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January 27, 2009
Edelman Trust Barometer 2009 - Paradise Lost
We will discuss the results of the 2009 Edelman Trust Barometer tomorrow morning in Davos in partnership with the Financial Times at the opening of the World Economic Forum. In this tenth edition of the Barometer, we looked at the state of trust through the eyes of 4,475 informed people in 20 countries on five continents.
The staggering losses in financial markets, the need for government bailouts of key industries and the revelation of corporate misbehavior has taken a toll on trust in all institutions. The impact is most profound in the corporate sector, especially in the United States. The problems of corporate trust in 2001-3 were limited largely to New Economy enterprises such as Enron and Global Crossing. This time, companies that are mainstays of the global economy are in serious trouble.
Here are some of the key findings from this year’s study:
1) Trust in business has collapsed in the United States, with American attitudes toward the private sector now comparable to France and Germany, which are historically the lowest among all nations surveyed. This stands in stark contrast to Asia and Latin America, where trust in business remains strong, with increases in trust in markets like Brazil and China, and high overall trust levels in Japan, India and Indonesia, which was a new country surveyed in this year’s Barometer. Trust in government did not rise to offset lower trust in business; Business is still more trusted than government in 13 of the 20 markets surveyed. And while NGOs remain the most trusted institution in nearly every market surveyed, they are not considered most responsible for solving global problems.
2) There is appetite for more government regulation. By a 3:1 margin, respondents agree government should impose stricter regulations and greater control over business across all industries. On important issues such as energy costs, bolstering the financial markets, and providing access the affordable health care, informed publics think partnerships among business, governments, and third parties are the best way for business to help forge solutions.
3) The most trusted sector in nearly every market is technology, followed by biotechnology, and life sciences; the least trusted are banks and insurance companies. In the U.S., automotive and banks fell precipitously, though every sector declined. Companies headquartered in Sweden, Germany, and Canada remain the most trusted; companies based in China and Russia, the least. The American “trust discount” persists in Western Europe, with big companies such as Citigroup trusted by 30% fewer opinion formers in Europe than in the U.S. However, many American companies are even more trusted in Latin America and Asia Pacific than they are in the U.S.
4) The most trusted spokespeople for information about companies are independent experts, such as academics or financial analysts. The least trusted are chief executive officers (now at a level in the U.S. comparable to the post-Enron period) and government officials. A person like yourself is still one of the most credible spokespeople, (note that trust in all types of spokespeople fell from last year’s survey).
5) Trust also waned for all information sources. Stock analyst reports and coverage in business magazines ranks highest, well above newspapers, radio, and television coverage (in most markets). Corporate press releases and company web sites rank below mainstream media; corporate and product advertising is viewed as the least credible information source, and is at a record low in many countries. Trust in information from digital media sources, such as internet search engines and free content sources like Wikipedia are, in some cases, as credible as traditional media, and often more credible than a company’s own communications.
6) Most people now need to hear or see information about a company three to five times to believe it, underscoring the need for multiple sources and multiple voices. Frequent and honest communication and trustworthiness are as important to a company’s reputation as value for money—and just below the quality of a company’s products and its treatment of employees.
7) Trust has tangible consequences. Seventy-seven percent (77%) said they refused to buy products or services from a company they distrusted—the first time the survey explored people’s direct actions toward trusted and distrusted companies. Seventy-two percent (72%) criticized a distrusted company to a friend or colleague.
We have moved from a shareholder to a stakeholder world and to meet its challenges, business must change its approach to policy and communications. You have heard my appeal to the corporate sector for Public Engagement. At Edelman we’ve witnessed its effectiveness through private sector diplomacy, in which business works in cooperation with NGOs and government to address major global issues; through mutual responsibility, a combination of cause-related marketing and corporate social responsibility; through shared sacrifice in the face of the global recession, not just in equitable compensation, but also in supply chain management; and continuous conversation with stakeholders, one characterized by agility, timeliness, and contribution—not control.
I’m optimistic that business has the ability to adapt to this new environment. The rebuilding of trust will not happen overnight; it will go hand-in-hand with a recovery in the economy and a rise in share prices. It requires us to think and communicate differently, to partner in order to preserve license to operate, to be transparent by speaking publicly about goals and then to document successes or failures. It is time for business to put on the uniform and take the field for the second half of the game, to regain the mandate to lead.
Along with Lionel Barber, Editor, Financial Times, we hosted a discussion about the state of Trust this morning in Davos. Click here for photos – here’s yours truly with some rather imposing guests
Posted by Edelman at 11:59 AM |
Comments
Richard, I hope you are well. Thanks for sharing the details of this years study. I would love to next see a new part of the Trust Barometer on green energy, and its reputation and companies using green lifestyle choices for themselves. It would be an interesting addendum to the already interesting Barometer. Also, how are the real green companies, integrators, manufactures etc. seen in different countries and from different origins?
Enjoy the snow in Switzerland,
Sebastian
Posted by: sebastian goeres at January 27, 2009 11:33 PM
This is absolutely the right focus for business communications at the moment, but the challenge for PR agencies is getting their clients to understand quite how much trust has been impacted by economic events, and what is required to turn that around.
Given the conversations I've had with PRs about this recently, it strikes me that for every client who understands the trust factor and the need to get to grips with it, there's another still wanting maximum brand awareness regardless of the quality of the content. Difficult times, changing times and a need for diplomacy! We have our work cut out.
Posted by: Steve Earl at January 29, 2009 7:21 AM
Richard,
You struck a nerve with the following points from “Edelman Trust Barometer 2009 - Paradise Lost”:
The decline in trust was the most profound in the corporate sector.
We have moved from a shareholder to a stakeholder world.
Of utmost importance to a company’s reputation is the quality of its products and treatment of its employees.
Your appeal for more effective public engagement through private sector diplomacy provides a strong foundation for a better future. Beyond this foundation, W. Edwards Deming’s Philosophy for Profound Change provides a, time-tested, roadmap that transformed Japan after WW II.
Perhaps Albert Schweitzer said it best: “In everybody’s life, at some time our inner fire goes out. It is then burst into flame by an encounter with another human being. We should all be thankful for those people who rekindle the inner spirit.”
The Japanese have been thanking Dr. Deming since 1951 with the Deming Prize for Quality. Since the 1980s many American “Deming Companies” and their stakeholders have been thankful to Dr. Deming. It is hard to imagine a more promising second half without a renaissance of trust, quality and value.
Posted by: Hugh Campbell at January 31, 2009 3:35 PM
Hello Richard. I am a bit confused at why it's difficult for us to regain trust among consumers during difficult times. While actions will always speak louder than words, if businesses tell the truth about their actions and motives then consumers will understand. The more businesses and "spin-doctors" within the industry try to cover up and sugar-coat their problems or mistakes, the worse off it is. I think it all boils down to a good set of ethics and reinforcement of the idea that people respect those who are genuine.
Thanks for the excellent report!
Posted by: Mark Taylor II at February 1, 2009 3:59 PM
Mark, to your question regarding regaining consumer trust it's pretty straightforward... It takes years for almost any brand to rebuild its reputation among stakeholders, whether they be consumers, shareholders, stakeholders, etc. Reputation isn't just about corporate transparency, PR and the like but doing what you say you're going to do.
Case in point: Sir Richard Branson was in Seattle today visiting Boeing and he really let loose on the company's delay of the 787 delivery in the local media. It's been a "nightmare for Virgin" and he made it clear that he may look at Airbus. While I don't think Virgin US is a Boeing customer (all Airbus), I do know the rest of the Virgin fleet is a strong mix of Airbus/Boeing.
Boeing is already laying off thousands of layoffs and the last thing they need is for Virgin to cancel its 787 orders. This isn't about "spin doctors," but about product mismanagement and unions convincing their members to go on strike at the possible worst time. All of this chaos will only add to Puget Sound's very battered economy.
I do PR for the tech industry so I may not be directly affected, but it's all a part of the trickle down. Sir Richard was smart to use the local media to help deliver the message to his supplier. He all as much said he can't trust Boeing moving forward.
So very sad and frustrating to hear that message in a community that calls itself "jet city."
Posted by: Pam Miller at February 7, 2009 2:58 AM
Richard,
Thanks again, especially for the excellent graphic. As you know, "trust" is a particularly broad term with many meanings. Some forms of trust change instantly, others glacially. It's good to see a time-frame of the opinions documented in your surveys.
Mark Taylor's comment is deceptively simple. The four Trust Principles that I have identified in my work are very much what he suggests:
1. A focus on the Other
2. A willingness to collaborate
3. A perspective of medium-to-long term
4. A practice of transparency.
Whether it's accounting, or automobiles, or brokerage firms, or food manufacturers, the assiduous practice of those four principles gives a company a tangible roadmap to becoming trusted. (At the risk of being self-serving, we offer companies a Trust Audit to begin focusing on forward progress).
PR firms have a tricky role to play here. They can get the ear of their clients about those principles, but their clients are accustomed to hearing their advice as both shareholder-specific (see Principle 1), and short-term focused in its benefits (Principle 3).
So PR firms have a double job to do here; not only to educate their clients about how to be trustworthy, but to get clients to hear their advice in the first place in somewhat new ways. I have no doubt that, if they rise to the challenge, PR firms will benefit as well.
Posted by: Charles H. Green at February 8, 2009 5:26 PM
Richard - I think it's time that the Edelman Trust Barometer took the next step into gauging an African perspective on trust. I think that the results would add some valuable insights, as the results from other emerging markets have.
Thank you for investing in such valuable research.
Posted by: Nadia Padayachi at February 9, 2009 2:35 AM
Hi Richard:
We briefly met about a year ago at the Paley Center for Media Breakfast that featured David Calhoun of Nielsen. I hope this note finds all well with you.
A quick heads up that today I have blogged and included a reference and link to you 6AM post “Edelman Trust Barometer 2009 – Paradise Lost”.
You can read my post here: http://www.burrellesluce.com/freshideas/?p=163
Also, I have seen that you are “on tour” to discuss the Trust Barometer as I have received various invitations to events around the country to hear you speak about it. To that end, we have successfully partnered with firms similar to yours (Ogilvy and Ketchum come to mind) where we produce a webinar around the firm’s pre-existing content/presentation. If you wish, we’d love to have Edelman present its Trust Barometer to our clientele via webinar. If you are interested all I would need is your marketing contact and we could take it from there. It’s my hope we’ll have the opportunity to do so.
Sincerely,
Steve Shannon
Posted by: Steve Shannon at February 23, 2009 4:04 PM
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| TrackBackJanuary 22, 2009
The New Era of Responsibility
President Barack Obama said in his inaugural address that Americans recognize that “what is required of us now is a new era of responsibility.” He added that,”This is the price and promise of citizenship.” The PR industry can play a vital role in helping to meet this challenge.
I attended the board meeting of the Ad Council (disclosure: I am a new board member) this afternoon and was amazed to learn the magnitude of the industry’s commitment. There are 50 campaigns underway, under the broad headings of community, health/safety and education. The media donated nearly $2 billion in space and time (radio the largest part at $980 million, TV at nearly $400 million, Digital at $163 million, Outdoor at $130 million). Brian Perkins, chief marketing officer of Johnson & Johnson (disclosure: client), gave evidence of the effectiveness of the campaigns, with 68% of Americans saying that they have stopped an inebriated person from driving and 600,000 Americans agreeing to mentor a child in the past nine months.
The Ad Council has already filmed a spot with President Obama, in which he asks citizens to Renew America Together by volunteering, which can be seen at www.USAService.org. A prize-winning campaign encouraging dads to spend time with their kids, called Take Time to Be a Dad, can be seen at www.fatherhood.org. The TV spot sure to double you over with laughter is a dad miming the cheerleading moves of his eight year old daughter. An all-digital campaign at www.thatsnotcool.com encourages teen girls to draw the digital line on incessant texting, spying on social network pages or requests for nude photos. The site, developed by R/GA, offers a YouTube channel for guest videos, a dialogue forum, and digital post cards that can be sent to pestering teen males.
So how can those of us in PR help? We can continue to build bridges between our clients and causes that make sense for their businesses. A good example is the Starbucks (disclosure: client) campaign launched yesterday with HandsOnNetwork to encourage Americans to volunteer for projects in their communities. The “I’m In!” program asks each participant to pledge five hours to community service, whether in a soup kitchen or reading to the blind. In return, Starbucks offers a free tall brewed coffee. To get more information, go to http://pledge5.starbucks.com or http://www.youtube.com/watch?v=HKppxptbJLA. The goal is one million hours pledged by January 25 so hop on board.
We can also do pro-bono PR work for charitable organizations either as individuals or as part of each firm’s desire to give back to society. This is in keeping with a tradition begun by my father who served on the board of the Art Institute of Chicago, the Lyric Opera and Immigrant Service League. My favorite activity in the past year has been helping the Children’s Aid Society’s Frederick Douglass basketball program for young women ages 10-14. The girls tolerate me in scrimmages at the end of practice, where the old guys try to keep up in full court contests. Our firm has done outstanding work for community programs, such as the Dear John Campaign for the Atlanta Women’s Agenda and Mayor Shirley Franklin. This public education effort aims to end commercial sexual exploitation of children.
We have unique skills in understanding and interpreting societal trends. We have valuable relationships with media; positive coverage is critical to the fundraising efforts of the charities. It is incumbent on us to heed President Obama’s call and to emulate our colleagues in the advertising business by giving back as we can. Your comments are welcome as always.
Posted by Edelman at 11:28 AM |
Comments
I am continually pleased with every emphasis you make to support social responsibility...not just for corporations to be so, but for individuals as well.
Statistics presented in the GoodPurpose/Mutually Beneficial Marketing study are impressive (i.e. 76% of consumers globally like to buy from brands that make a donation to worthy causes). However, to truly assist in bringing President Obama's appeal into fruition, citizens need to be inspired to the point of taking action themselves.
I'm not saying there are not incredible volunteers, because (working at two nonprofits-disclosure) I have met some genuine servants. But I also believe there is plenty room for more, and I know nonprofits would lovingly welcome them (not that you have to volunteer at a nonprofit specifically to serve).
I recently graduated from Belmont University, a school that just began a "social entrepreneurship" major.
This is an institution that is trying to revitalize the notion of serving others. On the mission page, it reads: "Belmont University empowers men and women to engage and transform the world. The university prepares students to use their intellectual skills, creativity, and faith to meet the challenges and opportunities that face the human community."
It is my hope that those words resonate with each student who enters the school.
Thanks again for your insight!
Cheryl
Nashville, Tenn.
Posted by: Cheryl at January 23, 2009 4:59 AM
Richard, I really enjoy reading your posts. What great opportunities to put skills to service as we help our new president usher in this "new era." It struck me that the responsibility President Obama asked of us also applies to another brief, but well-chosen phrase in his address -- his call for "unity over discord." We all know that doesn't mean we have to agree on everything. Unity doesn't mean unanimity. In this country, it's okay to disagree. It's beneficial, actually. It's an opportunity to round out one's perspectives by understanding all points of view. All this to make the point that I think we, as communicators, also can serve by doing what we can to improve the level of civil discourse when we do disagree.
You're so right; there's a role for PR in this new era of responsibility, if we are willing to take it. As communicators, we know how to disseminate positive messages. We know how to craft messages that resonate; that are respectful; that can invite action; and that are sensitive to a diversity of views. We know how to bring about consensus and resolution. Hopefully, we'll offer up those capabilities as policy debates begin and help our leaders (private and public sector) project a more civil, less contentious face to the general public and the world.
In a way, many communicators (in and out of government) just did that -- producing an inauguration that showed the world that, in a country where citizens and parties can and do disagree, America still embraces an abiding tradition -- a peaceful and respectful transition of power. And even though that tradition is set forth in the Constitution, we followed its call for civility and respectful protocols because we also respect the foundational principles that have helped us get this far and this free. Ultimately, we understand our responsibility to the democracy in which we are privileged to live...and called upon to serve. It was a proud moment.
Posted by: Michele Nix at January 24, 2009 1:23 PM
This is great. A new presidency is indeed a good time to reflect on how we can renew ourselves and do our part in making America a better place.
I'm sure everyone in the PR community, including you, sir, was just as excited when President George H.W. Bush called for a renewed sense of purpose and volunteerism back in 1992 (The "thousand points of light" that was endlessly ridiculed by the media and the Left.)
Calls to service are nothing new, and are not the domain of, nor are they relegated to, those of one political party.
And while volunteerism is indeed a vital part of our society, propping up one president's vision or agenda isn't the role of the PR community.
Posted by: Stephen A. at January 25, 2009 10:59 AM
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| TrackBackJanuary 13, 2009
A True Public Servant
In this final week of the Bush Administration, many long-serving public officials are wrapping up unfinished business and packing up their belongings, it is only fitting to pay tribute to one of these dedicated administrators, Dr. Julie Gerberding, director of the Centers for Disease Control.
I’ve had the privilege of working with Dr. Gerberding because I have been on the board of the CDC Foundation—a public private partnership -- for the past seven years.
Dr. Gerberding visited our New York office yesterday and discussed the state of global health with some of our staff. She reflected on her tenure, noting that she was appointed just in time to manage the anthrax scare (remember the envelopes mailed anonymously to top NY based media such as NBC News and elected representatives) and the SARS epidemic that started in China. The SARS epidemic, in particular, was a warning bell to the CDC that the US faces health threats originating from the around the world, and not just within its borders. She had to reorganize the CDC to cope with terrorist activities in the wake of 9/11. As the “Dr. Mom” of American health care, she has travelled relentlessly to investigate possible epidemics and to invest resources in disease prevention, particularly in the fight against HIV AIDS.
Here are a few of her observations:
1) The most effective approach to public health is to build capacity from the ground up, versus top-town. In Ethiopia, the health minister has created a health extension worker program, designed to provide basic health services. Each of the health workers—regular women hired in each village—purpose is to create “healthy homes” in the poorest villages in the world. They teach villagers how to ventilate the smoke from cooking or heating to the outdoors to reduce lung disease. Latrines are set up outdoors, with separate facilities for boys and girls, so that the girls can continue to go to school after beginning menstruation. They educate people about hand washing and using of bed nets to prevent malaria. The US Government invests in technical assistance, such as a rapid HIV testing kit and a few staff in the health ministry to train these health workers.
2) The broader availability of anti-retroviral drugs in Africa is simply buying time because only one in five with HIV gets drug treatment and transmission permission is insufficient. “We are not shutting off the transmission of AIDS,” she said. “We are simply buying time, in hopes we can develop a vaccine. The problem is worsening because resources are being redirected with the emergence of drug resistant tuberculosis and the onset of obesity.”
3) NGOs, such as Catholic Relief Services, offer very valuable financial support for micro-businesses and creating employment. Dr. Gerberding related a story of an older woman who has founded a small bakery between two platinum mines in South Africa. When Dr. Gerberding asked about the recipe, she overheard the owner on her cell phone saying, “There’s a crazy American woman here. She does not even know how to bake bread!”
4) There is real suspicion of American motives. On a recent trip to Eritrea to investigate an outbreak of liver failure possibly tied to consumption of a plant toxin by goats (goat herding is the #1 local business), she found the villagers wondering why an American agency cared about solving the problem. “Do we have their best interests at heart is the real question,” she said.
5) There is low-hanging fruit in health care reform in the US. She identified the value of investment in anti-smoking and obesity. “Health costs will not rise as quickly if we build bike paths, offer good playgrounds in schools and continue the fight against smoking,” she noted. We are under-funding state health departments, with the number of employees down 17% in the past few years. She suggested that as part of the fiscal stimulus, there be consideration given to building new community health centers and modern public health departments.
Dr. Gerberding, who will continue to speak out on issues of public health, is a selfless crusader, a throw-back to a time when public service was the highest calling. She is the first to say that she has learned much on the job, in particular about humanizing communications and the need to tell stories to buttress the traditional CDC reliance on science and facts.
I’m sure we will hear much more from this dedicated and passionate advocate for public health.
Posted by Edelman at 4:16 PM |
Comments
The CDC is one of the best "bang for the bucks" that we as taxpayers get. Thanks for sharing Dr. Gerberding's observations. I agree with Dr. Gerberding that winning the fight against smoking and obesity are sure fire ways to improve the overall health of our country, as both are nearly 100% behavioral change. With the web greatly expanding the number of media sources available, it will be interesting to see how PR will help our public health institutions achieve those and other objectives.
Posted by: Steve Shannon at January 13, 2009 9:22 PM
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| TrackBackJanuary 9, 2009
Fashion Future
The news from retailers is dire. Sales at Gap, Abercrombie, Neiman Marcus are plunging. Upscale brands are gathering dust on the shelves. It is now chic to buy only what you need, not what you used to crave. So what is the world’s most important modeling agency, Ford Models, to do? I had breakfast with its innovative CEO, John Caplan, to find out.
He believes that authenticity is in and insatiable consumption is out. Mainstream brands need to partner with fashion rather than be frightened of it. Beauty, authenticity and relevance have emerged to be important. Caplan says, “Our culture where money was the benchmark of prestige has been replaced and now authentic style is more important than how much something cost.” I was happy to hear Caplan say that the new look is for full-figure models and that razor thin models are out.
He believes that fashion and mainstream brands have had a disconnect. Fashion is living in a bubble, concerned that association with mainstream brands will reduce its cachet. Mainstream brands are not smart about who or what is cool (maybe that is why ads regularly feature music from 25 years ago). Caplan and Ford have begun to bridge this gap.
A few companies, such as BMW and HP are making a strong connection to the fashion business. HP’s (disclosure: a client) marketing chief, Satjiv Chahil, conceived of a Vivienne Tam designed laptop that is a fashion accessory and provides complete business functionality. From a runway show at Fashion Week to a presentation to fashion writers at Tam’s store in Downtown Manhattan, the new product allowed HP to go beyond tech reporters to reach consumers through lifestyle media.
To date, Ford has matched its 4,000 models with clients primarily on the basis of looks. “In the future, it will also be the talent’s genuine love of brand. Has the model used the product? Is there a real-life story? Is there a cause to support as part of the campaign?” Caplan said.
He has launched version 1.0 of www.fordmodels.tv and syndicates how-to content across YouTube www.youtube/fordmodels and found that brands crave the association with Ford talent and young people rely on getting information from those “in the know.” Caplan is planning to unveil a new web site for Ford Models which will create a channel for each model, for blogs, for posting of video and photos, essentially a niche version of Facebook that will allow the global community to understand more about the 4,000 models and the brands that they use, love and want. “I want our talent share their experiences, to ignite dialogue with the public.” With the huge success of Perez Hilton and other bloggers following celebrities, this sounds like a smart idea.
So how do PR practitioners work with Ford? Bring in a product to the agency prior to introduction. Allow the models to try it, then discuss it via Facebook and blog about it. Consider hosting events with the hundreds of thousands of kids that are members of the Ford Models community. Create a discussion prior to launch, so our clients can learn from the community. Involve a cause that is logical. Work with mainstream media upon launch. Leave the controlled communications and the old paradigm of top-down marketing to the ad agency, with the stilted 30 second commercials. Ours is the genuine approach, the use of the product in real venues, warts and all, engaging with audiences directly through social media as well as traditional media. I would appreciate your views as always.
Posted by Edelman at 4:54 PM |
Comments
In my recent four year stint in studying the finer aspects of advertising, listening to well educated professors preach about aesthetically effective billboard layouts, proper ad script formats, and how a clever banner ad can truly effect consumers' perception of a brand, it was refreshing to read about how simply talking at consumers does little to influence a brand's connection with their target audience. All this to say, thank you for the bit of real-world education....no student loans required.
I've been told the danger in social media applications is the instantaneous, and often untamed, consumer response. It doesn't seem logical, however, to silence the very people who are purchasing these products. With the state of the economy, consumers are obviously more skeptical about the few purchases they’re actually able to make. The popularity of social networking sites like facebook, myspace and friendster have introduced a new generation of “social shoppers”. Newer web ventures such as Kaboodle and ThisNext allow consumers to not only discover new products launched by their favorite brands, but connect with like-minded consumers to discuss and rate these products. Although advertisers have the ability to sponsor premium ad space and web links, they have very few tools to engage in open dialogue with their consumers. What do you think are logical reasons why brands have done little to utilize these trends in their product's pre-launch phase? In your opinion, what are the limitations of social networking sites in terms of consumer connections with brands? Is there truly danger in utilizing uncontrolled venues?
They say that good advertising can make a product fail faster, but I guess the true value for organizations in the communications mix is the notion that effective PR could ensure a bad product never gets launched in the first place.
Posted by: Joshua Knotts at January 14, 2009 2:30 AM
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| TrackBackJanuary 2, 2009
The Right to Know
I am just back from the holidays. Curled up in a chair by the fireplace in Long Island, I read two terrific books, Simon Schama’s The American Future and Anthony Pagden’s Worlds at War. I also had the opportunity to review the initial findings from the Edelman Trust Barometer 2009, due out in three weeks. Trying to sort through the multiple debacles of 2008, the year in which business lost its mandate to lead, I conclude that the populace now demands The Right to Know because it no longer trusts established institutions to do the right thing. The demand for collective action to fix the economy, with government in a primary investor or activist regulator position, indicates a need for a new consensus beyond classic free market ideology. The dispersion of authority is reflected in demand for multiple media sources, continuing conversations with peers and desire to critique products or companies.
There have been similar periods of intellectual ferment. Pagden writes about the end of the era of certainty, when the Enlightenment forced a reexamination of “their relationship with God but also of their moral and even their physical worlds.” He quotes poet John Donne from the Anatomy of the World, “And new Philosophy calls all in doubt, ‘Tis all in peeces, all coherence gone…Prince, Subject, Father, Sonne, are things forgot, For every man alone thinkes he has got to be a Phoenix…” According to Pagden, the new philosophy described by Donne was “modern science, freed from the clutches of theology and from the grip of ancient tradition.” Citizens went beyond the comfortable “you know because God, or God’s interpreters, told you so. Believe and obey.” Pagden goes on to say, “All that could be shown to be true had to argued from the ground up…nothing is valid unless it can be demonstrated to be so, on the basis of certain principles, to which reasonable people could be supposed to agree.”
The implication of this freedom of thought was freedom from constraint, in particular to “criticize freely.” Pagden quotes Immanuel Kant’s Critique of Pure Reason, “Religion through its sanctity may seek to exempt themselves from it (criticism). But they then just awaken suspicion and cannot claim that sincere respect which reason accords only to that which has been able to sustain the test of free and open examination. It is a crime against human nature for any group to put the next age in a position where it would be impossible for it to extend and correct its knowledge.”
In the same vein, Schama quotes Thomas Jefferson from his Notes on the State of Virginia, “Truth is great and will prevail if left to herself...she is the proper and sufficient antagonist to error and has nothing to fear from the conflict unless by human interposition disarmed of her natural weapons, free argument and debate, errors ceasing to be dangerous when it is permitted to fully contradict them.”
My own experience this past fall indicates the wisdom of transparency. The week before I went into the hospital for prostate surgery, I called my most senior colleagues to let them know that I would be having the procedure. I spoke to those clients whom I work with directly. I then drafted a memo to the entire Edelman staff, to be released the moment I got out of surgery, describing my condition and my confidence in a full recovery. Though some of my senior team would have preferred a more nuanced approach, I opted for complete disclosure, because my colleagues had the right to know.
The essence of public engagement is the commitment of companies to “say and do as they say.” In a time of utter distrust, one must make the case for actions then demonstrate progress against those goals. Corporations are made stronger by undergoing this continued test of values and performance, a modern version of the new philosophy of the Enlightenment. I wish each of you a happy new year.
Posted by Edelman at 5:56 PM |
Comments
Just a note to thank you for your insightful blog and your continued clarion calls for greater transparency. It's interesting: while the populace is losing trust in once-stalwart institutions, it's also gaining a greater say in elevating and broadening the standards for trust (i.e., leadership ethics, accountability, financial prudence, privacy protections and transparency about all of it). I'm hopeful that, in the quest to sustain or reclaim trust, companies will heed the public's heightened demands and new parameters for truly good corporate citizenship.
Posted by: Michele Nix at January 4, 2009 3:10 PM
You've nailed it, yet again! Consumers are becoming much more leery of the companies that serve them, and they demand the truth -- at all times. I'm a huge advocate of doing what's ethically sound according to public relations and journalistic professions, while doing what's generally right in the eyes of the public. Meanwhile, there are times when the "bad news" is so bad that you feel obligated to keep it to yourself for the safety of the business. This is no different than something embarrassing that every human has done and would rather hid from the world. That being said, how do practitioners go about providing consumers and/or company stakeholders with the "Right to Know" you speak of? Sometimes it's hard to think of an "ideal" way to be completely honest while still being loyalty to the business or client.
Posted by: Mark Taylor II at January 6, 2009 12:03 AM
Mark,
There is clearly a limit given client confidentiality. But our job is to counsel and to push for an open approach not often endorse by our opposites on the legal side.
Thanks for reading my blog,
Richard
Posted by: Richard Edelman at January 6, 2009 6:23 PM
Richard - Good for you for disclosing details of your surgery. That takes courage, honesty and confidence. You set a great example for other leaders. Most importantly, I hope you are ok now.
Best,
Jack Rubinger
formerly with KRUMS
Posted by: Jack Rubinger at January 14, 2009 12:54 PM