Trust erodes quietly until suddenly, it’s gone. Canada is approaching that precarious moment, where fractures we have long ignored now widen at an alarming rate. The consequences are not merely social; they are measurable, hitting the heart of our economy. Stalled investments, weakened partnerships and a chilling effect on innovation are warning signs of something deeper: a crisis of leadership and a collapse in shared values. Rebuilding that trust requires more than words — it requires action, honesty and a return to principles. The question is, do we have the courage to do it?
For decades, Canada was known for stability, where investors trusted our institutions and society seemed insulated from the upheavals experienced elsewhere. Today, those beliefs are being challenged. Only 39 per cent of Canadians trust CEOs “to do what is right,” and a mere 43 per cent trust government leaders to do the same, according to the 2024 Edelman Trust Barometer. What we are seeing is not just disillusionment — it’s a full-blown crisis of confidence, driven by a leadership vacuum and a perceived detachment of elites from the reality experienced by most Canadians.
Our institutions are failing to meet this moment. Universities, traditionally spaces for debate, have instead shifted away from grappling with discomfort, encouraging avoidance over dialogue. This is a business issue as much as a social one. A young generation that cannot engage with complexity and disagreement is ill-prepared to enter the workforce. Corporations and governments rely on trust not just as a social good, but as a bedrock of economic stability. Without it, even the most well-crafted regulatory framework falls apart, and contracts are rendered meaningless.
The year since October 7 brought into sharp focus our fractures and the complexity of bringing people together. While some leaders hesitated, others showed that unity is still possible. However, the reliance on both-sides-isms left communities with less trust and more uncertainty.
But this crisis isn’t just about culture and social issues — it extends into economic decision-making. Teck Resources’ 2020 withdrawal from the $20.6 billion Frontier oil sands project in northern Alberta wasn’t just about federal regulatory hurdles balancing energy development and climate commitments; it was emblematic of a greater loss of confidence in governance. Investors don’t merely want regulatory clarity; they want integrity and a belief in a system where promises made are promises kept. Without this, the fractures in our foundation will continue to grow, and no policy, no matter how well-crafted, can plaster over the cracks.
Amidst this erosion of trust, positive developments offer hope. At the provincial level, Ontario’s new energy minister, Stephen Lecce, is showing decisive leadership on small modular reactors by signing deals to bring Canadian expertise to partners abroad, which will certainly contribute to attracting investment.
Within this crisis lies an opportunity. The exposure of superficial leadership and the realization of just how fragile the social fabric has become gives us a chance to return to first principles. It’s time for businesses to focus on the basics: conducting themselves with integrity, investing in communities meaningfully and being transparent about challenges and failures. Universities must also return to their roots, not as echo chambers for avoidance, but as spaces where the next generation of leaders learns to debate fiercely, yet with empathy and necessary compromise.
Business leaders must recognize their critical role. This isn’t about grand gestures but about consistent, deliberate actions that foster transparency and community engagement. The conditions under which businesses thrive aren’t built solely on regulatory compliance. They depend on the trust that underpins every transaction, every partnership — not in avoiding mistakes but in owning them, in being human and in committing to do better.
Every relationship — whether between governments and citizens, corporations and stakeholders, or between individual human beings — is built on trust. When trust fractures, repairing it requires humility and a willingness to take accountability for the role we’ve each played in the breakdown. Canada still has the potential to lead, to inspire, to rebuild. But we must face the uncomfortable truths that lie beneath our divisions.
There is a path forward, one that invites us all to step beyond avoidance. To speak, to listen, to confront what went wrong and take action. It’s not an easy path, but it’s the only one that offers the hope of rebuilding what’s been lost. Trust, once broken, isn’t beyond repair — it just needs people brave enough to decide it’s worth it.
And maybe, just maybe, if we are willing to be vulnerable, to return to what truly matters, we can start to rebuild, not just in our institutions, but in our relationships, too.
National Post
Arjun Gupta is a law student at the University of Ottawa.