5 February 2008
Trust in business is higher than in government
Society prefers straight-talking business to government spin, says Edelman Trust Barometer.
People trust business more than government in 14 out of 18 countries, according to the new "Trust Barometer" released by independent global PR firm, Edelman.
Edelman says the gap between business and government credibility is particularly wide in developing nations like India, Mexico, and Poland.
Trust in media is on a high, with marked increases over past years in the UK, Germany, the US, Canada, Japan, South Korea, and India.
Info-entials spread the word
The cynical 25 to 34-year-old opinion elite now trusts business more than their older counterparts in many parts of the world.
The gap between business and government credibility is particularly wide in developing nations like India, Mexico, and Poland.
In France, for example, 52% of young elites trust business versus 30% of 35 to 64-year-olds.
“Business has a tremendous opportunity to tell its story through these young ‘info-entials’ who are more likely to spread both positive and negative information about companies,” says Richard Edelman, president and CEO, Edelman.
Trust in media on the increase
Social media is on the rise, particularly in the BRIC countries (Brazil, Russia, India, and China). Although highly valued by younger people, all age groups across the globe now rely on credentialed experts and people like themselves for information they trust.
Globally, trust in financial or industry analysts, academics and healthcare specialists is more than 50%, while trust in a “person like me” is almost 60%. “Trust in media is rising because the definition of media has broadened to encompass social media,” says Edelman.
Trust slipping in the US
The US has the widest divide between business and government in the survey’s history. 58% trust business to do what's right, a 9-year all-time survey high, compared with only 39% for government.
Trust in CEOs continues to lag at about 20% in the US, versus 43% for an average employee. “Companies need to be engaged at the intersection of the top-down and peer-to-peer models of communication,” says Edelman, “relying on both experts and empowered employees to supplement statements by the CEO.”
Young ‘info-entials’ are more likely to spread both positive and negative information about companies.
Sweden, Germany and Canada most trusted
American brands like international oil and gas company, Exxon Mobil, fast-food chain, McDonald’s, and financial institution, Citicorp, continue to suffer from a 30% trust discount in Europe versus levels in Asia, Latin America and the US.
Global companies headquartered in Sweden, Germany and Canada are the most trusted. Those headquartered in China, Mexico and Russia come bottom of the list.
Have your say
Perhaps legislation, such as Sarbanes Oxley, is helping restore public confidence in the wake of recent company scandals. Maybe too, media coverage is exposing "misdemeanours" that make today’s governments seem rather less trustworthy. We may have placed higher expectations on those in power to govern and are therefore particularly shocked when government scandals come to light.
The survey’s findings about social media are interesting for 2 main reasons. People are using social media to find out what "others like me" think – and trusting what they say. Also, that a typical employee's views are more trusted than most CEO’s opinions.
Is your company "engaged at the intersection of the top-down and peer-to-peer models of communication"? How often do your "empowered employees supplement statements by the CEO"? Discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.
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