In this insights series from our founder and CEO Lori Teranishi, we explore seven critical trends that demand immediate attention from CEOs and their leadership teams. These trends, which we’ve observed in our work with clients across sectors and geographies, collectively signal an era of continuous disruption, emphasizing the urgent need for businesses to build resilience, agility and foresight to navigate the challenges ahead.
Critical Trend 5: Erosion of Trust in Institutions and Established Facts
The image of the world’s most recognizable and powerful tech CEOs at Donald Trump’s inauguration sent an unmistakable message of the new president’s allegiance to Big Business and of their reciprocal support of him. If inflation rises and the people who supported Donald Trump grow angry that their lot has not improved, then the ensuing wave of negativity and outrage will be directed at both business and political leaders, because in the eyes of many, there is no difference among them.
Distrust leads to lawsuits, union growth, boycotts, lower stock valuations, decline in efficiency and higher employee turnover. In a climate of distrust, corporate leaders will face heightened demands for transparency and social responsibility. Businesses that are perceived to exploit economic instability could face reputational damage, increased regulation, slower permit approval, less support for needed legislative action and more activist attacks.
In 2025, people are increasingly seeking out sources that align with their personal beliefs, disregarding traditional authorities like journalists and scientists and, in some cases, embracing misinformation. Confirmation bias has profound implications for businesses, as consumers, employees and investors rely more on social media influencers and peer reviews than on authoritative figures.
Moreover, a key lesson from the recent election was that online influencers can motivate and direct public behavior more effectively than traditional information sources or even personal contact. There is no doubt marketers worldwide are taking note of the shift this indicates on how to influence stakeholders, and the growing ability for values-based assertions to beat more traditional, fact-based appeals.
Organizational Response:
- Prioritize transparency in corporate communications and decision-making
- Enhance corporate social responsibility initiatives
- Build strong stakeholder relationships through consistent, ethical behavior
- Develop crisis management plans to address potential reputational risks
