Indian and Chinese businesses gain trust

Businesses in India and China command high levels of trust among their domestic consumers, according to PR firm Edelman’s 2009 Midyear Trust Barometer.

The survey was conducted via telephone interview among 1,675 consumers (in the 25-34 and 35-64 age groups) over the summer in six countries: China, France, Germany, India, the United Kingdom and the United States.

At 75%, India recorded the highest level of trust in business out of the countries surveyed.  China followed, with 60% stating they trust business to do what is right.  48% of those interviewed in the United States trust business to do what is right, up from just 36% back in January.  Similarly, France saw a big jump, from 30% to 41%.

Unlike in previous years, when trust in business and in government tended to move in opposite directions, trust in government is now also on the rise, with a 12-point increase in the U.S. (30% to 42%) and a 13-point hike in India (42% to 55%).  Interestingly, 55% feel business hasn’t done enough to co-operate with government to solve the global economic crisis; only 38% lay this claim against government.

Trust in all the major industries surveyed went up across the six countries.  The technology sector is now 15 points ahead of the next most trusted industry – biotech/life sciences.  Banks, automotive, and insurance sectors stabilised during the period with banks being the no. 2 most trusted industry in China and India.  In the U.S.A., trust in every industry – with the exception of technology, which was already very high – experienced double-digit growth.  Trust in the pharmaceutical and auto industries each jumped significantly – from 39% to 53% and from 32% to 46% respectively.

96% of Chinese and 81% of Indians surveyed say their country is ‘headed in the right direction’, compared to 47% in America and Germany, 37% in the U.K. and 31% in France.  Furthermore, almost 70% of those in India and China rate the reputation of large multinationals as good or excellent compared to just 30% of Americans, 29% of Germans, 24% of French and a mere 13% of British.

When asked what companies could do to rebuild trust over the long term, treating employees well (94%), having transparent business practices (93%), maintaining quality products and services (93%), and communicating frequently and honestly (91%) top the list.

The public places great importance on business’s commitment to finding solutions for issues such as global warming, energy costs, and access to affordable healthcare; however, 71%, 70%, and 64% respectively feel business has not done enough to create solutions to these challenges.