Published 01-22-03
Submitted by Edelman
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:
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."
"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."
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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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