2013 Edelman Trust Barometer Global

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2013 Edelman Trust Barometer Global

  1. 1. EDELMANS 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST2MARKET COMPARISONSDeveloped: US, UK, France, Germany and JapanEmerged: Brazil, Mexico, Russia, India and ChinaGLOBALONLINE SURVEYIN 26 COUNTRIES• 31,000+ respondents• 5 years in 20+ markets• 8 years in 10+ marketsGENERALPOPULATION• 1000 respondents percountry surveyed• Ages 18+• 2 years of dataINFORMEDPUBLICS• 500 respondents in U.S. andChina & 200 in othercountries• Ages 25-64• College-educated• In top 25% of householdincome per age group ineach country• Report significant mediaconsumption andengagement in businessnews and public policy• 13 years of data
  2. 2. 2013RISING INFLUENCEOF NGOS2001FALL OF THE CELEBRITY CEO2002EARNEDMEDIA MORE CREDIBLETHAN ADVERTISING2003U.S. COMPANIES IN EUROPE SUFFERTRUSTDISCOUNT2004TRUST SHIFTS FROM “AUTHORITIES”TO PEERS2005“A PERSONLIKE ME” EMERGESAS CREDIBLESPOKESPERSON2006BUSINESS MORE TRUSTEDTHAN GOVERNMENTAND MEDIA2007YOUNG INFLUENCERSHAVE MORE TRUSTIN BUSINESS2008BUSINESS MUSTPARTNERWITH GOVERNMENTTO REGAINTRUST2009TRUST IS NOW AN ESSENTIALLINE OF BUSINESS2010RISE OF AUTHORITY FIGURES2011THE FALL OF GOVERNMENT2012CRISIS OF LEADERSHIPEDELMAN TRUST BAROMETER IN RETROSPECT3
  3. 3. TRUST 2013FINANCIAL AND BANKING INDUSTRY DEEP DIVETHE PATH FORWARDCRISIS OF LEADERSHIPTHE STATE OF TRUST4
  4. 4. STATE OF TRUST
  5. 5. GLOBAL 57China 80Singapore 76India 71Mexico 68Hong Kong 67UAE 66Malaysia 64Canada 62Indonesia 62U.S. 59Netherlands 59Brazil 55Germany 55France 54Sweden 54UK 53Italy 51Australia 50Poland 48S. Korea 47Ireland 46Argentina 45Spain 42Turkey 42Japan 41Russia 362011 20132012DISTRUSTERSTRUSTERSNEUTRALGLOBAL 51China 76UAE 68Singapore 67India 65Indonesia 63Mexico 63Netherlands 61Hong Kong 61Canada 58Malaysia 57Italy 56Argentina 54Australia 53Brazil 51Sweden 49U.S. 49South Korea 44Poland 44U.K. 41Ireland 41France 40Germany 39Spain 37Japan 34Russia 32EDELMAN’S TRUST INDEX: AFTER A YEAR OF HIGH DISTRUST IN 2012,SHIFT BACK TO NEUTRAL IN 2013GLOBAL 55Brazil 80UAE 78Indonesia 74China 73Netherlands 73Mexico 69Singapore 67Argentina 62India 56Italy 56Canada 55South Korea 53Sweden 52Japan 51Australia 51Spain 51France 50Poland 49Germany 44U.S. 42U.K. 40Russia 40Ireland 39Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total6Big Changesfrom 2008Germany +19China +18Canada +14India +11Big Changesfrom 2012Germany +16France +14UK +12US +10
  6. 6. 20137GLOBAL 57China 80Singapore 76India 71Mexico 68Hong Kong 67UAE 66Malaysia 64Canada 62Indonesia 62U.S. 59Netherlands 59Brazil 55Germany 55France 54Sweden 54UK 53Italy 51Australia 50Poland 48S. Korea 47Ireland 46Argentina 45Spain 42Turkey 42Japan 41Russia 36GLOBAL 48China 70India 64UAE 63Singapore 63Indonesia 61Malaysia 61Mexico 59Hong Kong 54Canada 52Brazil 51Netherlands 50Argentina 48U.S. 45Germany 44UK 43S. Korea 43Turkey 43France 41Italy 40Sweden 40Australia 39Spain 37Japan 35Poland 34Ireland 33Russia 30Composite score is an average of a country’s trust in all four institutions. General population and Informed Publics ages 25-64in 26 country global total and across 26 countriesLargest Differences betweenGeneral & Informed PublicsPoland, US, Sweden: - 14 pointsSingapore, Ireland, Hong Kong,France: - 13 pointsGeneralPopulation9 points lowerthan InformedPublicsINFORMED PUBLIC2013GENERAL PUBLICDISTRUSTERSTRUSTERSNEUTRALLOWER TRUST AMONG GENERAL POPULATION THAN INFORMED PUBLICS
  7. 7. 12% 14%16% 17%Q11-14.[TRACKING]Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 2 Box, Trust a greatdeal and Top 4 Box, Trust) Informed Publics ages 25-64in 20-country global totalTRUST ON THE RISE ACROSS INSTITUTIONS, BUT WEAK INTENSITY PERSISTSTRUST A GREAT DEAL19% 22%15% 17%NGOSBUSINESSMEDIAGOVERNMENT2012 2013 2012 20132012 2013 2012 2013Trust Total: 43%Trust Total: 48%Trust Total: 53%Trust Total: 58%Trust Total: 52%Trust Total: 57% Trust Total: 58%Trust Total: 63%TRUST IN INSTITUTIONS8
  8. 8. 52%53%54%57%59%54%61%44%48% 46%45%46%47%55%52%51%49%53%53%47%56%40%43%44%46%49%38%46%20%30%40%50%60%70%80%2007 2008 2009 2010 2011 2012 2013NGOs Media Business GovernmentMOST INSTITUTIONS SEE RETURN TO 2011 HIGHS;GAP BETWEEN BUSINESS AND GOVERNMENT NEARLY AS WIDE AS IN 2007TRUST IN INSTITUTIONS – INFORMED PUBLICS AGES 35-64Q11-14.[TRACKING]Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64in 18-country global total (excludesArgentina, Australia, Hong Kong, Malaysia,Indonesia, Singapore, Turkey and UAE)9200712 point gapbetween business &government trust201310 point gap betweenbusiness &government trustBack to2011 highs
  9. 9. 59%82%64%49%74%56%81%44%56%52%44%40%62%56%47% 48%63%58%48%61% 60%77%44%58%65%74%31%50%41%33%19%47%30%57%20%35%32% 32%29%53%47%40%43%60%58%48%62% 63%82%49%65%73%81%44%Q11-14.[Businessin General and Government in General] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust)Informed Publics ages 25-64in 26-countryglobal total and across 26 countriesBUSINESS TRUSTED MORE THAN GOVERNMENT IN16 OF 26 MARKETS SURVEYEDTRUST IN BUSINESS VS. GOVERNMENTGovernmentBusinessGAP BETWEEN BUSINESS & GOVERNMENT GROWINGGlobally, largest gap since 2007*Trust in Government62% of markets surveyed havetrust score below 50%Trust in Business35% of markets surveyed havetrust score below 50%10
  10. 10. SOUTH KOREA+13 POINTSJAPAN+20 POINTSINDONESIA+27 POINTSQ11-14.[TRACKING]Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64in Mexico, Brazil, Argentina, Spain, Ireland,Russia, Poland, Italy, South Korea, India, Japan and IndonesiaBRAZIL+31 POINTSARGENTINA+30 POINTSRUSSIA+11 POINTSIRELAND+12 POINTSPOLAND+26 POINTSSPAIN+24 POINTSITALY+21 POINTSTRUST IN BUSINESS VS. GOVERNMENT – HEAT MAPMEXICO+41 POINTSTRUST BUSINESS OVERGOVERNMENTTRUST GOVERNMENTOVER BUSINESS11
  11. 11. 6%11%31%17%33%LACK OF REGULATION OR CONTROLTRANSPARENCY ISSUESPOOR PERFORMANCE/ INCOMPETENCEWRONG INCENTIVES DRIVING POLICIESCORRUPTION OR FRAUD16%16%16%23%27%LACK OF REGULATION OR CONTROLTRANSPARENCY ISSUESPOOR PERFORMANCE/ INCOMPETENCEWRONG INCENTIVES DRIVING BUSINESSDECISIONSCORRUPTION OR FRAUDCORRUPTION/FRAUD IS A KEY REASON FOR DISTRUST IN BUSINESS AND GOVERNMENT,INCOMPETENCE IS A LEADING FACTOR FOR GOVERNMENTREASONS FOR DECREASED BUSINESS AND GOVERNMENT TRUST(AMONG THOSE WHO REPORTED TRUSTING BUSINESS OR GOVERNMENT LESS OVER THE PAST YEAR)Q22. [ASK IF TRUST GOVERNMENTLESS IN Q18]Which of the following is the main reason why your trust in government decreased over the last year?; Q24.[ASK IF TRUST BUSINESSLESS IN Q20]Which of the following is the main reason why your trust in business decreased over the last year? General Population in 26-country global totalREASONS FOR TRUSTINGGOVERNMENT LESSREASONS FOR TRUSTINGBUSINESS LESS50% 50%12
  12. 12. Technology #1 in allmarkets surveyed*SLIGHT UPTICKS IN MANY SCORES, FINANCIAL SERVICES AND BANKS REMAINLEAST TRUSTEDTRUST IN INDUSTRIES20132012Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in 20 -country global total (excludesArgentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) (only industries tracked from 2012to 2013included in analysis)1377%69%66%65%62%62%59%58%53%50%50%TechnologyAutomotiveFood and beverageConsumer packagedgoodsTelecommunicationsBrewing and spiritsEnergyPharmaceuticalsMediaBanksFinancial services45%47%51%53%56%59%60%62%64%66%79%Financial servicesBanksMediaEnergyPharmaceuticalsBrewing and spiritsTelecommunicationsConsumer packagedgoodsFood and beverageAutomotiveTechnology2013: Top 3 in Developed Markets#1 Technology#2 Automotive#2 Brewing & Spirits2013: Top 3 in Emerging Markets#1 Technology#2 Automotive#3 Consumer Packaged Goods#3 Energy
  13. 13. Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companiesheadquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trustthem a great deal”. (Top 4 Box, Trust) Informed Publics Ages 25-64 in 26-country global totalCANADA, GERMANY, SWEDEN HEADQUARTERED COMPANIES MOST TRUSTED –EMERGING MARKETS STILL LAGMOST TRUSTED NATIONAL IDENTITY FOR COMPANIES76% 75% 74% 74%70% 68% 68%65%61%50% 48% 46%41%36% 35% 34%31%14
  14. 14. 69%82%72%78%74%80%19%58%29%50%36%60%Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companiesheadquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you“trust them a great deal”. (Top 4 Box – Trust) in Developed (includes US, UK, Germany, Japan, France) vs. Emerging Markets(includes Mexico, China, Brazil, Russia, India)DEVELOPED COUNTRY HQS ARE GLOBALLY ACCEPTED, WHILE EMERGINGHQS HAVE HIGH TRUST DISCOUNT IN DEVELOPED MARKETSDEVELOPED VS. EMERGING TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES*2008 data used includes Informed Publics ages 35-64 only in 18-country global totalGermany HQs Sweden HQs Canada HQs China HQs India HQs Brazil HQsGlobal trust in companies headquartered in Germany,Sweden, Canada and China has remained stable since 2008*DevelopedEmerging15
  15. 15. CULTURAL DIVIDE: SMALL BUSINESS TRUSTED MOST IN WEST;WHILE BIG BUSINESSES ON TOP IN EMERGING ECONOMIESTRUST IN DIFFERENT TYPES OF BUSINESSES70%76%70%86%78%65%55%62%53%79%55%48%89%73%GLOBAL DEVELOPED EMERGING US UK CHINA UAESMALL BUSINESSESBIG BUSINESSESQ15-17.Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a 9-point scale where one means that you“do not trust them at all” and nine means that you “trust them a greatdeal”. {Small Businesses or Companies; Big Businesses or Companies)(Top 4 Box, Trust) Informed Publicsages 25-64in 26-country global total, Developed Markets(includes US, UK, Germany, Japan, France), EmergingMarkets (includes Mexico, China, Brazil, Russia, India), US, UK, China,UAE16
  16. 16. 58%78% 79%68%70%64%66%58%60%67% 66% 67%75%48%65%53%74%55% 54%49%59%51% 53%41%28%30%63%83% 81%76% 76%75% 73%70% 69% 69% 67%66% 66%64%64% 63%63% 62% 61%59%57% 56% 55%51%46%40%37%20122013Q11-14.[NGOsTRACKING]Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64in 20 country global total (excludes Argentina,Hong Kong, Malaysia,Singapore, Turkey and UAE) and across 26 countriesN/A50%NGOS REMAIN MOST TRUSTED INSTITUTION;FOUR OUT OF FIVE MARKETS WITH HIGHEST TRUST IN APAC REGIONTRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)2008 67% of markets surveyedhave a trust score above 50%2013 88% of markets surveyedhave a trust score above 50%172008 China:48%
  17. 17. Q11-14.[Mediain General TRACKING]Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale whereone means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64in 20 country global total (excludesArgentina, Hong Kong, Malaysia,Singapore, Turkey and UAE) and across 26 countriesN/A50%STEADY GROWTH IN TRUST IN MEDIA OVER TIME;RESULT OF DIVERSIFICATION OF OPTIONS AND STRONG COVERAGE OF SCANDALSTRUST IN MEDIA2008 50% of markets surveyed have atrust score 50% or above2013 62% of markets surveyed have atrust score 50% or above1852%79%70%80%65%65%61%65%42%54%47%61%61%41%45% 46%57%45%37% 38%49%35%48%36%43%33%57%81%79%77%70%68% 66% 66%61% 61% 60%59% 57%54%51% 50%50% 49%47%47% 47%45% 45% 43%42%38%26%20122013
  18. 18. 58% 58%43% 41% 40%51%47%32%26%30%65%71%56% 58%52%TRADITIONAL MEDIA ONLINE SEARCHENGINESHYBRID MEDIA SOCIAL MEDIA OWNED MEDIAGlobal Developed EmergingQ178-182.When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where onemeans that you "do not trust it at all" and nine means that you "trust it a greatdeal". (Top 4 Box, Trust) General Population in 26-country global total, Developed vs. EmergingMarkets; Age breakdown for general population in 26-country global totalMAINSTREAM MEDIA REIGNS IN DEVELOPED MARKETS,EQUIVALENCE AMONG SOURCES IN EMERGING MARKETSYOUTH TRUSTS, OLDER GENERATIONS DISTRUST NON-TRADITIONAL MEDIA59%61%49% 47% 44%61% 60%48%45% 43%56% 56%40%37% 37%54%49%29% 29% 31%TRADITIONAL MEDIA ONLINE SEARCHENGINESHYBRID MEDIA SOCIAL MEDIA OWNED MEDIA18-29 30-44 45-64 65+GLOBAL AGE BREAKDOWN19
  19. 19. SKEPTICISM AND DISPERSION REQUIRES REPETITIONQ165. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to beexposed to something about a specific company to believe that the information is likely to be true? (Provide Space to Insert Number) Informed Publics Ages 25-64 in 26-country global total (excludes Don’t Know Responses)4% ONCE (1)14% TWICE (2)64% THREE TO FIVE TIMES12%TEN OR MORE TIMES (10+)6%SIX TO NINE TIMES (6-9)29%FOUR OR FIVE TIMES (4-5)MAJORITY NEEDS TO HEAR COMPANY INFORMATION 3-5 TIMES TO BELIEVE MESSAGES35% THREE TIMES (3)20
  20. 20. BANKING AND FINANCIAL SERVICESDEEP DIVE
  21. 21. 50%Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you“do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 35-64 in 18-country global total and across 18 marketsSEVERE DROPS IN TRUST IN BANKS OVER FIVE YEARS, 2/3 OF MARKETS NOWBELOW 50% TRUST LEVELINDUSTRY SAW BOTTOM IN 2012 FOR UK/FRANCE/GERMANY, US BOTTOM WAS 201120132008-20-19-25-19-26-24+ 1122-13-13-25-1156%72%83%61%59%49%67%52%69%53%63%51%35%26%56%42%47%45%35%45%83%80%71%60%59%54%49% 49%47%44%38%32% 31% 31%23% 22%19%11%US Trust in Banking Industry has doubledover past two years, from 25% (2011) to50% (2013) among Informed Publics 25-64.
  22. 22. Rating of Banks’ Performance in each ofthe following (Total Excellent/Good)Developed Emerging US UK Canada Australia ChinaLending to small businesses X O X X O X Providing home mortgage loans X O X X  O Offering reasonable credit cards X O X X O X Trading and investing in government debt X O X X X X Ensuring the privacy & security ofcustomers personal information O   X   Overseeing initial public offerings forcompanies X X X X X X OTrust in Banking Industry 42% 69% 50% 29% 59% 40% 80%BANKS PERFORMANCE REPORT CARDRELATIONSHIP BETWEEN TRUST AND PERFORMANCEQ151-156.Now,thinkingmore specificallyabout differentactions banks can take, how would you rate banks’ or the bankingindustry’s performance in carryingout each of the followingactions?Informed Publics ages 25-64in 26-countryglobal totaland across 26countries (TotalExcellent/Good)in Develop markets, Emergingmarkets, US, UK, Canada, Australiaand China2350%+ = 40-49% = O<40% = XSCORINGKEY
  23. 23. 23%25%11%6%13%20%24WHAT DO YOU THINK IS THE BIGGEST CAUSE OF THESE SCANDALS?Q160.How familiarare you withthe banking/financialservices scandalsthat took place over the past year, specificallyat Barclays,J.P. Morgan and Standard Chartered? ; Q161.[ASKIF FAMILIARWITH BANKING/FINANCIALSERVICES SCANDALSOVER PAST YEAR(Q160=VERY/SOMEWHATFAMILIAR)]Based on the informationyou have read, seen or heard about the banking/financialservices scandals,specificallythose at Barclays,J.P. Morganand StandardChartered, what do you thinkis the BIGGESTcause of these scandals? Informed Publicsages 25-64in26-countryglobaltotal(ASKED OF RESPONDENTS WHO ARE FAMILIAR WITH BANKING/FINANCIAL SERVICES SCANDALS OVER PAST YEAR – 56%GLOBALLY)59% of causes of scandalsare internal and withinbusiness’ controlCORPORATE CULTURE DRIVEN BYCOMPENSATION/BONUSESCORPORATECORRUPTIONCONFLICTS OF INTERESTCHANGES IN THE ECONOMYBANKS ARE TOO LARGELACK OF REGULATIONTRUST DEFICIT IN BANKS LINKED TO CULTURE
  24. 24. GLOBALLY, 63% SAY BANKING AND FINANCIAL SERVICES BEHAVIORSARE COMMON ACROSS ALL BUSINESS“Make no mistake, for UBS traders the manipulationof Libor was about getting rich,”“As one broker told a UBS derivatives trader: ‘Mateyur getting bloody good at this libor game ...think ofme when yur on yur yacht in monaco won’t yu’”Q163. Based on your general knowledge of the global banking and financial crisis and events which occurred this year, do you believe that the behaviors and actions exhibitedare unique to the banking and financial services industry or are these behaviors and actions common in business, regardlessof industry? Informed Publics 25-64in 26-countryglobal total and across 26 countries25
  25. 25. CRISIS OF LEADERSHIP
  26. 26. 69%67%61%51%51%50%43%36%Academic or expertTechnical expert in thecompanyA person like yourselfFinancial or industryanalystNGO representativeRegular employeeCEOGovernment official orregulatorTRUSTED SOURCES ARE EXPERTS AND PEERSCREDIBLE SPOKESPEOPLE29%38%46%50%50%65%66%68%Government official or regulatorCEOFinancial or industry analystNGO representativeRegular employeeA person like yourselfTechnical expert in the companyAcademic or expert20132012Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, howcredible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publicsages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia,Singapore, Turkey and UAE) (only spokespeople tracked from 2012to 2013included)27
  27. 27. 59%63%69%67% 68%36%29%38%49%33%40%58%47% 44% 43%65%60%32%27%32%42%26%33%39%30%31%35%50%49%10%20%30%40%50%60%70%80%2008 2009 2010 2011 2012 2013An academic or expert on company issues CEOA person like yourself Government official/regulatorRegular employeeTRUSTED SPOKESPEOPLE SOLIDIFYING RANK ORDERCREDIBILITY OF SPOKESPEOPLE – INFORMED PUBLICS AGES 35-64Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how crediblewould the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics ages 35-64 in 18 -country global total28
  28. 28. 50%Q130-143. [TRACKING] (Credibility of CEOs and Government officials/regulators) Below is a list of people. In general, when forming an opinion of a company, if you heardinformation about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box,Very/ Extremely Credible) Informed publics ages 25-64 in 26 -country global total and across 26 markets (only spokespeople tracked from 2012to 2013included in analysis)2013 CREDIBILITY OF CEOS VS. GOVERNMENT OFFICIALS/REGULATORSGovernment official orregulator CredibilityCEO Credibility29MAJORITY OF MARKETS FIND BOTH GOVERNMENT AND BUSINESS LEADERSBELOW 50% IN THEIR CREDIBILITY RATINGBusiness leaders trusted less than50% in 16 of 26 marketsGovernment leaders trusted lessthan 50% in 21 of 26 markets45%52%70%55%52%73%41%52%34%36%62%55%42%22%37%39%43%27% 28%56%37%34%54%26%40%35%48%38%18%36%22%32%54%23%35%22%25%54%48%35%15%31%36%41%25%27%55%37% 36%56%32%47%45%60%
  29. 29. 26%20% 19% 18%SOLVE SOCIAL OR SOCIETALISSUESCORRECT ISSUES WITHININDUSTRIES THAT AREEXPERIENCING PROBLEMSMAKE ETHICAL AND MORALDECISIONSTELL YOU THE TRUTH,REGARDLESS OF HOW COMPLEXOR UNPOPULAR IT ISCRISIS IN LEADERSHIP – TRUST IN ETHICS AND MORALITY VERY LOWTRUST BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING:15% 15% 14% 13%SOLVE SOCIAL OR SOCIETALISSUESCORRECT ISSUES WITHININDUSTRIES THAT AREEXPERIENCING PROBLEMSMAKE ETHICAL AND MORALDECISIONSTELL YOU THE TRUTH,REGARDLESS OF HOW COMPLEXOR UNPOPULAR IT ISGOVERNMENT LEADERS30BUSINESS LEADERSQ144A-147A.[SPLIT SAMPLE] How much do you trust business leaders to do the following?(Top Box- Trust A great Deal) Generalpopulation across 26-countryglobal total
  30. 30. 8%6%10%20%24%13%33%38%38%55%71%41%FranceGermanyUSIndiaChinaGlobalTrust in GovernmentTrust Government Leaders to tell the truth10%13%15%34%32%18%37%42%50%68%67%50%FranceGermanyUSIndiaChinaGlobalTrust in BusinessTrust Business Leaders to tell the TruthLEADERSHIP TRUST GAPGAP IN TRUST IN INSTITUTION VS. TRUST IN LEADERSHIPQ11 -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 9-point scale where one means that you do not trustthem at all and nine means that you trust them a great deal. Q130-143.Below is a list of people. In general, when forming an opinion of a company, if you heard information about acompany from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? General Population-32-35-34-35-27-28-47-35-28-25-29-3231
  31. 31. TRUST BUILDING
  32. 32. 16 ATTRIBUTES TO BUILDING TRUSTCOMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESSLISTENS TO CUSTOMER NEEDS AND FEEDBACKTREATS EMPLOYEES WELLPLACES CUSTOMERS AHEAD OF PROFITSINTEGRITYTAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISISHAS TRANSPARENT AND OPEN BUSINESS PRACTICESHAS ETHICAL BUSINESS PRACTICESPURPOSEOPERATIONSDELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORSHAS HIGHLY-REGARDEDAND WIDELY ADMIRED TOP LEADERSHIPRANKS ON A GLOBAL LIST OF TOP COMPANIESPRODUCTS & SERVICESIS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEASOFFERS HIGH QUALITY PRODUCTS OR SERVICESWORKS TO PROTECT AND IMPROVE THE ENVIRONMENTADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESSCREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITYPARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDSENGAGEMENTEdelman Trust Barometerresearch reveals 16 SPECIFICATTRIBUTES which build trust.These can be grouped intoFIVE PERFORMANCE CLUSTERSlisted here in rank order ofimportance.33
  33. 33. HOW WE HAVE EVOLVED…NOW THE ATTRIBUTES CAN BE GROUPEDINTO 5 DISTINCT CLUSTERSINTEGRITY (58%)PURPOSE (47%)OPERATIONS (39%)PRODUCTS & SERVICES (54%)ENGAGEMENT (59%)Edelman Trust Barometer’s2013 TRUST PERFORMANCE CLUSTERSEdelman Trust Barometer’s2008 TRUST DRIVERS*OPERATIONS(76%)Reputation as a place to work (81%)Financial performance (76%)Respected CEO or leader (71%)34*Data used includes Informed Publics ages 35-64 only in 18-country global total
  34. 34. 19%28%22%26%33%23%26%26%23%24%28%25%23%24%30%41%37%38%38%41%44%47%49%53%54%57%58%58%59%61%62%63%PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETALISSUESRANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TOWORK FOR OR MOST ADMIRED COMPANIESDELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORSHAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIPIS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEASCREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICHTHE COMPANY OPERATESADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESSWORKS TO PROTECT AND IMPROVE THE ENVIRONMENTCOMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESSHAS TRANSPARENT AND OPEN BUSINESS PRACTICESHAS ETHICAL BUSINESS PRACTICESTAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISISPLACES CUSTOMERS AHEAD OF PROFITSTREATS EMPLOYEES WELLLISTENS TO CUSTOMER NEEDS AND FEEDBACKOFFERS HIGH QUALITY PRODUCTS OR SERVICES-22-32-37-36-33-30-33-31-27-23-24-11-15-16-10-18Q80-Q96. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at allimportant to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in26-country global total (excludes ‘Don’t Know’ responses Q114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the followingattributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, PerformingVery/ Extremely Well) General Population in 26-country global totalTRUST BUILDING ATTRIBUTES – LARGE GAP IN EXPECTATION VS. PERFORMANCEBUSINESS IMPORTANCE VS. COMPANY PERFORMANCEGap35ImportancePerformance
  35. 35. Who is Trusted MOST to provide you withcredible and honest information about:Company’sCEOCompany’sEmployeePassionate orActivistConsumerAcademicMediaSpokespersonA company’s employee programs, benefits & workingconditions21% 63% 16% 13% 11%How a company serves its customers and prioritizescustomer needs ahead of company profits19% 30% 44% 16% 15%A company’s situation in a time of crisis 30% 35% 18% 22% 23%A company’s innovation efforts and new productdevelopment31% 31% 27% 25% 13%How a company uses its resources and influence tosupport the environment21% 26% 34% 27% 13%How a company supports programs that positivelyimpact the local community22% 27% 35% 20% 23%Partnerships with NGO’s and effort to address societalissues25% 20% 25% 23% 15%A company’s financial earnings & operationalperformance34% 27% 23% 23% 12%A company’s business practices, both positive & negative 23% 36% 29% 21% 15%Accomplishments about a company’s senior leadership 35% 34% 17% 19% 19%Q197-201(GlobalSummary).We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select whichperson you trust MOST to provide you with credible and honest information about a company. General Population in the 26-country global totalINFLUENCER MESSAGE MAPPINGENGAGEMENTINTEGRITYPRODUCTSOPERATIONSPURPOSE36
  36. 36. THE WAY WE WERE37G E N E R A L P O P U L AT I O NCEOBOARD OF DIRECTORSGOVERNMENTOFFICIALSACADEMICSTECHNICAL EXPERTSELITE MEDIAVERTICAL FLOW &CONTROLLED INFORMATIONPYRAMID OFINFLUENCE“As the circle of those who decide is narrowed,as the means of decision are centralized and theconsequences of decision become enormous,the course of great events often rests upon thedecisions of determinable circles.”- C. Wright Mills, 1956
  37. 37. THE NEW DYNAMIC: THE DIAMOND OF INFLUENCE38ACTION CONSUMERSEMPLOYEESG E N E R A L P O P U L AT I O NSOCIALACTIVISTSCEOBOARD OF DIRECTORSGOVERNMENTOFFICIALSACADEMICSTECHNICAL EXPERTSELITE MEDIATO 2013FROM 2000FEW MANYDICTATE CO-CREATEFIXED FLEXIBLEMONOLOGUE DIALOGUECONTROL EMPOWERMENTPYRAMID OFCOMMUNITY(Horizontal)PYRAMID OFAUTHORITY(Vertical)from LICENSCE TO OPERATEto LICENSE TO LEAD
  38. 38. EMBRACE THE NEW MANDATE: INCLUSIVE MANAGEMENTPYRAMID OFCOMMUNITY(Horizontal)PYRAMID OFAUTHORITY(Vertical)HybridSocialOwnedTraditionalACTION CONSUMERSEMPLOYEESG E N E R A L P O P U L AT I O NSOCIALACTIVISTSCEOBOARD OF DIRECTORSGOVERNMENTOFFICIALSACADEMICSTECHNICAL EXPERTSELITE MEDIASearch &ContentACTIVATE ACROSS MEDIA CLOVERLEAF, BASED IN GROUNDED LEADERSHIP“Grounded Leadership builds legitimacy in key constituentgroups and is based in personal dynamism, empathy,authenticity, inspirational goals and courage.”-- Jeffrey Sonnenfeld
  39. 39. LESSONS FOR LEADERS40Observe re-ordering of authorityOld values are not sufficientClear opportunity for businessTrust is fragile and perceived behaviors are an anchor
  40. 40. On the cover credits: HSBC: REUTERS/ Bobby Yip; UBS: REUTERS/Luke MacGregor; Bob Diamond: REUTERS/ Luke MacGregor; Bo Xilai: REUTERS/ Cheryl Ravelo ; LanceArmstrong: by Sebastian David Tingkæ r; Angela Merkel: REUTERS/ Sebastien Pirlet; Rajat Gupta: REUTERS/ Brendan McDermid; George Entwistle: Associated Press/ Rex Featu

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