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  Business Loses Mandate to Lead; Public Calls for Greater Government Regulation Around World 
  Trust in Business at 10-year Low in United States but High and Rising in BRIC Economies, 2009 Edelman Trust Barometer Finds
  Edelman Public Relations,   Tuesday, January 27, 2009 8:00:00 AM
 
 
 
CORE NEWS FACTS  
 
 
Nearly two-thirds of informed publics (62%) trust corporations less than they did a year ago, according to the 10th Edelman Trust Barometer, released today. When respondents in the United States were asked about trust in business in general, only 38% said they trust business to do what is right—a 20 percent plunge since last year—and only 17% said they trust information from a company’s CEO.
This decline in trust also is playing out on Main Street. Seventy-seven percent (77%) said they refused to buy products or services from a company they distrusted—the first time the survey explored people’s direct actions toward trusted and distrusted companies. Seventy-two percent (72%) criticized a distrusted company to a friend or colleague.
In the major Western European economies of the U.K, France, and Germany, three-quarters say that government should step in to prevent future financial crises (73%, 75%, and 74%, respectively); in the United States, not even half (49%) say that the free market should be allowed to function independently.
Globally, the call for government intervention also extends to issues like energy costs, global warming, and access to affordable healthcare, as respondents, by at least a 2:1 margin, say government has the primary responsibility for solving these issues. But business must collaborate: Two-thirds (66%) expect business to partner with governments and advocacy groups to solve these issues.
Trust in nearly every type of news outlet and spokesperson is down from last year. Trust in business magazines and stock or industry analyst reports—last year’s leaders—decreased from 57% to 44% and from 56% to 47%, respectively. 
Globally, only 29% trust information about a company from a CEO—down from 36% last year.
Only 13% trust corporate or product advertising—down from last year’s low of 20%.
Sixty percent (60%) said they need to hear information about a company three to five times before they believe it.
   
QUOTES  
 
 
Quotes Attributable to Richard Edelman, president and CEO of Edelman
"It has been a catastrophic year for business, well beyond the evident destruction in shareholder value and need for emergency government funding.  Our survey confirms that it’s going to be harder to rebuild our economies because no institution has captured the trust that business has lost—trust is not a zero-sum game. Business must recast its role in society and move beyond simply generating ROI to its shareholders.  It must partner with government and other institutions to assume societal responsibilities.”
"People in emerging economies credit business with improved standards of living, which remain at historically high levels. But this trust gain for business may now be at risk, as 79% of Japanese, 56% of Chinese, and 49% of Indian opinion leaders say they have growing concerns about business, and Korea, Mexico, and Brazil report new low levels of trust in CEOs as spokespeople."
“To regain trust and re-earn the mantle of authority, business needs to make substantive shifts in both policy and communications. This means forging partnerships, effecting real change in business practices from executive compensation to supply chain, and communicating all with transparency. Without this type of public engagement, which fuels trust, it will be difficult for business to help rebuild the financial system or earn the license to innovate, much less operate.”
   
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About the Edelman Trust Barometer
The 2009 Edelman Trust Barometer is the firm’s 10th trust and credibility survey. The survey was produced by research firm StrategyOne and consisted of 30-minute telephone interviews conducted using the fielding services of World One from November 5 - December 14, 2008.  The 2009 Edelman Trust Barometer survey sampled 4,475 informed publics in two age groups (25-34 and 35-64).  All informed publics met the following criteria: college-educated; household income in the top quartile for their age in their country; read or watch business/news media at least several times a week; follow public policy issues in the news at least several times a week.

About Edelman
Edelman is the world’s leading independent public relations firm, with over 3,600 employees in 54 offices worldwide. Edelman was named PRWeek’s “2008 Large Agency of the Year,” Holmes Report’s “2008 Global Agency of the Year,” and listed as top-10 firm in Advertising Age’s “2007 Agency A-List,” the first and only PR firm to receive this recognition. In 2007, CEO Richard Edelman was honored as Agency Executive of the Year by Advertising Age,  and he was cited in 2007 and 2008 as “Most Powerful PR Executive” by PRWeek. For more information about Edelman visit www.edelman.com.
 
 
 
CONTACT INFORMATION    
 
 
Kevin Sheridan
202.312.1091
kevin.sheridan@edelman.com
 
 
 
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