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Corporate Social Responsibility
News
1.22.2003 ET
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Global Trust Landscape Shifts Significantly in 2002
Trust in U.S. Business Rises While Trust in Government Erodes
European Trust in Business Declines
NGOs Firmly Established as Trusted "Fifth Estate"
CSRwire note: The Global Trust Survey 2002 presentation is available in the CSRwire Report Database
(CSRwire) DAVOS, SWITZERLAND - Trust in U.S. business has risen in the past
six months despite the recent wave of corporate scandals, while European
confidence in business has declined, according to Edelman’s
fourth semi-annual Trust Survey of opinion leaders. Forty-eight
percent* of U.S. opinion leaders expressed trust in business, an increase
from the 41% recorded in the June 2002 survey. Europeans' trust in
business declined from 43% in June 2002 to 35% today.
Trust in the U.S. government fell dramatically from a post-9/11 high of
48% in January 2002 to 39% today, while trust in government in Europe
remained quite low at 25%, down from a peak of 36% in June 2001. NGOs are
now the most trusted institution in Europe -- increasing from 42% to 45%
-- and in the U.S. they are at parity with business, increasing from 38%
to 49% in the past six months.
"On the eve of the World Economic Forum's conference on trust, we're
seeing opinions from the U.S. and Europe diverging significantly," said
Richard Edelman, President and CEO, Edelman. "Trust in U.S. business is
improving because corporations have been taking steps to restore
confidence, and there is new legislation like Sarbanes-Oxley, while trust
in government in the U.S. is eroding to pre-9/11 levels. At the same time,
there is a trust void in Europe, as confidence in business ebbs and trust
in government remains low."
"NGOs are now firmly established as the Fifth Estate** in global
governance, rivaling the credibility of revered corporate brands and
filling a trust vacuum in both the U.S. and Europe."
"Positive attitude towards business are not universal but rather varies
sector-by-sector, with residual concerns about the industries that are in
the forefront of recent scandals," commented Richard C. Breeden, Chairman
of Corporate Governance Advisors at Edelman and the former Chairman of the
U.S. Securities and Exchange Commission. In the U.S., consumer package
goods, durables and technology scored more than 65% on trust, while
scandals and criminal investigations have contributed to making energy,
telecommunications, and professional services the least trusted
industries, all of which scored less than 38%. In Europe, consumer
durables, healthcare and airlines are the most trusted, registering 54%,
while investment/insurance and retail financial services are the least
trusted, scoring less than 40%.
Other findings from the new study include:
71% of opinion leaders in the U.S. and 57% in Europe trust the
company they work for, while only 31% in the U.S. and 28% in Europe trust
global corporations.
In Europe, the four most trusted brands are NGOs (Amnesty, World
Wildlife Fund, Greenpeace, and Oxfam). Although their trust levels
declined slightly, they continue to be rated higher than the top-rated
corporations (Microsoft and Bayer) by a margin of more than 10%.
In the U.S., the gap between the most trusted brands-Johnson &
Johnson, Coca-Cola, Microsoft, Ford, McDonalds, Bayer, and Pfizer (greater
than 50%)-and the top NGOs is closing (with top NGOs now scoring between 40
and 50%).
Trust in certain American brands, such as McDonalds (55% in the U.S.)
and Coca-Cola (66% in the U.S.) is significantly lower in Europe, where
McDonalds is at 22% and Coca-Cola is at 37%.
Communications and Trust
The study provides insights into the communications channels and
spokespeople through which business can establish trust and credibility.
More than 80% in Europe and in the U.S. stated that they believe
information conveyed through news articles, while only 12% in the U.S. and
9% in Europe believe the information from advertisements.
In both the U.S. and Europe, more than 35% stated that "experts" and those
who are seen as having no vested interest in the welfare of the
company-academics, doctors and representatives of NGOs-are among the most
trusted spokespersons. Fewer than two in every 10 people said that paid
representatives, such as company spokespeople or entertainers/athletes,
are credible sources of information.
"This study underscores the importance and influence of media coverage,"
said Geoffrey Cowan, Dean of the Annenberg School for Communication at the
University of Southern California. "The news media carries a high degree of
credibility with opinion leaders, who are eight times more likely to
believe information they receive from the news media than from
advertising."
More than 44% stated that articles in business magazines and
newsweeklies are the most credible sources of information, both of which
topped the list across the U.S. and Europe. Corporate advertising and
product or service advertising were rated the least credible source of
information (5% in the U.S.).
In the U.S. and Europe, information derived from independent parties,
including colleagues (38%+), friends and family (35%+), and analysts'
reports (26%+) are perceived to be far more credible sources than
information from corporate advertising (5%) and Web sites (13%).
87% in the U.S. and 77% in Europe agree that they usually don't
believe something the first time they read or hear it, and are more likely
to believe something they obtain from multiple sources.
"This is the first study to clearly demonstrate that you can't buy
credibility through paid media, you have to be credible through actions
and transparent, open communications, conveyed through media by
independent advocates." said Steve Lombardo, CEO, StrategyOne."
About Edelman
The world's largest independent public relations firm, Edelman provides a
full spectrum of advanced communications services through its PR firm and
specialty firms: Blue (advertising), First&42 (management
consultancy),StrategyOne (research) and BioScience Communications (medical
education and publishing). Edelman, which celebrated its 50th anniversary
in 2002, has 1,900 professionals in 40 offices throughout North America,
Europe, Latin America and Asia Pacific. Visit www.edelman.com for more information.
About the Edelman Survey of Trust
The fourth semi-annual survey was conducted through telephone interviews
with 400 U.S. and 450 European (across the U.K., France and Germany)
opinion leaders between December 14 and January 10 by StrategyOne. Opinion
leaders are defined as being between 35-64 years, college educated with a
household income of more than $75,000 in the U.S. and the equivalent in
Europe. Opinion leaders are business and media attentive. The interviews
were conducted via telephone and averaged 25 minutes in duration. The
survey is bi-annual and the first to contrast U.S. and European
perceptions.
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