Opinion Leaders’ Trust in Business and Government Is Strengthening, Edelman Annual
Trust Barometer Finds
Bush Administration is Least Trusted Government in Key Global Markets;
Affects U.S. Corporations’ Reputations in Europe
New York, January 12, 2004 – Trust in business and government is strengthening in the U.S.
and Europe, and is comparatively higher in Brazil and China, according to the fifth annual
Edelman Trust Barometer, a survey of 1,200 opinion leaders in Brazil, China, France, Germany,
UK, and the U.S. Opinion leaders are significantly less likely to trust individual U.S.-based
global corporations operating in Europe, however there is no “trust discount” for Asian or
European corporations operating in the U.S.
Fifty-one percent of U.S. opinion leaders—business-savvy, college-educated individuals with
incomes of more than $75K or equivalent—now trust U.S. business “to do what is right,” up
from 41% in June 2002 and 48% in January 2003. By comparison, European opinion leaders’
confidence in business rose to 40%, up from 35% in January 2003. Trust in business is strong in
both China (50%) and Brazil (60%).
The Edelman Trust Barometer, which is being presented
at the World Economic Forum in Davos, highlights that U.S. companies are the least trusted in
Europe (38%) and French-based companies are the least trusted in the U.S. (34%).
“Despite the corporate scandals of the last few years, the image of business is proving resilient
with a stronger global economy and tougher government regulations such as Sarbanes-Oxley in
the U.S.,” said Richard Edelman, President and CEO, Edelman. “Now business has an
opportunity to take a lead on key global issues, such as fair trade, intellectual property rights and
obesity. American corporations must particularly focus on building credibility in Europe, by
emphasizing their global brands, while engaging in meaningful dialogue with local stakeholders
and in partnership with governments and NGOs.”
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Page 2. 2004 Edelman Annual Trust Barometer
Commenting on Edelman’s Trust Barometer, Jeffrey Sonnenfeld, Associate Dean of the Yale
School of Management, said “This survey profoundly shows the international image challenge to
U.S. CEOs. The rest of the world sees these great firms in a far more skeptical light than at
home, no matter how ubiquitous their products. Today’s “new breed” of CEOs needs to be
global leaders by being conscious of local cultures and sensitivities.”
Trust in government also increased in the U.S. and Europe. Forty-eight percent in the U.S.
expressed trust in their government, up from 39% in January 2003. In Europe, trust is 31%, up
from 25% in January 2003. Fifty-four percent in Brazil and 67% in China expressed trust in
their respective governments.
The Bush administration is the least trusted government in key global markets. Twelve percent
of opinion leaders in Germany, 13% in France, 20% in Brazil, and 21% in the UK trust the Bush
administration to “do what is right.” Sixty-six percent of Germans are less likely to purchase
U.S. products because of the Bush administration, and 65% are less likely to purchase British
products because of the Blair government. In France, 64% are less likely to purchase U.S.
products, and 59% are less likely to purchase British products due to the current administrations.
Opinion leaders’ trust in non-governmental organizations (NGOs) remains strong, particularly in
Brazil (64%) and Europe (41%), where they are the most-trusted institutions. Two of the top
four brands in Europe are NGOs (Amnesty International and World Wildlife Fund), and they are
ranked among the most trusted brands in the U.S.
The study found that in every market, tangible corporate behaviors drive trust, such as “a history
of delivering top quality products and services” and “listening to customer attitudes and opinions
on satisfaction.” The most credible source for daily news is national country and languagespecific media, such as the BBC, which is first choice of 70% in the UK. Television is the first
“most turned-to” source of “trustworthy information.”
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Page 3. 2004 Edelman Annual Trust Barometer
”Colleagues,” “friends and family,” and “regular people, like yourself,” plus experts who are
seen as having no vested interest in the welfare of a company—academics, doctors and
representatives of NGOs—are the most trusted spokespersons. In the U.S. and Europe, fewer
than two in every 10 people said that CEO/CFOs are credible sources of information.
"You can't buy credibility with just a fat advertising budget, so you need to engage the public -and employees -- with every available tool, and in language they understand,” said Michael K.
Deaver, Edelman's vice chairman. “Successful companies will avoid CEO-speak and
communicate with their target audience through their national media using credible third parties,
and directly via the Internet."
Edelman Trust Barometer Key Findings
o Trust in NGOs, which had been growing steadily in previous years, has peaked and
declined slightly (U.S. = 47% vs. 49% in Jan 03, and Europe = 41% vs. 45% in Jan 03).
o European opinion leaders apply a significant “trust discount” for major U.S. brands
operating in Europe, such as Coca-Cola (U.S. = 66% vs. Europe = 40%); McDonalds (53%
vs. 27%); Procter & Gamble (70% vs. 49%); and Citicorp (47% vs. 26%).
o Asian and European firms do not have a “trust discount” in the U.S. Corporations cited
included Shell (U.S. = 45% vs. Europe = 43%); Michelin (66% vs. 61%) and Samsung (56%
vs. 48%); Bayer (58% vs. 49%); and Deutsche Bank (38% vs. 44%).
o Remedies to issues behind recent corporate scandals that topped the list included
“Independent/strong boards” (U.S. = 18%; Europe = 16%); “greater individual control over
pension/401(k) funds” (18% vs. 17%) and “separating consulting firms from audit services”
(13% vs. 10%).
o “Limits on executive compensation” is more of a hot-button issue in Germany (18%) and
France (17%), than in the U.S. (9%) or the U.K. (6%).
o In most markets, the most credible sources of information about companies are “articles
in business magazines” (>45%), “friends and family” (>42%), “colleagues” (>35%), and
“newsweeklies” (>30%). The least credible are “advertising” and “information conveyed by
CEOs or CFOs.”
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Page 4. 2004 Edelman Annual Trust Barometer
o The most trusted spokespersons in both the U.S. and Europe are “experts” who are seen
as having no vested interest in a company’s welfare—doctors or healthcare specialists,
academics, average people, and representatives of NGOs.
o “An average person, like yourself” experienced a significant jump in credibility as a
spokesperson in both the U.S. (22% in Jan 03 to 51% in Jan 04) and in Europe (33% in Jan
03 to 51% in Jan 04).
o The credibility of “CEO of company” is relatively low (20% in the U.S., and 21% in
Europe, up from 11% in Jan ’03 in the U.S., and down from 26% in Europe).
o Opinion leaders in every market cited key national media as their top sources of trusted
information, challenging the convention that media is increasingly global.
o Web sites did not score highly as daily sources of media, except in China and Brazil where
18% of respondents listed CCTV’s and O Estado de Sao Paulo Web respectively, as key
daily sources.
o Nearly twice as many opinion leaders turn to television first, before a newspaper, as a
source of “trustworthy information,” except in France, where the trend is reversed.
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About Edelman
Edelman is the world's largest independent public relations firm with 1,800 employees in 39
offices worldwide. In 2003, The Holmes Group named Edelman "Agency of the Year," and
PRWeek voted its work for CIT "Best Campaign of the Year," the industry's most prestigious
award for client programming. Edelman's network includes four specialty firms - Blue
(advertising), First&42nd (management consulting), StrategyOne (research) and BioScience
Communications (medical education and publishing) - making it possible for us to offer clients a
comprehensive spectrum of communications. Visit www.edelman.com for more information.
About the annual Edelman Trust Barometer
The fifth survey was conducted through telephone interviews among 1200 opinion
leaders: 400 in the United States; 450 in Europe - 150 each in the United Kingdom, France and
Germany; 200 in China and 150 in Brazil between December 2003 and January 2004 by
StrategyOne. Opinion leaders are defined as being between 35-64 years, college educated with a
household income of more than $75,000 in the U.S. and the equivalent in Europe. In addition,
opinion leaders report a significant interest and engagement in the media, economic and policy
affairs. The interviews were conducted via telephone and averaged 25 minutes in duration.
For further information, please contact:
Derek Creevey
Tel: 212 819 4834
E-mail: [email protected]