Trust in Asia Pacific, Middle East & Africa 2016

Trust
ASIA PACIFIC, MIDDLE EAST AND AFRICA
AN EDELMAN PUBLICATION2016

Asia Pacific, Middle East and Africa
PREFACE

1TRUST
Trust is an essential asset for any business
anywhere in the world, which is why we
have been measuring and assessing it now
for 16 years. But trust is an outcome, not a
message. It is driven by behavior first and
communications second. It is a function of
thetangibleproductsandservicesabusiness
provides, and the way in which it provides
them. It is driven by how a business treats its
customers, its employees, its partners, the
environment and the communities it lives
with. And yes, it is also about the way in
which it communicates. In its most profound
sense, everyone knows what trust is and
everyone understands and has experienced
how trust is earned and how it is lost. But
despite this, behaviors that drive trust are
often victims of the day-to-day pressures of
running a business effectively.

2 TRUST
PREFACE
And that is dangerous. If a company becomes distrusted, people are
48 percent less likely to buy its products or services. And if it is actively
trusted, they are 68 percent more likely to buy its products or services.
So measuring and managing trust should be a mission critical function
for every business and every CEO.
And trust can be measured and it can be managed. To help with this, we
identified the 16 attributes that drive trust, and over the years we have
spent a huge amount of time and effort assessing the relative importance
of those attributes in multiple markets. We have then tested the data
in real-life situations with our clients in just about every sector across 65
offices worldwide. Our 5,500 people use these attributes with thousands
of clients every day and that process is kicked off annually, in January,
when we publish and debate in open forums the headline results of our
data. And every year we learn again from the debate it prompts.
This collection of essays is part of that process and looks at the data
for 11 markets in the Asia Pacific, Middle East & Africa (APACMEA) region.
As you will see, the findings vary significantly from market to market,
proving that whilst trust needs to be part of any CEOs job, it also needs to
be managed market by market. We hope you find the essays interesting.
David Brain, President and CEO
Edelman APACMEA

Asia Pacific, Middle East and Africa
North Asia
China
Hong Kong
Japan
Korea
Emerging Markets
India
South Africa
United Arab Emirates
Southeast Asia
Australia
Indonesia
Malaysia
Singapore
6
10
14
18
20
22
24
28
30
32
34
38
40
44
46
Content

6 TRUST

7TRUST
Trust in the four institutions of business, government,
media and NGOs is up around the world, but it is only the
developing economies of Asia and the Middle East that
can feel good about that.
First the good news: trust has recovered to pre-Great
Recession levels around the world with NGOs regaining
their number one position in most markets. Trust in NGOs
to do what is right is at 67 percent of the informed public
(top 15 percent of population) and 55 percent of the general
population (all respondents) — both rises of four points.
Business has seen even higher respective rises of six points
and five percentage points, with media and government
enjoying smaller rises too.
In our Edelman Trust Index (where we combine the
scores for all four institutions), the top six countries are
all developing economies with five of them being in Asia
Pacific, Middle East & Africa (APACMEA). This is true
of both the informed public and general population. As
always, if an economy is improving, people tend to confer
trust on the institutions they believe are responsible for
that. And with countries like Poland, Japan and Russia at
the foot of the table, it is safe to infer the opposite as well.
Perhaps not surprising then is that APACMEA devel-
oping economies also make up four of the global top five
when it comes to trusting business to do what is right.
That said, Japan remains firmly rooted to the bottom.
Less intuitive perhaps, but now an Edelman Trust
Barometer staple, is the fact that there are only six markets
of the 28 we survey globally where government is a more
trusted institution than business, and five of them are from
APACMEA. So whilst business has an opportunity to lead
in many western markets where it is a more trusted institution
than government, and often more trusted to address
specific societal issues than government, that is not always
the case in APACMEA. Getting government on board
and ensuring that your business strategy is understood and
accepted in this region is therefore vital.
So to the bad news. Globally there is now a 12-point
gap in the Edelman Trust Index between the informed
public and the mass population (the remaining 85 percent).
And this gap is increasing. Western developed democracies
make up four of the top five with the biggest trust gap.
While India is the big regional exception, with the
fourth biggest trust gap between the “rich and the rest,”
the developing economies of APACMEA appear largely
to have succeeded in fusing fast economic development
with a much wider sense that everyone is sharing in the
benefits of that growth.
APACMEA REMAINS THE MOST trusting region and,
it would seem, the region with the smallest trust gap
between rich and poor.
For a number of years now, an employee has been
one of the most trusted sources of information about a
company. Much more so than the CEO. This year we
asked respondents how much they trusted the company
they worked for. Workers who trust their employers come
almost exclusively from developing economies. Interestingly,
Japanese respondents are significantly the least trusting
of their employers with only 40 percent giving a positive
response, which is half the level of trust enjoyed by Indian
or Chinese businesses.
Employees are essential advocates for the companies
they work for and with some firms in the region employing
hundreds of thousands of people, they are particularly
powerful assets.
By David Brain, President and CEO, Edelman Asia Pacific, Middle East and Africa
Trust in the Trusting Region

8 TRUST
The trust in media scores in our region are often a source
of interest. This year, as always, China, Singapore and the
United Arab Emirates scored highly (81 percent, 69 per-
cent and 68 percent respectively for the informed public)
and yet media in these countries is owned or strictly con-
trolled by the government. While trust is a universal value,
the idea of “what is right” varies by country and culture.
When we have delved deeper in these markets, we have
been told that nation building is as important a role for the
media as challenging authority.
NGOs also had a good year after drops in trust last
year. Trust in NGOs went up in 82 percent of the countries
surveyed amongst the general population, with the most
dramatic jump occurring in China (17 points), signaling
their growing importance as organizations business should
partner with.
Companies headquartered in developed markets are
still more trusted than those based in developing markets.
India (30 percent), China (33 percent) and Korea
(42 percent) are the least trusted national identities from
APAC versus Canada and Sweden at the top (66 percent).
This remains a huge communication challenge for Asian
and developing market businesses, particularly as they flex
their muscles and leave their home markets to sell products
and services or do deals.
I hope the following essays provide an interesting and
useful guide to the trust landscape in 11 of the markets in this
region. There is much more actionable detail available, so
please get in touch with the Edelman author for the country
you are interested in. Contact david.brain@edelman.com

9TRUST
ASIA PACIFIC, MIDDLE EAST AND AFRICAWhile trust is a universal value,
the idea of “what is right” varies
by country and culture.
When we delve deeper into
these markets, we have been
told that nation building is
as important a role for the media
as challenging authority.

10 TRUST
2015 was a year in which North Asia continued to exhibit
the diverse nature of its different cultural, economic and
political components. Worries over China’s slowing econ-
omy have been softened somewhat by improving regional
ties, but with a North Korea seemingly never short of
unpredictable actions, the stability and prosperity of the
region constantly hangs in the balance. When national
interests prevail, the path to take when building trust is
not always an obvious one, and despite increases over the
previous year, trust is not an attribute that can be taken
for granted for those operating in the region.
The increase we have observed in trust across North
Asia this year is in line with a trend we are seeing on a
global level, where trust towards the four institutions of
government, media, business and NGOs among nearly all
informed publics shows increases over the 2015 Edelman
Trust Barometer.

2016 North Asia Trust in…
China Hong Kong Japan South Korea
Government 86% 47% 41% 38%
Media 81% 53% 39% 52%
Business 80% 43% 45% 37%
NGOs 83% 64% 40% 72%
Trust Index 82 52 41 50
Whereas in other regions this has resulted in a narrowing
of the gap between trust in these institutions, for North
Asia the gap between its least trusted institution, business,
is now 14 points lower than its most trusted, NGOs.
Business remains the least trusted institution in all but
one of the North Asian countries — Japan. Japan ranks
the highest, and in between there is no real consensus
over where the trust towards government and media lies.
By Bob Grove, CEO, Edelman North Asia
With China showing record levels of trust in the 2016
Edelman Trust Barometer, what is now clearer than before
is the extent to which the highly trusting Chinese public
is propping up trust levels throughout the region.
The Edelman Trust Index for North Asia —
the average level of trust across all institutions and
countries — currently stands at 56 percent.
However, if you remove China from the equation, it
plummets to 48 percent. Put in comparison with the rest
of Asia Pacific at 68 percent, and the global results across
28 countries at 60 percent, this paints a picture of a region
whose trust is still far from having been earned.
The Edelman Trust Barometer measures the importance
of 16 core drivers towards trust in business. The general
population in China and Hong Kong derive much of their
expectations of business from its ability to deliver high
quality products and services, while fair treatment of
employees remains one of the top issues for the South
Korean public — an expectation which has also seen increasing
importance in Japan and Hong Kong this year.
Yet business does not appear to be listening or changing
its behavior. Many of the gaps between what the public
considers important in building trust in these organizations,
and how these expectations are actually being delivered,
remain on par with last year.
The largest of these gaps can be found in the area of
integrity, where business appears to fall short in taking
responsible actions to address issues and is not providing
enough openness and transparency in the way it operates.
And as ever, for those in regional reputational management
roles, there is no one-size-fits-all approach to building trust
across Asia Pacific and the neighboring regions, as the
chart on the following page depicts.

NORTH ASIA
Common Ground Within
A Disparate North Asia

12 TRUST
New to the 2016 Edelman Trust Barometer is an in-depth
look into the factors that establish trust in business leaders.
On the whole, the results echo those seen for the drivers
of trust in business generally, but firmly demonstrate the
importance of the CEO as an embodiment of his or her
company’s values.
The CEO is expected to articulate the purpose and
values of a company rather than simply reporting financial
results and expectations. Where they understandably differ,
however, is in their reflection of the human characteristics
that people look for in the leaders and role models of their
society. There is a greater expectation on leaders to take
responsible actions for addressing societal issues than there
is on offering high quality products and services.
In fact, being featured on a list of top performing
CEOs is the least important element in helping to establish
trust. The gaps in performance can also be found in the
areas where expectations are high, with treating employees
well being perceived as the area where CEOs are most
lacking across the region.
Fortunately for those organizations and leaders who
are choosing to take an active role in wider issues, the
benefits often spill over into other areas, with employees
working for such companies 24 percent more likely to
recommend the company as an employer, and 23 percent
more likely to stay working for the company.

Percentage Increase In Those Who Agree With Each Statement
China Hong Kong Japan S. Korea
Recommend company
as an employer 23 22 29 22
Stay working for
the company 24 26 25 18
Confidence in the
future of the company 22 34 21 20
Motivated to perform 22 20 23 25
Committed to achieving
our strategy 14 21 32 20
Recommend products
and services to others 24 30 27 21
Do the best possible job
for the customer 8 19 24 11
NORTH ASIA
Has ethical
business practices
Offers high quality
products or services
Takes responsible actions
to address an issue or crisis
Listens to customer
needs and feedback
Treats employees well
Has transparent and
open business practices
CHINA
INDIA
JAPAN
S.KOREA
AUSTRALIA
INDONESIA
S.AFRICA
UAE
HONG KONG
SINGAPORE
MALAYSIA
REPUTATION RISK
The attributes that people
see as being most important
in building trust in business
The top two chosen attributes
from each country are
represented. In some cases
countries have as many as
4 equally-chosen attributes.

13TRUST
NORTH ASIA
For leaders in North Asia questioning what they can do
to close these gaps and earn the trust of their stakeholders,
the 2016 Edelman Trust Barometer offers some clues.
All four North Asian countries stated that a CEO’s personal
values and the obstacles they have overcome are
the most important to building trust.

As one of the points where we see the most uniformity
across the region, this goes to show that certain traits and
personalities are an essential part of being human —
aspects that everyone can relate to regardless of culture
and background. This offers a small counterpoint to
those who have observed that when it comes to building
trust in North Asia, a one-size-fits-all approach is rarely
the best solution. Contact bob.grove@edelman.com

14 TRUST
From Empowering to Envisioning
After a disastrous year for trust in 2014, the events of 2015
not only restored China’s informed public’s trust to the top
of this year’s Edelman Trust Index, but ensured that China
begins 2016 with trust levels at an all-time high.
Primarily driven by increases in trust towards business
and NGOs, the 2016 Edelman Trust Barometer also points
towards the increasing expectations of business to go
beyond its traditional remit and take responsibility for
wider economic and societal issues.
At a time when China’s “New Normal” appears more
normal than ever, and “Made in China 2025” is redefining
the role of Chinese organizations on a global scale, harnessing
this trust will be crucial for all institutions looking to
transcend these changes.
CHINA BACK ON TOP
Regular followers of the Edelman Trust Barometer will
have observed last year’s decrease in trust on a worldwide
scale. Even China, typically one of the world’s most trust-
ing nations, was not immune to this phenomena. In fact,
China was hit particularly hard, losing its coveted position
at the top of the Trust Index and falling to fourth in the
global order among informed publics.
This year sees China’s return to the top of the Edelman
Trust Index after a surge in trust in the four institutions of
government, business, media and NGOs. With an average
By Tony Tao, SVP, Edelman China and
Kevin Wang, Managing Director, Edelman China Corporate Practice
The evolving role of the Chinese CEO
of 82 percent of its informed public expressing trust
towards these institutions, China’s trust today is at an
all-time high.
A closer look at the individual institutions reveals
that it is trust towards business and NGOs that are most
responsible for this increase, restoring the ground that
had been lost in last year’s Edelman Trust Barometer.
China Trust Index 2015 2016
75 82
While some may see this as cause for celebration, it is not
all good news for business. Business is the least trusted
institution in China this year, behind NGOs, media and
government. Compared to the global findings, where
business has long been one of the more trusted institutions,
there is clearly still work to be done for businesses operating
in China who wish to earn the trust of their stakeholders.
China Trust In… 2015 2016
Government In General 75% 79%
Media In General 64% 73%
Business In General 58% 70%
NGOs 54% 71%
Trust Index 63 73
CHINA

15TRUST
CHINA
The 2016 Edelman Trust Barometer shows us that business
in China is not only seen as a generator of wealth. Instead,
it must take the lead in solving economic and societal issues
that our generation is facing. The slowdown of the Chinese
economy and the implications it has for its 1.4 billion
citizens was one of the most talked about stories of the past
year, so it comes as no surprise that both the public and the
government are calling for more action from business to
take the lead in solving society’s issues.
In June 2015, the Chinese government launched what
it calls its “Made in China 2025” strategy, a plan to “up-
grade China from a manufacturer of quantity to one
of quality.” More than just a rebranding campaign, “Made
in China 2025” embodies the government’s current desire
to work with business to deepen structural reform and
build a sustainable model for the country’s development.
The opportunities this presents for business in China goes
without saying, however, these opportunities can only be
realized if organizations take a new approach centered on
mutual benefit and purpose. It is up to business leaders to
reassess their roles and responsibilities: moving their focus
from simply empowering business success and instead
envisioning the bigger societal issues with which they can
engage and address through their organizations.
THE CEO: A NEWFOUND ROLE IN BUILDING TRUST
As business takes on a more prominent role in overcoming
the nation’s societal challenges, the public face of these
organizations must be one that inspires trust and confi-
dence. Fortunately for businesses operating in China, trust
in CEOs is higher than any of the other countries
surveyed. 80 percent of the general population in China
consider CEOs trustworthy, significantly higher than the 47
percent global general population average, where over two
thirds of countries are “CEO Distrusters” on the whole.
With 85 percent of the Chinese general population
wanting business leaders to be visible in discussing societal
issues such as income inequality and public policy, it makes
sense that the personal values and back stories of CEOs
are of more importance to today’s consumer than their
previous education or displays of authority. Often seen as
role models by the Chinese public, CEOs in China are
able to leverage this leadership position, using their unique
personalities to communicate with their audience on the
issues the general population cares about. As we see a new
generation of Chinese business leaders emerge, the channels
in which they pursue this engagement will change.
With Chinese millennials placing more trust in social
and online channels than older generations, those CEOs
who are able to effectively utilize these platforms have an
advantage, while creating new challenges for those unfa-
miliar with today’s tools of the trade.
Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree
with the following statement? (Top 4 Box, Agree). General Population, China, question
asked of half the sample.
87% AGREE
Business Must Lead To Solve Problems
“A company can take
specific actions that both
increase profits and
improve the economic
and social conditions
in the community where
it operates.”
Up from 78% in 2015
83
61
66
70
64 62
56
59
62
35
90
78 76 75 73 72
69 68
65
54
My friends
and family
A company
CEO
An academic
expert
Companies
that I use
Employees of
a company
Elected
officials
Celebrities A well-known
online
personality
A journalist Companies
[brands] I
don’t use
Every Voice Matters
Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following
authors or content creators? (Top 4 Box, Trust) General Population, China, question asked of half the sample.
Percent who trust information created by each author on social networking sites,
content sharing sites and online-only information sources, 2015 vs. 2016 2015 2016
General
Population
+17
83
90
My Friends
And Family
66
76
An Academic
Expert
70
75
Companies
That I Use
64
73
Employees Of
A Company
62
72
Elected
Officials
56
69
Celebrities
59
68
A Well-Known
Online
Personality
62
65
A Journalist
35
54
Companies
[Brands] I
Don’t Use
Every Voice Matters
Source: 2016 Edelman Trust Barometer Q598609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators?
(Top 4 Box, Trust) General Population, China, question asked of half the sample.
-
Percent who trust information created by each author on social networking sites,
content sharing sites and onlineonly information sources, 2015 vs. 2016.
61
78
A Company
CEO
2015
2016
+17

16 TRUST
An example last year that received wide praise from the
public and media was when Wang Sicong, a Wanda board
member and son of its founder Wang Jianlin, provided
a quick response to one Chinese social media user who
expressed their dissatisfaction at a half-empty box of
popcorn purchased at one of Wanda Group’s theaters. It is
actions such as these that account for why CEOs are now
the second most trusted creators of social content in China,
behind only family and friends.
When venturing outside China, these CEOs need to
learn how to establish trust among audiences with different
cultures and belief systems. Chinese CEOs continue to
increase their influence in foreign markets — most notably
Jack Ma, who now sits between Mark Zuckerberg and
Tim Cook as one of Forbes’ Most Powerful People. This
worldwide visibility brings further scrutiny to the values
and characters of these CEOs from a global population
who place a premium on ethical, transparent and honest
behavior. Today’s generation looks for leaders with relatable
personalities, not by-the-book faceless executives constantly
focused on the financials.
When Xiaomi’s founder and CEO, Lei Jun, opted to
use English during a press conference in India last year, his
error-ridden speech quickly turned into an internet meme.
In a previous era, Lei’s speech might have been seen as
a sign of incompetency and unprofessionalism. However,
Lei was instead praised for what was recognized as an
honest and open attempt to engage with his audience.
In a global market where trust towards organizations
based in China still remains low, ranking just 14th out
of the 17 countries listed, there are still huge obstacle to
surmount if Chinese brands and their CEOs are to become
truly global icons. Knowing the new expectations placed
upon them, today’s CEOs may perhaps take a second look
at how their leadership is derived, focusing not on demanding
to lead but earning the right to do so.
Contact tony.tao@edelman.com and kevin.wang@edelman.com
CHINA
80%
85%
88%88%
Personal Values and History Matter
Percent who agree that each type of information
is important in building trust in a CEO.
Their Personal
Values
The Obstacles They
Have Overcome
Their Personal
Success Story
Their Education and
How It Shaped Them
Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of
groups and individuals, how important are each of the following activities a CEO could engage in? Please use a
9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is
“extremely important to building your trust”. (Top 4 Box, Important) General Population, 28-country global total,
question asked of half the sample. [Media Engagement net = Q507 ‘Interviews with the media,’ and ‘Q512 ‘Sharing
their views on a blog or on social media.’ Direct Engagement net = Q508 ‘Communications with employees,’
and ‘Participation in industry conferences.’] Q516-524. For you to trust a CEO, how important is it that you have
information on each of the following aspects of the CEO’s personal life outside of their business? Please use
a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it
is “extremely important to building your trust. (Top 4 Box, Important) General Population, China, question
asked of half the sample.

17TRUST
CHINAIn a global market where trust towards
organizations based in China still
remains low, ranking just 14th out
of the 17 countries listed, there are
still huge obstacles to surmount if
Chinese brands and their CEOs
are to become truly global icons.

18 TRUST
Trust in Hong Kong’s general population has flat-lined at
47 percent this year, according to the 2016 Edelman Trust
Barometer, following a steady decline over the past five
years. Hong Kong therefore bucks the global trend of trust
rising to a post-recession high in all surveyed institutions.
Economic and political uncertainty remain a factor
in the special administrative region’s rank of 16th out of
the 28 countries surveyed this year. This follows the 2014
“Umbrella Movement,” which protested against a voting
system reform that was nonetheless proposed to the Hong
Kong legislative council and vetoed, and local elections in
November 2015, where the government was largely passive
in posture, putting the country at a tentative crossroads in
terms of trust.
Despite a dramatic decline over two years, media
remains the second most trusted institution among
the general population in Hong Kong behind NGOs.
To put this in perspective, media still ranks third
globally. Hong Kongers still rely on media as a watch dog
to monitor both government and business.
By Adrian Warr, Senior Director, Edelman Hong Kong
and Andres Vejarano, Senior Director, Edelman Hong Kong
THE CALM BEFORE THE ?
Trust in NGOs remained at 57 percent among the general
population, making it the most trusted institution. It was
also ranked as the most trusted to keep pace with
changing times.
Trust in government stayed level (44 percent to 45
percent), possibly a result of the resurgence of moderate
opinion and a political middle ground that is enjoying
a return to normalcy after the strong 2013 divide between
yellow (initiators of the Umbrella Movement) and blue
ribbon (pro-establishment) wearers.
Trust in business stayed flat (38 percent to 39 percent),
reflecting a balanced but uncertain outlook for the market:
despite economic downturn and market volatility caused
by mainland China, including the restriction of mainland
visitors on the retail market and the summer stock market
crash, Hong Kong maintained its position as an international
business hub in global rankings. In fact, the majority
of Hong Kongers said they believed business could take
the lead in solving economic and social problems.
HONG KONG
The year ahead promises opportunity and threat; after dramatic
declines, Hong Kong’s sense of its own future is uncertain
Hong Kong Fails To Recover

19TRUST
HONG KONG
INEQUALITY OF TRUST AND THE
MEDIA LANDSCAPE IN HONG KONG
Globally, the divide in trust between the informed
public and mass population widened, with the biggest gap
displayed in nations with high income inequality.
In the United States, where the top 20 percent of
households own more than 84 percent of the wealth,
the trust gap between the informed public and mass
population was 19 points.
However, in Hong Kong we witnessed only a six point
gap. The largest gap in Hong Kong was in media trust.
The general population’s trust in the institution declined
three percentage points, in contrast to a surprising 12
percentage point increase among the informed public.
This impressive jump is likely a normalization of a steady,
five-year downward curve, with the 2014 post-Occupy
low being an anomaly.
INFLUENCE, AUTHORITY AND HOW THE CEO
CAN CHAMPION TRUST IN THEIR BUSINESS
As in previous years, the findings show that businesses’
failure to contribute to the greater good erodes trust.
This has a direct impact on revenue as 51 percent
of Hong Kongers said they would refuse to buy a product
or service from a company they did not trust.
Respondents also said they were keen for CEOs to
speak out on both profits and purpose, providing personal
views on issues such as income inequality and public policy.
Leaders who are willing and able to take responsible action
to address an issue or crisis, or behave in a transparent
and open way, will find such actions rewarded by consumers.
In 2016, leaders and institutions have an opportunity to
rebuild trust in Hong Kong through sincere action. More of
the same, it is clear, will not be enough.
HEY HEY, WE’RE THE MONKEYS
The year ahead promises opportunity and threat. After
dramatic declines, Hong Kong’s sense of its own future
is uncertain, with both pessimists and optimists holding
their views. Who knows what mischief the year of the
monkey will bring. Contact adrian.warr@edelman.com and
andres.vejarano@edelman.com

20 TRUST
Japan should have a lot to feel good about these days.
Abenomics seems to be contributing to a revival in the
economy, albeit a slow one, with GDP growth expected
to be around 1.7 percent this year. The ratio of jobs to
applicants is at a 24-year high, with significantly more
jobs than applicants.
Japan is returning to the world stage, hosting the
Iseshima Summit this year. Relations with key neighbors
have begun to thaw and the alliance with the U.S. has been
considerably strengthened. Japan is to host the Rugby
World Cup in 2019, and the 2020 Tokyo Olympics have
created a “national objective” that is bringing together
different government and business factions to an increased
consensus on deregulation and infrastructure development.
Tourists are flooding into Japan with a 47 percent
increase in inbound tourism over the past year. Yet,
the Japanese choose to be cynical and skeptical about
the future and their key institutions.
When we first saw the Japan results for the 2016 Edelman
Trust Barometer, a shock ran through our office of 50
people. Japanese and gaijin (foreigners) alike had more
or less expected that Japan would continue to lead the
world in distrust, ranking at the bottom of the Edelman
Trust Index among informed publics for the second
year in a row. What shocked us was the data point that
only 19 percent of the informed public and 15 percent of
By Ross Rowbury, President, Edelman Japan
the mass population think they will be better off in five
years. This is the lowest of any of the 28 countries
surveyed. Five years from now, we should all be basking
in the euphoria of the Tokyo Olympics. That fact
alone suggests that the level of cynicism towards the
future is truly deep-seated.
Among the general population, there was a bit
of a trust boost in all institutions. Trust in NGOs jumped
11 points among the informed public.
While this would normally be a call out, we think
this is more due to changing the translation of “NGO”
this year to make it clearer to the surveyed audience than
any major shift in perceptions around the credibility of
NGOs. We will need to see another year’s data before
making a definitive judgment on this.
Trust in media jumped by eight points, but still
remained below 40 percent. This is probably due to
a rebound given there were no significant media scandals
over the past year.
It compares to the previous year when the CEO of
one of Japan’s key newspapers was forced to make a public
and formal apology for his newspaper having falsified
facts during reporting.
The most frequently used media according to
the general population were TV, chosen by 76 percent
of respondents, and search, ranking in at 66 percent.
JAPAN
Choose to be optimistic, it feels better.
—The Dalai Lama
Sure, we’re cynical.
At least we’re cynical together.

21TRUST
JAPAN
This is followed by newspapers at 50 percent and social
media at 49 percent. While globally, there is a strong swing
to peer-to-peer media, with social media being ranked by
67 percent of people, the cynicism of Japan means that
“validation” media saw the strongest performance —
media that Japanese can actually see with their own eyes
(TV) and check through their own actions (search).
Social media continues to suffer from credibility issues.
This is not unusual given the “anonymity DNA” of social
media in Japan which began, not with the concept of
sharing information, but as a way of expressing frustration
and complaints which could not be done publicly in
such a rigid and structured society.
Only 24 percent of the general population trust what
they see on social media. For the informed public, the
lack of credibility is more pronounced, falling six points
from last year to 19 percent. We believe this is due to
the “noisy minority” being particularly active on social
media during demonstrations around certain pieces of
legislation brought to the Diet by the Abe Government.

PROTESTORS ARE VERY MUCH viewed as being on the
fringe of society in Japan, so active use of social media by
those protesters has backfired and actually led to less influ-
ence rather than more. A marked difference to experiences
such as the Arab Spring. There is no significant change
in the lack of trust in social media over age groups in the
general population. Millennials are just as distrusting
as other age groups.
Globally, one of the key call outs of the 2016 Edelman
Trust Barometer was the widening trust gap between the
mass population and informed public, with the informed
public generally being more trusting than the mass popula-
tion. This gap sits at 12 points globally and is as high as 19
points in the U.S. and 17 points in the U.K.
However, in Japan the distrust in organizations
transcends income and education profiles with a gap of
only three points, unchanged from four years ago. While
Japan may be the most cynical country in the world, at least
we are all cynical together. This is certainly due to the
homogeneous nature of Japanese society. In many ways,
Japan is the antithesis of a diverse society such as the
U.S. or U.K. Ninety-nine percent of the population have
the same cultural, religious, education and language
background. General income disparity, while widening,
remains a fraction of what it is in the U.S. and U.K.
Diversity is not a natural concept for such a society and
this seems to extend to diversity in trust in institutions.
Another striking data point for Japan is that the general
population is the least trusting of their employers of any of
the 28 countries surveyed, with only 40 percent of employees
trusting the companies they work for. This is eight points
below the next lowest country, Russia, at 48 percent and
25 points below the global average of 65 percent. This goes
somewhat against the commonly held image of the loyal,
committed, self-sacrificing Japanese “salaryman.”
It is also a key issue for Japanese managers. Japan’s
companies grew strong in the ‘60s, ‘70’s and ‘80s on the
back of two key advantages: access to cheap capital, provided
by a huge pool of bank savings earning substandard interest
rates, and lack of manufacturing competition
from anywhere but the U.S. With access to a huge pool
of cheap capital, it was easy for Japanese to steal TV
and car manufacturing from the U.S. Now, everyone has
access to cheap capital and Japan faces competition from
multiple countries.
In this situation, Japanese companies must become
more productive to compete for capital. This is enough of a
challenge in an aging society, but it is a huge challenge in
an aging society where the majority of workers do not trust
the company for which they work.

THE LACK OF DIVERSITY in Japanese society has been
common fodder for senior executives to deny the need for
concerted employee engagement programs. “We are all
Japanese so we all understand each other so we do not need
to make the effort to communicate” has been the common
mantra. However, even in a homogeneous society like Japan,
it seems that greater complexity is creating a demand for
more engagement.
As the 2020 Olympics approach, Japan should have
more and more to be optimistic about. But the embedded
comfort zone of cynicism may be a hard one for Japan’s
population to break out of. Contact ross.rowbury@edelman.com

22 TRUST
The 2016 Edelman Trust Barometer found that trust levels
in South Korea have risen across all four institutions —
most notably in NGOs — but still remains abysmally
low in general, especially for business and government.
2015 witnessed one of Korea’s lowest levels of trust
with the sinking of the Sewol Ferry. This year trust
improved only slightly.
Overall, trust levels are often linked to the health of the
country’s economy, and in 2015, South Korea’s economy
grew less than three percent according to the Bank of
Korea. South Korea’s population is aging, yet spending
on elderly welfare is among the lowest of all OECD
countries. The youth unemployment rate is up for the third
year running, and people are feeling more pessimistic
about the future. Business and government are what lead
the economy, and when they fail, trust in them falls.
Trust in government among the informed public saw
a five point increase to 38 percent compared to 2015,
and it is clear Koreans still remain highly distrustful of
the people that govern them. Indeed, the ruling political
party of Korea is severely divided amongst itself, as is the
opposition. In 2015, key bills were not passed or delayed
due to internal strife, at times effectively incapacitating
parliament. A slight rise in trust might be attributable to
South Korea’s recent high level talks with North Korea,
which hailed a landmark. Albeit short-lived, the agree-
ment between the two sides gave rise to the first reunions
of separated families to take place in almost three years.
The marathon negotiations, which also became known
as the “three days, no nights” diplomatic talks, saw
North Korea apologize for a landmine blast along the
demilitarized zone border, as well as an impressive 15
point boost to President Park Geun-hye’s approval ratings,
according to Gallup.
Despite political victories, 2015 was a year of scandal
and crisis, with a government bribery scandal involving
some of President Park’s key aides, and the emergence
of the deadly Middle East Respiratory Syndrome (MERS)
disease, which took the country by surprise and resulted
in 36 fatalities.

THE MERS OUTBREAK SEVERELY hit the Korean econ-
omy, with a dramatic cut in tourism estimated as high as
USD 10 billion in lost revenues. At the beginning of the
crisis, the government was criticized for its ill handling
and doing little to ease the public’s fears. Thus, the rumor
mill sprang into action and false information spread across
all media sources.
This could have impacted the informed public’s trust
in traditional media, which saw an 11 point drop, and
social media, which dropped 12 points.
Interestingly, however, the pharmaceutical industry
saw the steepest increase in trust this year from all
industries surveyed, leaping from 50 percent in 2015
KOREA
By SB Jang, Managing Director, Edelman Korea
From The Informed Public
To Mass Population
The inversion of trust

23TRUST
KOREA
to 57 percent in 2016, the largest upward rebound in
the past five years. In 2015, Hanmi Pharmaceutical,
the nation’s largest pharmaceutical company, struck a
series of multi-billion dollar licensing deals worldwide,
while Samsung (client), the crown jewel of Korean
companies, continued its heavy investment and expansion
into the biopharmaceuticals industry, which is now
seen as a new growth engine for Korea.
Other industries also saw an overall upward trend,
with technology still the most trusted at 69 percent, a full
ten points ahead of the energy sector, the second most
trusted, at 59 percent.
But while key industries are trusted, the institution of
business is not. In fact, trust in business in Korea is now
the lowest among all 28 countries surveyed, standing at 35
percent for the general population.
This is no surprise when the very business model
Korea has built itself on — that of the chaebol family con-
glomerates — has come under severe public, political and
legal scrutiny in 2015 with family feuds over management
rights occupying the headlines for most of the second half
of the year.
What’s more, many heads of Korean conglomerates
are still behind bars for corruption and management
misconduct. Finally, Korea was also subject to international
embarrassment with the so-called “nut-rage incident”
which shook Korean Air and ignited people’s frustrations
over these very uniquely Korean family businesses with
complicated governance structures.
The Edelman Trust Barometer placed significant
emphasis on the role of the CEO this year. 75 percent of
Koreans perceived CEOs to focus too much on lobbying,
compared to 57 percent of respondents globally. Indeed,
the term “lobbying” carries highly negative connotations
for Koreans, and this could be interpreted as a need to
improve transparency.
The 2016 study found that 60 percent of Koreans
place great importance on the CEO’s focus on job
creation, and 52 percent on positive long-term impact.
TRUST IN NGOS REMAINS HIGH, and even witnessed
a six point increase among the general population.
It is no wonder that NGOs are becoming more and more
trusted at the expense of government and business.
Koreans are now looking towards those who represent
their voice and values, qualities other institutions are
lacking. Perhaps worth mentioning is the aforementioned
high profile family reunions which were facilitated by
the Korean Red Cross, exposing the organization to
substantial news coverage in 2015.
Across the board, the general population is less trusting
than the informed public in Korea. The discrepancy
is significant, with overall average trust levels in Korea
10 points lower for the mass population (40 percent) than
the informed public (50 percent). As a result, when
evaluating the status of Korea in 2016 compared to other
countries, the informed public considers Korea a
“Neutral” nation, whereas the mass population deems
Korea to be a “Distruster” nation.
This year there was an ongoing trend among respondents
to trust their peers more than others and employees
more than CEOs. This coming year will continue to be
an interesting one, where we will see a sustained inversion
of trust from the informed public to mass population.
Equipped with high levels of education, fast adaptation
to technology and frustration with politics, the Korean
public will continue to become more tech-savvy, more
cynical, more informed and harder to convince. With
general elections this April, a recent North Korean nuclear
explosion, and President Park’s term well past the half-
way stage, 2016 will prove to be another eventful and
dramatic year. Contact sb.jang@edelman.com

24 TRUST
Our annual analysis of Edelman Trust Barometer results
over the past 16 years has yielded several key hypotheses:
• Trust seems to exhibit an inverse relationship
with a country’s level of development;
• Trust in emerging markets is based upon the ability
of key institutions, such as government and business,
to deliver basic economic benefits — growth, jobs
and access to consumer products;
• Trust is as or more dependent upon hopes or expecta-
tions that these benefits will be forthcoming, as it is on
a historical track record;
• Trust in government is the most volatile measure
of the four key institutions — and therefore has the
greatest impact on overall trust scores.
Once again, 2016’s results seem to support these observations.
It is emerging markets, with living standards generally
below those of the industrialized Western nations, which
exhibit higher levels of trust in key institutions. Despite a
significant “trust rebound” in developed markets this year,
10 of the top 15 countries on the Edelman Trust Index (an
average of trust in the four key institutions of government,
business, media and NGOs) — and all of the top six —
are emerging markets. Conversely, seven of the bottom
10 are developed markets. Both of these results refer
to our general population score, which includes all
respondents surveyed.
In emerging markets, where economic necessities are
less assured, even the expectation of improvement can
cause a major shift. India, for example, maintained much
of its nearly 30 point jump among the general population,
closing this year at 77 percent (when trust in government
By Robert Holdheim, CEO, Edelman South Asia, Middle East and Africa
among the informed public jumped from 53 to 82 percent).
This despite what could be considered limited progress
by Prime Minister Modi in delivering promised change.
Overall, India held the second spot among the informed
public in Edelman’s Trust Index.
The United Arab Emirates (UAE) represents another
case in point. The market remains one of the most trusting
surveyed with an index of 66 percent among the general
population, down only slightly from 68 percent in 2015.
This was not enough to withstand a 10-point jump in
China, pushing the UAE into second place on the overall
index. When we break down the results, however, it is
noteworthy that the majority of this decline comes from
the informed public (falling from first to third place in
our ranking, from 84 to 74 percent). The mass population
(general population minus the informed public) showed
very little change.
This strongly suggests that the UAE drop is related to
outside factors, such as regional instability (Yemen, Syria
and Iran) and the dramatic decline in oil prices — more
specifically, the impact of these events on expectations of
continued economic performance. The fact that the UAE
government remains the most trusted of the countries we
surveyed, with 80 percent trust across the general population,
supports this conclusion.
Of the emerging markets near the bottom of the chart—
Russia, Turkey, South Korea and South Africa — most
are facing less than ideal economic scenarios. Take South
Africa, ever the anomaly. At 11th from the bottom of our
list, the economy in South Africa has given respondents
little in the way of hope or expectations for improvement.
Blame for this is placed squarely on the government:
with trust among the general population only 16 percent
EMERGING MARKETS
Trust in Emerging Markets
Different rules seem to apply for emerging and developed markets

26 TRUST
Our “basic economic benefits”
argument does not seem to apply
to developed nations.
This suggests that, somewhere
between emerging and developed,
the expectations people have
of their key institutions shift.

27TRUST
(15 percent among the informed public) — the lowest
of any in our study. And again, as with India, the South
African government trust score is the “swing vote,” in
essence determining the country’s position on our overall
index — though in this case with the opposite effect.
Stepping back to look at the global findings, one of the
most startling results this year is the growing disparity of
trust between informed publics and the mass population.
This widening “inequality of trust” suggests all kinds of
interesting conclusions about the disparity between the
haves and have nots in the markets we look at. And, as the
gulf between these groups tends to be greater in emerging
markets, one would expect the trend to extend to these
markets as well.
THE LARGEST GAPS
There is indeed a gap in emerging markets — in all mar-
kets really. The mass population is and has generally been
less trusting than the informed public across the board.
The largest gaps, however, are in developed markets, with
the U.S. leading the pack showing a 19-point difference,
the U.K. with a 17 point difference and France and
Australia with a 16 point difference each. India has the
highest gap among emerging markets, with a 15 percentage
point differential.

The lowest gaps are found in Russia, Japan and Argenti-
na, with a gap of merely three points, as well as Colombia
and Hong Kong with a six-point gap. Given the somewhat
dubious position of Russia and Japan as the bottom two
on the informed public ranking (and in the bottom five for
mass population), it appears that untrustworthy institutions
may provide the cure for a divided society.
Finally, it is worth noting that the gap is growing
more in developed markets as well. Our ranking shows an
increase of 12 percentage points since 2012 for France, 10
points for the U.K. and eight points for the U.S. and Spain.
Over the same period we see an increase of only three
points for India, China and Brazil, one point for Russia;
and a reduction of two points for Indonesia, three points
for Argentina and 4 points in the UAE.
Our observations from past years seem by-and-large
to be reconfirmed by the 2016 Edelman Trust Barome-
ter. And different rules seem to apply for emerging and
developed markets. In particular, the fact that our “basic
economic benefits” argument does not seem to apply to de-
veloped nations suggests that, somewhere between emerg-
ing and developed, the expectations people have of their
key institutions shift. Basic economic necessities are taken
for granted, becoming table stakes in the critical evaluation
of success. Contact robert.holdheim@edelman.com
EMERGING MARKETS

28 TRUST
In 2015, we witnessed a massive increase in the Edelman
Trust Index, as India’s general population firmly placed
its trust in its new government, and there was a similar
increase in trust in business. The 2016 Edelman Trust
Barometer findings are telling, as they point to huge trust
inequity — a marked divide between the informed public
and the mass population when it comes to trust in all
institutions. While we see trust rising among the informed
public, the mass population is much less trusting. And this
has consequences.
The traditional pyramid of influence — with elites
on top — has shifted and resulted in an “inversion of
influence.” Higher level of Influence now lies in the hands
of the mass population. In India, the mass population
(82 percent of respondents) have a Trust Index of 62,
as opposed to a Trust Index of 78 for the informed public
(who account for 18 percent of the sample).

TRADITIONALLY IT HAS BEEN the informed public,
with access to information, who influenced the masses.
This is changing — the masses may no longer follow
the elite. The turning of this pyramid on its head can
perhaps be explained by the rising disparity in income
levels, greater access to information, to media and
public revelations of misappropriations. Today, we cannot
take the trust of the mass population for granted.
Trust levels among the mass population are below 50
percent in more than 60 percent of countries surveyed for
the 2016 Edelman Trust Barometer. By contrast, at a global
level, informed public trust is at its highest levels. There is a
16-point gap that divides the informed public and the mass
population in India, larger than the global average, which
has grown to 12 points. This trust inequality correlates with
income inequality: there is a double-digit gap of 22 points in
trust between high-income and low-income respondents in
India. It also corresponds to the public’s expectations of its
future well-being. For example, in two-thirds of the countries
surveyed, fewer than half of mass population respondents
think they will be better off in five years.
The informed public in India places greater trust in
business and NGOs, both increasing by three points, than
with government and media, which decreased by five and
three points respectively. The general population repose
their trust in business the most, increasing by one point,
and media the least, decreasing by seven points. The
general population’s trust in NGOs has also slipped by
one point compared to last year, and there is a three-point
erosion of trust the government.

WHILE THE GENERAL population’s faith in the govern-
ment has slipped a bit, it has not eroded too much, reflecting
continued approval of the country’s leadership. This presents
an enormous opportunity for Prime Minister Modi to take
advantage of the prevailing trust and implement his reforms
and ideas. Although the Modi government has not been able
to secure the passage of important legislative bills that could
impact India’s business environment, it has shown a resolve
to improve the business climate in the country through its
“Ease of Doing Business” and “Make in India” campaigns
that seek to turn India into a manufacturing hub.
The reason why Indians have responded positively
towards business is perhaps explained in terms of economic
growth and the promise it holds for a nation that is home
to one of the largest working populations in the world. For
India’s impatient youth, business provides jobs and contrib-
utes to economic growth, which leads to a better life. In fact,
business is the most trusted institution among the general
population to keep pace with the changing times, and trust in
every industry sector has gone up. There is also a strong sen-
timent that business must lead to solve problems: a whopping
INDIA
By Rakesh Thukral, Managing Director, Edelman India
The Inequities of Trust

29TRUST
90 percent of respondents are of the opinion that “a company
can take specific actions that both increase profits and
improve the economic and social conditions in the
community where it operates.”

WHILE OVERALL TRUST IN BUSINESS has gone up, trust
in media has seen a decrease since 2015, both among the in-
formed public and the general population. While that may be
the case, the Indian media landscape has transformed. The
informed public now places less faith in traditional and social
media, and the general population has more faith in online
and owned media. Trust in search engines has also seen a
decline. More trust is placed in information that is sourced
from friends and family on online platforms.
This year in India, experts are seen to be more credible
voices than leaders. But unlike last year, we have seen a
big rise in the credibility of the CEO as the most trusted
spokesperson to speak on different topics. Globally too,
CEOs experienced a spike in credibility, making a greater
gain than experts, analysts, employees or even a person like
yourself. While a CEO’s credibility has increased, his “focus”
may be misaligned. The general population feels CEOs focus
too much on short-term results (68 percent) and lobbying (67
percent), and not enough on job creation (24 percent) and
positive long-term impacts (66 percent).
WHAT THEN IS THE WAY FORWARD? Will the trust
divide influence government’s decisions? Will businesses
make use of this trust capital to bridge the inequity and focus
on creating more jobs, providing more opportunities?
Despite the challenges posed by the trust inequity, it
presents businesses with an opportunity to make a difference.
From their new position of strength, business leaders
can earn the trust of the masses by co-opting this growing
influence and moving towards sustained growth.
Contact rakesh.thukral@edelman.com
INDIA
While overall trust in business has gone up,
trust in media has seen a decrease since 2015,
both among the informed public and the
general population.

30 TRUST
The 2016 Edelman Trust Barometer paints a complex
picture of the current economic and social climate in South
Africa. A relatively young country, South Africa only
recently celebrated 20 years of democracy in 2014. Because
of this, there is a push and pull in the country between
trying to find its footing in the global economic landscape
as a leading emerging market, and striving to reach its
potential in new business sectors.
THE EDELMAN TRUST BAROMETER measures percep-
tions of trust from both the general population and the
informed public on a variety of topics, from trust in key
institutions to specific industries. South Africa is hungry
for growth, but both groups of respondents are looking for
trustworthy leaders to step forward and move the country
to the next frontier. The increase in trust in business shows
a unique opportunity for business leaders and CEOs to
take the license to lead and inspire confidence in the face of
a weakening economic climate in the country.
Hand-in-hand with this opportunity is the growth of
trust in online sources as a primary place for the public
to consume content and get information. Trust in online
media grew in both the general population (from 52
percent in 2015 to 60 percent in 2016) and informed public
(59 percent to 70 percent).
This shift can be attributed to a number of factors but
is primarily due to an increase in bandwidth across the
country, allowing more of the population to have reliable
access to the internet. In 2010, only 6.8 million people in
South Africa had internet access, while 24.9 million people
can say the same in 2015 — nearly quadruple the number
in five years.
Access to the internet, as well as the proliferation of
mobile phones, shows immense potential in the country —
primarily for social media and ecommerce. In a report,
Paypal (client) has pinpointed South Africa as a prime mar-
ket, as 22 percent of the population already shop online,
and 48 percent intend to do so in the future. Increased se-
curity in mobile payments and accessibility to international
retailers who now ship to South Africa are contributing to
more people shopping online. Social media usage is also
rising, with South Africa boasting nearly 12 million Face-
book users, 10 million WhatsApp users and 6.6 million
Twitter users in 2015.
Another contributing factor to the rise of mobile and
internet media in South Africa lies in the demographics of
the country itself. South Africa is a young country, both
literally and figuratively, with nearly 60 percent of the
population under 35. Millennials are engaging more than
any other generation with online outlets, and communicate
with each other primarily through social media and mobile
communication.
WITH THIS ONLINE communications boom comes an
unprecedented rise in trust in business. In the wake of
slow economic growth over the past year, South Africans
are hungry for someone to take the lead in tackling and
discussing economic issues, and are now looking to the
business sector to take the lead in the conversation. Trust
in business increased from 64 percent to 75 percent among
the informed public, and also remained high at 60 percent
among the general population.
In addition, 84 percent of the general population is
looking for businesses to take the lead beyond simply
SOUTH AFRICA
Growth Opportunities Lie
In Digitally-Engaged Business
By Jordan Rittenberry, Managing Director, Edelman South Africa

31TRUST
discussing the balance sheet, agreeing with the statement
“A company can take specific actions that both increase
profits and improve the economic and social conditions in
the community where it operates.” Beyond mere econom-
ics, the general population is looking for CEOs to take the
lead in discussing societal change, with 90 percent agree-
ing that CEOs should be visibly discussing societal issues
like income inequality and public policy.
CEOs have been hesitant in the past to comment on
areas outside of core business areas, but we can all agree
that it is no longer business as usual. As protesters
increasingly arrive at the doorstep of corporate head offices,
CEOs will have to be prepared to engage on these issues.
This shift, paired with increased trust in online
communication, provides CEOs with a perfect avenue
to communicate with South Africans. Owned blogs and
social media give CEOs a personal voice that the public is
longing for. These platforms allow business to lead and
engage in a conversation with the public, rather than re-
acting to issues after they are raised. CEOs and executives
have a unique opportunity to lead the conversation and
instil confidence in business in this country, a sentiment
that South Africans and foreign investors need to hear.
The 2016 Edelman Trust Barometer is optimistic
about the South African business landscape, and showcases
the immense opportunity that has always remained on the
horizon for this country.
If we can take advantage of the fact that the population
is looking for business leaders to step up and communicate
confidence in the country’s volatile economy, and harness
the potential of increased trust among the informed
public in technology, there is the potential to turn South
Africa into a more prosperous country. Through savvy
media communications, both of these sides can coexist
and lead the country to realize its potential as a major
emerging economy. Contact jordan.rittenberry@edelman.com
SOUTH AFRICA
A company can take specific actions that
both increase profits and improve the economic
and social conditions in the community
where it operates.

32 TRUST
In the 2016 Edelman Trust Barometer, the United Arab
Emirates (UAE) remained one of the most trusting
countries in the study among the general population —
second globally behind China, which experienced a
10-point increase from 2015 to 2016.
As the only country surveyed in the Middle East,
the UAE results reflect part of the broader macroeconomic
story of the region. Against the backdrop of ongoing
instability elsewhere in the Middle East, particularly in
Syria and Yemen, the UAE’s high level of trust is
testament to the successful positioning of the country
as the economic hub of the region, attracting investors,
bilateral partnerships and a steady flow of expatriates
to support the expanding economy.
The study was conducted towards the end of 2015,
coinciding with a period of sustained low oil prices and
uncertainty around the effect a potential rebound would
have on Iran’s re-entry into the global economy. As such,
external factors are the most likely reason trust among
the informed public across all four institutions surveyed
dropped, while the general population sentiment remained
relatively unchanged.

TRUST IN GOVERNMENT AMONG the general popula-
tion in the UAE remained the highest among all govern-
ments in the world, vastly outpacing the global average of
42 percent. Within the UAE, government remained the
most trusted of the four institutions examined among
both the general population and informed public at 80
and 82 percent respectively.
This high ranking of trust in government speaks to the
long-term strategy of the country leadership to create a
vibrant, mixed economy diversified away from hydrocar-
bons, and is particularly resonant during this period of
sustained low oil prices. In fact, it was announced in 2015
that for the first time since the discovery of oil in the
UAE half a century ago, more than half of Abu Dhabi’s
GDP came from non-oil sources.
All of the institutions measured — government,
business, media and NGOs — have seen an increase in
trust levels in the UAE over the five years since the Great
Recession. As mentioned, government was the most trusted
institution among the general population, followed by
business at 67 percent (versus the global average of 53
percent). Fifty nine percent trusted NGOs (versus global
average of 55 percent) and media (versus 49 percent
global average) respectively.
As an institution, the government in the UAE also
came out on top in terms of trust that it would be able to
keep up with change, with the informed public trusting
the government most to do so.
OVER THE PAST FIVE YEARS, trust in the energy
industry in the UAE has increased by 11 points, elevating
it from being among the least trusted to being the second
most trusted. As in the global results, the financial services
industry was the least trusted, however, in the UAE, trust
has increased 16 percentage points since 2012 to 73 percent
(versus a 51 percent global average), bringing it in line
with the pharmaceutical industry (also 73 percent trusted),
but behind food beverage (74 percent trusted), consumer
packaged goods (75 percent) and telecommunications
(76 percent).
Trust levels in the UAE’s financial services industry
recovered twice as fast as the global average recovery over
the past five years (eight percentage points). A stable domestic
banking environment, underpinned by a strong Central
Bank, lie at the heart of this. Recent trust increases could
be due to the UAE achieving emerging market status from
MSCI in 2014, and the country’s ongoing development
UNITED ARAB EMIRATES
The Resilience of Trust
By Tod Donhauser, CEO, Edelman United Arab Emirates

33TRUST
as an international financial center with Abu Dhabi Global
Market opening in 2015 to complement the decade-old
Dubai International Financial Centre.
The UAE experienced a five percentage-point increase
in the belief that a company can take specific actions that
both increase profits and improve the economic and social
conditions in the community where it operates (81 percent).
Respondents further agreed that CEOs should be person-
ally visible in discussing societal issues (83 percent) more
so than financial results (74 percent), indicating that topics
such as income inequality and public policy are important
to be seen commenting on.
General population respondents believed that CEOs
focus too much on short-term financial results (67 percent)
and not enough on positive, long-term impact (62 percent).
In order to build trust in a CEO, respondents answered
that CEOs should be visible on matters pertaining to their
personal values (76 percent) and historical challenges
overcome (76 percent).
Employees also emerged as essential advocates,
commanding more trust than CEOs, senior executives,
activists, academics and media spokespeople when
communicating financial earnings and operational
performance, business practices/crisis handling and
treatment of employees and customers. CEOs were slightly
more trusted than employees when communicating
programs to address societal issues, innovation efforts
and views on industry issues.
When communicating via online-only information
sources, the most trusted authors remained friends and
family (76 percent) and academic experts (71 percent).
Three sources of information gained significantly in trust
online from 2015 to 2016, namely “companies that I use”
(71 percent, a six point increase), company CEO (67 per-
cent, a seven point increase) and employees of a company
(65 percent, a six point increase). These continued to be
more trusted sources than journalists (58 percent) and
celebrities (54 percent). Contact tod.donhauser@edelman.com
UNITED ARAB EMIRATES

34 TRUST
When the Association of Southeast Asian Nations (ASE-
AN) officially launched the ASEAN Economic Commu-
nity (AEC) as an economic and political community in
December 2015, it was hailed as a milestone in combining
the economic force of a resource-rich and growing market
of more than 600 million people.
The AEC is a single market with a free flow of goods,
capital and skilled labor, which should help the region
compete for foreign investment.
However, ASEAN represents a diverse set of nations
that many commentators believe will make AEC a difficult
dream to achieve. Our region is marked by extremes in
democratization, economic progress and institutional
capability. Its members range from free-wheeling to
controlled democracies, and from communist-ruled
states to an absolute Islamic monarchy.
When you have such a diverse mix of nations, how
people trust their institutions, and the capacity of these
institutions to deliver on a future, will be mixed. But the
very success of ASEAN and the AEC requires significant
expenditure of trust capital to deliver.
The 2016 Edelman Trust Barometer tracks trust in
three of the main players in ASEAN: Indonesia, Malaysia
and Singapore. While 2016 has seen some movement in
trust across the general population of these nations, there is
a relatively positive trust base to work from.
Across both the informed public and general popula-
tion, Indonesia and Singapore are high trusting nations
while Malaysia is neutral. This gives ASEAN a better base
to work from than a “same same but different” construct
like the European Union. The “Eurocrats” would go wild
with this sort of trust base. Imagine the new regulations
for bananas they could create with what ASEAN has.
The challenge the ASEAN governments face is that while
they enjoy high levels of trust in government, they are not
necessarily seen as the best institution to drive forward
change. The general populations of Indonesia and Malay-
sia believe that business is more trusted than government
to keep pace with change. Indonesia has a 12-point gap in
favor of business, and Malaysia has a significant 27-point
gap. In Singapore, business lags behind government by
three points.
The job of explaining the benefits of AEC has fallen
at the feet of government. Yet, outside of Singapore,
government in Indonesia and Malaysia are seemingly
not best equipped to tell that change story. Business is.
AEC is about change. Each of the member nations are
required to reduce regulation, decrease tariffs and allow
for the freer movement of labor across borders. Significant
regulatory changes that need to be communicated
and understood.
Business stands to benefit the most from the AEC, and
yet to date has been eerily quiet. In various forums around
the region, when business has debated the likely success or
failure of the AEC, the elephant in the room has always
been Indonesia.
One of the biggest concerns from regional business
leaders is that AEC will be difficult or will fail because
they do not believe that Indonesia will adhere to the
conditions and open up its economy. Yet, over the past
five years in Indonesia trust in all institutions has risen
dramatically. In 2012, the Edelman Trust Index for
Indonesia among the general population was 54 percent.
In 2016, it stands at 62 percent. The informed public in
Indonesia has followed the global trend and is 10 points
more trusting of the four institutions.
SOUTHEAST ASIA
By Iain Twine, CEO, Edelman Southeast Asia and Australasia
Business Wants ASEAN
To Work
It better start to tell that story

36 TRUST
SOUTHEAST ASIA AND AUSTRALIACHINAThe mass population now has
the power and the elite needs to
release its grip on it and start
to make real change that impacts
our communities.

37TRUST
This is a good sign for the AEC. While Indonesia did
experience a dip in trust since 2015, the continued
high levels of trust indicate that if government and business
in Indonesia get behind the AEC, it could be seen as a
positive. The challenge is that both institutions have yet to
get behind the AEC and deliver the boost it now needs.
If Indonesia does get behind the AEC, and business
begins to trust Indonesia, then business is presented with
a phenomenal opportunity to lead.
In Malaysia, 85 percent of the general population
believe that “a company can take specific actions that
both increase profits and improve the economic and social
conditions in the community where it operates.” In
Singapore and Indonesia, 81 percent of the general
population agree with this statement.
It is clear that the general population wants more from
business, and at this moment in time, it trusts business
enough to deliver on the objective of the AEC to drive up
living standards for everyone across ASEAN.
That cocktail of high trust in business as an institution,
high trust in business’ ability to adapt to change and the
desire for business to improve the economic and social
conditions in the communities in which it operates is a
potent one.
Its potency is increased by the flipping of the pyramid
of influence. The mass population now has the power
and the elite needs to release its grip on it and start to
make real change that impacts our communities.
In the 2015 Edelman Trust Barometer we said that it
was business’ time to lead globally. In the context of ASEAN
and the AEC, it is 2016 that is truly business’ time to lead.
Contact iain.twine@edelman.com
SOUTHEAST ASIA

38 TRUST
Slowing economy, contracting commodities sector,
unaffordable homes and a new prime minister every year —
trust in australia must be at an all-time low, right?
Wrong — it is actually at a five-year high.
The Edelman Trust Index is the average trust across
the institutions of government, business, media and
non-governmental organizations.
Within this index Australia has risen from 52 to 63
percent — shifting Australia from a neutral trusting nation
to a trusting nation in the 28 country study amongst the
informed public. So what is driving this increase in trust?
The big changes are trust in the institutions of business —
up a staggering 17 percentage points — and government —
up 11 points. The jump for business is one of the biggest
changes in the global study, suggesting that the new
Turnbull government and a perceived better business
environment have given a significant bump to trust.
This improvement in trust is also mirrored in the
general population, with an increase from 42 to 49 percent,
however, the rise is smaller and shows a different
picture from the Australian population, remaining in the
distrusting category. Although trust is increasing amongst
the general population, it is much higher and rising faster
amongst the informed public. If you further analyze the
gap by removing the informed public from the full data
set, the Edelman Trust Index of this remaining group —
we have named the mass population — is 47 percent. In
Australia, a 16 point difference in trust exists between the
informed public and the mass population, while globally
the gap is 12 points.
This trust gap has a tangible impact on expectations of
our economic prospects over the coming five years. The in-
formed public is 10 percentage points more optimistic than
the mass population (41 versus 31 percent) although neither
score is a ringing endorsement from the country — Austra-
lia is the fourth least optimistic nation in the survey after
Japan, France and Germany. If expectations set reality, we
are in for a tough time.
This is a significant and troubling gap and it is import-
ant that we try to understand what is driving this disparity.
First, this isn’t a brand new trend. In 2012, the Austra-
lian gap between the informed public and mass population
was 14 percentage points. It is interesting then that Austra-
lia, tied with the Netherlands, had the second largest gap
globally, after Sweden. Other nations are catching up to
an issue that the Australian public was already concerned
with back in 2012. Unlike the Netherlands and Sweden,
who have managed to reduce their trust gap over the last
five years, Australia’s is still growing at 16 percent and is
only smaller than the U.S. and U.K.
AUSTRALIA
Navigating the Great Dividing Gap
By Steve Spurr, CEO, Edelman Australia
Diverging trust levels are at an all-time high, with low levels of optimism
and concerns over income inequality making for a complicated year
Increasing Trust in Australia
2015
2016
Percent trust in the four institutions of government,
business, media and NGOs, 2015 vs. 2016
Informed
Public
General
Population
NGOs Business
48
65
+17
46
52
+17
43
54
+11
34
42
+8
49
60
+11
37
45
+8
66
72
+6
52
57
+5
Media Government
Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions.
For each one, please indicate how much you trust that institution to do what is
right using a nine-point scale, here 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 Public and General Population, Australia.

39TRUST
Second, Australia bucks global trends on trust differ-
entials driven by income differences. When looking at the
richest quartile versus the poorest quartile, the gap in trust
is only 7 points, one of the smaller gaps in the study.
Finally, if income does not account for the differential,
we need to look at the other demographic differences be-
tween the informed public and mass population. These are
1) active engagement with news media and 2) an interest
in current affairs. This would suggest that being an active
participant in the information economy and engaged in
current affairs drives trust within Australia. Conversely,
lack of engagement and interest in the institutions that
shape our lives leads to distrust and pessimism.
I have no doubt that part of the trust jump among the
informed public is due to the survey taking place a few
months after the departure of gaffe-prone Tony Abbott,
gifting Malcolm Turnbull a bounce that will soon wear off
if action does not quickly follow. The data suggests that the
answer lies in bringing more people into the information
and ideas economy. Turnbull’s recently unveiled innova-
tion policy could deliver just that, but it has to engage and
reach the general population to make a meaningful change
in Australian society. Given Australia is in the top-five
nations most trusted as a global corporate headquarters,
helping business capitalize on brand Australia needs to be
both a business and government objective.
With an election looming, Turnbull has to be careful
that he has a message for every Australian. The recent
large and increasing gaps in the U.K, U.S. and France
between the informed public and mass population have
led to the emergence of populist politics that the informed
public often does not understand. Turnbull has to ensure
that his campaigning and plan for the economy resonates
with everyone if he intends to stay in power.
THE FIVE KEY LESSONS FOR BUSINESS in the Trust
Barometer when it comes to the general population are:
• Leaders need to be authentic and human–sharing
values and personal challenges are the two largest drivers
in building trust in leaders, rather than relying purely on
their credentials for the role.
• Use the right people to convey the message — a person
like yourself is as trusted as an academic, expert or spokes-
person on a topic (all at 59 percent or 60 percent) despite
having no quantifiable credentials to guide opinion other
than that they are relatable to your audience. The next
most valuable spokesperson is an employee (55 percent).
• Focus on your response as a business to address income
inequality. Australia is the only country surveyed where
addressing income inequality is the most important for
business to address beyond their day-to-day business and
77 percent believe it is your duty to improve social and
economic conditions in Australia as well as deliver on your
business results.
• Communicate how you are helping Australians keep
up with the times — Australians believe you have more
licence to act in this regard (63 percent) than government
(44 percent).
• Choose a broad media mix and invest in your own me-
dia channels — search tops the most trusted media source
(55 percent) for the third year running. Social media slips
from third to fifth as both online and owned media are
now trusted more.
It is imperative that NGOs, government, business
and the media unite to ensure we overcome the great
dividing trust gap that exists in Australia. If this does not
happen, we are likely to derail the country’s transition
from a resources-led to an innovation-focused economy.
Contact steven.spurr@edelman.com
AUSTRALIA
A Great Divide
Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-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 Public and Mass Population, Australia.
Percent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016
Informed Public
Mass Population
50
2013
38
52
2015
41
63
2016
47
53
2012
39
16
Point
Gap
14
Point
Gap
58
2014
43

40 TRUST
Last year was a challenging time for Indonesia and many
emerging markets. Economic growth slipped to its slowest
pace in years, as China’s foot also slipped off the economic
accelerator and investors pulled or held back in anticipa-
tion of an interest rate hike from the US Federal Reserve.
The resulting decline in commodity prices — which
are still one of the largest drivers of Indonesia’s economic
growth — combined with the rupiah declining by over a
tenth against the U.S. dollar, has certainly put the brakes
on Indonesia’s economic aspirations and the post-election
optimism that ushered in President Joko Widodo and his
new government in 2014.
Indonesia also continued to face its perennial problems —
choking levels of haze, political intrigue, continuing legal
and regulatory uncertainty and a high-level corruption
scandals. Despite the best efforts of President Jokowi — as
he is popularly known in Indonesia — the administration
has found it difficult to steer Indonesia over these humps
and start addressing the issues of infrastructure upgrades
to win confidence from international investors.
However, as the slowdown began to bite towards
the end of 2015, the government has certainly been
accelerating its reform plans by pushing through a raft
of new measures designed to cut red tape and replace
underperforming ministers, designed to lure investments
and gain trust as a dynamic and liberal economy.
It is within this context that we examine the eighth
annual Edelman Trust Barometer results for Indonesia this
year. The 2016 Edelman Trust Barometer reveals a fall in
trust across the institutions of government, business, media
and NGOs in Indonesia. Among the general population,
trust levels in business remains stable, while trust in other
institutions have seen a significant drop. The informed
public also recorded a decrease in trust across all four
institutions. These results perhaps reflect Indonesian’s
anxieties of where their country is headed and temper the
optimism that we saw last year.
Revealingly, trust in government is at 58 percent
among the general population, seeing a seven point drop
from last year’s post-election high of 65 percent. The
post-election bounce that we recorded last year has now
fallen back to the more normal numbers we have seen in
recent years — mimicking the trend of other countries
such as Australia, India and Japan that all saw a trust rise
in government after their elections and then a decline
the following year.
Optimism about what Jokowi could achieve as he took
office has been followed by concerns over the slow pace of
reform, and the realities of Indonesian politics have seen
his post-election trust bounce taper out. There is definitely
an opportunity for the administration to show it is walking
the talk by welcoming foreign investments that create
more local jobs, clamping down strongly on corruption and
ensuring a climate of legal and business certainty.
Media and NGOs also recorded lower trust this year,
with a five and seven point decrease to 63 percent and 57
percent respectively. After many years of trust rises and
optimism running counter to worldwide and regional
trends, our trust results this year show that global geo-
political and economic uncertainty is being felt in Indonesia.
This means that working to build trust in Indonesia —
in this context of uncertainty — is more important than
ever for organizations, companies and brands to protect,
promote and evolve their reputations.
Business continues to standout as Indonesia’s most
trusted institution. Furthermore, for business and business
leaders, the results showed that seven out of 10 Indonesians
believe that business is most trusted to keep pace with
INDONESIA
By Raymond Siva, CEO, Edelman Indonesia
Economic Growth Slips,
Protectionism Increases

41TRUST
changing times and conditions. Business leadership and the
influence of the CEO was also a key theme this year, with
79 percent of Indonesian respondents stating that CEOs
should be personally “visible in discussing societal issues”
— a telling 10 points higher than “discussing financial
results” at 69 percent. The results also reveal that Indo-
nesians believe that CEOs focus too much on “short-term
financial results” and “lobbying” and not enough on “job
creation” and “positive long-term impact.”
The data also points to high public expectations for
CEOs to exhibit ethical, transparent behavior and a com-
mitment to protecting and improving the environment in
the wake of last year’s Indonesian haze disaster.
THESE RESULTS DEMONSTRATE that Indonesian’s want
business executives to play a greater role in discussing and
solving societal issues and challenges. After another year of
high-level figures behaving less than ethically, Indonesians
want business leaders to lead the agenda on ethical and
open practices.
In other results, the influence of peer-driven media in
Indonesia was preeminent this year — social media and
online search are now the top two “most-used sources” for
general news and information — ahead of TV, newspapers,
blogs and magazines. The interesting divergence here is in
terms of “trust in sources” for general news and informa-
tion — search engines are the most trusted source at 75
percent, followed by traditional media, online-only media,
owned media and social media.
The results this year give a quantifiable measurement
of the fact that online search is now one of the first places
people turn for news and information alongside social
media, but more importantly that online search is also the
most trusted source. This means that news sources on the
first page of any search engine has taken on even greater
influence. It also shows why effective search engine optimi-
zation and investing in branded digital and social content
is so important.
For 2016, companies and organizations in Indonesia
have their work cut out to earn trust and win over a more
cautious and cynical Indonesian public. The message is
very clear — the people want businesses to lead and speak
out on societal issues and to make progress where
government cannot. Indonesians are looking for leadership
from the business community to drive the country
forward through these turbulent and uncertain times,
and the opportunity is ripe for businesses to do so.
Contact raymond.siva@edelman.com
INDONESIA

42 TRUST
In its most profound sense, everyone
understands and has experienced ho

43TRUST
knows what trust is and everyone
ow trust is earned and how it is lost.
—David Brain

44 TRUST
Malaysia’s fifth edition of the Edelman Trust Barometer
revealed a dip in trust among the general population across
three key institutions — business, media, and government.
Non-governmental organizations (NGOs) recorded an
increase in trust across both the informed public and the
general population to regain their position as the most
trusted of the four institutions surveyed, underscoring the
Malaysian publics’ belief that NGOs can shape and
influence policies in the near future.
Globally, trust in business bounced back among the
general population, with a five-point increase in trust to
53 percent, reversing the five-point drop from the previous
year. The survey also recorded an increase in trust in
business among the informed public in 22 of the 27 coun-
tries surveyed.
In Malaysia, however, the general population’s trust in
business continued its recent downward trend, declining
two points to 58 percent — though business remains the
second most trusted of the four institutions, and the most
trusted to keep pace with the changing times.
Malaysian businesses are expected to take the lead
to solve broader social challenges. Eighty-five percent of
the Malaysian general population agree that it is not
incompatible for a company to take specific actions that
act to increase profit margins and simultaneously improve
economic and social conditions in the communities where
they operate. Six out of 10 people from the general
population believe CEOs put too much emphasis on
short-term financial results at the expense of highlighting
the long-term positive impacts and job creation that
businesses provide.
Leaders of Malaysian business can do much more to
acknowledge and discuss issues such as income inequality
and public policy, as they have permission to share their
personal views on societal issues. A CEO’s personal values
are seen as an important factor in building trust in a CEO,
as are the obstacles they have overcome, their personal
success stories and how their education helped them.

IN TERMS OF SPOKESPERSON CREDIBILITY,
CEOs are marginally more credible spokespeople than last
year, however, Malaysians remained most trusting of their
academic experts. The 2016 Edelman Trust Barometer
also revealed a significant six-point jump in trust of peers
or “a person like me” as a credible spokesperson, for the
first time eclipsing CEOs and perhaps reflecting an ex-
tension of the way peer to peer influence has increasingly
impacted media and purchase behavior in Malaysia.
NGOs were the only institution to record an increase
in trust with both informed publics and the general popu-
lation, as key institutions such as government, media and
business experienced a dip in trust levels. For the general
population in Malaysia, the sharpest declines in trust
were in business (decreasing two points) and government
(decreasing seven points). This is driving the overall
decline in trust for this audience.

MALAYSIA
Winning Trust
By Robert Kay, CEO, Edelman Malaysia
Business to investigate social purpose.
The media may need to be more investigative.

45TRUST
The government faced significant issues in 2015 around
alleged corruption and general freedom of expression.
The real and perceived lack of transparency and
wide-spread allegations of mismanagement at GLCs
appears to be impacting trust overall.
With its recent introduction of the Trans-Pacific
Partnership, the government has made a concerted effort
to ensure that terms of the agreement are understood by
the general population, perhaps learning lessons from the
introduction of GST. These initiatives appear to have re-
ceived positive feedback as the government looks to restore
trust and credibility where it can.
Malaysia had one of the highest increases in media
trust among the informed public globally. One hypothesis
could be the high profile, year-round coverage of alleged
corruption at 1MDB.

Extensively investigated and covered by online media,
it led to the suspension and temporary closure of two
media platforms. In speaking out against the govern-
ment, specifically the Prime Minister, hybrid media and
high-profile media figures risked prosecution.
This may have created a halo effect for the media land-
scape generally. Traditional media, however, took a sharp
eight-point dip this year to 49 percent, perhaps highlight-
ing the need for more rigorous or balanced, transparent
reporting if trust is to be regained.
Surprisingly, Malaysians are also less trusting of
content shared on social media from the past year, with
a seven-point drop to 42 percent. This could come as a
result of some rampant sharing of misinformation on social
media in the past year. Amid rising concerns involving
traditional and social media, search engines maintain their
lead as the most trusted source for information with trust
at 66 percent. Contact robert.kay@edelman.com
MALAYSIA

46 TRUST
Singapore held its fifth position in the 2016 Edelman Trust
Barometer Index with a rebound of seven points among
the informed public. This is a modest recovery after the
nation’s poor showing last year when it had an eight-point
drop and slipped from the top three in the Trust Index.
After an emotional and nostalgic 2015 — when
Singapore celebrated its 50th anniversary and mourned
the death of founding Prime Minister Lee Kuan Yew —
the results reinforce efforts made across all four institu-
tions to reignite and rally the nation.
The informed public’s trust in the four major
institutions rose across the board, with media up 10
percent, business up seven percent, government
up six percent and NGOs up five percent.
Compared with the global average, Singapore’s
trust in government and media saw the most significant
increases. Trust in government was also reflected in the
resounding 69.9 percent of the vote won by the ruling
People’s Action Party in the September general election.
For the first time, the 2016 Edelman Trust Barometer
provided deeper analysis of the levels of trust in CEOs,
the attributes they need to build trust and desired leader-
ship qualities. Reviewing each institution against external
forces that might hinder trust building, there are five
broad themes for 2016 and beyond:
Trust in Media: An effective strategy must include
online and traditional media powered by search.
In Singapore, online media saw a significant trust increase
of seven points to 55 percent among the general popula-
tion, now taking up third spot behind search engines at
64 percent and traditional media at 63 percent.
Trust in social media slipped two points to 45 percent to
tie with owned media. The dip for social media could be
attributed to a rise in social media scams and recent mis-
steps by major advertisers that prompted the Advertising
Standards Authority of Singapore to draft guidelines for
influencer engagement.
That said, marketers must still consider social media
as it held the top spot for reach, with 70 percent of the
general population citing it as a peer-influenced source
that is used several times a week. It is not surprising that
trust in friends and family who post on social networking
sites, content sharing sites and online-only information
resources rose 12 points to 77 percent. Search comes in at
a close 69 percent.
Trust in traditional media in the form of television
was at 65 percent. Magazines and blogs were at a low 31
percent and 24 percent respectively. Coming in below the
50 percent line are well-known online personalities and
celebrities. This may be attributed to recent incidents in-
cluding beauty blogger Juli Phang’s wedding commentary
and other online spats.
SINGAPORE
Keeping the Nation in Mind
By Amanda Goh, CEO, Edelman Singapore

47TRUST
SINGAPORE
Trust in Business: Companies must solve societal
expectations by keeping pace with change.
With a rise of six points, 81 percent of respondents agree
a company can take specific actions that both increase
profits and improve the economic and social conditions in
its community. In Singapore, businesses are expected to
address access to education and training.
Companies with regional headquarters in Singapore
are expected to help reduce poverty issues in Indonesia,
improve access to healthcare in India and protect and
improve the environment in China.
Singaporeans also trust business over the other three
institutions to be able to keep pace with the changing
times. The financial services sector in Singapore spiked sig-
nificantly by 10 points to 69 percent among the informed
public. This could be due to initiatives such as Compare-
FIRST, which extends the availability and transparency
of financial and insurance services information.
In addition, the value of mergers and acquisitions has
almost doubled within a year, including private equity,
venture capital and initial public offerings.
The asset management industry has also maintained
a strong growth trajectory. Finally, recent actions by
Singapore Exchange — from a CEO transition to a
restructuring — and increased calls for corporate trans-
parency have all contributed to greater public and investor
confidence in the sector.
Trust in Government: Singaporeans must be reas-
sured to counter pessimism about their prospects.
Singaporeans showed more trust in institutions to do what
is right but there was a wider 10-point gap between the
mass population and the informed public — likely due
to a rise in income inequality. For the first time, the 2016
Edelman Trust Barometer asked respondents to consider
the five-year outlook for themselves and their families.
Less than half thought they would be better off.
Government-steered initiatives, such as the Committee
on the Future Economy that encourages public-private
collaboration with a clear roadmap, can go a long way to
reassure the public that their prospects will be better.
Trust in NGOs: Work with all other institutions
and leaders to drive purpose-based partnerships.
With the pressure on business to solve societal problems,
NGOs now need to work with companies on these oppor-
tunities. Lack of purpose impacts trust in business —
45 percent of Singaporeans will not trust a business if
they fail to contribute to the greater good.
Overwhelmingly, 78 percent of the general population
expect the CEO to be visible in discussing issues such as
income inequality, be involved in public policy discussions
and have a personal view on societal issues. This is seen
as more important than discussing financial results at 71
percent. Employees are more likely to advocate if compa-
nies and their CEOs are engaged in societal issues. Also,
employees are more likely to recommend the company as
an employer and have confidence in the company’s future.
The Evolved Mandate for CEOs:
Focus on making a difference and creating jobs.
Singaporeans want CEOs to focus on positive long-term
impact (64 percent) and job creation (51 percent). Also, 51
percent of the general population think CEOs spend too
much time on lobbying.
They expect business leaders to deliver on operations,
purpose and products. But there are two big gaps (of 23
percent each) that CEOs must bridge between these
expectations and how people believe they actually perform.
The first is integrity — taking responsible actions and
behaving in a transparent and open way. The second is
engagement — treating employees well and placing
customers ahead of profits.
When it comes to building trust in a CEO, 85 percent
of Singaporeans say the big bosses must share their per-
sonal values as a top priority. A good example is Piyush
Gupta of DBS who has a broader, personal narrative. This
is followed closely by CEOs sharing the obstacles they have
overcome such as Hyflux’s Olivia Lum, who rose from
humble beginnings, and Sheng Siong Group’s Lim Hock
Chee, who transformed his family business from pig farm-
ing to Singapore’s second-largest supermarket chain.
Contact amanda.goh@edelman.com

Trust in Asia Pacific, Middle East & Africa 2016

Trust in Asia Pacific, Middle East & Africa 2016

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Trust in Asia Pacific, Middle East & Africa 2016