Trust is often formed in the wake of a crisis, and the 2025 Edelman Trust Barometer reveals a sobering reality that may reflect such a state: In five of the world’s 10 largest economies — including the U.S., the UK, and Germany — public trust is at historic lows.
Furthermore, research from the SHRM Global Worker Project reveals that only half of workers in the U.S. mostly or completely trust their employer.
But this isn’t just a political or economic issue. It’s a leadership issue. And more than anything, it’s an ethics issue.
The erosion of trust reflected within the Edelman Trust Barometer and the SHRM Global Worker Project has real consequences. Disengaged employees, reluctant consumers, and skeptical investors create an unstable business environment where innovation, collaboration, and long-term growth suffer.
Leaders who fail to recognize the urgency of this crisis risk not only their own reputations, but the future of their respective organizations.
But there is hope.
Ethical leadership — rooted in principles like business resilience, empathy, accountability, and a commitment to the greater good — has the power to rebuild trust, restore confidence, and reestablish the role of business as a force for positive change.
That’s why, in partnership with the human resources organization SHRM, the William McGowan Charitable Fund is proud to launch its 4th Annual Ethical Leader of the Year Award, an accolade to be awarded at the 77th SHRM Annual Conference in San Diego this week. This achievement recognizes individuals who are setting a higher standard for leadership and demonstrates that doing the right thing is not just emblemizing good ethics — it’s paving the road for business growth.
Indeed, ethical leadership is more than just seeking the moral high ground; it delivers measurable benefits.
Organizations led by ethical leaders have been proven to experience greater employee engagement, stronger financial performance, and more resilient corporate cultures. According to SHRM research, companies with strong ethical foundations see 40% lower turnover rates and are twice as likely to outperform their competitors.
But here’s the truth: Employees today want to trust their employers.
They are looking directly at their leaders — not just to speak up, but to step up and drive real change.
According to SHRM’s Global Worker Project, outside of labor unions, workers trust their employers the most to deliver on workplace responsibilities. Why? Because trust and effectiveness are connected.
Employees place confidence in organizations that deliver meaningful, tangible outcomes. Every day, through direct interactions, employers have the power to make real, positive changes in their workers’ lives.
Let’s face it — At the end of the day, today’s employees expect more — and they’re holding their leaders accountable. In a tight labor market, where top talent can choose where they work, ethical leadership offers a competitive advantage.
People want to work for organizations that align with their values; they want leaders who communicate openly, who make fair decisions, and who take responsibility when things go wrong.
Consumers, too, are voting with their wallets.
A recent global survey found that 71% of consumers prefer to buy from companies that reflect their ethical beliefs.
So, in short, transparency and corporate responsibility aren’t optional anymore; they’re business imperatives.
While institutions may struggle to regain trust on a macro level, individual leaders can make a difference; because ethical leadership isn’t about attaining perfection — it’s about consistently making decisions that prioritize fairness, honesty, and accountability. It’s about fostering inclusive workplaces, taking responsibility for difficult choices, and ensuring business success does not come at the expense of integrity.
That’s what the William G. McGowan Ethical Leader of the Year Award is all about.
Through this initiative, we’re highlighting leaders who, each year, are actively restoring trust in their organizations and communities. We believe their stories can serve as blueprints for others looking to lead with integrity in a time of uncertainty.
Take, for example, last year’s award recipient: Marvin Ellison, CEO of Lowes.
Not only did he exemplify ethical leadership within his organization, but he also took actionable steps to create lasting change. He’s the type of leader who inspires loyalty and trust — foundational elements certain to ensure long-term success for his company.
As we gather for the world’s largest conference of HR and business leaders, we challenge like-minded executives, managers, and professionals at all levels to prioritize ethical leadership.
This isn’t just about preventing scandals or complying with regulations – It’s about building a culture where ethical decision-making is the norm, not the exception.
The Ethical Leader of the Year Award is an opportunity to shine a spotlight on the leaders who are making a tangible difference.
And in the interim, we encourage organizations to look inward and ask their leaders: Are you fostering trust?
Are you making decisions with integrity?
Are you leading in a way that will make your employees, customers, and stakeholders proud?
Now is the time for leaders to step up. For you see, ethical leadership isn’t a buzzword; it’s the cornerstone of sustainable business success.
It’s time to take it seriously.
Brian Peckrill is executive director of the William G. McGowan Charitable Fund. Johnny C. Taylor Jr. is president and CEO of SHRM.
