CorpComms Magazine

Consumer confidence has been massively affected by economic crisis and corporate conduct, according to the first European Trust & Purpose survey by Burson-Marsteller.

Management of the credit crunch and corporate and bank-related crises have led to a 36 per cent drop in consumer trust in multinational corporations since 2009, while their trust in the management has slumped 50 per cent over the period.

Trust in governments throughout the European Union has decreased by 51 per cent in the last two years. Greece, which received a bailout worth €110 billion and is currently in negotiations with the IMF regarding a similar sized secondary bail out, has been worst hit.

More than three in four (78 per cent) of the Greek population trust the government less than they did in 2009; only 13 per cent actually trust the country's politicians making them the least regarded within Europe.

Perhaps unsurprisingly, consumers have little faith in financial services with just 28 per cent of those surveyed saying that they trust this sector. Similarly, with household energy prices rises adding an average of £239 on bills since April 2010, trust in energy companies has fallen.

Energy provider Scottish Power has already unveiled a 19 per cent increase in gas prices and a 10 per cent hike in electricity prices, affecting 2.4 million households.

Consumers have most faith in computer technology companies, which are trusted by 71 per cent of those surveyed, while 64 per cent trust supermarkets and 63 per cent trust food companies.

Of the 3,161 surveyed, 80 per cent agreed that they would be prepared to pay more for services and products produced fairly.

Jeremy Galbraith, chief executive of Burson-Marsteller, said: 'It is not an exaggeration to say that the 2008 economic downturn has had a catastrophic impact on trust in corporations and the people who lead them. The financial crisis has transformed the way people view companies and corporate leadership. Trust is no longer something that corporations can take for granted - it has to be earned by nurturing a close relationship with consumers and other stakeholders and consistently proving a commitment to the things that matter to them.'

The survey found that consumers were more likely to trust a local or smaller business, and least likely to trust international firms that provide an impersonal service. Those surveyed said that they were more likely to believe front-line staff who are less likely to be driven by personal-profit.

The research showed that consumers rank fair treatment of employees within a corporation highly. The consensus was that direct communication from a company is important, and that third-party interaction on a company's behalf was less trustworthy. Galbraith said: 'This shows the fundamental need to re-build corporate reputations and change the way companies communicate. Having a corporate purpose integrated into your business strategy and ensuring it is communicated, and understood, internally and externally is an important part of this.'

Less trusted than the financial services sector are religious leaders; just 24 per cent of consumers trust them.

The survey showed that Europeans are more likely to trust an Australian, Japanese or American company than a Chinese, Indian or Brazilian one. Just 12 per cent trust Russian companies.

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