Trust Barometer 2011: Indonesia Findings

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Trust Barometer 2011: Indonesia Findings

  1. 1. 2011 Edelman Trust BarometerFebruary 28, 2011Indonesia findings
  2. 2. Edelman Trust Barometer at a glanceEleventh annual study (3rd In Indonesia)5,075 people in 23 countries(of which 1575 in APAC and 200 in Indonesia)Ages 25 to 64, College EducatedIn top 25% of household income per age groupin each countryReport significant media consumption and engagementin business news and public policyAPAC Selected Countries: India, China, Japan, South Korea,Indonesia, Singapore, Australia Survey dates: Oct 11 – Nov 28, 2010, Margin of error 6.9% 2
  3. 3. The Edelman Trust Barometer in retrospect Transparency key driver of trust in a multi-channel and multi- 2010 stakeholder environment 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 NGOs 3
  4. 4. 2010 Year in review
  5. 5. Indonesia informed publics have significantly higher levels of trust in business and media than their global and APAC peers Trust in InstitutionsQ: Please tell me how much you trust that institution to do what is right; (Top 4 Box) Informed Publics ages 25-64 in 23countries, Asia Pacific and Indonesia 5
  6. 6. Indonesia is the only APAC country where trust in business increased this year Trust in Business (2010 – 2011) 2010 2011 +16 Trusters Neutral Distrusters +2 -8Q: Please tell me how much you trust that institution to do what is right; (Top 4 Box, Trust) Informed Publics ages 25-64 (Globalexcludes Singapore, UAE and Argentina) 6
  7. 7. Media also enjoys a significant increase in trust this year in Indonesia Trust in Media (2010 – 2011) Trusters 2010 2011 +11 +17 Neutral Distrusters +7 +4 +12 - 11Q: Please tell me how much you trust that institution to do what is right; (Top 4 Box, Trust) Informed Publics ages 25-64 (Globalexcludes Singapore, UAE and Argentina) 7
  8. 8. Indonesia more trusting of business than NGOs, in contrast to most other APAC countries where trust is equal or NGOs are more trusted Trust in Business and NGOsQ: Please tell me how much you trust that institution to do what is right; (Top 4 Box, Trust) Informed Publics ages 25-64 in 23countries 8
  9. 9. Technology, telco, automotive, retail most trusted industries; insurance and retail top gainers Asia Trust in Industries - Indonesia 2010 Pacific 87% Technology 97% #1 77% Automotive 94% #3 78% #2 Telecommunications 94% 71% Retail 94% 75% 72% Pharmaceuticals 93% Media 92% 64% 75% #4 Banks 92% Financial services 91% 66% Entertainment 90% 67% Energy 90% 68% Food and beverage 89% 66% Consumer packaged goods 88% 59% Insurance 85% 59% 65% OTC personal health care products 74% 61% Brewing and spirits 41% 54% Significant at 95% confidence level compared to globalQ: Please tell me how much you trust businesses in each of the following industries to do what is right ; (Top 4 Box)Informed publics ages 25-64 in APAC and Indonesia 9
  10. 10. In stark contrast to global informed publics, nine out of 10 in Indonesia trust banks Trust in Banks +8 +7 - 11 +18Q: Please tell me how much you trust businesses in each of the following industries to do what is right ; (Top 4 Box)Informed publics ages 25-64 in APAC and Indonesia 10
  11. 11. Business and Society Toward shared value
  12. 12. Employee treatment, transparency and trust most important reputation attributes in Indonesia; highly-regarded leadership least important Asia Factors Defining Reputation - Indonesia Pacific 62% #3 62% #3 58% 63% #2 72% #1 54% 53% 50% 45% 38% Significant at 95% confidence levelQ: How important are each of the following factors to the overall reputation of the company? ; (Top 2 Box, Very/ Extremely compared to globalImportant) Informed Publics ages 25-64 in APAC and Indonesia 12
  13. 13. Just over half in Indonesia agree that by making a profit, business meets its social responsibility Milton Friedman: “The social responsibility of business is to increase its profits” % who agreeQ: Please tell me if you strongly agree, somewhat agree, neither agree nor disagree, somewhat disagree or stronglydisagree with the following quote from Milton Friedman: “The social responsibility of business is to increase its profits”?(Net: Strongly agree + somewhat agree) Informed Publics ages 25-64 in 23 countries 13
  14. 14. But nearly nine out of 10 also believe business must align with society’s interests in creating shareholder valueQ: Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholdervalue, even if the way in which they create shareholder value conflicts with societal interests OR corporations need to createshareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. InformedPublics ages 25-64 in 23 countries 14
  15. 15. And seven out of 10 believe government needs to step in to ensure corporations behave in a responsible wayQ: Which of the following statements is closest to your view? I trust corporations to act on their own to behave in aresponsible manner OR I think government needs to regulate corporations’ activities to ensure that they arebehaving in a responsible manner. Informed Publics ages 25-64 in 23 countries 15
  16. 16. Roadmap to TrustA new way forward
  17. 17. Credibility of various people as a source of information about a company remains unchanged Credible Spokespeople – Indonesia N/AQ: In general, when forming an opinion of a company, if you heard information abouta company from that person, how credible would the information be—extremely credible, very credible, somewhat credible,or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Indonesia 17
  18. 18. CEO credibility increases in many global markets, but not in Indonesia Credible Spokespeople – CEO APAC +20 +7 +14 +13 +10 +11Q: In general, when forming an opinion of a company, if you heard information abouta company from that person, how credible would the information be—extremely credible, very credible, somewhat credible,or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 18
  19. 19. In crisis situations, people want to hear from multiple voices, but the company must be out in front Indonesia Trusted spokesperson Preferred spokesperson Preferred spokesperson when the during a company crisis during a product recall local community has been damagedQ: When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about thatcrisis. Informed Publics ages 25-64 in Indonesia .Q: When a company issues a product recall, which one person do you want to hear information from about that recall? Informed Publics ages 25-64 inIndonesia.Q: When a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about thatdamage? Informed Publics ages 25-64 in Indonesia. 19
  20. 20. Corporate communications most trusted source of company information in Indonesia along with traditional media sources and search engines Trusted Information Sources – Trust a Great Deal Asia Pacific Television or television news 33% 41% Traditional Magazines or business magazines 33% 40% Newspapers 30% 28% Radio or radio news 21% 23% sources Multiple Online search engines Online 34% 25% News/RSS feeds 11% 18% Content-sharing sites, such as YouTube 12% 10% Social Media Social networking sites 8% 10% Blogs 6% 8% Microblogging sites, such as Twitter 6% 7% Corporate Corporate communications such as press releases 35% 24% Corporate/product advertising 11% 11%Q: I’m going to read you a list of places where you might get information about a company. For each, please tell me if you trustit – a great deal, somewhat, not too much, or not at all as a source of information about a company? (Trust A Great Deal)Informed Publics ages 25-64 in APAC and Indonesia.
  21. 21. Informed publics in Indonesia go to online search engine first for news and information about a company Where Informed Publics go for company news and information – Indonesia First Source Second Source Are these the same types of sources you consult first for information about a business crisis?Q: There are a number of sources one could use to find general news or information about a company. When looking forgeneral news or information about a company, which one type of information source would you generally consult first andsecond? Informed Publics ages 25-64 in Indonesia 24
  22. 22. Informed publics need information from multiple sources, multiple voices And need to hear it 3-5 times to believe it Indonesia 3-5 times 65%Q: How many times in general do you need to be exposed to something about a specific company to believe that theinformation is likely to be true? Please give me a number. Informed publics ages 25-64 in Indonesia. 25
  23. 23. The Benefits of Trust
  24. 24. Through personal action, trust has tangible benefits Actions Taken Over Past 12 Months – Indonesia 2009 Distrusted Companies _+ Trusted Companies 2009 87% 89% Refused to buy products/services Chose to buy products/services 72% 82% Criticized them to a friend/colleague Recommended them to a friend/colleague Paid more for products/services 44% 34% Shared negative opinions online Shared positive opinions online 17% 16% Sold shares Bought sharesQ: Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Pleaseanswer yes or no to each action. (Percent “Yes”) Informed Publics ages 25-64 in Indonesia.Q: 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. (Percent “Yes”) Informed Publics ages 25-64 in Indonesia. 27
  25. 25. Trust protects reputation Indonesia When a company is distrusted When a company is trusted 50% will believe negative information after hearing it 1-2 times 44% will believe will believe positive 24% positive information information after after hearing it 1-2 times 19% hearing it 1-2 times will believe negative information after hearing it 1-2 timesQ: Think about a company that you do not trust. How many times would you need to be exposed to positive or negative informationabout that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Indonesia.Q: Think about a company that you trust. How many times would you need to be exposed to positive and negative information aboutthat company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Indonesia. 28
  26. 26. ConclusionsBusiness must align profit and purpose for socialbenefitCurrent media landscape plus increasedskepticism requires multiple voices and channelsDemand for authority and accountability set newexpectations for corporate leadership 29
  27. 27. The Transformation of Trust Old Trust Framework New Trust Architecture Control InformationProtect the Brand Stand Alone WHAT Focus Solely on Profit Profit With Purpose 30
  28. 28. A Ten Year Overview of TrustThe 2011 Edelman Trust Barometer is the firm’s 11th trust and credibility survey The survey was produced by research firm StrategyOne. The survey consisted of 30-minute telephone interviews. For more information on the Edelman Trust Barometer and to view past results, please visit www.edelman.com/trust
  29. 29. For further information please contact ;Chadd McLisky, Chairman IndoPacific EdelmanRecapital Building, 3rd Fl.Jl. Adityawarman Kav. 55Jakarta 12160Phone : +62 21 721 59000Fax: +62 21 727 8919Email: chadd.mclisky@indopacedelman.com

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