Institutional trust refers to the confidence that individuals or groups have in organizations, such as governments, businesses, and non-profits. This trust is crucial for the effective functioning of society, as it influences people's willingness to engage with these institutions, follow regulations, and participate in civic activities. High levels of institutional trust can lead to greater cooperation and social cohesion. Factors that contribute to institutional trust include transparency, accountability, and the perceived integrity of the institution. When organizations like government agencies or corporate entities demonstrate reliability and ethical behavior, they are more likely to earn the trust of the public. Conversely, scandals or failures can significantly diminish this trust.