Trust in China's state-owned companies falls

Edelman latest Trust Barometer on emerging markets shows multinational corporations in BRIC markets suffer a serious lack of trust, but of all BRIC markets, China companies saw a significantly lower rate.Only 27% of respondents in key developed markets of the US, UK, Germany and France say they trust BRIC countries - Brazil, Russia, India and China.An even lower percentage of people from German (19%) France (22%) and the US (26%) say they trust China-based companies.A major factor behind this waning trust stems from state ownership and control of large BRIC-based corporations.Many respondents believe these companies and their governments are too "tightly linked", particularly those in China."Brands are built over a long period of time and most BRIC-based companies are new to developed markets," said Richard Edelman (pictured), president and CEO, Edelman."People aren't familiar with these brands or their CEOs. And many suffer from a negative perception around governance, supply chain management and treatment of employees."People no longer just buy products; they buy the corporation behind the products."Additionally, 51% of respondents in China and 60% in India say there is "too much" state control in their own national companies."Many in developed markets do not trust BRIC market governments and this greatly impacts trust on any organization closely tied to them," said David Brain, president and CEO, Edelman Asia Pacific, Middle East & Africa."Businesses closely linked with their national governments must be radically transparent about their organization's history, values, structure and decision-making processes."Other reasons include lack of international familiarity and the perception of poor performance against key trust drivers such as being ethical, treating employees well and listening to customers.