Trust May Be Declining But Still Critical

The executive summary of the annual Edelman Trust Barometer* was released in London last week.

Now in its 10th year the Barometer is a measure of the trust people around the world have in institutions. Not surprisingly in the midst of very difficult times in global markets, trust in business and government is on the decline.

Edelman reports "62% of 25-to-64-year-olds surveyed in 20 countries—say they trust corporations less now than they did a year ago. When it comes to being distrusted, business is not alone. Globally, trust in business, media, and government is half-empty; and trust in
government scores even lower than trust in business".

However not for profit organisations are the most trusted global institutions. Which should encourage those community groups, charities and others that struggle to get attention. State your case clearly and people are likely to respect what you have to say, more so than information from other types of organisations.

But does trust really matter? According to the survey the answer is a resounding "yes":

• In the past year, 91% of 25-to-64-year-olds around the world indicated they bought a product or service from a company they trusted.

• 77% refused to buy a product or service from a distrusted company.

• Being able to trust a company is one of the most important factors in determining a company’s reputation, ranking just below the quality of its products, the treatment of employees and on par with its financial future.

• Companies seen as responsible are significantly more likely to be supported in their efforts to sell goods and services, pursue changes in local laws, seek preferential treatment or have foreign investors assume a controlling stake in the business.

Trust from stakeholders is one of the most important assets a company can have. It is difficult to define and harder to earn. And paradoxically we most appreciate the value of trust when it is absent. Trust provides the foundation for effective public relations and that's why as communicators we need to be among the leaders in our organisations in continually nurturing and growing it.

The complete report is expected to be released in the next few weeks.

Source of information: Edelman PR