Australia is at risk of polarisation — a societal split — with low trust in institutions such as the government and media being a key element.
A new study warns the nation is on a divisive path — towards countries with high socio-economic inequalities such as the US, South Africa and Argentina — if the direction is not corrected. The research in these countries suggests citizens feel both the divide and that such divisions cannot be overcome.
"Distrust in government and media, combined with a lack of shared identity and fears around what the future might hold have led us to this place," said Tom Robinson, the Australian chief executive of global communications firm Edelman, which commissioned the research.
"As a direct result, business is under heightened pressure to lead the way back to unity and trust.
"Australia is heading down an alarmingly divisive path, but there is still opportunity to correct course before we end up in severely polarised territory like some of our Western counterparts."
Rich, journalists, foreign powers 'divide'
The annual Edelman Trust Barometer report found that almost half of Australians surveyed (45 per cent) believed the nation was more divided today than in the past.
The "rich and powerful" were identified as the major force in dividing society, ahead of hostile foreign governments.
Asked if different groups were a "a dividing force in society" or a "unifying force", only the category of business came close to have a similar level of response to both questions.
- Rich and powerful: Dividing force? 72 per cent. Unifying force? 12 per cent
- Hostile foreign governments: Dividing force? 69 per cent. Unifying force? 15 per cent
- Journalists: Dividing force? 51 per cent. Unifying force? 24 per cent
- Business leaders: Dividing force? 36 per cent. Unifying force? 31 per cent
Systemic inequality, pessimism about the economy and generally heightened fears are expanding the divide, according to the research.
Only 30 per cent of Australians believe they will be better off financially in five years, down 13 points from 2021, a marked slump in economic optimism as inflation rages globally and interest rates surge.
Government, media trouble
During the pandemic, the trust in government felt by survey respondents soared as political leaders moved decisively to close borders, boost health resources and financially support businesses and the unemployed.
But that moment has ended, with government falling from the realm of "trust" to "distrust" in the new research, declining seven points in the past year to 45 per cent.
The media (which included social media) continued to be the most distrusted institution in Australia. Only 38 per cent of survey respondents said they trusted its institutions, a fall of five points.
Business and employers trusted
Housten Consulting managing director Megan Brownlow said the trust people placed in business — particularly their employer — showed how trust in institutions could be rebuilt.
"People agreed with the statement, 'My employer is trusted,' at a rate of 75 per cent. I think what that demonstrates is the effort by business and corporates to meet the expectations of employees," she argued.
Those expectations are high. The survey identified elements like taking a public stand on climate change, acting on it, ensuring the community is safe and retraining employees.
"The trust that's come from the willingness of business to step up – by looking after business, after community, after stakeholders — that’s the lesson," Ms Brownlow continued.
"Business can't do the job of government and the media, but they can be the case study for how to meet heightened expectations."
Ms Brownlow, a non-executive director and former partner at consulting firm PwC Australia, also pointed to how trust rose in only three different sectors: technology, entertainment, and consumer packaged goods (brands).
"What did we rely on to get us through COVID?" she asked rhetorically.
"Tech to stay connected, entertainment became really important too — books, films, music, streaming, news — our familiarity and reliance on them drove trust. Brands are investing more in social purpose too."
Recall actions that resonated during the initial periods of COVID: things like breweries pivoting to make hand sanitiser and designers turning over factories to make face-masks.
"The barometer shows there's been a 28 per cent bump since 2020 in business being judged 'ethical' — it's these behaviours that drive trust," she added.
