Edelman

In a year of political and economic turmoil, trust in government fell by 11 percentage points since 2009 in, to an all time low of 20%. This compares to a global average of 52%, according to the latest findings of the annual Edelman Trust Barometer which is conducted in 23 countries. Ireland is now the least trusting of government out of all the EU member states surveyed.

Key Findings of the 2011 Edelman Trust Barometer:

• Ireland was ranked in last place of 23 countries surveyed in the 2011 Edelman Trust Barometer Index, which is an average of a country’s trust in the four institutions of government, media, business and NGOs.
• In Ireland trust in the system of government at 20% is the lowest of 23 countries surveyed
• 82% of Irish respondents believe that Government must regulate to ensure business behaves responsibly
• Globally trust in government increased by five points to 52% over the past year
• Trust in Irish business is on the rise increasing by 15 percentage points to 46% in one year
• Globally trust in business also increased to 56%, up 2 points compared to 2010
• The technology sector (75%) is the most trusted industry in Ireland with banks the least trusted (6%)
• Ireland has low trust in the media at 38% which is on a par with most other EU countries
• Traditional news sources (newspapers, TV, radio), as well as online search engines, are the most trusted sources of information
• Content-sharing sites and social networking sites are the least trusted sources of information
• Globally, 61% of survey respondents say they trust NGOs, making NGOs the most trusted of all institutions
• This trend is reflected in Ireland with 53% of respondents trusting NGOs, making NGOs also the most trusted institution in Ireland

Trust in Irish business recovered to 46%, up 15 percentage points signaling a marked improvement considering the financial turmoil of the past year. Despite the improvement, trust in Irish business remains low and is within five points of Russia, the least trusted country for business.

Trust in Irish banking plummeted by 20 percentage points since 2009 almost a quarter with only 6% of respondents now trusting the sector. This marks an all-time Barometer low for a least trusted industry on a global basis.

Trust in the Irish media also remains low at 38% which is on a par with most other EU countries. NGOs were the most trusted institution in Ireland which is reflective of the global trend with NGOs recording a global Trust rating of 61%.

Despite ongoing negative international media coverage, the Barometer findings suggest that this has not affected sentiment toward Ireland. 14 of the 23 countries surveyed, including key trading partners like the US and UK report trusting global companies headquartered in Ireland.

In the Trust composite score, an average of a country’s trust in all four institutions (government, media, business, NGOs), Ireland was ranked in last place just behind Russia and the UK.

The findings of the Barometer point to a Trust deficit across all institutions in Ireland with the exception of NGOs.

Commenting on the results, Mark Cahalane, Managing Director, Edelman Ireland, said, “The deep and continuously low levels of trust in business and our system of government reflect the economic challenges and negative sentiment which has been experienced over the past year. It is noteworthy that across the western world trust in governments and banks are closely related. This is particularly so in Ireland where only one in five now trust our system of government. A recovery in trust will require increased levels of transparency, a constant articulation of the actions being taken to rebuild confidence, as well as acceptance by those in positions of authority that full responsibility must be taken for the current crisis.”

Despite the loss of confidence in the system of government, just over 80% of stakeholders surveyed in Ireland believe that government must regulate corporations’ activities to ensure that business is behaving responsibly. On a global basis, sixty-one percent of stakeholders shared this view. Almost 90 percent of stakeholders in Ireland also want business to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value.

“The message cannot be clearer. Business is seen as a potential solution to our economic challenges but it cannot be trusted or expected to act alone. Equally, there is a new expectation of business to align profit with social purpose for the benefit of Irish society. This marks a clear shift from the years of economic boom where profit was chased at all costs with poor regulation and limited government intervention. Irish society is now paying the price. Businesses who respond to this new dynamic of aligning profit and social purpose will be the leaders in Trust and corporate reputation,” Cahalane added.

Search engines rank as the first place Irish people go for information about a company, following in the ranking of sources people go to first for information are print/broadcast media and online media. Traditional radio, television and newspapers, as well as online search engines rank as the most trusted sources of information in Ireland which is similar with major markets including the U.S., the UK and China.

The survey also shows that trust in most industries in Ireland is up, which reflects the global trend. Technology remains the most trusted sector (75%) followed by the food and beverage (64%) and the automotive and entertainment sectors (both 61%).

Other key findings of the 2011 Edelman Trust Barometer include:

• For government and business to re-earn trust when faced with a crisis the following actions rank highest in importance for Irish respondents – take full responsibility for the crisis (85%), take actions to protect the welfare and safety of customers and employees (81%) and openly communicate about the extent of the crisis (81%). Minimising the impact of the crisis to protect company reputation (19%) and keeping information private to minimise reputational damage (8%) rank as the least important actions to take during a crisis.
• Business is more trusted than government in one-third of the 23 countries surveyed.
• Globally, in the last 12 months, 85 percent of respondents report they have bought the products or services of a company they trusted. Conversely, 73 percent say they refused to buy products or services from one they did not trust.