Edelman Trust Barometer

 

Cornelia Kunze

On the panel were Viveka Risberg, Swedwatch; Sofia Arkelsten, Moderaterna; Pär Larshans, MAX; Jan Ström, LIF and moderating was Kaj Törok.


Edelman Trust Barometer 2011 PDF of the International Survey
Edelman Trust Barometer 2011 PDF of the Swedish Survey


See below for a summary of the results of the survey:

Business and Government: Trust Stabilizes Globally
In a year marred by corporate crises and financial turmoil for European governments, the 2011 Edelman Trust Barometer finds trust in business and government markedly resilient and sees a shifting center of gravity.  Trust in NGOs, “the fifth estate” in global governance, stays strong.

Trust in Banks Plunges in West; Technology Holds Firm at No. 1; Automotive Rallies
Technology, which is the No. 1 spot for the third straight year, is now followed by automotive and telecommunications and in the US, where GM posted the largest IPO in history, the automotive industry earned back half of the trust it has lost in 2009.  The starkest contrast, however, is between technology and banks.  The dramatic three-year drop in trust in banks in the West keeps this industry stuck at the bottom in global industry rankings.  By contrast, in China, where banks are credited with financing increased prosperity, trust surged by 12 points to 90 percent.

The United States: The Stark Exception
In a reversal of last year’s uptick, the U.S. suffers an across-the-board tumble, with declines in all four institutions.  The downturn in trust in the US in 2010 echoed the drop that resulted from the worldwide financial crisis.  While not as steep a decline, the country lost half of the gains it earned back in 2009.

Credentials Count More Than Ever
Trust in experts rises—and after years of being at or near the bottom, CEOs see increase in credibility.  Trust in all credentialed spokespeople is higher this year, signaling a desire for authority and accountability – a likely result of the skepticism wrought by last year’s string of corporate crises.  Since 2009, academics and experts – long the front-runners – earned another eight points to climb to 70 percent.  For the first time, the Barometer asked about the credibility of a company’s technical expert who is, in turn, deemed “very” or “extremely credible” by a vast majority of 60 percent.

Surround Sound Needed in Time of Skepticism
A jumbled media landscape and the domino effect of corporate and government crises have increased skepticism in key Western nations.  While trust in media as an institution inched up globally, it declined significantly in the U.S. and the U.K.  As in 2009, the majority need to hear something between three and five times to believe it.  But in the U.S. and the U.K., approximately one-quarter say they need to hear something six more times to believe it, twice as many as two years ago.

Trust is a Protective Agent
Trust has tangible value.  Companies that are distrusted and facing an onslaught of negative news will have a harder time changing opinion after the storm than they would if they were trusted at the outset.  This year’s Barometer explored whether trust can diminish the impact bad news has on a company.  The answer is yes.  Fifty-seven percent will believe negative information about a company they do not trust after hearing it just once or twice.  When a company is trusted, however, only 25 percent will believe negative news about it after hearing it once or twice.   The same holds true for positive information, with far fewer believing good news about a distrusted company.  These findings send a strong signal that corporate leaders would be well advised to create a trust foundation so that positive information has an echo chamber in which to resonate.

The Transformation of Trust
Trust in business may have stabilized globally, but it is a different and conditional, premised on what a company does and how it communicates.  In this transformation, there are new expectations for governments, corporations, and leaders – as well as a new architecture for earning trust.  It supplants the “fortress framework” in which corporations have customarily protected their brands, controlled information, and given short shrift to partners, aiming to maximize returns solely for shareholders.  The new model, a “trust triangle”, is based on the expectations for companies to benefit society not just shareholders: be transparent about their operations and profit engines; and engage using a range of spokespeople and all forms of media – mainstream, new, social and owned.  Trust is no longer a commodity that is acquired, but rather a benefit that is bestowed.