Trust under pressure, but not beyond repair
How can boards lead with purpose in a complex world that wants them to speak up?
Trust isn’t what it used to be. And that’s not necessarily a bad thing.
According to Kirsty Graham, Chief Executive Officer of global communications firm Edelman US, trust has become more nuanced, more personal – and far more important to get right.
The stack of challenges facing directors in 2025 is demanding: AI adoption, economic anxiety, misinformation, polarisation, pressure from stakeholders on every side – and a generation of future leaders who are, quite frankly, not buying the spin.
With global experience starting in the New Zealand’s foreign service, through to corporate America and agency communications, Graham has seen first-hand how fast the ground is shifting beneath the feet of today’s leaders.
“This is the trickiest time to be a CEO,” she says. “Whether it’s geopolitics, diversity, tariffs – you name it – it’s all in this crazy melting pot.”
That’s not just a US view. New Zealand boards are feeling the same heat. Stakeholders are louder, issues are thornier and trust isn’t something you build once and bank forever.
Edelman’s annual global trust research – which spans 25 years and four major institutions: government, media, business and NGOs – shows a striking trend this year. Business ranks as the most trusted, a position the institution has held since the pandemic. That’s the good news.
The challenge? With trust comes expectation. Stakeholders increasingly want businesses to show up – not just in what they make or sell, but in how they respond to social and political tensions, workforce wellbeing, digital ethics and local community needs.
“We’ve moved away from people wanting business to speak on every single issue,” says Graham. “People want that focus back. Where you can make a real difference, where it ties to performance and where you’re part of the solution.”
In other words, pick your battles – and be ready to explain why. The era of performative statements is fading. What matters now is meaningful action, linked clearly to purpose and impact.
“There’s more traction with your workforce when you explain the ‘why’. Even if you don’t take a public stance, letting people know you’ve listened, done the research and made a conscious decision builds trust. You’ve got to walk in someone’s shoes. You need empathy in the mix.”
One of the biggest shifts she’s seen is that trust has gone local. People trust what they know: their communities, their leaders, their own experiences. For boards, that means the audience is closer – and expectations are sharper. Employees, customers and communities want to see leaders who listen, respond and communicate with authenticity.
That’s playing out in everything from how consumers choose brands to how employees respond to leadership.
“People trust what’s familiar,” she says. “They want to feel that you understand their world – and that you’re not talking over them.”
For boards, this local trust imperative means knowing what matters to your employees, your customers, your community – and avoiding assumptions that could turn into reputational risks.
Add to this the informalisation of communication – faster, more personal, less corporate – and directors need to be confident that the organisation is speaking in ways that connect, not alienate.
“It’s much more real now,” says Graham. “Don’t make the perfect the enemy of the good. It’s got to be human, and it’s got to be consistent.”
The Edelman trust data sees a broader theme emerging across societies: grievance. From economic pessimism and housing stress to climate anxiety and cultural polarisation. And when people feel ignored, the reaction can be forceful.
“Especially if you’re young, [many people believe] that hostile activism is the way to get noticed. That’s not great,” says Graham.
It’s a warning signal: the next generation isn’t just disillusioned – they’re demanding attention, and they’re willing to get loud.
“This is a generation that says: don’t sugar-coat it. Give it to me straight so I can adapt,” says Graham. “They’re not interested in spin. They want relevance, honesty and a reason to hope.
“Since Covid-19, they’ve been through a lot – social isolation, mental health issues, economic shocks, misinformation online. They want to know that there’s still some decency left.”
She describes a generation of future leaders who are practical, socially conscious and demanding more straight talk from those in power.
“Don’t underestimate what people care about,” Graham cautions. “We’ve seen that with the response to global conflicts – directors may assume these are faraway issues, but your workforce or your customers might feel otherwise.”
With diaspora communities deeply connected to events across the globe – and with news and emotion moving faster than ever – boards must remain alert to how international events land locally. Having clear internal communication strategies, informed risk assessments and cultural awareness policies in place is critical.
That might sound like a big ask – but it’s also an invitation. Boards have the platform – and the responsibility – to cut through the noise and lead with purpose. It starts by listening, genuinely, to what your people care about.
This matters deeply for organisations trying to engage and retain younger talent. The employer brand is now a critical extension of the organisation’s social licence. Directors must ask themselves: Are we a place where people feel seen?
“You have to make sure that you’re staying true to your values,” she says. “You can’t have one value in 2020 and a completely different one in 2025.”
Interestingly, in this environment of distrust and disconnection, Graham sees one institution where people still find a sense of stability: the workplace.
“People are increasingly expecting and asking the workplace to be the island of civility.”
Boards have the chance to shape organisational cultures where civility, integrity and purpose can flourish – even if the broader public discourse is spiralling.
According to Graham, the organisations that are succeeding right now are those that pass three key trust tests:
1. Do what you say.
2. Understand what life is like for your stakeholders.
3. Be consistent – even when it’s hard.
“People are very astute,” she says. “They’ll spot a cynical move in a heartbeat.”
In this moment of change, uncertainty and grievance, the directors who will thrive are those who bring empathy to governance, courage to oversight and a commitment to being clear – even when it’s complex.
As Graham puts it: “Trust isn’t soft. It’s strategy.”
Kirsty Graham will be delivering the opening keynote presentation at the IoD’s 2025 Leadership Conference in Auckland on 18 September. Tickets are still available.