I have spent considerable time speaking with business friends about trust in leaders.  These conversations were prompted by last year’s results of the 10-year annual Edelman Trust Barometer survey.  They sampled 4,475 opinion leaders in two age groups (25-34 and 35-64) in 20 countries, a 30-minute telephone survey of “informed publics.”  (www.edelman.com/trust/2009/)

One disturbing finding that led to these conversations is that only 17 percent of the 35-64 year old “informed publics” trust information given by a CEO about his or her company.  This is six-year low.

For better or for worse, my understanding is that, in terms of influence, it only takes about 15% of people agreeing to anything (a philosophy, a code of behavior, a belief) to change the tide and move the masses.  Robert Porter Lynch, who has done considerable research in the area of trust and leaders, posits that trust is the bedrock of democracy, and when our trust is damaged, we are doing damage to the very principles upon which this country is founded.  We are precipitously close to that tipping point.

Since I coach CEOs and their executive teams, I am personally appalled.  But more appalling than the sense that our business leaders have behaved badly and deserve this reputation — some do and most don’t — is my concern that all CEOs have been painted with the same brush as those who deserve to be penalized and put away for a very long time, damaging others’ reputations by association.  There are leaders who do wrong intentionally, and others who are simply careless.  In a Financial Times some months ago, for example, BP’s CEO Tony Hayward admitted that they were not prepared for a category disaster he called “low probability, high risk.” Indeed.

BP, after an estimated $20 bn leak with costs to our environment and the human psyche that are unconscionable and immeasurable finally began looking into their strategy and tools to resolve such risks.  Tony Hayward is not a bad person, but inadequate thinking and planning has exacted an extraordinarily high toll.  Regardless, whether they make a mistake of wrongful thinking, or they are out to get us as was the case with Bernie Madoff, bad decisions of those in power cost us trust in leaders inclusively.

A recent release that should be a MUST READ for every executive in the world is Herb Baum’s The Transparent Leader, in which Baum said, “A lot of executives who made headlines (because of a scandal) were just plain white-collar thieves who deserved to do time.  And there were others who were basically good people who made compromises when they shouldn’t have.  They stretched the truth because they thought they had to, and they made some business decisions that were short on integrity. They had risen to leadership positions, but they failed because they didn’t understand how to be open with various constituents and they were unable to build a culture base on trust in the organizations they led.”

Let’s assume leaders should do more to warrant our trust.  BP’s Hayward has admitted the criticism of the oil spill and subsequent inability to stop the damage was ‘entirely fair.”  Ok, it was an event, a mishap.  Let’s look at an ordinary, reoccurring factor.  Who is culpable, for instance, for extraordinarily high CEO wages?   Considerable finger wagging has been going on in the press at CEOs about this.  It isn’t the CEO who sets his or her own salary; it is the board of directors.  Yet they are invisible to the press in these stories.  So often our assumptions lead us to conclusions that malign others without full consideration for the facts.  This disturbs me greatly but I know I have done it, too.  Why is that?

Walking with a friend, I mentioned a situation that was just this kind of wrongful maligning, and she asked me, “How long does it take to find a witch?”  She was alluding to the days in Europe from 1480 to 1700 when legally sanctioned and official witchcraft trials resulted in from 40,000 to 100,000 executions. It was decided someone was a witch, and next thing you know that person was burned at the stake.

While we’ve moved beyond flagrantly burning people at the stake, we still do character assassinations every day, in the form of judgment and gossip.   Some of this finger wagging and witch-hunting and broad-brush painting is projection — making someone else responsible for what we, ourselves, don’t want to be responsible.