US Space agency NASA says Ireland seems beyond the reach of winter’s icy grip in this true-color Moderate Resolution Imaging Spectroradiometer (MODIS) Earth Observatory image from January 4, 2003. The rugged cliffs that mark the island’s west coast are showing their red-brown rocky surface, but the low-lying interior region is still wearing the island’s signature green.

The Edelman Trust Barometer launched today, produced by the US public relations firm Edelman, highlights that in contrast to other European countries, Ireland is experiencing a profound and continuing trust crisis. Trust in government and business in Ireland is the lowest in Europe, with business falling from 38% in 2009 to just 31% in this year’s survey. This is against a global average of 50%. Government (the political process) fairs little better with trust levels plummeting to an all time low of 28% from 31% against a global average of 49%. Trust in media and NGO’s has also fallen, but to a lesser extent.

According to the firm, the findings show that Irish people have the lowest level of trust in politics and business in the 22 countries surveyed. Conversely, countries such as the US, Sweden and France experienced an increase in levels of trust, further underlining a deep institutional scepticism in Ireland. Ireland was the only country surveyed that experienced declines in trust across all four institutions, business, government, media and NGOs.

Mark Cahalane, Managing Director, Edelman, said; “Ireland is experiencing a trust crisis which is different to the experience in other countries. Our scepticism is deep rooted and pervasive. While other countries are beginning to see increasing levels of institutional trust as their economies creep out of recession, we in Ireland have lost confidence in more institutions than ever before.”

The study also shows that that since 2007 trust in banks has declined dramatically in most western countries. It declined from 68% in the United States to 29% and dropped 16% in Ireland from a trust ranking of 39% in 2007 to 23% this year. Trust in banks was only lower in two other markets, the UK at 21% and Germany at 17%.

Respondents were also asked about what short term actions could potentially restore confidence in business. 60% in Ireland suggested firing non performing management, 66% said that pay discrepancies between senior executives and average employees should be reduced while 57% said that bailout money from Government should be repaid.

While the majority of EU citizens expect a return to a ‘business as usual’ institutional mindset post recession, just over half of those surveyed in Ireland (53%) believe this will happen, with some 72% expecting greater governmental influence over financial institutions. This demonstrates that Irish people afford politicians the second highest European mandate for continued intervention in the economy behind Russia at 77%.

Key Findings

Business:

• Ireland has the lowest level of trust across 22 countries surveyed
• Financial returns to investors (20%) is the least important corporate reputation factor in Ireland
• Technology is the most trusted industry sector in Ireland at 56%, albeit low against a global confidence level of 80%
• Banks are the least trusted industry sector in Ireland at 23% compared to 72% in Holland
• Irish people believe more than any of their EU peers that all of a company’s stakeholders (64%) should be the most important factor in CEO decisions
• Irish people were less pessimistic about companies returning to their old habits after the recession (53%) compared with much higher figures in other EU countries
• Irish people believe that reducing the gap between senior executive pay and the pay of average workers (66%) is the most effective trust building action a company can undertake
• The importance of banks repaying bailout or loan money to the Government is less valued than in all other surveyed countries with just over half (57%) believing it would help restore trust.
• Trust (43%), quality (42%), and transparency (39%) were identified as the most important reputation factors for a business in Ireland.

Government:

• Ireland has the lowest levels of trust in Government (28%) in any of the nine EU states surveyed or 22 countries surveyed
• Despite such low levels of Trust in government, 91% of those surveyed in Ireland said they would again vote to remain in the EU in a referendum on the matter
• 72% believe that government will have influence over banks and financial institutions in the future

* - Government refers to the political system rather than the ruling political parties

Media:

• The drop in Trust in media was less than other institutions, falling 3% since 2009
• Trust in traditional news sources such as TV news (-24 points), Radio News (-18 points) and Newspapers (-24 points) has dropped shapely in Ireland in just two years
• Academic or expert (55%) and non-profit or NGO representatives (52%) are most credible spokespeople in Ireland
• Social networking sites credibility increased in Ireland more than any other country, up 17 points to 30%
• Irish people are far more trusting of social networking sites as sources of information than EU (16%) or US (19%) peers
• Despite the increase in trust levels for social networking sites, blogs (24%) are the least credible communication source
• Media companies are significantly less trusted in Ireland than elsewhere in the world
• Expertise still drives credibility of information sources however academics, experts and industry analysts have lost most credibility
• Conversations with company employees (46%) are the most the credible company communication source in Ireland

NGOs

• Trust in NGO’s in Ireland declined 9 points to 48%, in contrast to an overall rise globally in trust in NGOs
• 70% of people are more likely to trust a company that partners with an NGO

“While the causes of this decline in trust are easy to identify, the solutions are not. Trust today is earned through multiple actions and from multiple sources and transparency. According to the Barometer findings, the profit purpose of companies is far less important than how it treats its employees or embraces societal issues. Corporate Reputation and trust are determined by transparency, involvement and social purpose. While we have moved from a shareholder to a stakeholder world we are clearly saying to politicians that they have a mandate to continue to intervene in the economy to find solutions to the challenges we face and to communicate openly. Institutions that are slow to realise this will continue to suffer trust deficits ”added Cahalane.

The 2010 Edelman Trust Barometer is the firm’s 10th annual trust and credibility survey. The survey was produced by research firm StrategyOne and consisted of 25-minute telephone interviews using the fielding services of World One from September 29 – December 6, 2009. The 2010 Edelman Trust Barometer survey sampled 4,875 informed publics in two age groups (25-34 and 35-64) in 22 countries. All informed publics met the following criteria: college-educated; household income in the top quartile for their age in their country; read or watch business/news media at least several times a week; follow public policy issues in the news at least several times a week.

Polling figures for Ireland have not been provided but the conclusion can hardly be disputed.