Two years after the collapse of Lehman Brothers in 2008, the chiefs of the world’s most powerful regulatory bodies met in Basel, Switzerland to agree new standards for banking institutions. These included requirements for banks to hold much greater capital reserves to protect against future ‘credit crunches‘ – and while banks were this week given four extra years to raise these reserves, critics say the effect of these measures will be to reduce their ability to lend. However, GlobeScan’s most … “Developed nations looking to banks to do more to help mend the global financial system”
As 2013 begins, the leadership of various international bodies is changing, with Ireland assuming the presidency of the EU, a clutch of nations joining the UN Security Council, and the UK taking charge of the G8. Despite the shifts in power apparent in the global system, the G8 remains a formidable grouping, and British Prime Minister David Cameron has vowed to put free trade at the heart of the British G8 Presidency. In some respects Mr Cameron has chosen his … “Global public supports free market, less favourable to global business—can CSR heal wounds?”
The media is one of the institutions that has suffered the greatest decline in public trust over recent years, according to GlobeScan’s long-term tracking. One country where trust in the fourth estate has been in particularly short supply is the UK, and events this week have placed the media’s problems firmly back in the spotlight. Public outcry was sparked by revelations 18 months ago that a major British tabloid, the News of the World, had hacked the voice-mail of murdered … “Britons likely to favour government in media intrusion controversy”
With figures released this week indicating that the Eurozone has tipped back into recession, companies across the continent are desperately seeking to maintain their market share and revenues, even as household budgets slide. In August, Unilever’s head of European operations, Jan Zijderveld said “poverty is returning to Europe” and that companies were going to have to learn to adjust to that reality. GlobeScan’s most recent public attitudes tracking certainly shows that, while economic concern may have retreated from its 2008 … “Opportunity among the bleak times for business in Europe?”
In a slowing global economy, many nations are aiming to out-compete their rivals and offer a more attractive environment for global companies to operate in. But GlobeScan’s most recent tracking illustrates that there may be cultural factors for countries to contend with. Citizens sometimes perceive national and global companies in a different light. Trust in global and national business is certainly correlated—if a country’s citizens trust global businesses, they are also likely to trust its own national companies. However, in … “Global vs National Business: Interpreting the Gap in Trust”
Twenty years after the collapse of the USSR, Russia continues to present a difficult business environment, with an economy dominated by an elite circle close to the seat of political power. For foreign companies, navigating the nuances of the Russian system can prove particularly challenging, and GlobeScan’s latest polling demonstrates a large degree of social alienation, which could make conditions for foreign investment yet more difficult. In 2012, more Russians feel that economic wellbeing has improved over the past 20 … “Russia: Disenfranchisement, distrust—and opportunity”
Even though many commentators have suggested that China’s slowing economy poses risks to its political and social stability, GlobeScan’s polling shows that the Chinese public retains a much higher level of trust in their national government than they do in other social institutions. The degree to which the public trusts different institutions in China may reflect the country’s insular, government-dominated past. China’s sustained economic success over the past two decades is probably a major factor in the public’s continuing faith … “Trusted and powerful: the Chinese remain faithful to their government”
In a week when business leaders in the UK met with the Catholic Archbishop of Westminster to discuss ways to resurrect the reputation of the corporate sector, GlobeScan’s most recent global polling shows that while religious groups generally enjoy higher levels of trust that they will operate in the best interests of society than other institutions, in many countries there is greater skepticism about the impact they can have through their actions. While only scientists and NGO score higher on … “Religious groups highly trusted, but greater public skepticism over their impact on society”
As businesses seek ways to project credible messages about responsibility, many have been turning to partnerships with NGOs. This is not surprising—GlobeScan’s tracking indicates that public trust in NGOs continues to outstrip trust in business by a very significant margin, and most citizens in our global survey say that they would have increased respect for companies that choose to partner with NGOs.
However, GlobeScan’s latest monitoring of public sentiment on the issue suggests that the issue of partnerships is becoming more hazardous—for NGOs. A majority (53%) of those polled earlier this year across 23 countries say that their respect for a charity/NGO would go down if it chose to partner with a company. And this increased skepticism appears to be more pronounced in some major developing economies. Notably, the proportion in China who say they would lose respect for an NGO engaged in a corporate partnership has risen from 46% in 2003 to nearly four in five (78%) this year. There have also been significant rises in the proportions of such skeptics in India and Russia.
With the reputation of private business in these countries having been tainted by many high-profile corruption scandals, this may reflect public fear that NGOs’ independence and ability to act as rallying points for social change could be compromised. The rise in skepticism may also reflect misgivings about the coherence of existing corporate/NGO partnerships. On a recent GlobeScan webcast, SC Johnson’s Kelly Semrau stressed the importance of retaining “authenticity” when businesses and NGOs work together. These findings show this is also a preoccupation for consumers.
Finding from the GlobeScan Radar, Wave 1, 2012
For more information on this finding, please contact Sam Mountford (Read Bio)
Over many years, GlobeScan’s regular tracking of global publics’ trust in different types of institutions has shown that NGOs are clearly the most trusted. Compared to global and national businesses, governments, and the media, trust in NGOs is significantly higher and continues to rise slowly.
To further investigate why this high level of trust exists, we asked people to say what NGOs had done recently to earn their trust. The word cloud derived from their responses starkly illustrates two key findings. The first is the prominence of “help” (and to a lesser extent “support”) along with two key recipients of that help, “people” and “environment.” This highlights how important tangible outcomes are to people’s willingness to see NGOs as trustworthy. It also adds weight to what GlobeScan found in its global public polling in 2008—that the consensus of public support for NGOs’ role in aid and assistance work is greater than for their political campaigning and advocacy.
Paradoxically, the other very frequent response is “nothing.” This raises an important question of whether the high level of trust in NGOs we witness is, at least in part, based on blind faith that NGOs can be trusted, simply because of what they represent. Indeed in recent research conducted in the US and UK, we found few people admit to knowing much about how non-profits and charities operate, despite most people believing they are the most effective change-makers.
NGOs should be wary of this potentially shaky foundation of public trust. Both historical and recent examples of scandals and controversies engulfing NGOs demonstrate how quickly trust can be wiped away, especially in the age of social media.
Finding from the GlobeScan Radar, Wave 2, 2011
For more information on this finding, please contact Sam Mountford (Read Bio)