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Declining trust defines new role for intranets

January 29, 2012

Trust

The 2012 Edelman Trust Barometer, published last week, finds a deepening sense of distrust in governments, businesses and institutions. The annual global study, which questioned 30,000 people in 25 countries, reveals a dramatic shift in the value people place in information sources – which, in turn, has some interesting implications for communicators and intranet managers.

Across the globe, blame for the financial and political chaos of 2011 landed at the doorstep of government, as trust in that institution fell nine points to 43 per cent. In seventeen of the 25 countries surveyed, government is now trusted by less than half to do what is right. In twelve, it trails business, media and non-governmental organizations as the least trusted institution.

The private sector fared slightly better: trust in business fell from 56 percent to 53 percent, with countries like France and Germany, in the heart of the Eurozone economic crisis, experiencing double-digit decreases.

“Business is now better placed than government to lead the way out of the trust crisis,” said CEO Richard Edelman. “But the balance must change so that business is seen both as a force for good and an engine for profit.”

One of the biggest changes over the past year is the decline in trust in CEOs, which fell by 12 points. Faith in government officials fell like a stone too this year, down 14 points to just 29 per cent. It’s not unreasonable to assume this is reflected inside organisations too, so many will want to look again at CEO blogs as a means of increasing visability and trust in senior leadership. Over on Intranetizen, Jonathan gives some sterling advice on making executive blogs work.

Employee advocacy could be one way out of the mire. The survey found that credibility in average employees rose dramatically this year, so they are now the most trusted resource within an organisation. To capitalise on this, organisations must work harder to ensure their employees are informed and engaged – and then trust them to talk on the company’s behalf. This approach – what Edelman call radical transparancy – empowers employees to drive the conversation amongst their peers.

But to do this, organisations and leaders need to trust their employees first; companies which block access to social networks are preventing their employees from advocating on their behalf, and so missing a huge opportunity to engage with customers.

The barometer found people need to hear the same information about a company three to five times before they will believe it. This emphasises the importance of a proper communciations strategy which mixes on and offline channels to ensure the message gets out there. 

At the same time, trust in social networks as sources of information grew  by 75 per cent over the past year. Smart companies, then, will take advantage of this and embrace the value of conversations (by employees and the public) as a means of establishing identity and trust.

One corollary of this is that the growth in use of social networks, both internally and externally, means news travels fast. Employees can easily find information about their own company online, and all too often will hear (and believe) news from external sources before they do from their own manager.

This has huge implications for company transparency; corporate communciations structures need to keep pace with the changes. A good, social intranet – and improved access to these from a range of devices – gives organisations the means by which they can get their message to staff before they hear it from elsewhere. But this isn’t just a case of building it – leadership buy-in, and changes to the way corporate comms work with social intranets are essential to make it work.

Edelman’s report sets out long- and short-term approaches to rebuilding trust. In the short term, trust in a business is firmly tied to the bottom line. But future trust is more strongly linked to softer, societally-focused factors such as business ethics, placing customers ahead of profits and treating employees well. In the current environment, informed, engaged employees are best placed to communicate that message to the public – and intranets have a vital role to play in building that engagement.

Photo credit: Thorinside on Flickr

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3 Comments leave one →
  1. January 30, 2012 12:35 am

    A really good post Sharon.

    Just this week I was talking to someone from an organisation that has one of the most trusted workforces in the country. But that organisation doesn’t trust its workforce to use social media at all. This is sad because of the incredible potential they collectively have to connect with the public at large, and for the public then to communicate onwards.

    I’d agree that good external communication starts with good internal communications. Either help your staff find the language that best does that, or they will find their own language which almost certainly won’t.

    • Sharon O'Dea permalink*
      January 30, 2012 1:41 pm

      I absolutely agree. Companies which don’t allow their staff to speak on their behalf – and equip them to do so – are really missing a trick.

      In many industries, particularly financial services, there is understandable nervousness about regulation, but in my view this is something that should be worked through as a matter of urgency. It’s real bank employees who will help win the PR battle, not CEOs and official spokespeople.

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