Leaders Are in Crisis: The Imperative for Moral Leadership in 2025

I started my day today drinking my coffee during the live launch event at the World Economic Forum in Davos, where the Edelman Trust Barometer 2025 was unveiled. The results are alarming and should serve as a wake-up call for all business leaders and communications professionals. Trust in business leaders has hit an all-time low. A staggering 68% of people believe that business leaders purposely mislead the public by saying things they know are false or gross exaggerations. This is a serious crisis, and the path forward demands moral leadership more than ever.

Fear to Grievance: A Transition We Must Acknowledge

The Edelman Trust Barometer also revealed a deeper societal shift. We have transitioned from fear to grievance. People no longer just fear the future—they are angry, frustrated, and skeptical about the world around them. This feeling of grievance has permeated into every level of society. Only 30% of people believe their lives will be better than those of the past generation, and trust in institutions is plummeting. CEO trust has been halved since last year, and more than half of people now say that capitalism does not work.

In this environment of widespread skepticism and anger, over 20% of people even endorse violence as a solution. When asked about political differences, only 45% of people trust those with opposing beliefs. The media, which traditionally held an influential role in shaping public opinion, now faces the same crisis. People no longer trust the news; they see it as clickbait-driven and more interested in sensationalism than in truth.

Equally concerning, 50% of white people report feeling discriminated against—a surprising but significant statistic that underscores the complex dynamics of identity and division in society today. These feelings of discrimination and grievance, though often overshadowed, need to be acknowledged in any honest conversation about societal trust and division.

This grim picture illustrates a fundamental shift in how society operates—and how business must adapt. Trust, once easily given to authority figures, is now earned through action, transparency, and moral clarity.

The Role of Business in a Time of Grievance

So, where does business stand in all of this? The role of business in a time of grievance is clear: if you can make a difference, do good. People are frustrated. They want good jobs; they do not want to fall behind in the race for technological advancement. They are tired of inflation and climate change, with 63% of people saying these issues are weighing on them heavily. Businesses must now step up to fill the void left by political leaders and media institutions. NGOs, with their local impact and credibility, are becoming trusted partners in making a real difference.

As Dolf van den Brink, CEO and Chairman of Heineken, stated at the event, "Businesses have the role to bring economic optimism back. We also need to make a case for capitalism. We need to show that it can bring prosperity for the masses." This is an essential reminder that businesses should not shy away from advocating for capitalism, but instead, show how it can be a force for good, fostering prosperity and economic opportunity for all.

Yet, I see businesses cutting sponsorship budgets—something I believe is a mistake. Businesses should be supporting NGOs more than ever. When we look at the crisis of trust, NGOs represent a transparent, locally engaged, and values-driven response to the concerns of society. Now, more than ever, companies need to engage with the world, not simply focus on profits alone. For further insights on the importance of sponsorship, I encourage you to read this article on sponsoring.

PR Professionals: Navigating the Crisis of Leadership

PR professionals must act as the bridge between the people and the leaders who often fail to grasp the depth of the crisis we are facing. The key to regaining public trust lies in embracing moral leadership. The HOW Institute for Society's State of Moral Leadership in Business 2025 report underscores that moral leadership is urgently needed to restore confidence. Leaders must adopt a values-based approach, demonstrate empathy, and show that they care about what people truly need.

Gillian Tett, Provost of King’s College, Cambridge and columnist for the Financial Times, highlights another key insight: "Leaders must understand that trust now functions in lateral patterns. People trust groups and look for peer validation of their thoughts, and business leaders need to learn to work with these lateral patterns of trust." This insight is crucial for PR professionals as we craft strategies that help business leaders connect with the public in a way that feels genuine and authentic. For example, we know that Gen Z consumes media by reading the title, then the comments, and only then the article itself, so maybe we should stop accusing them of superficiality and start engaging in the conversation right from the start — listening to them, understanding them and perhaps start commenting on articles and joining the discourse after sending out a press release. This will help bridge the divide and establish a deeper connection with younger audiences who are often skeptical of traditional corporate communication.

The Information Void: A Call to Action for Business, Government, and NGOs

With the declining trust in media, a vacuum is forming in the flow of information. If businesses, governments, and NGOs do not step into this gap, we risk seeing even more grievance fuel societal unrest. As trust in the media falters, these institutions must assume a greater role in shaping public discourse, ensuring that information is not only accurate but also accessible and transparent. Without this, the space left open by the media will likely be filled by misinformation, division, and further distrust.

The Unspoken Crisis: The Aftermath of COVID-19

Another crucial insight, which I discussed with a CEO client recently, is the unresolved emotional aftermath of the COVID-19 pandemic. Despite the enormous impact it had on society, institutions have largely failed to discuss and address what happened during that period. The emotional toll and the confusion surrounding that time remain unspoken. This lack of clarity only deepens the public’s distrust of leaders, as they see no one acknowledging or processing the trauma caused by the pandemic. This issue must be addressed by business leaders if they wish to regain any semblance of credibility.

Business and Media Must Adapt

At the heart of these challenges is the need for businesses to not only make a profit but also make a difference in society. As I see it, business must become a force for good in the world, supporting credible initiatives, and leading by example. But the media also has a crucial role to play. It must put facts first and stop chasing clicks. Grievance has reached a point where society is struggling to function. We need leadership that focuses on shared values, transparency, and real solutions.

Conclusion: PR as the Consultant Leaders Can’t Afford to Ignore

As PR professionals, we are at a critical crossroads. We must not only be communicators but also trusted consultants to leaders. Our role in guiding them through this crisis of trust is paramount. We need to ensure that they understand their stakeholders’ concerns, embrace moral leadership, and act on the societal grievances that people are voicing.

Now is the time for leaders to act—not only to rebuild trust but to make a meaningful impact on society.