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Rising inequality erodes confidence in capitalism – survey


DAVOS, Switzerland – Rising income inequality is eroding confidence in capitalism worldwide, according to a survey conducted by the public relations firm Edelman ahead of the world gathering. elite at the Swiss ski resort of Davos.

Of those surveyed in the report released on Monday, 56% said capitalism did more harm than good despite a year of solid economic growth and near-full employment in many developed countries.

This remarkable finding could cause a stir among business executives and political leaders as they prepare to head to the World Economic Forum’s annual meeting.

“We live in a paradox of trust,” said Richard Edelman, CEO of Edelman, which has conducted a trust survey for 20 years. “Since we started measuring confidence, economic growth has fueled increased confidence.”

Although the relationship between economic growth and confidence in the system remains in developing regions such as the Middle East and Asia, the survey shows that rising inequality in many rich countries has contributed to weakened faith in capitalism.

“Fears are stifling hope, and long-held assumptions about hard work leading to increased mobility are no longer valid,” says Edelman.

Corruption, corporate misconduct and fake news are eroding trust, Edelman said, as are concerns about automation in the workplace, lack of training, immigration and the contract economy. to act. According to the survey, 83% of employees globally are concerned about their work.

Business and NGOs are the organizations people trust most to solve global problems, a blow to governments ravaged by populist and partisan politics.

Climate issues are among the most important and business leaders can no longer put consumer concerns aside as brands can quickly tarnish if they are considered unethical.

“There is a growing risk that brands are attracted, and CEOs have a duty from customers and employees to act,” Edelman said.

Just recently, BlackRock CEO Laurence Fink said his company, which manages about $7 trillion for investors, will put climate change and sustainability at the heart of its approach. its investment. And Credit Suisse, after protesting its activities at a branch in Switzerland, has said it will stop investing in new coal-fired power plants.

Consumer goods giant Unilever, maker of Sure deodorant or Comfort fabric conditioner, has promised to halve its use of virgin plastic by 2025.

“Business is a catalyst for change,” says Edelman.

The survey included 30-minute online interviews in 28 countries from October 19 to November 18 with more than 34,000 people worldwide.

Pan Pylas, Associated Press

Post Rising inequality erodes confidence in capitalism – survey appeared first on Business Canada – Your Source of Business News.

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