth is fact checked.

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<v Speaker 1>Truth has third party corroboration, it's not just one person's view. Well, UM,

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<v Speaker 1>got about forty seconds. You gotta kind of take away

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<v Speaker 1>from this latest trust parometer that you guys have put out.

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<v Speaker 1>I just think it's a moment for business to speak

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<v Speaker 1>up and stand up in business. You know, over the

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<v Speaker 1>summer did a lot during um in the wake of

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<v Speaker 1>the murder George Floyd, and now business has to do

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<v Speaker 1>even more on vaccination, on job retraining, on getting us

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<v Speaker 1>back to work safely. Um, but most of all, ceo

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<v Speaker 1>s to be adults in the room and bring the

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<v Speaker 1>two parties together and demand that they stop being political

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<v Speaker 1>and and and and that we have work to do

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<v Speaker 1>in this country. This is a time for de politicizing.

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<v Speaker 1>That's the word. Well, I'm going to leave it on

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<v Speaker 1>that note. I think it's a good note for us all. Uh,

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<v Speaker 1>certainly as we head into the inauguration next week. Richard,

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<v Speaker 1>thank you so much. Stay safe. Richard Edelman, chief executive

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<v Speaker 1>officer at Edelman, on the phone in New York City,