2. 2 ABOUT THE SURVEY
Burson-Marsteller commissioned Penn Schoen
Berland (PSB), the global market research and
consulting firm, to carry out the Trust & Purpose
survey. PSB completed 3,161 online interviews
among the general population in the
following countries from 5 May to 16 May, 2011:
Belgium, Denmark, Estonia, France, Germany,
Greece, Italy, The Netherlands, Norway, Portugal,
Spain, Sweden, Switzerland and United Kingdom.
Data was weighted to age and gender
demographics for each country.
3. Introduction 3
We live in turbulent times. The continued sees companies as dishonest and believes that
uncertainty stemming from the global economic most communications from companies are lies.
and financial crisis that erupted in 2008, together
with the corporate and banking excesses that
In 2010 we carried out our first Purpose Impact
were uncovered during this period are having a
Ranking together with IMD business school.
fundamental impact on consumer confidence.
The study ranked 213 European companies in 10
The result - as shown by our first European Trust &
industries according to the effectiveness of their
Purpose survey - is a steep decline in trust in a
Corporate Purpose. It also carried out analysis which
range of organisations.
demonstrated that a strong and well communicated
Corporate Purpose can impact financial perfor-
It is not an exaggeration to say that the downturn mance by up to 17%. Corporate Purpose requires
has had a catastrophic impact on trust in corporations companies to be honest about what they do – and
and the people who lead them. The financial crisis honesty builds trust. So Corporate Purpose is a
and banking collapse have transformed the way fundamental part in rebuilding the trust between
people view companies and corporate leadership. corporations and the people that matter to them.
And while trust in business is not high, it is
even lower in media, central government and
The European Trust & Purpose survey shows that
religious leaders.
rebuilding trust is one of the most fundamental
challenges faced by companies operating in Europe.
Trust in business varies and depends on a Purpose helps guide companies by acting as the
combination of factors. Overall, Europeans trust standard against which all business decisions are
local companies the most, national a little less and validated. Companies need to show they are trust-
international least of all. Similarly, people trust worthy – not just say it. Companies with a Purpose
front-line staff to tell them the truth about a look at the imprint they and their products leave on
corporation, as opposed to its CEO, who is seen as society as a whole, including their employees and
motivated by personal profit and greed. Trust is no customers. Their Purpose is embedded into their
longer something that companies and their overall corporate strategy, well communicated and
corporate leadership can take for granted – it has understood both internally and externally. Having
to be earned by nurturing a close relationship with a Corporate Purpose and sticking to it, even when
consumers and other stakeholders and consistently deviating from it would be more convenient or
proving a commitment to the values that are financially rewarding in the short-term, builds trust
important to them. over time and companies who are successful at
communicating their Purpose will be the leaders
in the challenge of restoring trust.
So what can business do to re-build trust with their
stakeholders? The study shows that over two thirds
of people believe that having a strong Corporate Jeremy Galbraith
Purpose is important. Almost 80% say they would CEO, Burson-Marsteller Europe,
rather pay more for products and services that are Middle-East & Africa
delivered and produced responsible and fairly.
However, the challenge for companies and those
who communicate on their behalf, is that a majority
4. 4 Local is best
While local businesses are most trusted, overall
trust in companies and organisations is very low.
CEOs and central government are the least
trusted and trust in them has decreased
significantly compared to two years ago(chart 1).
The decline in trust in corporate CEOs is the most
marked in Spain, Portugal and Sweden (chart 2).
Least trusting of central government are Portugal,
Greece and Spain. Trust in central government
is also low in Belgium (at the time the survey
was carried out Belgium had been without
central government for 11 months).
Over 50% of Europeans are more likely to trust
companies from Europe. In terms of which
foreign countries are most trusted, companies from
Australia, Japan and the US are the most trusted, with
trust for companies from the BRIC countries being
very low very low. 64% of respondents say they don’t
trust companies from Russia (charts 3 & 4).
5. 5
Chart 1 Provenance is a key factor in trust in business and organisations
• While local businesses are most trusted, overall trust in companies and organisations is very low.
CEOs and central government are the least trusted
21
1
-9 -11 -12
-28
-32 -33 -33
-36
-48 -51
Local Front National International Nationally- International European European My Foreign- Corporate Central
companies line staff companies & organizations owned companies & Parliament Commission local owned CEOs government
& businesses businesses companies businesses government companies
Compared to two years ago, are you more or less trusting of..?
(Showing Among All, Net Trust (Much more + Somewhat more trusting) – (Somewhat less + Much less trusting))
Chart 2 Most trusting of companies and organisations per country
• Overall, trust is very low across all markets towards industries and companies
UK FR IT DE SP SE NO NL CH BE EE DK GR PT
Local companies 25 19 -10 38 6 25 26 34 41 17 -16 42 7 -7
and businesses
Front line staff -10 -5 -7 17 -1 -32 12 14 17 -11 15 12 3 -43
National companies -35 -24 -16 1 -6 -7 0 -8 23 2 -20 4 -18 -20
and businesses
International -14 -10 0 -11 -7 -23 9 -13 -8 -19 -21 3 -53 -3
organizations
(e.g. United Nations)
Nationally-owned -25 -16 -24 13 3 -22 -18 10 22 12 0 -13 -78 -11
companies
International companies -40 -37 -19 -27 -22 -45 -39 -14 -36 -24 1 -25 -17 -5
and businesses
European Parliament -51 -27 -16 -40 -23 -44 -51 -34 -30 -26 -12 -41 -29 -13
European Commission -52 -31 -21 -41 -18 -47 -41 -33 -23 -19 -5 -42 -40 6
My local government -43 -23 -44 -14 -46 -41 -18 -12 -15 -39 -38 -11 -65 -9
Foreign-owned -56 -36 -19 -46 -26 -38 -49 -36 -36 -43 -58 -46 -16 -30
companies
Corporate CEOs -54 -49 -44 -29 -68 -59 -52 -39 -52 -37 -37 -42 -51 -64
Central government -53 -46 -52 -44 -77 -47 -46 -27 -48 -68 -47 -26 -78 -84
Compared to two years ago, are you more or less trusting of..?
(Ranked by Among All, Showing Net Trust (Much more + Somewhat more trusting) – (Somewhat less + Much less trusting))
6. 6
Chart 3 Trust is strongest on the home front
• Trust is far stronger for national companies over foreign-owned ones through over a quarter say
the origin does not matter
I am less likely to
trust companies
that are from
12 Europe
34
66 59 29
I would be more likely to I would be less I am more likely to The origin of a
trust companies that likely to trust trust companies company does not
are foreign owned companies that that are from matter to me; I trust
are foreign-owned Europe them all equally
Which of the following is closer to your opinion? (Showing Among All)
Chart 4 Australia, Japan and the US are the most trusted countries
• Australian companies rank the highest
• Trust for the BRIC countries is very low
56 28 16
55 22 24
48 25 27
21 26 54
18 20 61
14 29 56
14 24 61
12 22 64
Trusted Unsure Not trusted
Thinking about foreign-owned companies, how much do you trust companies from each of the following countries?
(Showing Among All)
7. The reputation of traditional thought leaders
7
has been severely damaged – honesty and
good value are important
Many industry groups are more trusted than tra- The most important characteristics for consumers
ditional thought leaders. Trust in computer tech- when considering which companies to buy goods
nology, supermarkets, food & beverage and auto- and services from are “honest and trustworthy”
motive is higher than in media, central govern- and “products and services are good value”. Fair
ment, religious leaders and politicians; religious treatment of employees and high quality products
leaders and politicians are even less trusted than and services are also important (charts 5 & 6).
the financial services sector. Social Media is
slightly less trusted than traditional media.
Charts 5&6 Many industry groups are more trusted Honest & Trustworthy and good value are
than traditional thought leaders important when purchasing products
• Technology, food and beverage and car companies • People tend to focus on the basics of good value
are the most trusted, traditional community and honest and trustworthy companies over tra-
leaders (NGOs, the media, government, politicians ditional CSR and philanthropy
and religious leaders) are least
Computer, Harware 12 59 71 Honest 40
& Software & trustworth
Online sercices Products & services 39
(Google, MSN,...) 14 55 69 are good value
Supermarkets High quality products 28
9 55 64 & services
Food 10 52 62 Treats its 28
employees fairly
Beverage 7 49 56 High standards in 23
Manufacturers products & services
Automotive 7 48 55 Environmentally 19
conscious
NGOs 8 49 47 Socially 18
responsible
Entertainment Useful products 18
6 38 44
& Television & services
Energy 6 35 41 Inexpensive 16
Providers products & services
Media 4 34 38 Ethical executive 13
leadership
Social Media 7 31 38 Cares about 11
(Facebook, Twitter,...) the community
Financial 3 25 28 Strong corporate 10
Services purpose
Government 3 21 24 Innovative 9
Religious 4 20 24 Hires & promotes 5
Leaders minorities & women
Politicians 2 11 13 Good growth in 5
revenues & profits
History of charitable 3
contributions
For each of the following, please indicate how Thinking about what is important to you about companies,
trustworthy you consider each group or industry to be...? which of the following would you say important when
(Showing Very/Somewhat Trustworthy considering which companies to purchase products
on a four-point scale for Among All) or services from?
(Showing Among All – Respondents allowed to pick up to three)
8. 8
CEO Reputation has taken a severe hit
Corporate leadership is under attack as never
before. Banking bonuses, the financial crisis and
golden parachutes have all undercut trust in
CEOs.
Overall, CEOS are seen to be motivated by perso-
nal profit and are seen as less trustworthy than
employees. Three-fifths believe that CEOs are less
trustworthy than the average employee and
nearly half believe that their motivation is perso-
nal profit. Only 3% believe that executives are
motivated by a desire to contribute to society
through delivering quality products or services.
The lack of trust in CEOs also means that consu-
mers want to hear about a company’s values from
its front-line staff rather than from the board or
senior corporate leadership.
9. Trust and Corporate Purpose 9
The phrase most closely identified with Corporate The 2010 Purpose Impact Ranking found that
Purpose is “Balancing making money with acting a strong, strategically coherent and well
responsibly” (chart 7). This fits with the theme of communicated Corporate Purpose is associated
our 2008 survey which concluded that companies with up to 17 % better financial performance and
that deliver on Purpose & Performance* are builds trust with stakeholders. Communicating
viewed as role models and are more trusted. Corporate Purpose more effectively is also a
growing trend as companies increasingly
Two thirds of respondents in the European Trust understand its impact on financial performance
& Purpose survey said a strong Corporate Purpose and the importance of their social role. Corporate
is important and close to 80% said they would Purpose explains up to 8% of the variation of the
rather pay more for products and services that financial performance of leading European
are delivered and produced responsibly and fairly companies within the same industry.
(chart 8) – this does not mean they all would but
it is an important indication of consumer intent. Corporate Purpose communication is therefore
While consumers believe a company’s highest an increasingly important strategic tool for
priority should be its consumers, the majority feel companies and one that few business managers
however that companies put profits first. Even and corporate communications departments
more worrying, many feel that companies have can afford to ignore – especially in these times
become more dishonest over time and that most of declining trust.
of their communications are lies (chart 9).
Companies’ websites are regarded as less trust-
worthy than personal contacts, third party watch-
dogs, search engines and national TV news.
Corporate websites are perceived as dishonest
and externally-focused, designed only to sell pro-
ducts and services.
Chart 7 Corporate Purpose goes hand-in-hand with business performance
• While acting responsibly is important, money making is seen as part of the definition
Balancing making money with acting responsibly 31
Making money and driving profits 22
A company's guiding principles for making 18
decisions beyond profit making
Producing goods and services for their customers 17
The organisation's approach to doing business 11
Which of the following do you think most closely defines ‘Corporate Purpose
(Showing Among All)
* In 2008 Burson-Marsteller conducted a proprietary survey on the theme of Purpose & Performance in cooperation with Penn, Schoen & Berland in
11 European countries amongst 200 leading corporate executives and opinion-makers (CEOs, presidents, government officials, financial analysts, academics,
NGOs, journalists, and communications heads / managers). The research evidenced that 40 % of a company’s reputation is determined by its Purpose
and 60 % by its Performance. Striking a balance between substance and responsibility in a world where corporations are expected to deliver on profit
and ethics is imperative. However, there is an in-built tension between the two objectives, and management must find a way to strike the right balance.
10. 10
Chart 8 Responsibility and fairness are important
• A strong corporate purpose is important
• And consumers say they would rather pay more for products and services that are produced responsibly
32
23
68 77
A company's corporate A company that has a I would rather pay I would rather pay
purpose is not important strong corporate purpose more for products less for products
to me is important to me and services that are and services and not
delivered and produced know about how
responsibly and fairly they are delivered
and produced
Which of the following is closer to your view?
(Showing Among All)
Chart 9 And companies are seen as dishonest
• Many feel that companies have become more dishonest over time and that they cannot be trusted with personal information
39
61 44 56
Generally, corporations Generally, corporations I'm generally relaxed I'm generally suspicious
and their spokespeople are and their spokespeople about the data that about the data that
honest, and most are dishonest, and most companies store on me companies store on me
communications from communications from and my family, as they and my family, as I think
companies are the truth companies are lies typically only use it for it can often be used in
marketing and customer a way that infringes on
feedback my privacy
72 28
Companies were Companies are
more trustworthy more trustworthy
when I was a kid today than when
I was a kid
Which of the following is closer to your view?
(Showing Among All)
11. Key steps to agreeing and communicating
11
Corporate Purpose
1 2 3 4 5
Agree and
communicate
Identify internal Develop your Purpose internally –
and external Corporate and ensure it is
received and Integrate Purpose Communicate
stakeholders – these Purpose - what is
understood. with the broader Purpose externally
will range from our “reason for
Remember that corporate strategy to stakeholders –
senior management being”? What is the
employees are your and link it to all and ensure it is
and other employees standard against
Ambassadors and key strategic received and
to consumers, which our business
most trusted initiatives. understood.
regulators, media decisions are
and other audiences. validated? spokesmen and need
to buy into the
strategy and
message first.
