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Edelman Trust Barometer Global Deck 2012
1.
2012 EDELMAN TRUST BAROMETER GLOBAL
RESULTS
2.
2012 Edelman Trust
Barometer METHODOLOGY OVERVIEW GENERAL INFORMED INFORMED PUBLIC PUBLIC PUBLIC 25-64 35-64 Twelfth annual study Online survey in 25 countries 30,000+ respondents 1,000 general population respondents per country Ages 18+ Oversample of informed publics* 500 respondents in U.S. and China & 200 in all other countries Ages 25-64 (Trending data among Ages 35-64) College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy * This year Informed Publics were surveyed via online methodology instead of telephone 2 © Edelman, 2012. All rights reserved.
3.
Edelman Trust Barometer
in retrospect 2011 Rise of authority figures 2010 Trust is now an essential line of business 2009 Business must partner with government to regain trust 2008 Young influencers have more trust in business 2007 Business more trusted than government and media 2006 “A person like me” emerges as credible spokesperson 2005 Trust shifts from “authorities” to peers 2004 U.S. companies in Europe suffer trust discount 2003 Earned media more credible than advertising 2002 Fall of the celebrity CEO 2001 Rising Influence of NGOs 3 © Edelman, 2012. All rights reserved.
4.
4
© Edelman, 2012. All rights reserved.
5.
Distrust is growing;
nearly twice as many countries are now skeptics Fewer countries now in neutral zone 2011 2012 GLOBAL 55 GLOBAL 51 Brazil 80 > China 76 UAE 78 UAE 68 Indonesia 74 Singapore 67 China 73 TRUSTERS India 65 Netherlands 73 Indonesia 63 Mexico 69 Mexico 63 Singapore 67 Netherlands 61 Argentina 62 Canada 58 India 56 Italy 56 Italy 56 Argentina 54 NEUTRAL Canada 55 Australia 53 South Korea 53 < Brazil 51 Sweden 52 Sweden 49 Japan 51 > U.S. 49 Australia 51 South Korea 44 Spain 51 > Poland 44 France 50 U.K. 41 Poland 49 Ireland 41 DISTRUSTERS Germany 44 France 40 U.S. 42 Germany 39 U.K. 40 < Spain 37 Russia 40 < Japan 34 Ireland 39 Russia 32 Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 23 countries 5 © Edelman, 2012. All rights reserved.
6.
The Fragility of
Trust: Focus on Japan 2011 2012 Informed Public Informed Public TRUST IN INSTITUTIONS INFORMED PUBLICS – AGES 25-64 TRUST IN INDUSTRIES Business Media NGOs Government 75% - 12 - 21 - 26 Energy 29% -46 53% 47% 48% 36% 51% 30% 51% 25% 54% Media 33% -21 55% Financial services 38% -17 71% Banks 51% -20 CREDIBLE SPOKESPEOPLE -38 -23 70% -43 -55 -43 65% 67% 63% 59% -26 TRUST IN INFORMATION SOURCES -30 48% 42% -17 -16 -26 -13 -13 39% 40% 32% 24% 22% 18% 16% 14% 8% Newspaper TV Radio Magazines Technical Academic CEO A Person NGO Regular Financial/ Government Expert or Expert Like Represent. Employee Industry Official Yourself Analyst Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust); Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust); Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from ea ch person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible); Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in Japan 6 © Edelman, 2012. All rights reserved.
7.
Trust in three
of four institutions declines; only media rises TRUST IN INSTITUTIONS 2011 Informed Public 56% 2012 52% 53% Informed Public 47% 2012 43% General Public 38% Government Business 61% 58% 49% 52% 50% 46% Media NGOs Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) AND General Population in 25 country global total 7 © Edelman, 2012. All rights reserved.
8.
Record decline in
government -- NGOs and business fall to 2009 trust level TRUST IN INSTITUTIONS – 18-COUNTRY GLOBAL TOTAL NGOs Media Business Government 80% 70% 59% 60% 57% 53% 54% 54% 52% 53% 53% 52% 49% 50% 51% 47% 46% 49% 47% 48% 46% BUSINESS 44% 46% 44% 45% 40% 43% 40% 38% GOVERNMENT 30% 20% 2007 2008 2009 2010 2011 2012 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in 18 country global total (excludes Argentina, Australia, Hong Kong, Indonesia, Malaysia, Singapore and UAE) 8 © Edelman, 2012. All rights reserved.
9.
Several mature markets
see double-digit drops in business trust TRUST IN BUSINESS 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 80% 81% 81% 78% 77% 78% 74% 71% 70% 69% 67% 67% 66% 65% 65% 64% 63% 63% 61% 62% 56% 56% 57% 57% 54% 54% 53% 53% 53% 52% 52% 50% 50% 50% 46% 48% 46% 46% 46% 44% 47% 47% 44% 43% 41% 41% 38% 34% 32% 31% 28% N/A N/A Q11-14. [Business in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 9 © Edelman, 2012. All rights reserved.
10.
Technology remains on
top in all markets, finance sector still at bottom TRUST IN INDUSTRIES – GLOBAL 2011 2012 Technology 80% Technology 79% Telecommunications 67% Automotive 66% 2009: Automotive Food and beverage 67% 64% 58% Food and beverage 64% Consumer packaged goods 62% Pharmaceuticals 61% Telecommunications 60% Energy 60% Brewing and spirits 59% Consumer packaged goods 57% Pharmaceuticals 56% Brewing and spirits 57% Energy 53% Media 52% Media 51% Banks 50% Banks 47% Financial services Financial services 48% 45% 2008 Trust in Banks: 56% 2012 Trust in Banks: 40% -16 Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) & Informed Publics ages 35-64 in 18 country global total 10 © Edelman, 2012. All rights reserved.
11.
Dramatic fall for
banks in Japan and S. Korea; now at low levels seen in West TRUST IN BANKS U.S. Japan UK/France/Germany China India S. Korea 100% 88% 90% 84% 85% 90% 83% 77% 87% 82% 80% 83% 72% 81% 75% 70% 69% 76% 68% 68% 67% 60% 64% 55% 58% 59% 52% 50% 51% 51% 49% 38% 40% 36% 41% 39% 29% 29% 30% 35% 27% 20% 24% 22% 21% 10% 0% 2007 2008 2009 2010 2011 2012 Q16-26. [Banks TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea 11 © Edelman, 2012. All rights reserved.
12.
Trust in technology
remains high in all markets TRUST IN TECHNOLOGY U.S. Japan UK/France/Germany China India S. Korea 100% 95% 91% 93% 89% 93% 90% 90% 93% 87% 93% 86% 88% 83% 83% 80% 80% 81% 80% 78% 78% 79% 78% 78% 78% 76% 76% 77% 73% 74% 73% 70% 75% 76% 67% 60% 66% 67% 66% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2012 Q16-26. [Technology TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea 12 © Edelman, 2012. All rights reserved.
13.
Majority of countries
now distrust government TRUST IN GOVERNMENT 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 88% 88% 85% 77% 78% 75% 75% 73% 64% 62% 61% 62% 62% 56% 53% 52% 54% 52% 52% 51% 50% 49% 50% 49% 44% 47% 43% 43% 43% 42% 42% 45% 43% 40% 39% 40% 38% 35% 35% 36% 33% 33% 33% 31% 31% 32% 28% 26% 25% 20% 20% N/A N/A Q11-14. [Government in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 13 © Edelman, 2012. All rights reserved.
14.
Media only institution
to see trust increase TRUST IN MEDIA 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 86% 80% 79% 80% 72% 73% 70% 69% 67% 65% 65% 65% 61% 60% 61% 61% 59% 57% 54% 53% 53% 52% 50% 49% 50% 48% 49% 48% 46% 46% 45% 47% 45% 45% 43% 45% 42% 45% 41% 37% 37% 38% 38% 37% 37% 36% 35% 32% 33% 27% 22% N/A N/A Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 14 © Edelman, 2012. All rights reserved.
15.
Skepticism requires repetition
MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE 13% 5% ONCE (1) TEN OR MORE TIMES (10+) 14% TWICE (2) 6% SIX TO NINE TIMES (6-9) 35% THREE TIMES (3) 28% FOUR OR FIVE TIMES (4-5) 63% THREE TO FIVE TIMES Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses) Informed publics ages 25-64 in 25 country global total 15 © Edelman, 2012. All rights reserved.
16.
Diversification of Media
TRUST IN INFORMATION SOURCES 2011 Informed Public 2012 Informed Public + 10% 29% 32% + 18% 22% 26% + 75 % + 23% 14% 16% 13% 8% TRADITIONAL ONLINE MULTIPLE SOCIAL MEDIA CORPORATE SOURCES Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) 16 © Edelman, 2012. All rights reserved.
17.
NGOs still most
trusted institution, despite some declines TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 85% 79% 80% 78% 75% 74% 72% 72% 72% 70% 70% 70% 67% 67% 65% 68% 65% 64% 64% 66% 66% 66% 63% 62% 61% 61% 60% 60% 58% 58% 59% 58% 56% 55% 55% 54% 53% 53% 55% 53% 53% 51% 51% 51% 50% 48% 49% 42% 41% 30% 28% N/A N/A Q11-14. [Non-governmental organizations (NGOs) TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9- point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries 17 © Edelman, 2012. All rights reserved.
18.
NGOs surge in
China and India TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) U.S. UK/France/Germany China India 80% 75% 79% 70% 68% 65% 60% 55% 54% 52% 50% 48% 45% 48% 40% 35% 36% 31% 30% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q11-14. [Non-governmental organizations (NGOs) TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in U.S., UK/France/Germany, India and China 18 © Edelman, 2012. All rights reserved.
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20.
Trust in business
and government move in sync since 2008 in Western Economies TRUST IN BUSINESS AND GOVERNMENT Business Government U.S. 80% 58% 60% 53% 51% 51% 48% 49% 44% 48% 48% 45% 45% 38% 40% 48% 44% 44% 43% 36% 39% 39% 37% 38% 38% 30% 27% 20% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 UK/France/Germany 80% 60% 46% 41% 40% 36% 35% 36% 38% 37% 39% 40% 34% 36% 43% 36% 38% 31% 32% 31% 32% 30% 31% 27% 20% 26% 25% 22% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q11-14. [Business in General and Government in general TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in the U.S. and UK/France/Germany 20 © Edelman, 2012. All rights reserved.
21.
Credibility of CEOs
and government officials plummet Peers and regular employees see dramatic rise CREDIBLE SPOKESPEOPLE 2011 2012 Academic or expert 70% Academic or expert 68% Greatest increase since 2004 Technical expert in the company 64% Technical expert in the company 66% Financial or industry analyst 53% A person like yourself 65% + 22 CEO CEO 50% Regular employee 50% + 16 NGO representative 47% NGO representative 50% A person like yourself 43% Financial or industry analyst 46% Gov’t official or regulator Government official or regulator 43% CEO CEO 38% - 12 Regular employee 34% Gov’t official or regulator Government official or regulator 29% - 14 Biggest declines in Barometer Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the history information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) 21 © Edelman, 2012. All rights reserved.
22.
CEO credibility returns
to low of 2009 CEO CREDIBILITY U.S. Japan UK/France/Germany China India S. Korea 100% 90% 83% 80% 70% 66% 68% 60% 59% 63% 60% 60% 53% 56% 50% 46% 51% 46% 44% 49% 45% 40% 37% 44% 35% 37% 41% 34% 33% 28% 30% 32% 26% 34% 22% 23% 27% 20% 17% 26% 22% 23% 21% 18% 17% 10% 0% 2007 2008 2009 2010 2011 2012 Q119-126. [A CEO of a company TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea 22 © Edelman, 2012. All rights reserved.
23.
Government leaders less
trusted than business leaders to tell the truth Business Leaders Government Leaders % WHO DO NOT TRUST THEM AT ALL TO TELL THE TRUTH 73% 69% 69% 66% 66% 65% 60% 51% 53% 50% 51% 50% 50% 48% 46% 47% 46% 46% 46% 44% 43% 43% 42% 41% 40% 40% 38% 36% 36% 34% 36% 34% 34% 30% 27% 28% 29% 26% 23% 24% 24% 21% 17% 17% 14% 15% 13% 14% 10% 11% 9% 10% 5% Q126A. [SPLIT SAMPLE] How much do you trust business leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries; Q126B. [SPLIT SAMPLE] How much do you trust government leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries 23 © Edelman, 2012. All rights reserved.
24.
Business not meeting
public’s expectations Business Importance Company LISTENS TO CUSTOMER NEEDS AND FEEDBACK 67% Performance 36% -31 OFFERS HIGH QUALITY PRODUCTS OR SERVICES 67% 48% -19 TREATS EMPLOYEES WELL 64% 27% -37 PLACES CUSTOMERS AHEAD OF PROFITS 62% 26% -36 TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 62% 28% -34 HAS ETHICAL BUSINESS PRACTICES 61% 32% -29 HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 60% 27% -33 COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 57% BUSINESS 26% -31 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 55% 29% -26 ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS 50% 30% -20 CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 49% IN WHICH THE COMPANY OPERATES 26% -23 IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 46% 41% -5 HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 29% -12 41% Closing the DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 39% gap on 23% -16 RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST 38% expectations COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES' 31% -7 PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 36% SOCIETAL ISSUES 19% -17 Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in 25 country global total (excludes ‘Don’t Know’ responses); Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in 25 country global total 24 © Edelman, 2012. All rights reserved.
25.
Government not meeting
public’s expectations Government Importance Government Performance 67% LISTENS TO CITIZENS' NEEDS AND FEEDBACK 17% -50 66% HAS TRANSPARENT AND OPEN PRACTICES 16% -50 EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 65% COUNTRY 19% -46 65% COMMUNICATES FREQUENTLY AND HONESTLY 16% -49 56% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 18% -38 PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 54% EMPLOYMENT OPPORTUNITIES 18% -36 CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 52% LOCAL COMMUNITIES 16% -36 PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 41% ADDRESS SOCIETAL ISSUES 14% -27 Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. (Top 2 Box, Very/Extremely Important) General Population in 25 country global total; Q140-147. Please rate your government on how well you think they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well". (Top 2 Box, Performing Very/Extremely Well) General Population in 25 country global total 25 © Edelman, 2012. All rights reserved.
26.
Despite lack of
trust in government, calls for increased regulations % WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH 77% 70% 68% 64% 61% 58% 54% 54% 54% 53% 51% 50% 50% 49% 48% 48% 46% 45% 40% 40% 38% 36% 35% 34% 30% 30% 25% Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (% who selected ‘not enough’) Informed Publics ages 25-64 in 25 country global total and across 25 countries 26 © Edelman, 2012. All rights reserved.
27.
Calls for greater
protection and responsible behavior THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS: 31% PROTECT CONSUMERS from irresponsible business practices Business can address on its own 25% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 19% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 16% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 4% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 4% Government SHOULD NOT PLAY A ROLE in business Perceived drivers of irresponsible behavior: • Poor management (29%) • Unethical business practices (28%) • Shortcuts that lead to poor quality (21%) Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total; Q127. Which of the following items do you think makes people in a company most likely to engage in risky and irresponsible behavior that could damage a company? Informed Publics ages 25-64 in 25-country global total 27 © Edelman, 2012. All rights reserved.
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29.
BUSINESS
CAN EARN LICENSE TO LEAD 2008-2009 Low trust in business and CEOs Business has flexibility and speed THE DYNAMIC OF TRUST BETWEEN Call for increased regulation BUSINESS & protection from Business leaders GOVERNMENT irresponsible behavior sought more trusted than government leaders business has advantage in 24 out of 25 markets 2011 Government responds Dwindling trust in government policy paralysis 29 © Edelman, 2012. All rights reserved.
30.
Business: from license
to operate to license to lead CURRENT TRUST BUILDING FUTURE TRUST Attributes that Correlate with Current Trust Most Important Attributes that Build Trust 47% TRUST BUSINESS 1 Listens to customer needs and feedback 1 Delivers consistent financial returns SOCIETAL ATTRIBUTES MORE IMPORTANT TO 1 High quality products or services 2 Innovator of new products BUILDING FUTURE 3 Treats employees well TRUST 3 Highly regarded, top leadership 4 Places customers ahead of profits 3 Ranks on a global list 4 Takes actions to address issue or crisis 6 Has ethical business practices 5 Partners with third parties 7 Has transparent and open business CURRENT TRUST 8 Communicates frequently and honestly DRIVEN BY OPERATIONAL ATTRIBUTES 9 Works to protect/ improve environment 10 Addresses society's needs 11 Positively impacts the local community 12 Innovator of new products 13 Highly regarded, top leadership 14 Delivers consistent financial returns Societal 15 Ranks on a global list Operational 16 Partners with third parties Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 25 country global total; Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in 25 country global total (excludes ‘Don’t Know’ responses) * ‘Current Trust’ results based on regression analysis of general population in 25 country global total 30 © Edelman, 2012. All rights reserved.
31.
Earn License to
Lead Exercise principles-based leadership, not rules based performance Recognize that operational factors responsible for current trust won’t build future trust, societal and engagement behaviors will Practice radical transparency: speak first to employees; report on goals Shape the public discourse on issues of importance to business 31 © Edelman, 2012. All rights reserved.
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