The 2012 Edelman Trust Barometer sees an unprecedented nine-point global decline in trust in government.  In twelve countries, it trails business, media, and non-governmental organizations as the least trusted institution. This has pushed more countries into the distruster category. Political brinksmanship on the debt ceiling in the USA, dysfunction on bailouts in the EU, corruption in Brazil and India, and a natural disaster in Japan drove the downward trend.

Business leaders should not be cheered by government’s ineptitude, especially as trust in the two institutions tend to move in sync. There is still a yawning trust gap for business, as evidenced by one half of the informed public respondents (49%) saying government does not regulate business enough. Yet what most stakeholders want from government – consumer protection (31%) and regulation ensuring responsible corporate behavior (25%) – are actions business can do on its own.