rsz_close-up-two-businesspeople-shaking-hands
Author picture

Global trust dynamics and the role of companies

This year, the 25th edition of the Edelman Trust Barometer was published. Its findings show a global crisis of public trust in institutions, companies, governments, NGOs, and the media. The study shows that five of the ten largest economies in the world are among the least trusted, highlighting the fundamental role that corporate communication plays today, particularly with investors.

Some key findings about trust in companies:

  • In 15 of the 28 countries analyzed, people trust companies (62% globally, 67% in Mexico).
  • Companies are the only institutions that achieve a positive trust score, surpassing NGOs (58% globally, 61% in Mexico), governments (54% globally, 54% in Mexico), and the media (52% globally, 47% in Mexico).
  • Globally, companies are perceived as 49 points more competent and 29 points more ethical than governments.

However, being the most trusted institutions also means taking on greater expectations from society. 85% of respondents believe that companies must play an active role in generating well-being, not only by offering well-paid jobs and training to their employees, but also by having a positive social and environmental impact.

For investor relations areas, this represents a profound change in the way they communicate. It is no longer enough to report financial results. It is essential to explain how the company responds to social challenges, how it aligns with stakeholder expectations, and how it builds trust through transparency. This trust not only strengthens corporate reputation, but also eventually facilitates access to capital and reduces the cost of funding. Companies that lead with purpose and communicate with authenticity today have a clear competitive advantage over those that focus only on financial results.

What can you do to help? 3 recommendations for IR teams of Mexican companies

  1. Integrate ESG and purpose into the financial narrative. It is not only about including non-financial indicators in the annual report: it is necessary to clearly show how the sustainability strategy drives growth, mitigates risks, and creates long-term value.
  2. Prioritize transparency and consistency. The gaps between what is communicated and what is done are increasingly visible. Publishing clear, verifiable, and updated information, even when it is not always perfect or positive, is better than omitting it or sugarcoating reality.
  3. Listen actively to investors and other stakeholders. Trust is also built through dialogue. Involving investors in discussions about emerging risks, innovation, social impact, and regulations strengthens relationships and demonstrates openness and commitment.

 

At Miranda IR, we will be glad to help you build a robust, transparent narrative that helps lay the foundations for trust-based relationships with the market.

Contacts at Miranda Partners

Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com

Ana María Ybarra Corcuera
Miranda-IR
ana.ybarra@miranda-ir.com

| SHARE THIS POST