The Trust Factor: Getting Things Done on Energy
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The Trust Factor: Getting Things Done on Energy

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We’re hearing from stakeholders that now, more than ever, energy leaders in the U.S. need to build — and in some cases, rebuild — trust in the industry. As our country becomes a major player in ...

We’re hearing from stakeholders that now, more than ever, energy leaders in the U.S. need to build — and in some cases, rebuild — trust in the industry. As our country becomes a major player in global energy markets, it is time for us to talk about trust — and to recognize the need not just for talk, but for concrete actions.

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  • We’re hearing from stakeholders that now is the time to have a conversation about trust: people are embracing the United States as a major energy player—now what are we going to do about it?
  • This was Edelman’s largest evaluation of trust since the original Trust Barometer in 2001.
  • In 2001, the influence of NGOs was rising and it has had staying power. Fast forward to 2013, and we are seeing a crisis of leadership. Both are critical points for the energy industry and government.
  • Trust in institutions is increasing in the United States. The typical trust threshold is 50%--1 in 2 people trusting you is acceptable;anything less than that is cause for alarm. But energy and government are still dangerously low.
  • The energy industry ranks low among other industries, but it increased slightly this year. Note that the technology industry not only ranked #1 in all markets surveyed this year, it has been the most trusted industry over more than a decade of Trust Barometer research.
  • For the first time, the Trust Barometer expanded beyond the overall energy industry to include a measure of trust in four energy subsectors: renewables, natural gas, utilities and oil.
  • By analyzing research from McKinsey, Harvard Business School and others, we identified 16 attributes that are critical to trust. Since that’s a lot to remember, we grouped them into 5 performance clusters, ranked in order of importance.
  • There has been a fundamental reordering of the drivers of Trust in business. Operations is now seen as table stakes;Engagement and Integrity are what matter most in building, or rebuilding, Trust. Engagement should focus less on “what” and more on “how.”
  • The rank order of trust-building attributes for energy tracks with the global ranking. Everything is more important than Operations (e.g., business performance.), including Purpose, which is often highlighted in the energy industry. And all serve as actionable insights for the industry.
  • Returning to the key takeaway from this year’s Trust Barometer, both the government and business have incredibly low ratings on leadership criteria. People do not trust them to solve issues, make ethical or moral decisions, or tell the truth. This is a crisis. And both entities need to embrace the new dynamic in which they operate to improve their ability to get things done on energy and all issues.
  • We are in the midst of a transformation. Old models no longer work in isolation and new models are firmly established. The Diamond of Influence has profound implications for how the energy industry and government communicate and engage with stakeholders and the general public. Forward-thinking businesses and institutions are integrating traditional, vertical (one-way) communications with modern, horizontal (multi-directional), always-on conversations. In this new dynamic, and with the opportunity and obligation to rebuild trust, Edelman works with clients to move beyond the familiar goal of “license to operate” and strive instead for a “license to lead.”

The Trust Factor: Getting Things Done on Energy Presentation Transcript

  • 1. energy industryThe Trust Factor: Getting Things Done on EnergyWashington, D.C.May 15, 2013
  • 2. EDELMANS 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUSTONLINE 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 data2
  • 3. EDELMAN TRUST BAROMETER IN RETROSPECT2013RISING INFLUENCE OF NGOS2001FALL OF THE CELEBRITY CEO2002EARNED MEDIA MORE CREDIBLE THAN ADVERTISING2003U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT2004TRUST SHIFTS FROM “AUTHORITIES” TO PEERS2005“A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON2006BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA2007YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS2008BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST2009TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS2010RISE OF AUTHORITY FIGURES2011THE FALL OF GOVERNMENT2012CRISIS OF LEADERSHIP
  • 4. TRUST ON THE RISE ACROSS INSTITUTIONSTRUST IN INSTITUTIONS – U.S.445% 51%US2012Total Trust2013Total Trust58%70%US2012Total Trust2013Total TrustNGOSBUSINESSMEDIAGOVERNMENT2012Total Trust2013Total Trust43%53%US50%62%USENERGY56% 59%2012Total Trust2013Total Trust2012Total Trust2013Total TrustQ11-14.[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 great deal and Top 4 Box, Trust) Informed Publics ages 25-64in US
  • 5. 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 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 (only industries tracked from 2012 to2013shown)SLIGHT UPTICKS IN MANY SCORES, INCLUDING ENERGYTRUST IN INDUSTRIES – U.S.580%75%72%70%70%66%59%55%52%50%50%TechnologyBrewing and spiritsFood and beverageAutomotiveConsumer packaged goodsTelecommunicationsEnergyPharmaceuticalsFinancial servicesBanksMedia2013201241%46%48%56%56%64%66%71%74%74%83%BanksFinancial servicesMediaEnergyPharmaceuticalsTelecommunicationsAutomotiveBrewing and spiritsConsumer packaged goodsFood and beverageTechnologyTechnology #1 in allmarkets surveyed
  • 6. 53%65%54% 53%35%Energy Industry Renewables Natural Gas Utilities OilQ61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the followingsectors 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 greatdeal”. General Population in USTRUST AMONG ENERGY SECTORS –RENEWABLES MOST TRUSTED; OIL LEAST TRUSTEDTRUST IN ENERGY INDUSTRY SECTORS – U.S.6
  • 7. COMMUNICATES 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-REGARDED AND 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.BUILDING TRUST – KEY PERFORMANCE CLUSTERS7
  • 8. THE EVOLUTION OF TRUST – WHAT MOVES THE NEEDLE8Edelman Trust Barometer’s2008 Trust DriversOperations (76%)Reputation as a place to work (81%)Financial performance (76%)Respected CEO or leader (71%)Integrity (58%)Purpose (47%)Operations (39%)Products and Services (54%)Engagement (59%)Edelman Trust Barometer’s 2013 TrustPerformance Clusters
  • 9. 41%49%50%55%59%63%65%68%69%69%70%72%72%76%77%77%PARTNERS WITH NGOS, GOVERNMENT AND THIRDPARTIES TO ADDRESS SOCIETAL ISSUESDELIVERS CONSISTENT FINANCIAL RETURNS TOINVESTORSRANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCHAS BEST COMPANIES TO WORK FOR OR MOST…HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOPLEADERSHIPIS AN INNOVATOR OF NEW PRODUCTS, SERVICES ORIDEASADDRESSES SOCIETYS NEEDS IN ITS EVERYDAYBUSINESSHAS TRANSPARENT AND OPEN BUSINESS PRACTICESCREATES PROGRAMS THAT POSITIVELY IMPACT THELOCAL COMMUNITY IN WHICH THE COMPANY…COMMUNICATES FREQUENTLY & HONESTLY ON STATEOF ITS BUSINESSTREATS EMPLOYEES WELLHAS ETHICAL BUSINESS PRACTICESOFFERS HIGH QUALITY PRODUCTS OR SERVICESWORKS TO PROTECT AND IMPROVE THEENVIRONMENTPLACES CUSTOMERS AHEAD OF PROFITSTAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUEOR A CRISISLISTENS TO CUSTOMER NEEDS AND FEEDBACK2013 ENERGY INDUSTRY IMPORTANCE – U.S.TRUST BUILDING ATTRIBUTES – WHAT MATTERS FOR ENERGY9
  • 10. TRUST IN BUSINESS AND GOVERNMENT – A CRISIS OF LEADERSHIP10Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- TrustA great Deal) General population across 26-country global totalBusinessLeaders26% 20% 19% 18%GovernmentLeadersSolve Social orSocietal Issues15% 15% 14% 13%Correct Issues Within Industriesthat are Experiencing ProblemsMake Ethical andMoral DecisionsTell You the Truth, Regardless ofHow Complex or Unpopular It IsHow much do you trust business and government leaders to do the following?
  • 11. PYRAMID ofCOMMUNITYPYRAMID ofAUTHORITY BOARD OFDIRECTORSACADEMICSTECHNICAL EXPERTSELITE MEDIACEOACTIONCONSUMERSSOCIALACTIVISTSEMPLOYEESGENERAL POPULATION11THE NEW DYNAMICS OF ENGAGEMENTManyCo-createFlexibleDialogueEmpowermentFewDictateFixedMonologueControlToFromFrom License to OperateTo License to Lead