The information put out by large corporations is rated less credible than the writings of journalists and even the outpourings of politicians.
When I tell you that this opinion was published by a public relations agency on the basis of a poll, you may feel inclined to be suspicious: Surveys are a standard ploy used by agencies to bring worried customers to their doorsteps.
The agency in question, London-based Fleishman-Hillard U.K. Ltd., is up-front about this. Erica Hauver, director of the agency's community investment practice, says communicating good deeds-the essence of PR-is the way to tackle the problem.
After all, this is essentially what Royal Dutch/Shell did when the European gasoline-buying public began to take its custom elsewhere, following Shell's 1995 decision to dump the Brent Spar loading buoy at sea.
Hauver said of the poll findings, "This is a wake-up call for business. With the credibility of corporations at astonishingly low levels, many companies could certainly benefit from the 'halo effect' generated by social investment. Public expectations are high, but so are the rewards for companies that respond."
Poll findings
Fleishman-Hillard interviewed more than 4,000 "ordinary people" in France, Germany, Italy, and the U.K. and asked them about their attitudes towards major corporations.
The poll showed that 86% of consumers are more likely to buy products from socially minded companies, and that 9 in 10 Europeans expect companies to plow some of their profits into social programs to tackle unemployment, health issues, and poverty.
Of major sources of public information, charities were reckoned most believable: 49% of the interviewees voted charities as the most reliable sources, followed by journalists 20%, then politicians 12%, with companies rated least credible at 8%.
The agency cited other research showing that the business environment is changing rapidly. Consumers increasingly look to companies to contribute to social programs because governments can no longer afford cradle-to-grave responsibility for citizens: "Supporting the companies that use some of their resources for the greater good is one way consumers feel they can make a difference."
Trust and loyalty
Hauver said the poll held a valuable message for petroleum companies because the interviewees were a representative cross section of consumers in Europe.
"There were two areas of enormous significance to petroleum companies," said Hauver. "The first was public trust: About 90% of the interviewees said that a company's investment in social issues impacts how much the company is trusted.
"Last year, we looked at whether customers would buy from other retailers on the basis of investment in social issues. Across the board, people said they would be willing to change retailer if they thought another had made a genuine effort to contribute.
"The second area was employee loyalty: The higher an employee is up the management scale, the more social investment becomes a factor behind loyalty, a point to which management should pay attention."
