Chief executives lack credibility - study

An academic, a non-government organisation or a person on the street are regarded as more credible sources of information about a firm than its own chief executive, a study has found.

The picture was even worse for governments in an election year, because people were more likely to trust businessmen before politicians, the survey by public relations firm Edelman said. Only 38 per cent of high-income earners surveyed said they listened to what a firm's most senior executive had to say when they were formulating a view on a company.

But businesses can take heart that during the last year their standing has risen – in last year's survey the figure was only 19 per cent.

For politicians, it was the reverse. Their credibility plummeted from 41 per cent at the height of the global financial crisis to 15 per cent earlier this year, said the study, which measured people's trust in institutions and business.

Australia was the only country in the region to register such a decline in attitudes towards government.

The findings of Edelman's trust barometer also shed light on what people regard as important when assessing a company's reputation. Respondents placed a higher premium on companies being able to offer high-quality products and services than their overall trustworthiness.

Bringing up the rear was whether or not a firm introduced innovative or new products or services.

- © Fairfax NZ News