What Happened to Trust IPRA World Congress 50th Anniversary

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What Happened to Trust?IPRA World Congress
50th Anniversary

• Sir Robert Worcester
• Chairman, MORI
• 27 June 2005

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(No Transcript)
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Trust a topical issue
Financial Times, 4 August 2003
Financial Times, 30 June 2003
Financial Times, 3 March 2004
Financial Times, 1 July 2003
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Some companies are vulnerable

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Shell, Mid-1990s
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Reputation 2004
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Reputation 2004
Boeing hit by fresh criminal inquiry
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Reputation 2004
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Reputation 2004
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Reputation - not a new idea

• Regard your good name as the richest jewel you
  can possibly be possessed of. Credit is like
  fire when once you have kindled it you may
  easily preserve it, but if you once extinguish
  it, you will find it an arduous task to rekindle
  it again

Socrates
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Moving up the Stakeholder Agenda

• Honesty/integrity
• Impact on society
• Contribution to debate

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Who is a Stakeholder?
Anyone who can bugger up the business
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CSR or CR?
Corporate Social Responsibility
Communities Employees Environment Developing world
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Decline in trust widely accepted
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Lets look at the evidence
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Europe The Establishment?
Base All Adults
TRUST IN THE POLITICAL SYSTEM AND THE UNITED
NATIONS "I would like to ask you about how much
trust you have in certain institutions. For each
of the following institutions, please tell me if
you tend to trust it or tend not to trust
it." Base All Adults
Q. "I would like to ask you about how much trust
you have in certain institutions. For each of the
following institutions, please tell me if you
tend to trust it or tend not to trust it."
Source US Harris International Eurobarometer


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TRUST IN THE POLITICAL SYSTEM AND THE UNITED
NATIONS "I would like to ask you about how much
trust you have in certain institutions. For each
of the following institutions, please tell me if
you tend to trust it or tend not to trust
it." Base All Adults
Europe The Government?
Q. "I would like to ask you about how much trust
you have in certain institutions. For each of the
following institutions, please tell me if you
tend to trust it or tend not to trust it."
Source US Harris International Eurobarometer

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Europe The Media?
Q. "I would like to ask you about how much trust
you have in certain institutions. For each of the
following institutions, please tell me if you
tend to trust it or tend not to trust it."
Source US Harris International Eurobarometer
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So, there has been a precipitous loss of trust
or has there?
Trust them to tell the truth
Not with Doctors
Nor Police
Nor Business leaders
Nor Government ministers
Nor even Journalists!
Source MORI/BMA
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There has been a precipitous loss of trust
but what about civil servants?
Trust them to tell the truth
Doctors
Police
Nor Civil Servants
Business leaders
Government ministers
Journalists
Source MORI/BMA
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There has been a precipitous loss of trust
but what about scientists?
Trust them to tell the truth
Doctors
Certainly Not with Scientists
Police
Civil Servants
Business leaders
Government ministers
Journalists
Source MORI/BMA
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Trust in Scientists? Depends on which
Q Which, if any, of the following scientists do
you most trust to give reliable information about
the environment?
Scientists working for
universities
government
industry
None of these
Dont know
Base 1,002 Adults, May 2002
Source MORI/OST
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There has been a precipitous loss of trust
but what about in America?
great deal of confidence in the people in
charge of running
Military
Major Companies
Medicine
TV News
Congress
Law Firms
Press
Source HI
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There has been a loss of trust
in Latin America
LATIN AMERICA 1996 2003 N.B. Most recent data
(2003) last!
-14
-1
-14
-11
-13
-10
-9
N18.658
N18.658
Q. Please look at this card and tell me how much
confidence you have in each of the following
groups/institutions. Would you say you have a
lot, some, a little or no confidence? Here only
answers A lot confidence plus Some
confidence Source LATINOBARÓMETRO 1996-2003
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What can we learn from business?
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The Keys to Trust

• Alignment
• Delivery
• Honesty

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The nature of trust

• An expectation, without guarantee, of how others
  will behave
• Built up over time, by behaviour and
  communication aligned to our needs

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Building trust in brands
Q Why do you say you trust company/companies ?
Personal experience of dealing with them
Good customer service
Honest/trustworthy
Good reputation/never hear anything bad about them
Good products/services
Base 377 adults across Britain, August 2002
Source MORI
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Brand behaviour can build and destroy trust
Q How often, if at all, have you done each of the
following in the last 12 months?
At least once
Talked to friends/family about companys behaviour
Recommended company because of responsible
reputation
Chosen product/service on companys responsible
reputation
Avoided product/service because of companys
behaviour
Bought primarily for ethical reasons
Base 1,970 GB adults aged 15
Source MORI/The Co-operative Bank
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• The growing importance of Honesty

Q What are the most important factors you take
into account when making a judgement about a
company? (Spontaneous)
Quality of Product/Service
Honesty
Customer care

Base General Public
Source MORI
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Honesty is . . .
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• Reputation honesty increasing in important to
  business leaders

Q What are the most important factors you take
into account when making a judgment about a
company? (Spontaneous)
Management
Reputation
Honesty
Base c.100 Captains of Industry in Great Britain
Source MORI
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• Different orders of priority

Q What are the most important factors you take
into account when making a judgement about a
company ? (Spontaneous)
City
General Public
Investors
Captains
MPs
Lab
Con
Analysts






Honesty/ Integrity
29
29
7
7
4
1
Quality of products/ services
21
25
25
10
13
11
Customer service
22
22
11
0
0
6
Treatment of staff/employees
12
66
13
2
0
8
Financial performance
12
18
61
49
51
40
Quality of management
30
11
1
7
66
76
Environmental responsibility
4
17
25
2
1
3
Social responsibility
2
37
24
4
1
6
For MPs/Captains, figures refer to treatment of
customers

Source MORI
Base Various Audiences, Latest results 2003
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Are your employees good-will ambassadors?
Theyre really serious about it BP Technician
Apologies for the delay. I wasnt told the
train on the other platform would be leaving
first. As usual with the people who run this
railway, customers are the last thing they think
of Announcement by train driver
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Brand and Reputation
The Old World
The New World
Public Affairs
Public Affairs
Marketing
Marketing
Brand
Brand
Reputation
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What can we learn from government?
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We are losing trust in each other
who think most people can be trusted
World Values Survey quoted in lectures by
Richard Layard 2002/3 Happiness has social
science a clue?
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Explaining levels of trust

• Study for Cabinet Office using data from British
  Household Panel Survey
• c15,000 interviews
• c250 variables on demographics,
  income/savings/debt, health, activities, views of
  housing and area, values
• added area factors deprivation, ethnic
  diversity, urbanity
• Regression which factors are most related to
  trust?

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Trust a middle class luxury?
Positive drivers
Negative drivers
Trust inothers
15 of variation in trust in others explained by
model
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The most and least trusting people in the country
Whole populationAverage trust score 4
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The most and least trusting people in the country
Whole population Average trust score 4
Do not want to move
Rent from council
Most trusting group 2 of population Average
trust score of 7
Involved in local groups
Not retired
More diverse areas
Least trusting group 2 of the population
Average trust score of 1
Vandalism/ Crime problem in area
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Provision of Service Locally and Nationally
Q To what extent, if at all, do you agree or
disagree with the following statements?
Agree
Disagree
I am satisfied with the way the Government is
doing its job overall
(-36)
The government has the right policies for the NHS
(-10)
The NHS is providing a good service nationally
(16)
-31
(47)
My local NHS is providing me with a good service
(62)
I was satisfied with my last visit to hospital
Base All respondents (1,031)
Source MORI
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Mistakes dent rather than destroy
. . . IF YOU

• Have built trust
• Address the problem openly and effectively
• Make reparation when appropriate
• Re-stock the well of goodwill

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A Blueprint for Survival

• Try to hit the issues before they hit you
• Create a virtuous cycle of words and actions
• Exorcise corporate-speak
• Get staff on board
• Remember only business can be responsible
  business

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Thank youworc_at_mori.com