Yet, Google is expanding and experiencing exponential increases in traffic, while the latest number of Facebook users suggests that if it were a country, Facebook would be the third largest nation in the world.
Or, is it that we’re all a bit fickle with our trust, and relish the opportunity to complain about big business?
When it comes to our trust in companies, what is our breaking point?
Nestle still can’t shake a large number of baby formula critiques, despite its strong commitment to sustainability, and active engagement with a variety of stakeholders and critical friends. (You can find interesting debates in the video coverage of last week’s Creating Shared Value event)
BP’s integrated sustainability measures will be overshadowed by the reputational damage of the recent oil spill for years to come.
The Bodyshop fell under mass criticism for false claims about testing on animals. Now, decades later, they are frequently heralded as a sustainability leader amongst multinational companies.
What can we learn from recent trustworthy research?
Key trends revealed by Edelman’s annual Trust Barometer:
• For the first time, this year’s survey suggests that trust is as important as important to corporate reputation as the quality of their products and services.
• Global trust in business is up modestly but the rebound is fueled by a spike in a handful of Western countries, especially the United States where it jumped 18 points to 54%.
• Trust in business remains high in three of the four BRIC countries, with Brazil, India, and China above 60%.
• Trust in banks declined dramatically in most Western countries, plummeting 39 points (68 to 29%) in the U.S. and 20 points (41 to 21%) in the U.K. from 2007-2010.
• While Sweden, Canada, and Germany remain the most trusted countries for global headquarters (76, 76, and 75%, respectively), the U.S. is now trusted by 61%, up 10 points from last year. China rose by seven points in this category (27 to 34%).
• In all 22 countries, when asked which stakeholder should be most important to a CEO’s business decisions, respondents replied that “all stakeholders are equally important” – by as much as a 4:1 margin against individual stakeholders.
• Trust in business jumps by 26 points in Italy, 18 points in the U.S., 15 points in the Netherlands, and 14 points in Spain. In Russia, trust in business falls by 10 points (to 42%).
• Trust in government is stable, with significant moves in the U.S. (up 16 points to 46%) and in Russia, where trust decreased by 10 points to 38%.
• In 20 countries, corporate or product advertising continues to be the least credible source of information at 17%.
• In the U.S., U.K., Germany and the BRIC countries, more than 70% say that actions such as firing non-performing managers, repaying bailout money, or reducing the pay gap between senior executives and rank and file workers would restore their trust in the company.
Key Findings from AccountAbility’s What Assures Trust in a Downturn?
• Consumers are uncertain about who to turn to in order to reinstate their trust in business.
• There is an “accountability gap” between the institutions consumers deem to be accountable for ensuring sound business behaviour, and the trust held in those institutions to deliver. Regulators and businesses themselves score 60% and 56% respectively for their responsibility, yet only 22% and 6% of people trust them to deliver.
• Most survey respondents predict their use of ethical labels will be maintained.
• 73% of consumers say fair treatment of employees and suppliers are the priorities for what makes a responsible business.
• There is a generational difference in consumer perceptions of “who is responsible.” While the over 55s are more likely to make an effort to buy responsible products, they are also more likely to think that consumers have a personal responsibility to ensure business behaves well. Conversely, the under 24s externalise responsibility, putting the onus back on businesses, government and regulators.
• The following graphs illustrate the potential rewards and penalties consumers place on non trusted businesses:
Additional trust rankings are offered by PWC’s Building Public Trust awards and
Reader’s Digest European Trusted Brands 2010.
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