At a time when transparency, trust and social good matter to consumers more than ever, the influence of the corporate brand or the company behind your favourite products or services matters even more.
Edelman’s proprietary research into Trust and Purpose reveals a growing and evolving expectation from stakeholders for companies to be morally responsible and serve society in addition to shareholders. 83% of Australians believe that business needs to place at least equal weight on society’s interests as on business’ interests. That means what an organisation stands for – its Purpose – is now critical in our transparent world.
Business and its brands can no longer operate in isolation. Consumers have become savvy and can now easily make connections between the products they buy and the company behind these brands…..and they are looking for that information. In fact, Edelman’s 2012 Australian goodpurpose®research reveals that:
- 42% of Australians want to know more about the company behind the product brand.
- 45% of Australians read the product label and 25% actively go online or to social media sites to learn more about the company behind the products they buy.
- 35% of Australians are hesitant to buy products if they don’t know much about the company.
A trusted corporate brand, with a vision and purpose well understood by consumers, can help strengthen the value of the product brand. Leading companies know the future success for its product brands rests on building corporate brand equity, elevating corporate reputation, and creating a high level of trust among all of its internal and key external stakeholders.
Purpose Builds Trust
Our Edelman Trust Barometer research clearly shows future trust is built on engagement and social performance. In Australia we found that corporate trust is built upon listening to customer needs and feedback, treating employees well, communicating openly, and positively impacting the community and the environment.
We believe that an authentic balance of reputation and trust, built upon both operational and societal performance, is the clear mandate for optimal business success.
While our research tells us that a business’ Purpose and their societal performance is critical to driving future trust we also know that half of Australians don’t believe business is delivering in this area. Only 29% of Australians believe businesses are performing well in addressing society and community issues.
Much of this may have to do with communications. Our goodpurpose® study revealed that 80% of consumers believe it is important for companies to make them aware of its efforts to address social issues. At the moment, these messages may not be getting through. One in three Australians said they did not know if they had purchased a cause-supporting brand in the past year.
Our Corporate Brand team works with businesses to align and integrate its corporate and product brands to optimise their respective strengths to achieve strong business results while enabling them to build trust amongst employees, stakeholders and consumers.
Please don’t hesitate to call me if you have any questions about how Edelman can help you activate and build trust in your corporate brand.
-Kate Ferguson, Director, Corporate Brand