When it comes to corporate trust, people no longer rely on a single source for information. This is one of several principle findings of the new 2006 global Trust Barometer
research report conducted by Edelman PR as it pertains to PR and marketing communications. The Trust Barometer, now in its 5th year, surveys 1,200 opinion leaders in 11 different
nations and provides results globally, pan-regionally, and by institution and industry sector.
Why Trust?
Trust is an inherent attribute for any institution or brand. Without trust, market share suffers, brand value goes down, and working relationships are less productive. Says Richard
Edelman, president and CEO of Edelman, in presenting the findings of the Trust Barometer at the U.S. Chamber Business Civic Leadership Center's 2006 Partnership Conference, "Every
major institution has trust issues, which is why we continue to do the Trust Barometer study. Trust is a problem for American companies."
Trust starts with a vision and values, keeping the promise of that vision and its inherent value. The translation of trust into behaviors - and the subsequent communication of
behaviors and values - is a task that is effectively accomplished through Corporate Social Responsibility (CSR) communications.
CSR communications through transparency can help obtain lost trust. Resurrecting lost trust can exert great strain on the organization and it's PR and marketing staff. (See chart)
How You Communicate Matters
According to the Trust Barometer report, people's perspectives on how information becomes believable have shifted. The report identified several categories of importance: message
repetition, the use of various media to communicate, balanced information, credible spokespeople, the use of peer-to-peer communications, and stakeholder engagement.
Southwest Airlines is an affirmative example of a company that has long engendered trust by the alignment of its communications with its mission and, most importantly, behavior.
This is despite being in an industry subject to terrorist attacks, rising fuel costs, and labor issues (that have led many of its larger competitors to file for bankruptcy
protection). An interwoven culture has kept trust and reputation on track.
Mixed Media
In the U.S., consumers go to the Internet as well as print and TV to find or share information, making all three media equally important, according to the study. What the Internet
does differently is allow people to communicate, uncensored. Many people have searched on Google or engaged in a blog.
Because bloggers can spread messages faster than many PR departments, PR and marketing executives must link word-of-mouth techniques with mass media to achieve integrated
communications effectiveness. Adapting to the new media environment and to a higher call for ethical communications as well as behavior will help stakeholders trust institutions.
Stakeholders
The Trust Barometer reports that NGOs (non-governmental organizations) are now the most trusted institution in the U.S. over the media, business and government.
Recognizing this shift in influence, companies are beginning to include NGO input into decision-making and to help set measures of social and environmental performance. Hewlett-
Packard has set up a stakeholder engagement task force. Pfizer has hired a full time manager. NGOs may help companies broaden understanding and find practical solutions to societal
and environmental problems, and thereby avoid headline-grabbing issues that damage trust and reputation.
In the case of Chiquita, the risks associated with not living up to the criteria of all stakeholders has affected its corporate reputation.
In the aftermath and as a result of working together with the Rainforest Alliance (a NGO), David McLaughlin (senior director for social and environmental performance, Chiquita,
Costa Rica) says, "We saved $100 million through operational efficiencies and effected improvements along 200 environmental and labor measures." Since then, Chiquita has won a
citizenship award from Social Accountability International. The Rainforest Alliance helped to transform an industry. First, however, the two partners had to sit down, communicate and
trust one another.
The realization that NGOs have influence is in part based on corporations accepting this as reality. At the 2006 Ethical Corporation Public-Private Partnerships U.S. conference,
NGOs shared the stage equally with representatives of multinational corporations. The dialogue drew out recognition of a new or maturing paradigm. Specifically, that straight NGO
advocacy models are morphing to new forms including operational/service partnership models where the NGO and business collaborate to find solutions.
Looking Out
The 2006 Trust Barometer report leads to several key insights on the role of corporate trust for PR and marketing. First, trust is the core foundation for any organization. Second,
you can no longer rely on one media outlet and must allocate resources for mixed media. Third, feedback and inclusion among all stakeholders must be done simultaneously and become an
acknowledged component of communications plans.
Companies today are a force not just in business, but in society. PR and marketing managers have the opportunity to use CSR communications, which uses a full set of facts and
information, both positive and negative to have transparency and signal credibility on applicable topics. When a company is transparent, the more its brand will be accepted and
trusted. PR and marketing professionals have the chance to help organizations become relevant and open, especially to the sustainability community, and thus earn trust and build
stronger brands.
(This article was written by Susan Nickbarg of SVN Marketing, LLC. She can be reached at 301.588.6430 or [email protected].)
Contacts:
Richard Edelman, 212.768.0550; David McLaughlin, [email protected]