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22 November 2009
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NGOs top public trust ratings, poll shows 

Published: Thursday 27 January 2005   

Public trust in Europe and in the US is higher for NGOs than for politicians, business leaders and the media, shows Edelman's annual "Trust Barometer" survey. Food for thought for Davos meeting?

Background:

Edelman's fifth annual "Trust Barometer 2005" was carried out via 1,500 telephone interviews with opinion leaders in eight countries (US- 400; UK, France and Germany- 150 each; China- 200; Canada, Brazil and Japan- 150 each).

Opinion leaders are defined as being between 35-64 years, university educated with an income of more than $75,000 or equivalent and report "a significant interest and engagement in the media, economic and policy affairs".

The results of the Trust Barometer 2005 were presented to business and political leaders at the World Economic Forum in Davos, Switzerland.

More on this topic:

Other related news:

Edelman's fifth annual "Trust barometer" shows public confidence in NGOs outpacing that of governments, businesses and the media.

Published on 25 January the survey shows that NGOs are trusted by 55% of Americans (up from 47% a year ago) and 45% of Europeans (up from 41%). 

By contrast, less than three in ten in both regions believed business leaders such as CEOs or CFOs to be reliable sources of information. This trend is markedly higher when examining Europeans' opinions towards individual US companies. Coca-Cola, for instance, has a trust rating of 69% in the US versus 45% in Europe. McDonalds is trusted by 58% in the US but by 25% only in Europe. This trend is branded by Edelman as "trust discount" towards US corporations operating in Europe. 

In addition, Edelman says that more than 40% of opinion leaders in Canada, Europe and Brazil are "less likely" to purchase US products because of the Bush administration.

According to Edelman, NGOs now fill a "trust void" in governments, businesses and the media and are now "the most trusted institution" in every country surveyed, except China.

Top of the rating list, however, are relatives and peers. "A person like yourself" experienced the highest jump in credibility both in the US (from 22% to 56%) and in Europe (from 33% to 53%).

Other top trusted people - in all regions - include doctors or healthcare specialists, who are seen as having no vested interest in the welfare of a company (56%), and academics (49%).

On the media scene, the internet is increasingly viewed as a trustworthy source of information, rising from 12% to 19% in the U.S and from 9% to 13% in Europe. News articles in general are believed to be more reliable than advertising for 90% of the people in all regions.

Positions:

Edelman organised a debate with several stakeholders at the European Parliament on 25 January to preview the results of the survey. A central topic was the so-called "trust discount" suffered by US companies in Europe and the role played by NGOs in shaping public opinion. EurActiv reports.

"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 democratisation 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 personalised way, through local media and in direct dialogue via the Internet, empowering employees while using credible third parties as spokespeople."

The Secretary General of the Brussels-based think-tank Friends of Europe, Giles Meritt, said "NGOs live on a trust capital which may disappear. They will face trust issues and are lobbyists like others". Meritt said the issue of trust in itself would be worth exploring further. Trust, he argues, "should mean political integrity and not just image".

Jim Murray, the director of the European consumers' organisation BEUC, said that NGOs are outsiders in the US but insiders in Europe, which explains why they are more trusted in the former (55%) than in the latter (47%). Murray thinks the issue of "trust discount" in US companies that can be witnessed in Europe is to be related to "the political agenda of US companies" such as their attitude towards the WTO and WHO.

Steven Kehoe, vice-president of government affairs at Pepsi Europe, said US companies "do suffer a trust discount" but are "acutely aware of it and do a lot to have a good record". Kehoe said NGOs "play a useful role: they keep us honest!" What corporations need to do, he added, is to implement their values at local level.

Robert Madelin, from the Commission's   health directorate (DG Sanco), said he believed a link exists between risk and trust. He asked how could trust in a company reduce distrust in a technology (such as GMOs). Richard Edelman's answer is to "build trust in a technology and process before advertising new products and brands".

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