2013 emerging market supplement trust barometer   indonesia
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2013 emerging market supplement trust barometer indonesia Presentation Transcript

  • 1. INDONESIA FINDINGS Edelman trustbarometer 2013 emerging market supplement
  • 2. TRUST • Trust is leading indicator of reputation • Trust in society is correlated with economic growth and prosperity (study by Paul Zak & Stephen Knack)
  • 3. BUSINESS REPUTATION IS BUILT ON TRUST • Trust within the community is essential to a business’s operations. • Long term business success is built on trust, whether within the local, the national, or the global community.
  • 4. 2013 TRUST BAROMETER: EMERGING MARKETS SUPPLEMENT 4 GLOBAL ONLINE SURVEY IN NINE COUNTRIES • 5,400 respondents • Nine countries: • Developed: U.S., U.K., Germany, France • Emerging: China, India, Indonesia, Mexi co, South Africa INFORMED PUBLICS • 600 respondents in each country • Ages 25-64 • 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 • 13 years of dataIndicates Global Data Indicates Indonesia Data
  • 5. Indonesia 74 Mexico 82 China 74 India 81 US 62 UK 56 Germany 48 France 44 DISTRUSTERSTRUSTERSNEUTRALTRUST IN BUSINESS IN MAJORITY OF EMERGING MARKETS TRENDING UPWARD 5 Indonesia 77 Mexico 74 China 79 India 81 US 64 UK 56 Germany 52 France 55 South Africa 69 +3 -8 +5 No Change +2 No Change +4 +11 New 2013 Field date: Q4 2012 2013 Emerging Markets Supplement Field date: Q3 2013 8 MARKET AVERAGE: 56 8 MARKET AVERAGE: 65 9 MARKET AVERAGE: 67 2012 Field date: Q4 2011 Indonesia 78 Mexico 77 China 71 India 69 US 50 UK 38 Germany 34 France 28 HOW MUCH DO YOU TRUST BUSINESS IN GENERAL TO DO WHAT IS RIGHT Q7. [Business 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
  • 6. 77% TRUST IN BUSINESS IN INDONESIA MARKET AVERAGE 67% Image: republika.co.id
  • 7. 2013 33 point gap between developed and emerging market trust Brazil China France Germany India Russia UK USA 20% 30% 40% 50% 60% 70% 80% 90% 2009 2010 2011 2012 2013 EMERGING MARKET HEADQUARTERED COMPANIES HAVE DECLINING TRUST SINCE 2011 GLOBAL TRUST ACCORDING TO WHERE MNCs ARE HEADQUARTERED DEVELOPED MARKET AVERAGE EMERGING MARKET AVERAGE Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies 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 20-country global total # 2012 data is not available – a simple average has been used to show a trend
  • 8. The 2013 Emerging Markets Supplement to the Edelman Trust Barometer explores the following factors that may affect developed markets’ trust in emerging market-based businesses, based on our hypotheses: • Tangible actions dominate: Perceived poor performance against concrete trust-building actions (e.g., supply chain management, IP protection, etc.) erodes trust. • Low brand familiarity: Respondents in developed markets are not familiar with emerging market-based multinational corporations (MNCs). • Sensitivity about the state: Developed markets perceive emerging market-based businesses to have close ties with their national governments, whom they do not trust.
  • 9. THE STATE OF TRUST IN EMERGING MARKETS AND INDONESIA
  • 10. 10
  • 11. 50% 11 DEVELOPED MARKET-BASED MNCs HAVE 33-POINT TRUST LEAD OVER MNCs HEADQUARTERED IN EMERGING MARKETS MOST TRUSTED NATIONAL IDENTITY FOR COMPANIES – GLOBAL VIEW Developed Markets 76% Emerging Markets 43% Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies 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 9-country global total 80% 78% 72% 72% 47% 45% 44% 43% 42% 40% 39% Germany UK US France Brazil South Africa Russia India China Mexico Indonesia
  • 12. TRUST DIVIDEND • European and American based businesses gain from a trust dividend in emerging markets, including in Indonesia. A 33-POINT TRUST LEAD OVER MNCs HEADQUARTERED IN EMERGING MARKETS 12 Image: wikipedia
  • 13. 50% 13 INDONESIAN HEADQUARTERED COMPANIES BENEFIT FROM A 32 POINT TRUST BONUS AMONG DOMESTIC POPULATION MOST TRUSTED NATIONAL IDENTITY FOR COMPANIES – INDONESIAN VIEW Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies 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 9-country global total 91% 89% 85% 84% 71% 65% 61% 55% 51% 50% 45% Germany UK France US Indonesia Russia China Brazil Mexico India South Africa Developed Markets 87% Emerging Markets 57%
  • 14. 22% 46% 71% 23% 50% 64% 31% 55% 61% 24% 50% 83% 28% 48% 83% 50% TRUST GAP: EMERGING MARKETS TRUST THEIR LOCALLY-BASED MNCs SIGNIFICANTLY MORE THAN THE REST OF THE WORLD TRUSTS THOSE COMPANIES TRUST RELATED TO COMPANIES’ NATIONAL IDENTITY 14 Indonesia-Based MNCs South Africa-Based MNCs India-Based MNCsChina-Based MNCs Mexico-Based MNCs EMERGING TRUST IN COUNTRY-BASED MNCs NATIONAL TRUST IN LOCALLY-BASED MNCs DEVELOPED TRUST IN COUNTRY-BASED MNCs Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies 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
  • 15. • Indonesian companies are mid-ranking in trust among emerging market companies operating in the west. • Indian and Brazilian companies are slightly more trusted in the west than other emerging market companies. 15 TRUST GAP
  • 16. 16 • Why are Indonesian companies struggling to gain trust abroad? • One of the issues is likely to be low brand familiarity – can you name an Indonesian MNC operating abroad? TRUST GAP
  • 17. LOW BRAND FAMILIARITY
  • 18. 18 PROMPTED AWARENESS OF BRIC MARKET BRANDS BY MARKET BRIC-BASED MNCs HAVE TO RAISE OVERSEAS AWARENESS; CONSUMER-FACING BRANDS MAKING PROGRESS 50% 26% 9% 38% 11% Petrobras Vale 72% 63% 54% 45% 70% 68% 63% 26% 89% 79% 87% 81% Lenovo Air China Bank of China Haier 25% 36% 54% 23% 99% 98% Tata Infosys 20% 30% 65% 23% Gazprom Lukoil 50% US EUROPE OWN MARKET Q15. Below is a list of companies. Which are you aware of? SELECT ANY THAT APPLY. Informed Publics Ages 25-64 in US, Europe (France, Germany, UK) and own market
  • 19. 14% 12% 10% 10% 5% 4% 3% 2% 0% 20% 40% 60% 80% India* Russia China* Brazil BRIC COMPANY CEOs HAVE LOW VISIBILITY GLOBALLY, ESPECIALLY IN DEVELOPED MARKETS 19 UNPROMPTED AWARENESS OF BRIC MARKET COMPANY CEOs or CHAIRPERSONS BY MARKET Top CEOs† Emerging Developed Emerging Developed Emerging Developed Emerging Developed 1 Ratan Tata Tata Ratan Tata Tata Alexey Miller Gazprom Alexey Miller Gazprom Yang Yuanqing Lenovo Yang Yuanqing Lenovo Maria das Graças Silva Foster Petrobras Maria das Graças Silva Foster Petrobras 2 Naveen Jindal Jindal Steel Power Limited N. R. Narayana Murthy Infosys Oleg Deripaska Basic Element Company Andrey Kostin VTB Bank Robin Li Baidu Hong Qi Minsheng Banking Corp Murilo Pinto de Oliveira Ferreira Vale Eike Batista EBX Group 3 Mukesh Ambani Reliance Industries Mukesh Ambani Reliance Industries Andrey Kostin VTB Bank Oleg Deripaska Basic Element Company Ren Zhengfei Huawei Fu Chengyu Sinopec Ricardo Semler Semco SA Murilo Pinto de Oliveira Ferreira Vale *India: Emerging market data does not include Indian data; China: Emerging market data does not include Chinese data †The top first-mentioned three CEOs by market 68% of Chinese can name a Chinese HQ CEO 77% of Indians can name an Indian HQ CEO Level of unprompted CEO awareness in their own country EMERGING MARKETSDEVELOPED MARKETS Q16. When you think of CEOS/Chairmen of companies from the following markets, which individuals first come to mind? [INSERT MARKET: CHINA, BRAZIL, INDIA, RUSSIA] (Respondents answering with at least one current CEO/Chairman of a company headquartered in China/Brazil/India/Russia. Informed Publics Ages 25-64
  • 20. 20 INDONESIAN COMPANIES AND CEOs NEED TO RAISE THEIR PROFILE ABROAD • More engagement • Be more active in public discourse – establishing yourself as a thought and industry leader • Raise your profile and visibility
  • 21. 21 INDONESIAN COMPANIES AND CEOs NEED TO RAISE THEIR PROFILE ABROAD • This will all contribute to . Growing trust equals a more . A positive reputation makes it in the community.
  • 22. TANGIBLE ACTIONS DOMINATE
  • 23. 23 Big difference in most important trust building attributes for Indonesians. Indonesian priorities differ from the developed market norm…
  • 24. DIFFERENCE IN TRUST BUILDING ATTRIBUTES 24 59% 48% 50% 48% 58% 51% 50% 47% 48% 54% 52% 50% 49% 49% 58% 48% 65% 68% 68% 70% 72% 74% 75% 76% 77% 78% 80% 80% 81% 81% 82% 82% CONSISTENT… TOP GLOBAL… ADMIRED TOP… PARTNERS W/ 3RD… INNOVATOR POSITIVELY… ADDRESSES… PROTECTS… CUSTOMERS… LISTENS TO… LOOKS AFTER… COMMUNICATES… ACTS RESPONSIBLY… IS ETHICAL HIGH QUALITY… TRANSPARENT &… 73% 70% 71% 70% 72% 73% 71% 72% 70% 72% 75% 71% 76% 72% 73% 73% 79% 80% 81% 82% 83% 83% 83% 84% 84% 84% 84% 84% 85% 86% 86% 87% TRANSPARENT & OPEN PARTNERS W/ 3RD PARTIES TOP GLOBAL COMPANY PROTECTS ENVIRONMENT INNOVATOR COMMUNICATES OFTEN LOOKS AFTER EMPLOYEES ACTS RESPONSIBLY IN… CUSTOMERS BEFORE… IS ETHICAL CONSISTENT FINANCIAL… ADDRESSES SOCIETY'S… HIGH QUALITY PRODUCTS ADMIRED TOP LEADERSHIP LISTENS TO CUSTOMERS POSITIVELY IMPACTS… DEVELOPED MARKETS PERCEIVE A LARGE GAP IN EXPECTATIONS VS. PERFORMANCE ON KEY TRUST BUILDING ATTRIBUTES FOR BRIC-BASED MNCS FOR INDONESIANS, COMMUNITY INVOLVEMENT, LISTENING TO CUSTOMERS AND ADMIRED TOP LEADERSHIP ARE SEEN AS THE MOST IMPORTANT TRUST BUILDING ATTRIBUTES INTEGRITYENGAGEMENT PURPOSEPRODUCTS & SERVICES OPERATIONS STATED IMPORTANCE VS. COMPANY PERFORMANCE (TOP 4 BOX) Q16. How important is each of the following actions to building your TRUST in companies headquartered in [INSERT BRIC]? 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. (Please select one response for each.) Q. 18 Please rate companies headquartered in [INSERT BRIC] 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 4 Box, Trust) Informed Publics, ages 25-64 (excluding “don’t know”)
  • 25. 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 in 26-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 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 26-country global total FROM EDELMAN TRUST BAROMETER 2013 GLOBAL SURVEY: DIFFERENCE IN PRIORITIES BETWEEN THE ANNUAL SURVEY AND THE EMERGING MARKET SUPPLEMENT HOWEVER, INDONESIANS MORE DRIVEN BY SOCIAL ISSUES IS STILL A CONSISTENT THEME
  • 26. 26 COMMUNITY – THE NUMBER ONE PRIORITY FOR INDONESIANS! • Indonesians expect companies to operate with a social conscience. • Strong Corporate Social Responsibility (CSR) programs and community outreach is mission critical to doing business in Indonesia. Image: World Bank
  • 27. 27 COMMUNITY– THE NUMBER ONE PRIORITY FOR INDONESIANS! • Poor community engagement will result in poor trust levels – this eventually will have a negative impact on business operations... • Neglect the community at your peril…
  • 28. THE PATH FORWARD
  • 29. 29 DELIVERING A MESSAGE To communicate your message with authenticity and trust, use academics and experts as spokespeople in Indonesia. Regular employees, unlike the market norm, are taken less seriously… Image: gettyimages.com
  • 30. RECOMMENDATIONS FOR PROMOTING INDONESIAN AND BRIC HEADQUARTERED COMPANIES OVERSEAS 30  BUILD YOUR BRAND  BE MORE PROACTIVE AND TRANSPARENT  FOCUS ON ETHICAL BEHAVIORS  USE EXPERTS AND EMPLOYEES AS SPOKESPERSONS, NOT CEO
  • 31. 31 Key Pointers For Doing Business and Building Trust In Indonesia Developed market based companies benefit from a trust dividend in Indonesia; they are more trusted than all emerging market based companies, including Indonesian companies. Indonesian’s still have high levels of trust in business – significantly higher than the market average.
  • 32. 32 Key Pointers For Doing Business and Building Trust In Indonesia Indonesian based companies are the most trusted emerging market based companies in Indonesia – Indonesian’s are loyal to home grown MNCs. European and American companies have a trust advantage in Indonesia.
  • 33. 33 Key Pointers For Doing Business And Building Trust In Indonesia Companies are expected to exercise social responsibility and a real commitment to local societal issues. Community engagement really does matter in Indonesia; it is the number one trust driver.
  • 34. Stephen Lock Edelman Indonesia THANK YOU