Loss of trust in companies and chief executives, according to PR firm Edelman
The 10th Trust Barometer from independent PR agency Edelman reveals that the economic and financial crisis has undermined consumer trust in companies and their chief executives. Edelman surveyed informed publics in 20 countries on five continents (in Europe, the survey was carried out in the
United Kingdom, France, Germany, Italy, Spain, the Netherlands, Sweden, Ireland and Poland) in November 2008.
The Barometer shows that nearly two-thirds of informed publics (62%) trust businesses less than they did a year ago. In the United States, only 38% said they trust business to do what is right - a fall of 20% from 2007, and only 17% said they trust information from companies' chief executives. Both are lower levels of trust than those Edelman measured in the wakes of Enron, the dot-com collapse, and the events of 11 September 2001. Overall, 77% said they refused to buy products or services from a company they distrusted. In the major Western European economies of the U.K, France, and Germany, three-quarters say that government should step in to prevent future financial crises (73%, 75%, and 74%, respectively). In the United States, not even half (49%) say that the free market should be allowed to function independently. Globally, the call for government intervention also extends to issues like energy costs, global warming, and access to affordable healthcare. But business must collaborate: two-thirds (66%) expect business to partner with governments and advocacy groups to solve these issues.
In many of the emerging economies, however, trust in business increased. In China, the “trust in business” score rose from 54% last year to 71% among 35-to-64-year-olds. In Brazil, trust in business climbed to 69% from 61% a year ago. And while trust in banking dropped by 33 percentage points in the United States, trust in banks rose from 72% to 84% in China, and from 52% to 59% in Brazil. “People in emerging economies credit business with improved standards of living ... But this trust gain for business may now be at risk, as 79% of Japanese, 56% of Chinese, and 49% of Indian opinion leaders say they have growing concerns about business, and Korea, Mexico, and Brazil report new low levels of trust in CEOs as spokespeople,” said Richard Edelman, President and CEO of Edelman. Other findings of the Barometer include: 1) trust in nearly every type of news outlet and spokesperson is down from last year; trust in business magazines and stock or industry analyst reports decreased from 57% to 44% and from 56% to 47%, respectively; 2) only 13% trust corporate or product advertising; 3) in the U.K, France, and Germany, trust in business was already at a low level of 36% among 35-64-year-olds, and it did not rise in the latest Barometer; a notable gain in trust was made, however, in the Netherlands (55% to 62%) and Sweden (39% to 51%). (I.L./transl.rt)