'A Person Like Me' Now Most Credible Spokesperson for Companies;
Trust in Employees Significantly Higher Than in CEOs,
Edelman Trust Barometer Finds
Survey Shows Microsoft as Most Trusted Global Company and Technology Most
Trusted Sector; Television, Not Newspapers, Loses Ground to Internet as
Trusted Source
NEW YORK, Jan. 23 /PRNewswire/ -- Global opinion leaders say their
most credible source of information about a company is now "a person
like me," which has risen dramatically to surpass doctors and academic
experts for the first time, according to the seventh annual Edelman
Trust Barometer, a survey of nearly 2,000 opinion leaders in 11
countries. In the U.S., trust in "a person like me" increased from 20%
in 2003 to 68% today. Opinion leaders also consider rank-and-file
employees more credible spokespersons than corporate CEOs (42% vs. 28%
in the U.S.).
The Edelman Trust Barometer found Microsoft Corporation the most
trusted global company, followed by iconic companies in their home
markets, including Toyota in Japan, Haier in China, Samsung in South
Korea, and Petrobras in Brazil.
"We have reached an important juncture, where the lack of trust in
established institutions and figures of authority has motivated people
to trust their peers as the best sources of information about a
company," said Richard Edelman, president and CEO, Edelman. "Companies
need to move away from sole reliance on top-down messages delivered to
elites toward fostering peer-to-peer dialogue among consumers and
employees, activating a company's most credible advocates."
This year's survey assesses the impact on trust of a company's
national origin, industry sector, behaviors and communications
policies. Key findings, which are being presented this week at the
World Economic Forum in Davos, include:
* Opinion leaders in Europe apply a significant "trust discount" for major
U.S. brands, such as Coca-Cola (U.S.= 65% vs. Europe= 41%); McDonalds
(51% vs. 30%); P&G (70% vs. 44%); and UPS (84% vs. 53%). There is no
"trust discount" for non-American global brands operating in the U.S. or
any other market (e.g. Sony = 74% in Japan, and 79% in the U.S.), with
the exception of Japanese brands in China.
* Western based companies continue to make big strides in winning trust in
the Chinese market. Big gainers this year included Citigroup, Procter &
Gamble, Shell, Unilever and UPS, all now rated trustworthy by more than
75% of Chinese respondents, and up from under 50% two years ago.
* German and Canadian companies are highly regarded by more than 70% of
opinion leaders in every market surveyed. Less than 40% of opinion
leaders expressed trust in global companies headquartered in emerging
markets such as China and India, as well as in Korea. Such companies
face particular trust deficits when seeking to buy companies in overseas
markets.
* Companies in the technology and retail sectors are the most trusted,
while energy and media-entertainment are the least-trusted industries.
Pharmaceutical concerns face considerable skepticism in the U.S. and
Germany, while financial firms fare much better in the U.S. and Asia
than in Europe.
* Television is the big loser in media trustworthiness with the rise of
the Internet. When asked where they turn first for trustworthy
information, 29% of respondents in the U.S. still cite TV first, down
from 39% three years ago. The Internet is now cited by 19%, up from 10%
in 2003. The same trend is evident in the U.K., where television has
declined from 42% to 33% as respondents' first choice, while the
Internet has risen from 5% to 15%. Newspapers, which are often thought
to be the most serious casualty of the Internet wave, show rankings
essentially unchanged in most markets at approximately 20%. Newspapers
remain the first trusted medium of choice for respondents in France,
Germany, Japan, Brazil, Korea, and Italy.
* "Articles in business magazines" is the most credible source of
information about a company (US = 66%, Canada = 53%; Brazil = 75%
Europe = 60%), followed closely by "friends and family," which has grown
very strongly in the U.S. ('03=35% vs. '06=58%); Brazil ('04=66 vs.
'06=73%) and Canada ('05=43% vs. '06=58%).
* Trust has important bottom-line consequences. In most markets, more
than 80% say they would refuse to buy goods or services from a company
they do not trust, and more than 70% will "criticize them to people they
know," with one-third sharing their opinions and experiences of a
distrusted company on the Web.
* Trust in institutions overall is lowest in Germany and France, and
highest in China, Brazil and the U.S. Business was trusted by only 33%
of respondents in Germany, and only 28% in France, vs. 45% in Spain, 51%
in Italy and 53% in the U.K. (Comparable figures for the U.S. and China
are 49% and 56%, respectively.) Government is the least-trusted
institution in Brazil, Spain, Germany, and South Korea, and remains low
in the U.S. (38%), UK (33%), France (32%), and Canada (36%). It has
increased in China (83%, up from 63% in '05) and Japan (66%, up from 43%
in '05). Trust in media is low across all countries except for China
(73%) and South Korea (49%).
* Trust in Non-Governmental Organizations (NGOs), which have consistently
been the most-trusted institution in Europe during the six years that
the survey has been conducted, has steadily increased in the U.S.
('01=36%, '06=54%); and increased significantly in the last 12 months in
Canada ('05=45%, '06=57%) and Japan ('05=43%, '06=66%). Despite the
survey asking for only trusted global companies, many respondents
volunteered NGOs such as the Red Cross in France and the UK and
Greenpeace in Germany were also frequently mentioned. NGOs are now the
most-trusted institution in every market except Japan and Brazil. The
widespread rise in trust of NGOs has now extended to Asia, especially in
China, where ratings went from 36% to 60% in last 12 months.
"Trust is the key objective for global companies today because it
underpins corporate reputation and gives them license to operate,"
said Michael Deaver, Vice Chairman, Edelman. "To build trust,
companies need to localize communications, be transparent, and engage
multiple stakeholders continuously as advocates across a broad array
of communications channels.
For a full copy of the 2006 Trust Barometer please e-mail
Derek.Creevey@edelman.com.
About the Edelman Annual Trust Barometer
The Edelman Annual Trust Barometer tracks the attitudes of nearly
2,000 opinion leaders around the world -- which institutions,
companies, sources of information they trust, what drives that trust,
and the credibility of institutions. The seventh survey was conducted
through 25-minute telephone interviews among nearly 2000 opinion
leaders: 400 in the United States; 750 in Europe; 150 each in the
United Kingdom, France, Germany, Italy and Spain; 200 in China; and
150 each in Canada, Japan, Brazil and South Korea. All interviews were
conducted in October 2005 by StrategyOne. Opinion leaders are defined
as being between 35-64 years, college graduates with a household
income of more than $75,000 or equivalent, and reporting a significant
interest and engagement in the media, and in economic affairs and
policy issues. There is no tracking data for Italy, Spain and South
Korea, which were added this year.
About Edelman
Edelman is the world's largest independent public relations firm, with
2,000 employees in 43 offices worldwide. In 2005, Advertising Age
named Edelman PR "Agency of the Year," and PRWeek named Edelman the
"Agency to Watch" in 2006. Edelman was also named the Pan European
Consultancy of the Year by The Holmes Group. 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 to offer clients a comprehensive spectrum of communications
services. Visit http://www.edelman.com for more information. SOURCE
Edelman
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