More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Aron Cramer

Aron Cramer

GET UPDATES FROM Aron Cramer

Davos Looks at Trust

Posted: 01/28/11 08:11 AM ET

My time at Davos began on an early morning panel at the launch of Edelman's 2011 Trust Barometer, an event that's become a staple at Davos.

Unlike recent years, when the crisis led to steep falls in trust for nearly all sectors, this year's results are more mixed: some ups and some downs. A couple of key messages stand out.

First, trust in business has stabilized after the crisis. Despite some high profile corporate travails -- think BP, Toyota -- in 2010, faith in business overall has come back after the depths of the recession.

Second, general trust levels in the United States are abysmal. Edelman calls the broad drop in trust of American institutions the "stark exception" to more positive readings in other parts of the world. Americans have lost their sense of trust in all four sectors Edelman measured: government, business, media, and NGOs. This no doubt reflects ongoing economic sluggishness, particularly high unemployment, and even more, the sharply polarized political environment, which has soured the public.

Third, trust in the media is at an all-time low, especially in the United States and the U.K. Richard Edelman, his namesake firm's CEO, attributed this to the sharp tones in both countries' media, as well as the rise of social media that have undercut the monopoly held by more traditional outlets.

What are the lessons for business in all this?

2010's worst events, from Toyota's widespread product safety problems to the failure of the Deepwater Horizon in the Gulf of Mexico, reinforce the notion that companies that don't get the basics right have no chance of earning public trust.

But equally -- and less obviously -- important is that just getting the basics right won't earn the public's trust either. The future -- and the highest degree of trust -- will be won by companies who tackle big global challenges as part of their business strategies. Recent announcements from Walmart on reducing food waste, from GE on expanding Ecomagination, and from Unilever on its Sustainable Living Plan are great examples of companies saying, "Your challenges are our challenges."

At the end of the day, businesses that deliver something that goes beyond profit are most likely to earn the trust they are seeking.

The theme for this year's Davos is "Shared Norms for the New Reality." If purposeful business becomes one of those norms, trust levels -- and human well-being -- will both rise in the years ahead.

 

Follow Aron Cramer on Twitter: www.twitter.com/aroncramer

 
 
  • Comments
  • 22
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
photo
HUFFPOST SUPER USER
Cynthia Dudley
09:27 AM on 01/30/2011
What are the lessons for business in all this?

Stop funding politicians who try to get votes by selling distrust and anger. No matter the political stripe, if at any point, they try to sell their message with anger, distrust or fear- cut them off from funding. Encourage all business leaders to do the same.

Encourage a positive attitude in the population, encourage trust and then - DELIVER. Stop selling shoddy goods and services with shiny packages. If you know someone in your organization is cheating, even if it profits you- don't give them a bonus, fire them.

Trust is earned.
HUFFPOST SUPER USER
Longtimeliberal
08:00 AM on 01/30/2011
Those who create jobs in the US will have my vote otherwise>>>>>
photo
WorldisMorphing
Jaded Iconoclast ...
12:08 AM on 01/30/2011
["The theme for this year's Davos is "Shared Norms for the New Reality." If purposeful business becomes one of those norms, trust levels -- and human well-being -- will both rise in the years ahead."]

Took them 80 years to figure that out ? ....gee....steep learning curve...
Linda from Deerfield
Paying attention
09:54 PM on 01/29/2011
And how did the audience receive this news -- very good, that was our plan? In other words, the evidence suggests that deep distrust is the objective. After all, every gullible U.S. citizen has been soundly punished for his naive trust, so one would think that the goal was accomplished. If it was not the plan, then that would be even worse -- it would mean that nobody knows what the heck they are doing.
08:55 PM on 01/28/2011
The problem with American trust is that instead of using the recession as an opportunity to learn and reform, Americans rebounded in the same mind set as before the recession. The government, businesses, and even the people continue to act as they did before the recession. Even though it might be hypocritical, it's hard to trust anyone who acts in ways that caused a recession - there's still an abundance of greed and lack of responsibility all around.
nothingchanges
too soon old, too late smart
08:26 PM on 01/28/2011
IMPO the author has made the issue much more complex then it actually is. When people get lied to, and know it, they lose trust.

Business, Government, Media, Non-Government Organizations (think BBB). Which of these has not lied to the American people in the last few years.

Trust has to be earned, it cannot be bought. (At least mine can't).

That should have been taken into consideration before these aforementioned entities betrayed ours. I believe a man named Judas Iscariot, and another named Brutus, became famous over trust.

Certain things I have a long memory for.
05:52 PM on 01/28/2011
We don't trust biz or gov't or media or NGOs. Biz, if I don't trust one I go to another: instant accountability and choice. And you can go the other way and we can both be happy at once. Government, we're stuck with 'em for 2 years--bureaucrats and judges for life--and only one winner at a time.

Media, if you liberals realize we think about you the way you think about Rush & co., you may realize why we don't trust the liberal media; and I suppose y'all feel the same way about us.

Gov't, our President asked for $800 billion to keep joblessness under 8%. The money's gone and it didn't do what he said. (It's gone and I don't have a job.) He said he was gonna be trans-partisan, and rammed through Obamacare with one party's votes against bipartisan opposition. He said negotiations would be on C-span, and Speaker Pelosi said we can pass the bill to learn what's in it. Didn't he say no earmarks and then sign whatever corssed his desk? How can we trust the man? My take on SOSU: "Mr President, tear down this wall !" at www.youtube.com.
photo
CamilleLeon
The Holistic Chamber of Commerce, Founder & Execut
05:05 PM on 01/28/2011
We've seen people start shopping based on their values: green, organic, sustainable, and holistic. Isn't it time we start doing business based on our values? We can find a better balance between short-term results and long-term consequences. It just takes more awareness, consciousness and collaboration.
photo
Indigo1941
Time Traveler
03:47 PM on 01/28/2011
Trust has to be earned. When an administrator says, "Trust me" sensible people know it's time to polish up their resumes.
photo
HUFFPOST SUPER USER
Royal Payne
02:38 PM on 01/28/2011
"...to create a more just and sustainable global economy." BSR - what a "crock"
Thinly veiled communist rhetoric disguised as an altruistic scam.

If you informed your audience that they were gullible, would they believe you? But hey, it is a living!
02:18 PM on 01/28/2011
Mr. Panda Cramer, Pander, pander, pander to the ARISTOCRATS. Shame.
photo
HUFFPOST SUPER USER
Norman Allen
It is forbidden to kill unless in large numbers an
12:53 PM on 01/28/2011
How do we trust thieves disguised as politicians and corporations bent on economic slavery of the working poor for unreasonable hoarding of power and wealth for themselves? Davos attendees must point fingers at themselves for the sad state of the world and humanity. If we shifted to peace from war economy and cured the wealthy and powerful from UNREASONABLE hoarding, there will be enough for all and the true leaders will still have the lion share of the wealth, prestige, power and sex.
This user has chosen to opt out of the Badges program
photo
cats530
Valar morghulis
05:59 PM on 01/28/2011
Awesome, Norman!
photo
mkelch
No matter which way I turn, I’m homeward bound.
11:36 AM on 01/28/2011
I do not believe that trust can be measured as though it is an accounting entry like goodwill or depreciation. By it's very nature no government or economic system should ever be trusted. On the other hand, over time people can recognize when the culture of an enterprise promotes the well being of their constituents as the preferred means to further it's own existence.
10:58 AM on 01/28/2011
"Americans have lost their sense of trust in all four sectors Edelman measured: government, business, media, and NGOs. This no doubt reflects ongoing economic sluggishness, particularly high unemployment, and even more, the sharply polarized political environment, which has soured the public."

How many high priced consultants did it take to come to that conclusion? You want trust...you earn it by acts of honesty and transparency. Don't hear much about that at Davos do you?
photo
HUFFPOST SUPER USER
Miserable Swine
10:33 AM on 01/28/2011
I`d like to know how trust can be measured. I got this little snippet from the Edelman site:

"It is astonishing, that "people like yourself" are trusted significantly less than last year. Is this the decline of Social Media or the Result of too much information, making it hard to trust others in Social Media?"

I think it`s great that people are becoming sceptical about the media - it prevents them becoming victims again. Trust is a delicate thing, like a crystal glass; once dropped, it shatters into a myriad of pieces that may well be impossible to put back together. This is especially true in business.

How the hell are we supposed to trust anyone in government and / or business when they`ve jumped into bed (and the media makes a nice little threesome too)? CDOs (and other repackaged crud) are just pigs in a poke. Perhaps people could be hoodwinked in the past time and again, but thank God for the internet and the opportunities it offers for people to communicate.