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Terms in this set (89)

By 2014, research showed that business held the trust advantage over governmentandwas expected to lead thewayin helping government establish and maintain an appropriate regulatory environment (Edelman, 2018). By 2016, trust in all four institutions measured — business, government, nongovern-mental organizations (NGOs) and media — reached its highest level since the Great Recession of 2008. Trust in business had the largest jump in trust, putting it in a prime position to lead in cementing public trust in society's institutions. But by 2018, trust in the four institutions did not just erode, it imploded, partic-ularly in the U.S., which garnered the lowest trust level among the 28 international markets measured. According to CEO Richard Edelman, we are now in "an unprece-dented crisis oftrust" in the U.S., and in many other global markets. Edelman, one of the world's largest public relations firms, has conducted an annual global survey ofpublic trust in institutions. In 2018, overall trust among the informed public in the U.S. plunged 23 points to 45 percent, led by a decline in trust in government of 30 points to 33 percent — the largest trust decline in the history of the Edelman Trust Barometer (see Figure 1.1). Respondents said that government is the most broken institution in the U.S. (59 per-cent). Trust in business, media and NGOs in the U.S. also had significant decreases. At the same time, trust in China soared, led by an increase oftrust in government to 89 percent of the informed public. The strengthened trust level in China puts it at the top of the global trust index, accompanied by India, Indonesia, United Arab Emirates and Singapore. South Korea also scored higher trust levels underscoring the trend of strengthened Asian markets. The 2018 survey also shows a reversal in the declining credibility of CEOs. CEO credibility rose seven points to 44 percent. Business is now expected to be a change agent, as publics say building trust is now the primary responsibility of CEOs, even more important than producing high-quality products and services.
A broad group of individuals that has a vested interest, or "stake," in an organization.
evaluate in forming their per-ceptions of reputation and relationship
• Stakeholders affected by the problem, issue, challenge or opportunity.
• Current attitudes, opinions and values of stakeholders pertaining to the problem, issue, challenge or opportunity.
• Active or aware publics that may have formed in response to the problem, issue, challenge or opportunity.
• Demographic and psychographic data (beliefs, values, attitudes, lifestyles and decision-making process).
• Relationship quality between stakeholders, publics and the organization.
• Social media conversations about the issue, challenge or opportunity, including hashtags, search terms, key words, volume, sentiment, trends, engagement, macro and micro influencers, content authors and publishers.
• Motivating self-interests.
• Intervening publics and opinion leaders.
• Information sources and preferred media channel
Enabling stakeholders have some degree of authority or control over your organization. They restrict organizations from or enable them to acquire resources and pursue their goals. Examples include shareholders, lawmakers and government regulators.
Functionalstakeholders are essential to make your organization function prop-erly. Theyprovide the labor (employees or subcontractors)andresources (e.g., suppliers) your organization needs to produce and deliver products and ser-vices. They are also consumers ofyour organization's products and services.
Normative stakeholders share a common interest, have similar values, seek relatedgoalsandexperience similarproblemsasyourorganization.Examples include competitors and industry associations.
Diffused stakeholders have infrequent interactions with your organization. Usually, these interactions are caused by your organization's actions or deci-sions. They often get involved during a crisis. Examples include the mediaand activist groups.