Trajectory of Trust in American Business Shows Signs of Improvement if Brands Act Decisively (page 1 of 2)

* 37% of Americans think business is heading in the right direction in rebuilding trust, even though 40% still say they trust business less today than they did a year ago

* 46% -- nearly half of Americans - now believe CEOs are doing the right things to restore trust, up 8% from August 2002

* 39% say they would start or increase their business with a company specifically because of trust, while 53% say they would stop, reduce or switch their business to a competitor because they have concerns about a company's trust

* 53% believe business has learned its lesson, will behave differently, and will be more trustworthy in the future

* 83% agree that they are more likely to give a company they trust the benefit of the doubt and listen to their side of the story before making a judgment about corporate behaviour

The crisis of trust in American business is at a turning point. According to new study by Golin/Harris International and InsightExpress, American companies that become positive, proactive trust-builders will be greeted enthusiastically by consumers, who will in turn reward these trusted companies with active preference, loyalty and increased patronage.

"Last year, the story was the scandal, how American businesses undermined public trust and confidence. This year, the story is the solution, how American business is recognizing the power of trust as an asset for driving growth, profitability and competitive differentiation in an ever changing and challenging marketplace," observes Rich Jernstedt, CEO of Golin/Harris. "Our new insights into the trajectory of trust in American business show that investments in their "trust bank" pay real dividends at the bottom line."

State of Trust Still Bad, But Signs Point to Potential for Getting Better

The most revealing insight from Golin/Harris' ongoing tracking of trust in American business is the growing willingness of consumers who believe business can be trusted again - but only if business demonstrates trust in deeds, not words. A year ago, Golin/Harris' survey discovered that American business was in a free-fall, with 70% of Americans stating that they just didn't know whom to trust anymore.

The new research suggests that nearly 37% of Americans applaud American business for starting to turn the situation around and head in the right direction on rebuilding trust, while only 17% believe that business is still headed in the wrong direction. This is reinforced by the belief of more than half of Americans (53%) that business has learned its lessons, is changing its behaviour, and will be more trustworthy in the future.

"InsightExpress constantly tracks consumer attitudes towards business, which is an important factor in corporate decision-making in these uncertain economic times," notes Lee Smith, president of InsightExpress. "Trust is the bedrock of customer relationships, and as we've seen in past InsightExpress surveys, the crisis of trust has shaken the foundation of business. I find it very encouraging that while the trust situation still is not good, it shows signs of improving at a time when business needs it the most - to position themselves for economic recovery through the balance of the year."

CEOs Slowly Starting to Regain Trust

CEOs, who have been the lightning rod for the crisis of trust, also are slowly starting to regain consumer confidence in their leadership on trust.