July 30, 2009
Trust in business has stabilized and is recovering significantly in some of the world's largest markets, according to a six-country 2009 Midyear Edelman Trust Barometer Report, an abridged version of the firm's annual trust and credibility survey.
Especially notable are the report's findings that:
- Trust in business among 25- to 34-year-olds in the US has rebounded, after a sharp decline in January 2009. 58% in this age group now say they trust business to do what's right—up by 26 points.
- Technology is by far the most trusted industry, now 15 points ahead of the next most trusted industry—biotech/life sciences.
- Trust is almost as important as cost in determining purchasing decisions, with 53% saying that in the past six months they switched brands for a lower cost and 45% saying they switched because they lost trust. “Trust is now a tangible in both corporate reputation and product marketing,” said Mr. Edelman.
When asked what companies could do to rebuild trust in the long run, survey respondents rated the following actions far above increasing shareholder value (66%):
- Treating employees well (94%)
- Having transparent business practices (93%)
- Maintaining quality products and services (93%)
- Communicating frequently and honestly (91%)
This supports the assertion by Edelman President and CEO, Richard Edelman, that “It’s a stakeholder, not a shareholder, world.” The most important stakeholders are customers (70%), followed by employees (58%) and investors (49%), the survey found.
This report provides further evidence that we live in economy of trust. A holistic, user-centered approach to building trust, your brand and your market strategies has never been more critical to success.
The 2009 Midyear Edelman Trust Barometer Report, along with the original Edelman 2009 Trust Barometer study, is an insightful and thought provoking piece to look at as you consider your next steps.
