2009 Edelman Trust Barometer Executive Summary

2009

EDELMAN TRUST BAROMETER

The Global State of Trust

The 10th edition o the Edelman Trust Barometer reports on a year unlike anyother. Government bailed out banks in New York and London. Melamine-lacedbaby ormula rolled o assembly lines into the homes o Chinese parents. American auto executives descended on Washington hungry or handouts. An Illinois governor was led away in handcus. And as a $50 billion Ponzi schemecollapsed, an Indian tech mogul’s raudulent enterprise started to crumble.This year, the world had more reasons than ever beore to suspend its trust—andor the most part, our data reect this. Nearly two in three inormed publics—62% o25-to-64-year-olds surveyed in 20 countries—say they trust corporations less nowthan they did a year ago. When it comes to being distrusted, business is not alone.Globally, trust in business, media, and government is hal-empty; and trust ingovernment scores even lower than trust in business.

2009

EDELMAN TRUST BAROMETER Top 2 Box: Trust lessInormed publics ages 25-64 in 20 countries

Thinking about everything you have read, seen, or heardabout business in the last year, in general, do you trustcorporations a lot less, a littleless, the same, a little more,or a lot more than you did atthe same time last year?

Trust in corporations down around world

Global U.S. U.K. France Germany China India

0102030405060708090100

62%77%67% 67%73%56%49%

% who trust corporations less this year

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In the United States, trust in banks among 35-to-64-year-olds dropped by nearly hal, rom 69% to 36%.Likewise, trust in the automotive industry ell rom60% to 33%.Europe also witnessed a decline:

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Two-thirds o respondents, ages 25 to 64, in nineEU-member countries report they are less trusting o business today than they were at the same last year.

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Trust in business among 35-to-64-year-olds in theU.K., France, and Germany was already at a low levellast year (36%) and stayed there this year.Emerging economies, however, indicated a much higherlevel o trust in business, as well as in specifc industries,than did the United States and EU-member countries.

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In China, the “trust in business” score rose rom54% last year to 71% this year among 35-to-64-year-olds.

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In Indonesia (new to this year’s Trust Barometer), 68%o 35-to-64-year-olds trust business.

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In Brazil, trust in business among 35-to-64-year-oldsclimbed to 69% rom 61% one year ago.

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In China, trust in banks among 35-to-64-year-oldsrose rom 72% to 84%; in Brazil, trust in banks grewrom 52% to 59%.

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In the energy sector, scores rose rom 72% to 83% inChina among 35-to-64-year-olds.

The Trust Divide: WhoIs Losing and Winning the Public Trust?

The overall lack o trust—particularly in business—is not unexpected, but the dierences in trust acrosscountries and economies are surprising. While global-ization has muted lines between cultures andrendered many brands ubiquitous, there are cleardisparities in trust between emerging markets andestablished economies.In no country is trust in a more dismal state than in theUnited States, where government, business, and mediaare all distrusted by respondents (ages 25 to 64) to dowhat is right, even with a new administration electedto power.

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Trust in U.S. business—at 38% down rom 58%last year—is the lowest in the Barometer’s trackinghistory among inormed publics ages 35 to 64—even lower than in the wake o Enron and thedot-com bust.

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The two industries leading the plummet in trust arethose that sought government bailouts in 2008—banking and automotive.

Lack of Trust TriggersDesire for Regulation

The mandate rom this year’s respondents is clear:the old order, in which business had the reedomto operate autonomously and without governmentrestraint, is over.

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Among the global sample o 25-to-64-year-olds in20 countries, by a 3:1 margin respondents say thatgovernment should intervene to regulate industryor nationalize companies to restore public trust.

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In the major Western European economies o the U.K.,France, and Germany, three-quarters o respondentssay that government should step in to prevent uturefnancial crises (73%, 75%, and 74%, respectively).

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In the United States, not even hal (49%) say thatthe ree market should be allowed to unctionindependently.