2009 The Edelman Trust Barometer Korea Report

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2009 The Edelman Trust Barometer Korea Report

  1. 2009 Edelman Trust Barometer Korea Report
  2. 2009 Edelman Trust Barometer at a glance Tenth edition, fourth to include Korea data 4,475 people in 20 countries on 5 continents Ages 25 to 64 - Two age groups concurrently (25~34 and 35~64) “Opinion elites” meeting the following screening criteria: - College-educated - In top 25% of household income per age group in each country - Report significant media consumption and engagement in business news and public policy
  3. A Decade of Insights from the Edelman Trust Barometer 2001 Rising Influence of NGOs 2002 Fall of the celebrity CEO 2003 Earned media more credible than advertising 2004 U.S. companies in Europe suffer trust discount Trust shifts from “authorities” to peers 2005 “A person like me” is most credible spokesperson 2006 Koreans more likely to criticize companies they distrust 2007 Business more trusted than government and media Korea leads the world in trusting the internet and blogs in sharing credible information 2008 Young influencers have more trust in business Rising trust in Government, Media and NGOs but Korean business facing eroding trust overseas 3
  4. What a Difference a Year-and-a-Half Makes May 14, 2007 January 19, 2009
  5. Key Themes in 2009 for Business in Korea • Trust in business takes major hit in Korea, particularly among financial, automotive and, surprisingly, healthcare sectors: 7/10 people trust business less compared to last year Koreans trust business less compared to rest of Asia-Pacific as well as China, India, Japan and Indonesia Koreans lost faith in American businesses but European companies maintain levels of trust despite troubling economic conditions in 2008 • Young opinion leaders lose optimism and faith in Korean institutions: Trust eroded in business from 52% in 2008 to 32% in 2009 Trust in the media drops from 60% to 38% • The NGO opportunity in Korea: Korea is significantly more trusting of NGOs compared to Asia-Pacific as a whole as well as individual countries like Japan and Australia • Rise of ‗authentic‘ employee and digital communications: Trust in employees as information sources shoots up from 28% to 40% Trust in social networks almost doubles from 24% to 45% and conversations with peers and friends rises from 40% to 62% • Communication and trust more important for reputation than value for money Value for money scores 68% versus global score of 91%, even during prevailing downturn, and follows other reputation factors like frequent communication and trusted company
  6. 1 The State of Trust 2009 ―Every financial system depends on trust...We are in a full-blown crisis because investors and financial managers—the people who run banks, investment banks, hedge funds, insurance companies—have lost that trust.‖ – Robert J. Samuelson, Newsweek Richard S. Fuld Jr., former CEO, Lehman Brothers
  7. 7 out of 10 in Korea Trust Business Less Following Year of Economic Troubles A lot more 1% A little more 8% 16% A lot less 22% The Same 53% A little less A60 Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less, a little less, the same, a little more, or a lot more than you did at the same time last year? (Bottom 2 Box: Trust less) 25-64 Informed publics in 20 countries 7
  8. 7 out of 10 in Korea Trust Business Less Following Year of Economic Troubles % who trust companies less 100% 90% 83% 79% 77% 80% 74% 73% 69% 67% 67% 67% 66% 70% 62% 62% 61% 60% 56% 55% 54% 50% 49% 49% 50% 40% 32% 30% 21% 20% 10% 0% A60 Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less, a little less, the same, a little more, or a lot more than you did at the same time last year? (Bottom 2 Box: Trust less) 25-64 Informed publics in 20 countries 8
  9. Young Koreans Less Trusting of Business Compared to Rest of Asia, Similar to Many Western Countries Trust in business <50% among 25-to-64-year-olds Trust in business >50% among 25-to-64-year-olds
  10. Trust in Business in Korea Low Compared to Asia Pacific % who trust Business 100% 90% 80% 71% 70% 63% 62% 62% 57% 60% 50% 43% 39% 40% 30% 20% 10% 0% Korea Asia Pacific India China Japan Indonesia Australia A9. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a 9-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEALquot;. The higher the number the more you TRUST them to do what is right. Let's start with… [INSERT FIRST. RANDOMIZE. ACCEPT ONLY ONE RESPONSE]. (Top 4 Box), informed publics aged 25-64 10
  11. Older (35-64) Opinion Elites‘ Overall Trust in Business in Korea, However, Remains Steady % who trust business to do what is right 2008 2009 100% New Trust Down Trust Steady Trust Up additions 90% in 2009 80% 75% 74% 71% 69% 68% 70% 65% 63% 65% 62% 61% 61% 58% 60% 55% 54% 51% 51% 49% 49% 49% 47% 50% 47% 45% 45% 45% 45% 45% 45% 43% 42% 41% 41% 39% 40% 39% 38% 40% 35% 33% 30% 29% 30% 27% 20% 10% 0% A10. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEALquot;. (Top 4 Box) Informed publics 35-64 (global 18 countries, excluding Australia, Indonesia) 11
  12. Trust in Business in Korea and Europe Remains Steady despite Major Drop in US 20 point drop in 60% 58% US US UK/France/Germany Korea 55% 53% 51% 49% 50% 48% 48% Enron, the dot-com bust and September 11 46% 46% 45% 44% 44% 45% 43% 41% 40% 40% 38% 38% 36% 36% 36% 34% 35% 35% U.S. is the new Europe 32% 30% 2001 2002 2003 2004 2005 2006 2007 2008 2009 A10. Business in general [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEALquot;. (Top 4 Box) Informed publics 35-64 in the United States. 12
  13. Older (35-64) Opinion Elites‘ Faith Remains Unwavered 2008 2009 100% 90% 80% 70% 60% 59% 57% 60% 55% 50% 45% 43% 40% 38% 40% 30% 20% 10% 0% Business Media Government NGOs NB: changes in Business, Media and NGO are statistically significant with this data set A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ The higher the number, the more you TRUST them to do what is right. (Top 4 Box) Informed publics 34 (global 20 countries – Korean Data shown only) 13
  14. Young (25-34) Opinion Elites Lose Faith in Korea Institutions: Business, Media and the Government 2008 2009 100% 90% 80% 70% 60% 60% 60% 52% 50% 44% 42% 38% 36% 40% 32% 30% 20% 10% 0% Business Media Government NGOs NB: changes in Business, Media and NGO are statistically significant with this data set A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ The higher the number, the more you TRUST them to do what is right. (Top 4 Box) Informed publics 25-34 (global 20 countries – Korean Data shown only) 14
  15. The NGO Opportunity in Korea NGOs most trusted institution in Korea and Globally, but not in Asia Pacific as a region % who trust each institution 100% NGOs Business Media Government 90% 80% 70% 58% 57% 56% 60% 54% 52% 51% 50% 47% 50% 45% 43% 39% 37% 40% 30% 20% 10% 0% Global Total Korea Asia Pacific A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.” The higher the number, the . more you TRUST them to do what is right. (Top 4 Box) Informed publics 25-64 (global 20 countries) 15
  16. Technology Remains Most Trusted Industry Sector Globally 2009 2008 76% Technology 77% 66% Biotech/life sciences 65% 57% Health care industry 61% 57% Automotive 62% 55% CPG manufacturers 55% 55% Energy 57% 55% Retail 59% 55% Food N/A 53% Pharmaceuticals 56% 50% Entertainment 53% 45% Banks 56% 42% Media companies 46% 40% Insurance 45% A25-37. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics 35-64 in 18 countries 2008-2009 16
  17. Trust Falls for Most Sectors in Korea, with Some Big Losers 100% Significant Losses in Trust, >10% 2008 2009 90% 81% 78% 80% 73% 73% 71% 69% 68% 68% 70% 65% 63% 61% 60% 59% 60% 56% 52% 53% 53% 49% 49% 49% 46% 50% 46% 43% 40% 35% 31% 30% 20% 10% n/a 0% A25-37. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale, where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics 25-64 in the United States 17
  18. US, Chinese, Russian and Irish Companies Big Losers of Trust in Korea Trust in most European-based companies remains stable (i.e. non-significant changes) 2008 2009 -17 -17 -18 -16 100% 90% 81% 77% 76% 77% 76% 76% 80% 74% 73% 74% 71% 69% 66% 70% 61% 61% 58% 60% 55% 54% 52% 49% 46% 50% 44% 39% 39% 40% 28% 30% 23% 20% 10% 10% 0% A12-24. [TRACKING] Now I would like to focus on global companies headquartered in specific countries. Please tell me how much you TRUST global companies headquartered in the following countries to do what is right. Use the same nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics 35-64 in 18 countries 18
  19. 2 Lack of Trust Triggers Call for Shared Responsibility ―...our problem is not just a deficit of dollars. It‘s a deficit of accountability...a deficit of trust.‖ – Barack Obama
  20. Call for Stricter Regulations and Greater Control over Business Present in Korea, although Less Certainty Compared to Global and Asian Trend Informed Publics, Globally Informed Publics, Korea Agree, 65% Disagree, Disagree, (64% in 33% 22% Asia Agree, 41% Pacific) Neither Agree nor Dont know, Neither Disagree, 0% Don't agree nor 26% know, 1% disagree, 12% F146. The recent credit crisis and government bail-outs have led to debates on how much governments should intervene to regulate industry or nationalize companies to restore public trust. Please tell me how strongly you agree or disagree that your government should in the future impose stricter regulations and greater control over business across all industry sectors.(Informed publics 25-64 in 20 countries) 20
  21. What Should Government Do To Address the Issue Caused by the Recent Financial Crisis? Informed Publics, Korea 2/3 still believe Free Market, 33% government Intervention, intervention is 64% necessary Don't Know, 3% Government should intervene in the activity of banks and the financial industry using whatever means it sees appropriate, including lending money or guaranteeing deposits? OR Government should permit the free market to function independently, allowing banks and other financial institutions to fail or be acquired? F144. Given the recent financial crisis, which one of the following choices comes closest to your view on how your government should respond to prevent future 21
  22. Four Global Issues: Who Is Responsible for Causing and Solving? Energy Financial Costs Credit Crisis Access to Global Affordable Warming Healthcare
  23. Government and Business Share Responsibility for Causing Global Issues Korea‘s Perspective consistent with global data – responsibility is shared Government and regulators Businesses 100% 90% 80% 75% 71% 71% 71% 70% 64% 64% 61% 61% 60% 50% 40% 30% 20% 10% 0% Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare E. 119-120, E124-125, 129-130, 134-135. Now thinking about (energy costs, financial credit crisis, global warming, affordable healthcare), please tell me how responsible you think each of the following entities are for . contributing to (global issue)? TOP 4 BOX 25-64 informed publics in 20 countries (Korea data only shown) 23
  24. Government Held Most Responsible for Solving These Issues Despite being most trusted in Korea, NGOs not considered most responsible for solutions Government and regulators Businesses NGOs 100% 90% 80% 80% 67% 65% 70% 60% 52% 50% 36% 40% 30% 24% 22% 20% 13% 10% 3% 1% 1% 1% 0% Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare E138. And which ONE entity do you think should be MOST responsible for (solving each global issue)? . Informed publics 25-64 in 20 countries (Korea Data only shown) 24
  25. Business Has Lost Ability to Lead Unilaterally Must Partner with Others to Solve Global Issues Only businesses in Latin America face greater expectation for partnership than Korean business Partner with governments and third parties Do what it can alone Play no role 100% 90% 83% 75% 80% 69% 66% 65% 70% 61% 56% 60% 50% 40% 35% 40% 33% 31% 29% 23% 30% 15% 20% 4% 10% 2% 3% 2% 2% 2% 1% 0% Global North America EU Asia-Pacific Latin America BRIC Korea E139. Thinking about the role that business should play in helping to solve global issues such as energy costs, the financial credit crisis, global warming, or access to affordable healthcare, which of these following three statements is closest to your view? Business has to partner with governments and advocacy groups to solve these global issues, it cannot do it alone; OR Business should focus on what they themselves can do on these global issues, whether or not governments or others partner with them ; OR Business should not play a part in helping to solve these global issues (Informed publics 25-64 in 20 countries) 25
  26. 3 Who Can We Trust? Trust in Information Sources & Spokespeople Declines Across the Board Globally Rise of ‗Authentic‘ Regular Employee and Digital Communications quot;I understand your disappointment, your anger. This situation is perfectly unacceptable.‖ -Daniel Bouton, -former CEO of Société Générale
  27. Friends and Peers, along with Experts and Traditional News Sources Most Credible Sources of Information in Korea Conversations with friends/peers 62% News coverage on the radio 62% Stock or industry analyst reports 61% Television news coverage 60% Articles in newspapers 58% Internet search engines 56% Articles in business magazines 56% Conversations with company employees 55% Business blogs 50% Personal or non-business blogs 46% Social networking sites 45% Wikipedia or web portals 44% Corporate communications 39% Senior management speech or interview 35% A company's own Web site 31% Corporate or product advertising 25% C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 25-64 in 20 countries 27
  28. In Korea, Mainstream Media Still are the Most Credible and Digital Media are Rising Up 80% TV news coverage Mainstream media 70% Articles in business magazine News coverage on the radio Articles in newspapers 60% Internet search engines 50% Business blog The Internet general Social networking sites Digital media 40% Personal blog or bulletin boards blogs 30% 20% 10% 0% 2006 2007 2008 2009 C95-110. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), informed publics ages 35-64 in 18 countries (Korea data shown only) 28
  29. Trust Wanes for Traditional Information Sources Globally Ranking Stays Consistent 2008 2009 100% 90% 80% 70% 57% 56% 60% 49% 49% 49% 47% 47% 50% 44% 40% 38% 36% 40% 34% 30% 20% 10% 0% Stock or industry Articles in Conversations News coverage Television news Articles in analyst reports business with your friends on the radio coverage newspapers magazines and peers C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries 29
  30. Korea Ahead of Global Trends in the Trust of New Digital Communications Korea is an ideal test bed for engaging online audiences in meaningful dialogue (before other global markets) Global Korea 100% 90% 80% 70% 60% 60% 47% 47% 50% 43% 42% 38% 40% 34% 27% 30% 23% 19% 16% 20% 15% 10% 0% Free content Social networking A company‘s own Internet search Business blogs Personal or non sources, such as sites (such as website engines e.g. business blogs or wikipedia or MySpace or Google news, bulletin boards webportals Facebook) Yahoo news C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries (Korea data shown only) 30
  31. Trust in ‗Non-Controlled‘ Digital Information Rises in Korea Overtakes Company‘s Own Website Organizations in Korean should engage with online audiences in meaningful dialogue 2008 2009 100% 90% 80% 70% 60% 50% 43% 42% 38% 40% 32% 30% 25% 25% 20% 10% 0% A company‘s own website Free content sources, such as Social networking sites (such as wikipedia or webportals MySpace or Facebook) C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries (Korea data shown only) 31
  32. Employees More Trusted than Corporate Communications in Korea 2009 2008 2009 100% Employees 90% Trusted More 80% 70% 60% 55% 50% 40% 39% 40% 35% 35% 31% 30% 25% 25% 20% 10% 0% A company‘s own Conversations Live Corporate Corporate or product with company communication communications such website advertising employees such as a CEO as press releases, speech reports and emails C99-101,109,110. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 25-64 in 18 countries 32
  33. Experts Trusted As Spokespeople over CEOs and Public Officials in Korea Employees and ‗people like me‘ exert powerful influence (private sources of information) 2008 2009 100% 90% 80% Regular Employees on 70% credibility par with CEOs 61% 57% 57% 60% 55% 50% 47% 50% 45% 45% 41% 36% 40% 33% 33% 27% 26% 30% 20% 10% 0% An academic or Financial or A person like Non-profit Regular employee CEO of company Government expert on that industry analyst yourself organization or of a company official or regulator company's NGO industry or issues* representative *asked as “an academic” in 2008 D112-118. [TRACKING] Now I‘m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box) Informed publics 35-64 in 18 countries 33
  34. Informed Publics Need Information from Multiple Sources, Multiple Voices 7/10 need to hear it 3-5 times to believe it in Korea Don‘t know/refusedOnce (1) 2% Twice (vol) 2% Ten or more times (2) 9% (10+) 13% Six to nine times (6-9) 5% 3-5 times 70% Three times (3) 46% Four or five times (4-5) 24% C111. 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 hear something about a specific company to believe that the information is likely to be true? Please give me a number. 25-64 Informed publics 34
  35. 4 The Business Case for Trust Reputation, Sales, and License to Operate Driven by Trust and Transparency ―Trust is the cornerstone for the survival of an enterprise and a society. As an established brand in the country's dairy sector, Sanlu's growth originated from people's confidence in it.‖ – China Daily
  36. Drivers of Trust in Business in Korea (Top 4 Factors) Trusted Quality and High Quality Products on Top Is a company I trust 92% Offers high quality products or services 91% Creates and keeps jobs in your area 89% Has a strong commitment to protect the environment 88% Is an innovator of new products, services or ideas 87% Has a strong financial future 87% Commits time, money and resources to the greater public good 85% Is a company that treats its employees well 85% Communicates frequently and honestly on its business 84% Gives value for money 83% Stays within the spirit and the letter of the law in [country] 77% Has senior leadership that can be trusted 68% B62-73. When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is ―not at all important‖ and nine means it is ―extremely important‖ to overall reputation. (Top 4 Box) 25-64 Informed publics in 20 countries 36
  37. Communication and Trust More Important for Reputation than Value for Money in Korea (bucks global trend) 84% Communicates frequently and honestly on its business 91% 92% Is a company I trust 91% 83% Gives value for money 91% Korea Global B62-73. When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is ―not at all important‖ and nine means it is ―extremely important‖ to overall reputation. (Top 4 Box) 25-64 Informed publics in 20 countries 37
  38. Through Personal Action, Trust Has Tangible Benefits Personal actions taken with trusted and distrusted companies in Korea – + 75% 92% Refused to buy their products/services Chose to buy their products/services 79% 82% Criticized them to a friend or colleague Recommended them to a friend or colleague 69% Paid a premium for their products/services 50% 65% Shared negative company opinions/experiences online Shared positive company opinions/experiences online 29% 46% Sold shares Bought shares B74-78 Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. B79-82. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. Informed publics 25-64 in 20 countries 38
  39. How Should Business Act When Problems or Difficulties Arise? Act quickly to correct problems 73 Make significant changes so the problems don’t happen again 63 Admit their mistakes when things go wrong 62 Make full public disclosure about the problems and their 60 causes Partner with governments, or other third parties to solve the 58 problems Have senior executives take a visible lead in communicating 49 about the problems Fire any executive or employee found to be guilty of 47 wrongdoing Cap pay for executives who are accountable for the problems 44 B83-90. How much would you trust companies to take the following actions when problems or difficulties arise? Please use 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‖ to take this action when problems arise. [ROTATE ITEMS; REPEAT SCALE ONLY AS NECESSARY] (Korea Data Shown Only) 39
  40. How Trust Lends Support for Business Activity in Korea Less than majority would allow foreign companies to take a controlling interest, even if trusted Sell their products or services in your market 58 Pursue changes in local laws or changes in planning 51 permission Seek preferential treatment for tax, employment or environment 49 Have foreign investors take a controlling interest in local 37 companies B91-94. Thinking now about how companies operate in your country, how supportive would you be towards a good and responsible company being allowed to… [INSERT FIRST]? Would you be not at all supportive, not very supportive, neutral, somewhat supportive or very supportive towards a company operating in your country taking this action? [ACCEPT ONE RESPONSE] 40
  41. 5 Rebuilding Trust The Power of Public Engagement ―IT services are unlike hardware or software in that they focus on a relationship with a ‗trusted partner,‘ rather than on a product. We believe Satyam‘s difficulties have considerably diminished its ability to retain and inspire this trust.‖ – Partha Iyengar, Vice President, Distinguished Analyst, Gartner Ramalinga Raju, Chairman, Satyam Computers
  42. Public Engagement: A Strategy for Changing Policy and Communication Private Sector Mutual Social Diplomacy Responsibility Shared Continuous Sacrifice Conversation
  43. Private Sector Diplomacy Private Sector Mutual Social Diplomacy Responsibility Shape policy on world‟s most pressing Continuous Shared Sacrifice Conversation problems, including ones that don‟t concern company‟s industry Partner with government, NGOs to drive decision-making and set strategy on major societal issues ― …Come together—government, NGOs and business—in new approach to solving big problems facing our country. … This can work.‖ – H. Lee Scott, Jr., President and CEO, Wal-Mart
  44. Private Sector Mutual Social Mutual Social Responsibility Diplomacy Responsibility Benefit society and the bottom line Continuous Shared Sacrifice Conversation Integrate approaches to societal problems into products and services Involve employees and customers in decisions and actions about company‟s social responsibility Starbucks invites customers to partner as a force for good
  45. Private Sector Mutual Social Shared Sacrifice Diplomacy Responsibility Set collaborative tone for company: Continuous Shared Sacrifice Conversation we‟re all in this together Equitable compensation (executive pay cuts, bonus forfeiting) sends powerful message Communicate with employees, welcome their voices ―Heavy equipment maker Caterpillar Inc announced in late December it would cut executive pay in half, and many salaried employees would see cuts of as much as 15 percent.‖ – Wall Street Journal
  46. Continuous Conversation Private Sector Mutual Social Diplomacy Responsibility Be agile and “of the moment” Continuous Shared Sacrifice Conversation Inform, don‟t control the conversation Say... then do as you say Johnson & Johnson among first companies to join public conversation on health
  47. About the Edelman Trust Barometer The 2009 Edelman Trust Barometer is the firm‟s 10th trust and credibility survey. The survey was produced by research firm StrategyOne and consisted of 30-minute telephone interviews using the fielding services of World One from November 5–December 14, 2008. The 2009 Edelman Trust Barometer survey sampled 4,475 informed publics in two age groups (25-34 and 35-64). All informed publics met the following criteria: college-educated; household income in the top quartile for their age in their country; read or watch business/news media at least several times a week; follow public policy issues in the news at least several times a week. For more information, visit http://www.edelman.com/trust or call +212- 704-4834. 47
  48. About Edelman & Edelman Korea Edelman is the world‟s largest independent PR firm, with 3,400 people in 54 offices around the world. Recent industry awards include „Large Agency of the Year (PRWeek, 2007 and 2008),‟ and „Global Agency of the Year (Holmes Report, 2008).‟ CEO Richard Edelman was honored as “2007 Agency Executive of the Year” by both Advertising Age and PRWeek. Edelman continues to set the New PR Standard in Korea, and was awarded „PR Agency of the Year‟ and „International Campaign of the Year‟ in 2008 by the Korea Public Relations Association. For more information, and to access our annual, proprietary research, please visit www.edelman.com / www.edelman.co.kr. 48
  49. 2009 Edelman Trust Barometer

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