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Trust Shifting From Traditional Authorities to Peers, Edelman Trust Barometer Finds

Trust Shifting From Traditional Authorities to Peers, Edelman Trust Barometer Finds

Published 01-24-05

Submitted by Edelman

New York - Global opinion leaders'* trust in established institutions (business, government, media) and figures of authority (CEOs, heads of state) is being supplanted by a personal web of trust that includes "colleagues," "friends and family," "a person like yourself" as well as independent experts such as doctors and academics, according to the sixth annual Edelman Trust Barometer, a survey of 1,500 opinion leaders in eight key markets. The Edelman Trust Barometer, which is being presented at the World Economic Forum in Davos, found that:

  • "A person like yourself" experienced a significant jump in credibility as a spokesperson in both the U.S. (22% in Jan '03 to 56% in Jan '05) and in Europe (33% in Jan '03 to 53% in Jan '05).

  • Experts who are seen as having no vested interest in the welfare of a company - "doctors or healthcare specialists" (>56%), "academics" (>49%), "a person like yourself" (>49%), and "representatives of NGOs" (>47%) - are the most trusted spokespersons.

  • In the U.S., Europe and Japan, fewer than three in every 10 opinion leaders said that CEOs or CFOs are credible sources of information.

  • During the last 12 months, the Internet's popularity as a "media source to turn to first for trustworthy information/news" has spiked significantly - from 12% to 19% in the U.S.; 9% to 13% in Europe; 10% to 21% in Brazil and 14% to 27% in China. The Web is now the #3 media source turned to first, after television and newspapers.

  • The trust void in institutions - business, government, media - is being filled by NGOs, whose trust ratings have trended up in U.S., from 36% in 2001 to 55% in 2005. NGOs are now the most trusted institution in every market except China.

  • Approximately nine of ten people across all markets believe information conveyed by articles or news stories more than advertising, and more than 80% of respondents overall do not believe information unless they see or hear it from multiple sources."The continuing deluge of scandals has caused a dramatic shift in how opinion leaders gather and assimilate information," said Richard Edelman, President and CEO, Edelman."The trust void and democratization of information compels corporations to fundamentally rethink their approach to communications. You can't buy trust by speaking at audiences through advertising. CEOs need to engage stakeholders in a very personalized way, through local media and in direct dialogue via the Internet, empowering employees while using credible third parties as spokespeople."

    Trust Discount for U.S. Corporations in Canada and Europe
    For the second straight year, the Edelman Trust Barometer found that opinion leaders are significantly less likely to trust individual U.S.-based global corporations operating in Europe and Canada, such as Coca-Cola (U.S. = 69% vs. Europe = 45% and Canada = 46%); McDonalds (58% vs. 25% and. 35%); Burger King (53% vs. 21% and 27%) P&G (74% vs. 44% and 49%); and Citicorp (CitiGroup) (56% vs. 25% and 30%). However, there is no trust discount for U.S. companies operating in Brazil, China or Japan. Nor does a trust discount exist for Asian and European companies in the U.S.; major non-U.S. corporations have similar trust ratings in every market, such as Shell (U.S. = 46% vs. Europe = 40%); Nissan (U.S = 68% vs. Japan = 63%); Danone (U.S. = 58% vs. Europe = 55%); and Siemens (U.S. 57% vs. Europe = 60%).

    The study suggests that the trust discount for U.S. corporations in Europe and Canada is tied to opinion leaders' perceptions of U.S. culture, values and government. Thirty-two percent of Europeans stated that they are "less likely" to purchase U.S. products because of American culture. More than 40% of opinion leaders in Canada, Europe and Brazil are "less likely" to purchase U.S. products because of the Bush administration. American culture remains a relatively positive attribute in Japan, China and Brazil where 50% or more say it makes them "more likely" to purchase U.S. products.

    Across all eight markets, trust is highest in technology and electronic companies (Microsoft, Samsung, Sony, IBM etc.) and there is no drag associated with any country of origin.

    "The trust discount issue goes beyond the dislike of the Bush administration to a more serious question of American culture and values," said Michael Deaver, Vice Chairman, Edelman.

    "American companies must particularly focus on building credibility in Europe and Canada, by being as local as possible in their face to the market, while engaging in continuous dialogue with local stakeholders."

    Customized Approach Needed in Local Markets
    Overall, the Edelman Trust Barometer finds a significant divergence of views with opinion leaders in the U.S., Brazil, China expressing more far confidence in institutions - business, government, NGOs and media - than do their counterparts in Europe, Canada and Japan. There are dramatic differences by market in the drivers of trust and in the sources that respondents turn to for credible information, including:

    • Corporate philanthropy, which ranked #1 in the U.S. and Brazil as the corporate behavior that earned opinion leaders' trust, was ranked last in Europe and second to last in China. In Europe and Canada, "listening to stakeholders" ranks #1; in China, "highly visible senior management" heads the list; and in Japan, "positive coverage in the local media" ranks first.

    • Television continues to be the source that opinion leaders "turn to first for trustworthy information/news," followed by "newspapers," except in France and Japan where the situation is reversed.

    • Opinion leaders in every market cited key local or national media as their top sources of trusted information, challenging the convention that media is increasingly global.

    • In four of the markets, the most credible sources of information about companies are "articles in business magazines," followed by "newsweeklies" and "friends and family," while radio is ranked in the top two in Europe and China.

    • In Europe lawyers are considered credible by more than twice as many influencers than in the U.S. In most markets, the least trusted spokespersons are "entertainer/athlete" ("There is a divergence of views between the U.S., Brazil, and China versus Europe, Canada and Japan. We believe global reputations can only be built by corporations that articulate a global narrative while empowering local operations to act within local market sensitivities," said Richard Edelman.

      About the Edelman Annual Trust Barometer The Edelman Annual Trust
      Barometer tracks the attitudes of 1500 opinion leaders around the world-- which institutions, companies, sources of information they trust, what drives that trust the credibility of institutions, sources of information and the drivers of trust. The sixth survey was conducted through 25-minute telephone interviews among 1500 opinion leaders: 400 in the United States; 450 in Europe - 150 each in the United Kingdom, France and Germany; 200 in China and 150 in Canada, Brazil and Japan between December 2003 and January 2004 by StrategyOne. Opinion leaders are defined as being between 35-64 years, college educated with a household income of more than $75,000 or equivalent and report a significant interest and engagement in the media, economic and policy affairs. There is no tracking data for Japan and Canada, which were added this year.

      About Edelman
      Edelman is the world's largest independent public relations firm with 1,800 employees in 39 offices worldwide. In 2003, The Holmes Group named Edelman "Agency of the Year," and PRWeek voted its work for CIT "Best Campaign of the Year," the industry's most prestigious award for client programming. Edelman's network includes four specialty firms - Blue (advertising), First&42nd (management consulting), StrategyOne (research) and BioScience Communications (medical education and publishing) - making it possible for us to offer clients a comprehensive spectrum of communications. Visit www.edelman.com for more information.

      * Business-savvy, college-educated individuals with incomes of more than
      $75K or equivalent

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