Trust in leadership is in crisis. 

Across government, business, and non-profit sectors, people are increasingly sceptical of those in power. The 2024 Edelman Trust Barometer found that a growing number of individuals believe leaders are “purposely trying to mislead” the public through misinformation or exaggeration. Institutional trust has hit historic lows, driven by political polarisation, economic instability, and leadership failures in response to crises such as COVID-19, climate change, and technological disruption.

“For many, our institutions are no longer fit for purpose.” – Samuel Wilson, Associate Professor at Swinburne University of Technology

This sentiment is reflected in global calls for leadership reform, as organisations and governments struggle to navigate complex challenges in a rapidly changing world but despite these failures, solutions are emerging. 

A new paradigm, one that embraces collaborative, human-centric leadership, is critical to rebuilding trust.

The recently released report The Economist Impact,  “New Challenges, New Leaders: Collaborative and Human-Centric Leadership for Better Outcomes”, powered by the Menzies Leadership Foundation explores the root causes of leadership failures and highlights strategies for cultivating trust, drawing from the insights of experts such as Samuel Wilson, Zsuzsanna Tungli, and Kenneth Tan.

A crisis of trust and leadership

Across sectors, borders, and societal groups, trust in institutions is rapidly eroding and according to Edelman’s 2024 Trust Barometer, more people than ever believe that leaders in government, business, and the media are intentionally misleading their constituents.

Zsuzsanna Tungli, Founder and Managing Partner at Developing Global Leaders Asia, emphasises the urgent need for “more responsive and caring leaders.” Samuel Wilson similarly highlights the crumbling state of institutional trust, stating, “For many, our institutions are no longer fit for purpose.” However, public opinion is divided: while some advocate for dismantling failing institutions, others believe they should be restored and adapted.

The collapse of trust stems from multiple interlinked issues, including political polarisation, economic instability, persistent inequality, and unstable labour markets. Leadership strategies that once delivered results are no longer effective.

Disconnected leaders – the erosion of trust and the role of collaboration in rebuilding it

Kenneth Tan, Deputy Executive Director of the OCTAVE Institute, identifies a key challenge for leaders: “being disconnected from human potential, the reality that organisations are made up of people, the current geopolitical and societal challenges we are faced with, and the challenges of a multigenerational workforce.”

In the private sector, poor communication during corporate layoffs has significantly damaged trust. Employees have often been the last to learn about major decisions, reinforcing feelings of betrayal. The COVID-19 crisis further exposed leadership failings. Many governments acted haphazardly, delayed vital measures, and downplayed pandemic risks. This resulted in avoidable loss of life and further diminished trust in public leadership.

“Leaders must reconnect with human potential if they are to rebuild trust.” – Kenneth Tan

Despite leadership failures, the pandemic demonstrated the power of collaborative leadership. The rapid development and distribution of COVID-19 vaccines was made possible only through extensive cooperation across governments, the private sector, and non-profits. This collaborative success underscores how effective partnerships can tackle large-scale challenges.

Shung Yar Lim, Senior Director at Singapore’s Public Service Division, notes, “The solutions to the big issues in our time have to move the needle in an impactful way, but that often transcends what a single organisation can do.”

During the pandemic, Singapore’s Ministry of Health exemplified this model by collaborating with public and private partners to convert exhibition venues into isolation centres, ensuring hospitals retained sufficient capacity for critical patients.

“Collaboration creates resilience—leaders must recognise they can’t solve big challenges alone.” – Kenneth Tan

 

A path forward

The crisis of trust in leadership presents a pivotal moment for change. 

Leaders must embrace collaborative, human-centric approaches that prioritise empathy, integrity, and long-term impact. Leaders who focus on shared goals, foster strong partnerships, and remain connected to their communities will inspire trust and rebuild institutional credibility.

“The most successful leaders will be those who build bridges—not walls.” – Economist Impact