Contracts help us organize our relationships—with each other, and with institutions. One of the most foundational ones is the social contract: The implicit and evolving agreement about what institutions do for us, and what we, in turn, will do for them.
A recent survey fielded by the Edelman Trust Institute asked 4,000 respondents in Brazil, India, the UK, and the U.S. how living through the COVID pandemic changed society. The findings revealed a breakdown in the terms of exchange and a need to renegotiate the social contract
One of the fundamental promises institutions make is that they will keep us safe, but we don’t trust institutions do just that. Respondents said that in the event of a future pandemic, only their employer is trusted to keep them and their communities safe. Other institutions—business, government, media, and NGOs—are actively distrusted.
This institutional breach of terms influences what we’re willing to give back to society. When safety isn’t assured and we feel the next generation will be worse off, having children means taking on a massive amount of risk. Because of living through the COVID pandemic, 18 percent of 18–34-year-olds in Brazil, 36 percent in India, 21 percent in the UK, and 27 percent in the U.S. have decided not to have kids.
We need a new agreement between individuals and institutions in which expectations, roles, and mutual benefits are defined. Without this our future is at stake: we will be unprepared for a future pandemic and future generations may opt out of parenting. To have constructive negotiations, institutional leaders must:
- Listen and learn: Identify how your actions impacted people during the pandemic and areas where you would behave differently in the future
- Be transparent about what you can and will deliver: Lean into where your capabilities overlap with your societal responsibility
- Deliver on updated expectations: Action earns trust. Follow through on your commitments.
The negotiations over the social contract have already begun. Trust is the currency of these negotiations and if institutions want to earn it, they have to prove that they’re worth trusting again.