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2013 Edelman Trust Barometer South Korea
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2013 Edelman Trust Barometer South Korea

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  • 1. SOUTH KOREA FINDINGS
  • 2. EDELMANS 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST ONLINE SURVEY INFORMED IN 26 COUNTRIES PUBLICS • 31,000+ respondents • 500 respondents in U.S. and China & 200 in other countries • 5 years in 20+ markets • Ages 25-64 • 8 years in 10+ markets • College-educated GENERAL • In top 25% of household income POPULATION per age group in each country • Report significant media • 1000 respondents per consumption and engagement in country surveyed business news and public policy • Ages 18+ • 13 years of data • 2 years of data MARGIN OF ERROR MARKET COMPARISONS General Population Informed Publics Developed: US, UK, France, Germany and Japan Sample Oversample ages 18+ ages 25-64 Emerged: Brazil, Mexico, Russia, India and China Total Sample +/- 0.6% +/- 1.3% (26 Countries) (N=26,000) (N=5,800) APAC SELECT COUNTRIES South Korea +/- 3.1% +/- 6.9% (N=1,000) (N=200) China, Japan, India, Malaysia, Singapore, South Korea, Indonesia, Australia, Hong Kong Indicates Global Data 2 Indicates South Korea Data
  • 3. EDELMAN TRUST BAROMETER IN RETROSPECT 2013 CRISIS OF LEADERSHIP 2012 THE FALL OF GOVERNMENT 2011 RISE OF AUTHORITY FIGURES 2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS 2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST 2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS 2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA 2006 “A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON 2005 TRUST SHIFTS FROM “AUTHORITIES” TO PEERS 2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT 2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING 2002 FALL OF THE CELEBRITY CEO 2001 RISING INFLUENCE OF NGOS3
  • 4. TRUST 2013 THE STATE OF TRUST CRISIS OF LEADERSHIP THE PATH FORWARD4
  • 5. STATE OF TRUST
  • 6. EDELMAN’S TRUST INDEX: AFTER A YEAR HIGH OF DISTRUST IN 2012, SHIFT BACK TO NEUTRAL FOR MANY IN 2013 – EXCEPT SOUTH KOREA 2011 2012 2013 Big Changes from 2008 GLOBAL 55 GLOBAL 51 GLOBAL 57 Brazil 80 China 76 China 80 Germany +19 UAE 68 Singapore 76 UAE 78 China +18 Singapore 67 India 71 Canada +14 TRUSTERS Indonesia 74 India 65 Mexico 68 India +11 China 73 Indonesia 63 Hong Kong 67 Netherlands 73 UAE 66 Mexico 63 Mexico 69 Netherlands 61 Malaysia 64 Singapore 67 Hong Kong 61 Canada 62 Argentina 62 Canada 58 Indonesia 62 Big Changes India 56 Malaysia 57 U.S. 59 from 2012 Italy 56 Italy 56 Netherlands 59 Argentina 54 Brazil 55 Germany +16 Canada 55 Germany 55NEUTRAL South Korea 53 Australia 53 France +14 Brazil France 54 UK +12 Sweden 52 51 Sweden 54 US +10 Sweden 49 Japan 51 UK 53 U.S. 49 Australia 51 Italy 51 South Korea 44 Spain 51 Australia 50 Poland 44 France 50 Poland 48 U.K. 41 S. Korea 47DISTRUSTERS Poland 49 Ireland 41 Ireland 46 Germany 44 France 40 Argentina 45 U.S. 42 Germany 39 Spain 42 U.K. 40 Spain 37 Turkey 42 Russia 40 Japan 34 Japan 41 Ireland 39 Russia 32 Russia 36 6 Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total
  • 7. WHILE GOVERNMENT HAS IMPROVED,NGOS REMAIN THE ONLY TRUSTED INSTITUTION IN SOUTH KOREATRUST IN INSTITUTIONS – INFORMED PUBLICS AGES 25-64 SOUTH KOREA TRUST A GREAT DEAL Trust Total: 44% Trust Total: 33% Trust Total: 31% Trust Total: 31% GOVERNMENT 8% 7% 5% 3% BUSINESS 2012 2013 2012 2013 Trust Total: 67% Trust Total: 66% Trust Total: 49% Trust Total: 45% 23% 19% MEDIA 10% 10% NGOS 2012 2013 2012 2013 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-647
  • 8. TRUST IN SOUTH KOREAN BUSINESS REMAINS NEAR ALL-TIME LOW,WHILE GLOBAL BUSINESS CREDIBILITY CLIMBS TO A NEW HIGHTRUST IN BUSINESS – INFORMED PUBLICS AGES 35-64 – GLOBAL VS. SOUTH KOREA 80% Global Korea 70% 60% 56% 53% 53% 52% 51% 49% 50% 48% 47% 46% 45% 40% 43% 43% 32% 31% 30% 20% 2007 2008 2009 2010 2011 2012 2013 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in 18-country global total (excludes8 Argentina, Australia, Hong Kong, Malaysia, Indonesia, Singapore, Turkey and UAE)
  • 9. BUSINESS TRUST IN SOUTH KOREA HAS FALLEN WELL OFF THE PACEOF EMERGING MARKETSTRUST IN BUSINESS: DEVELOPED VS. EMERGING MARKETS VS. SOUTH KOREA 90% Developed Emerging S. Korea 80% 70% 70% 67% 64% 63% 65% 62% 60% 55% 48% 47% 49% 50% 48% 42% 45% 46% 39% 40% 39% 31% 30% 31% 20% 2008 2009 2010 2011 2012 2013 Q11-14. [Trust in Business] [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in Developed9 (includes US, UK, Germany, Japan, France) vs. Emerging Markets (includes Mexico, China, Brazil, Russia, India), and South Korea
  • 10. SOUTH KOREA SHOWS CONFIDENCE IN GOVERNMENT SLIGHTLYABOVE THE GLOBAL AVERAGETRUST IN GOVERNMENT – INFORMED PUBLICS AGES 35-64 – GLOBAL VS SOUTH KOREA 100% Global South Korea 90% 80% 70% 60% 49% 50% 47% 48% 43% 44% 46% 46% 40% 43% 40% 38% 40% 38% 30% 34% 26% 20% 2007 2008 2009 2010 2011 2012 2013 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in 18-country global total (excludes10 Argentina, Australia, Hong Kong, Malaysia, Indonesia, Singapore, Turkey and UAE)
  • 11. SOUTH KOREA SHOWS CONFIDENCE IN GOVERNMENT SLIGHTLYABOVE THE GLOBAL AVERAGETRUST IN GOVERNMENT – INFORMED PUBLICS AGES 35-64 – GLOBAL VS SOUTH KOREA 100% Global South Korea 90% 84% 82% 80% 70% 62% 60% 52% 49% 50% 47% 48% 43% 44% 46% 46% 40% 43% 40% 38% 40% 38% 30% 34% 26% 20% 2007 2008 2009 2010 2011 2012 2013 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in 18-country global total (excludes11 Argentina, Australia, Hong Kong, Malaysia, Indonesia, Singapore, Turkey and UAE)
  • 12. SOUTH KOREA SHOWS CONFIDENCE IN GOVERNMENT SLIGHTLYABOVE THE GLOBAL AVERAGETRUST IN GOVERNMENT – INFORMED PUBLICS AGES 35-64 – GLOBAL VS SOUTH KOREA 100% Global South Korea 90% 84% 82% 80% 70% 62% 60% 52% 49% 50% 47% 48% 43% 44% 46% 46% 40% 43% 40% 38% 40% 36% 38% 30% 34% 26% 20% 2007 2008 2009 2010 2011 2012 2013 Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in 18-country global total (excludes12 Argentina, Australia, Hong Kong, Malaysia, Indonesia, Singapore, Turkey and UAE)
  • 13. BUSINESS TRUST IN SOUTH KOREA THE LOWEST OF ALL 26 MARKETS SURVEYED; GOVERNMENT LOW, BUT WELL AHEAD OF BUSINESS TRUST IN BUSINESS VS. GOVERNMENT Trust in Government 62% of markets surveyed have Business trust score below 50% Government Trust in Business 35% of markets surveyed have GAP BETWEEN BUSINESS & GOVERNMENT GROWING trust score below 50% Globally, largest gap since 2007* 82% 82% 81% 81% 77% 74% 73% 74% 64% 65% 62% 63% 63%59% 60% 58% 60% 57% 58% 56% 53% 50% 52% 47% 47% 48% 48%48% 49% 43% 44% 44% 41% 40% 33% 32% 29% 31% Q11-14. [Business in 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 a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 26-country 13 global total and across 26 countries
  • 14. TRUST IN BUSINESS VS. GOVERNMENT – HEAT MAP TRUST BUSINESS OVER RUSSIA GOVERNMENT IRELAND +11 POINTS +12 POINTS TRUST GOVERNMENT OVER BUSINESS POLAND +26 POINTS SPAIN +24 POINTS ITALY BRAZIL +21 POINTS +31 POINTS MEXICO +41 POINTS SOUTH KOREA +13 POINTS JAPAN +20 POINTS INDONESIA +27 POINTS ARGENTINA +30 POINTS Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means14 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 Mexico, Brazil, Argentina, Spain, Ireland, Russia, Poland, Italy, South Korea, India, Japan and Indonesia
  • 15. CORRUPTION/FRAUD A KEY REASON FOR DISTRUST IN BUSINESS AND GOVERNMENT; TRANSPARENCY LEADING FACTOR FOR BUSINESS MAIN REASONS FOR DECREASED BUSINESS AND GOVERNMENT TRUST – SOUTH KOREA (AMONG THOSE WHO REPORTED TRUSTING BUSINESS OR GOVERNMENT LESS OVER THE PAST YEAR) REASONS FOR TRUSTING REASONS FOR TRUSTING BUSINESS LESS GOVERNMENT LESS CORRUPTION OR FRAUD 51% CORRUPTION OR FRAUD 44% 72% 78% WRONG INCENTIVES DRIVING TRANSPARENCY ISSUES 34% POLICIES 21% 32% 60% WRONG INCENTIVES DRIVING TRANSPARENCY ISSUES 18% BUSINESS DECISIONS 15% LACK OF REGULATION OR CONTROL 3%LACK OF REGULATION OR CONTROL 5% POOR PERFORMANCE/ POOR PERFORMANCE/ 7% INCOMPETENCE 2% INCOMPETENCE Q22. [ASK IF TRUST GOVERNMENT LESS IN Q18] Which of the following is the main reason why your trust in government decreased over the last year?; Q24. [ASK IF TRUST BUSINESS 15 LESS IN Q20] Which of the following is the main reason why your trust in business decreased over the last year? General Population
  • 16. INDUSTRY TRUST UP OVERALL IN SOUTH KOREA; CONSUMER PACKAGEDGOODS AND BANKS, FINANCIAL SERVICES RISE MOSTTRUST IN INDUSTRIES – GLOBAL VS SOUTH KOREA 2013 2013 Technology 77% Technology 81% Automotive 69% Energy 66% Food and beverage 66% Automotive 65% Consumer packaged 65% Brewing and spirits 56% goods Telecommunications 62% Banks 55% +15 Brewing and spirits 62% Consumer packaged goods 55% +20 Energy 59% Financial services 54% +15 Pharmaceuticals 58% Pharmaceuticals 51% Media 53% Food and beverage 50% Banks Telecommunications 50% 50% Media 48% Financial services 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 25-64 (only industries tracked from 201216 to 2013 shown)
  • 17. CANADA, GERMANY, SWEDEN HEADQUARTERED COMPANIES MOST TRUSTED –EMERGING MARKETS STILL LAGMOST TRUSTED NATIONAL IDENTITY FOR COMPANIES 76% 75% 74% 74% 70% 68% 68% 65% 61% 50% 48% 46% 41% 36% 35% 34% 31% Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies17 headquartered 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) Informed Publics Ages 25-64 in 26-country global total
  • 18. SOUTH KOREA HEADQUARTERED COMPANIES BARELY IN TRUSTED TERRITORY; APAC HOME TO MOST- AND LEAST-TRUSTED HQ LOCATIONS TRUST IN COMPANIES HEADQUARTERED IN KOREA90%80% 77% 73% 71% 70% 69% 68%70% 63% 60%60% 56% 56% 53% 50%50% 42%40% 37% 37% 37% 37%30%20% 16%10%0% Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies 18 headquartered 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) Informed Publics Ages 25-64 in 26-country global total
  • 19. SWISS COMPANIES MOST TRUSTED BY SOUTH KOREAN INFORMED PUBLIC; CHINESE FIRMS TRUSTED LEAST SOUTH KOREA TRUST IN NATIONAL IDENTITY FOR COMPANIES90% 81% 79%80% 77% 75% 72%70% 67% 66% 62%60% 53%50% 40%40% 38% 37% 33% 29% 29%30% 22%20% 16%10%0% Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies 19 headquartered 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) Informed Publics Ages 25-64 in 26-country global total
  • 20. SMALL BUSINESS SUPPORT FOLLOWS DEVELOPED MARKET TRENDTRUST IN SMALL BUSINESS VS. BIG BUSINESS SMALL BUSINESSES BIG BUSINESSES 79% 76% 72% 70% 70% 66% 62% 55% 53% 44% GLOBAL DEVELOPED EMERGING APAC S. KOREA Q15-17. 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 great deal”. {Small Businesses or Companies; Big Businesses or Companies) (Top 4 Box, Trust) Informed Publics20 ages 25-64 in 26-country global total, Developed Markets (includes US, UK, Germany, Japan, France), Emerging Markets (includes Mexico, China, Brazil, Russia, India) , APAC and South Korea
  • 21. NGOS REMAIN MOST TRUSTED INSTITUTION; FOUR OUT OF TOP FIVE MOST TRUSTED MARKETS IN APAC REGION TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) 2008 67% of markets surveyed have a trust score above 50% 2012 2008 China: 48% 2013 88% of markets surveyed 2013 83% 81% have a trust score above 50% 78% 79% 76% 76% 75% 73% 75% 74% 70% 70% 69% 69% 67% 68% 66% 66% 67% 66% 66% 67% 64% 65% 63% 64% 64% 63% 63% 62% 61% 60% 59% 58% 58% 59% 55% 57% 56% 55% 53% 54% 51% 53% 48% 49% 51%50% 46% 41% 40% 37% 30% 28% N/A Q11-14. [NGOs TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries 21
  • 22. SLIGHT RECOVERY IN MEDIA CREDIBILITY AFTER FOUR-YEAR SLIDE; SUPPORTED BY DIVERSIFICATION OF OPTIONS AND STRONG SCANDALS COVERAGE TRUST IN MEDIA 2008 50% of markets surveyed have a 2012 trust score 50% or above 2013 2013 62% of markets surveyed have a 81% trust score 50% or above 79% 79% 80% 77% 70% 70% 65% 68% 66% 65% 65% 66% 61% 61% 61% 60% 61% 61% 57% 59% 57% 57% 54% 54% 52% 51% 50%50% 50% 49% 47% 47% 49% 48% 47% 47% 45% 46% 45% 45% 45% 43% 43% 42% 41% 42% 37% 38% 38% 35% 36% 33% 26% N/A Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries 22
  • 23. MAINSTREAM MEDIA STILL REIGNS SUPREME IN SOUTH KOREA; SOCIAL MEDIA ALSO ON THE RISE TRUST IN TYPES OF MEDIA SOURCES FOR GENERAL NEWS AND INFORMATION Global Developed Emerging APAC S. Korea 71% 65% 63% 64%58% 58% 58% 56% 58% 51% 52% 52% 52% 47% 49% 47% 43% 41% 43% 43% 40% 32% 32% 30% 26%TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA Q178-182. 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 one 23 means that you "do not trust it at all" and nine means that you "trust it a great deal". General Population in 26-country global total, Developed (US, UK, France, Germany and Japan) vs. Emerging Markets (Brazil, Mexico, Russia, India and China); Age breakdown for general population in 26-country global total, South Korea and APAC
  • 24. SKEPTICISM AND DISPERSION REQUIRES REPETITION MAJORITY NEEDS TO HEAR COMPANY INFORMATION 3-5 TIMES TO BELIEVE MESSAGES Global South Korea 12% TEN OR MORE TIMES 27% (10+) 4% ONCE (1) TEN OR MORE TIMES 2% ONCE (1) (10+) 6% 14% TWICE (2) 3% TWICE (2) SIX TONINE TIMES (6-9) 5% SIX TO NINE TIMES (6-9) 30% THREE TIMES (3) 29% 35% FOUR OR THREE TIMES (3)FIVE TIMES (4-5) 33% FOUR OR FIVE TIMES (4-5) 64% THREE TO FIVE TIMES 63% THREE TO FIVE TIMES Q165. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be 24 exposed 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)
  • 25. CRISIS OF LEADERSHIP
  • 26. MOST TRUSTED SOURCES ARE EXPERTS, NGO REPS OR ANALYSTS; CEO AND GOVERNMENT OFFICIALS LEAST TRUSTED IN SOUTH KOREA CREDIBLE SPOKESPEOPLE – SOUTH KOREA 2012 2013 Technical expert in the Technical expert in the 63% 66% company company A person like yourself 54% NGO representative 53% Academic or expert 47% Financial or industry analyst 51% Financial or industry analyst 43% Academic or expert 51% NGO representative 43% A person like yourself 50% CEO 29% Regular employee 35% Regular employee 28% CEO 34% Government official orGovernment official or regulator 16% 22% regulator Q130-143. [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 credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics 26 ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) (only spokespeople tracked from 2012 to 2013 shown)
  • 27. MAJORITY OF MARKETS INCLUDING SOUTH KOREA FIND BOTH GOVERNMENT AND BUSINESS LEADERS BELOW 50% IN THEIR CREDIBILITY RATING 2013 CREDIBILITY OF CEOS VS. GOVERNMENT OFFICIALS/REGULATORS CEO Credibility Government official or regulator Credibility 73% 60% 62% 56% 55% 54% 54% 55% 54%50% 48% 48% 45% 43% 41% 38% 39% 36% 36% 34% 34% 22% 22% 22% 15% Global Japan South Korea Australia UK US Hong Kong Singapore Indonesia Malaysia China India 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 heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, 27 Very/ Extremely Credible) Informed publics ages 25-64 in 26 -country global total and across 26 markets (only spokespeople tracked from 2012 to 2013 included in analysis)
  • 28. KOREA’S CRISIS IN LEADERSHIP: TRUST IN ETHICS AND MORALITY LOWTRUST BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING – SOUTH KOREABUSINESS LEADERS 21% 17% 13% 13% SOLVE SOCIAL OR SOCIETAL CORRECT ISSUES WITHIN MAKE ETHICAL AND MORAL TELL YOU THE TRUTH, ISSUES INDUSTRIES THAT ARE DECISIONS REGARDLESS OF HOW COMPLEX EXPERIENCING PROBLEMS OR UNPOPULAR IT IS GOVERNMENT LEADERS 14% 16% 12% 12% SOLVE SOCIAL OR SOCIETAL CORRECT ISSUES WITHIN MAKE ETHICAL AND MORAL TELL YOU THE TRUTH, ISSUES INDUSTRIES THAT ARE DECISIONS REGARDLESS OF HOW COMPLEX EXPERIENCING PROBLEMS OR UNPOPULAR IT IS Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- Trust A great Deal) General Population across 26-country global total
  • 29. TRUST BUILDING
  • 30. TRUST IN INSTITUTIONS REMAIN HIGHER THAN TRUST IN LEADERSHIPGAP IN TRUST IN INSTITUTION VS. TRUST IN LEADERSHIP – SOUTH KOREA Trust in Business Trust in Government Trust Business Leaders to tell the Truth Trust Government Leaders to tell the truth 50% Global 18% -32 Global 41% 13% -28 67% China 32% 71% -35 China 24% -47 68% India 55% 34% India -34 20% -35 50% US 38% 15% US 10% -35 -28 42% 38% Germany Germany 13% 6% -29 -32 37% France 33% France 8% 10% -27 -25 South Korea 36% 35% 12% South Korea -24 13% -22 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 9-point scale where one means that you do not trust30 them at all and nine means that you trust them a great deal. (Top 4 Box, Trust); Q144A-147A. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust business leaders to do the following? Q144B-147B. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust government leaders to do the following? (Top Box, Trust A great Deal) General Population
  • 31. 16 ATTRIBUTES TO BUILDING TRUST ENGAGEMENT LISTENS TO CUSTOMER NEEDS AND FEEDBACK TREATS EMPLOYEES WELL PLACES CUSTOMERS AHEAD OF PROFITS COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESSEdelman Trust Barometer INTEGRITYresearch reveals 16 SPECIFIC HAS ETHICAL BUSINESS PRACTICESATTRIBUTES which build trust. TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS HAS TRANSPARENT AND OPEN BUSINESS PRACTICESThese can be grouped into PRODUCTS & SERVICES OFFERS HIGH QUALITY PRODUCTS OR SERVICESFIVE PERFORMANCE CLUSTERS IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEASlisted here in rank order ofimportance. PURPOSE WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS OPERATIONS HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP RANKS ON A GLOBAL LIST OF TOP COMPANIES 31 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
  • 32. HOW WE HAVE EVOLVED… NOW THE ATTRIBUTES CAN BE GROUPED INTO 5 DISTINCT CLUSTERS Edelman Trust Barometer’s Edelman Trust Barometer’s 2008 TRUST DRIVERS* 2013 TRUST PERFORMANCE CLUSTERS ENGAGEMENT (59%) Reputation as a place to work (81%) INTEGRITY (58%)OPERATIONS Financial performance (76%) (76%) PRODUCTS & SERVICES (54%) Respected CEO or leader (71%) PURPOSE (47%) OPERATIONS (39%) 32 *Data used includes Informed Publics ages 35-64 only in 18-country global total
  • 33. TRUST BUILDING ATTRIBUTES – LARGE GAP IN EXPECTATION VS.PERFORMANCEBUSINESS IMPORTANCE VS. COMPANY PERFORMANCE – SOUTH KOREA Gap Importance 50% -36 TREATS EMPLOYEES WELL Performance 14% LISTENS TO CUSTOMER NEEDS AND FEEDBACK 50% -32 18% TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 49% -35 14% PLACES CUSTOMERS AHEAD OF PROFITS 48% -36 12% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 48% -34 14% OFFERS HIGH QUALITY PRODUCTS OR SERVICES 48% -25 23% HAS ETHICAL BUSINESS PRACTICES 43% -29 14% 43% -27 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 16% COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 42% -25 BUSINESS 17% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 36% -16 20% RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST 35% -16 COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES 19% CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL 34% -21 COMMUNITY IN WHICH THE COMPANY OPERATES 13% DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 32% -17 15% ADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESS 32% -17 15% PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO 28% -16 ADDRESS SOCIETAL ISSUES 12% HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 26% -11 15% Q80-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 all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in33 South Korea (excludes ‘Don’t Know’ responses Q114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in South Korea
  • 34. ACTIVIST CONSUMER IS MOST TRUSTED INFLUENCER IN SOUTH KOREA Passionate or Who is Trusted MOST to provide you with Company’s Company’s Media Activist Academic credible and honest information about: CEO Employee Spokesperson Consumer A company’s employee programs, benefits & working conditions 19% 62% 30% 9% 10%ENGAGEMENT How a company serves its customers and prioritizes customer needs ahead of company profits 12% 23% 67% 9% 17% INTEGRITY A company’s situation in a time of crisis 34% 40% 32% 10% 22% PRODUCTS A company’s innovation efforts and new product 29% 46% 49% 7% 10% development How a company uses its resources and influence to support the environment 19% 20% 58% 16% 12% PURPOSE How a company supports programs that positively impact the local community 28% 26% 49% 13% 21% Partnerships with NGO’s and effort to address societal issues 28% 21% 39% 14% 26% A company’s financial earnings & operational performance 25% 28% 42% 10% 14%OPERATIONS A company’s business practices, both positive & negative 13% 43% 50% 9% 15% Accomplishments about a company’s senior leadership 33% 40% 32% 10% 22% 34 Q197-201(Global Summary). 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 which person you trust MOST to provide you with credible and honest information about a company. General Population in the 26-country global total
  • 35. THE WAY WE WERE PYRAMID OF CEO AUTHORITY GOVERNMENT “As the circle of those who decide is narrowed, OFFICIALS as the means of decision are centralized and the consequences of decision become enormous, BOARD OF DIRECTORS the course of great events often rests upon the ACADEMICS decisions of determinable circles.” TECHNICAL EXPERTS - C. Wright Mills, 1956 ELITE MEDIA G E N E R A L P O P U L AT I O N VERTICAL FLOW & CONTROLLED INFORMATION35
  • 36. THE NEW DYNAMIC: THE DIAMOND OF INFLUENCE CEO FROM 2000 TO 2013 PYRAMID OF GOVERNMENT OFFICIALS AUTHORITY FEW MANY (Vertical) BOARD OF DIRECTORS DICTATE CO-CREATE ACADEMICS FIXED FLEXIBLE TECHNICAL EXPERTS MONOLOGUE DIALOGUE ELITE MEDIA CONTROL EMPOWERMENT G E N E R A L P O P U L AT I O N EMPLOYEES ACTION CONSUMERS SOCIAL ACTIVISTS PYRAMID OF COMMUNITY (Horizontal)36
  • 37. LESSONS FOR LEADERS Trust in business all-time low – corruption and transparency key reason Crisis of leadership – observe re-ordering of authority Old values are not sufficient – engagement is key to build trust New dynamic of influence – from monologue to dialogue, and from control to empowerment37
  • 38. 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