Indians' trust level in businesses plummets

Indians' trust level in businesses plummets
The Hindu

New Delhi (PTI): Trust factor has emerged as the worst casualty of the year gone by, with nearly half of Indians reposing less faith in its corporations and government, a report says.

As many as 62 per cent in the world reported a decline in trust level on corporations. In India, the findings are little better than world standards, but still as many as 49 per cent Indians repose less faith in their corporations than they did a year ago, as per the Edelman Trust Barometer report.

The report further says, "This year (2008), the world had more reasons than ever before to suspend its trust and for the most part, our data reflects this. Nearly two out of three informed people say they trust corporations less now than they did a year ago."

The year 2008, among other things, saw Government bailing out banks in New York and London, American auto bailout, a USD 50-billion Ponzi scheme and an Indian tech moghul's fraudulent enterprise started to crumble.

"It has been a catastrophic year for business, well beyond the evident destruction in shareholder value and need for emergency government funding," Edelman President and CEO Raichard Edelman said.

Edelman further said, "Our survey confirms that it's going to be harder to rebuild our economies, because no institution has captured the trust that business has lost is not a zero-sum game. Business must partner with government and other institutions to assume societal responsibilities."

Trust in corporations is down across the world, with the United States registering the maximum decline, as nearly 77 per cent contacted there said they trust corporation less this year than they did a year ago.