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2016 Edelman Trust Barometer - Energy Results

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The last 18 months have marked one of the most turbulent times in energy industry history. World-renowned energy expert and chairman of IHS Daniel Yergin said, “The energy industry has never faced so many questions about what its future will look like.” In today’s complex operating environment, the Edelman Trust BarometerTM underscores that trust is an asset that enterprises must understand and properly manage in order to be successful.

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2016 Edelman Trust Barometer - Energy Results

  1. 1. Global Report + Energy Sector 2016 Edelman Trust Barometer
  2. 2. Informed Public ‣ 8 years in 20+ markets ‣ Represents 15% of total global population ‣ 500 respondents in U.S. and China; 200 in all other countries Must meet 4 criteria: ‣ 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 General Online Population ‣ 5 years in 25+ markets ‣ Ages 18+ ‣ 1,150 respondents per country Methodology 28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000). Country- specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100). ‣ 16 years of data ‣ 33,000+ respondents total ‣ All fieldwork was conducted between October 13th and November 16th, 2015 Online Survey in 28 Countries Mass Population ‣ All population not including Informed Public ‣ Represents 85% of total global population 2
  3. 3. Trust in Retrospect 3 Rising Influence of NGOs 2001 Business Must Partner with Government to Regain Trust 2009 Fall of the Celebrity CEO 2002 Earned Media More Credible Than Advertising 2003 U.S. Companies in Europe Suffer Trust Discount 2004 Trust Shifts from “Authorities” to Peers 2005 “A Person Like Me” Emerges as Credible Spokesperson 2006 Business More Trusted Than Government and Media 2007 Young Influencers Have More Trust in Business 2008 Trust is Now an Essential Line of Business 2010 Rise of Authority Figures 2011 Fall of Government 2012 Crisis of Leadership 2013 Business to Lead the Debate for Change 2014 Trust is Essential to Innovation 2015 Growing Inequality of Trust 2016
  4. 4. 48 42 26 35 20 12 Trust Matters 4 Percent who engage in each behavior based on trust 68 59 41 38 37 18 Behaviors for Distrusted Companies Behaviors for Trusted Companies Refused to buy products/services Criticized companies Shared negative opinions Disagreed with others Paid more than wanted Sold shares Chose to buy products/services Recommended them to a friend/colleague Shared positive opinions online Defended company Paid more Bought shares General Population Source: 2016 Edelman Trust Barometer Q371-589. 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. General Population, 28-country global total, questions asked of half the sample. Q377-380. 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. General Population, 28-country global total, question asked of half the sample. most trusted content creators:#1 Friends and Family most trusted media source:#1 Online Search Engines
  5. 5. 1 State of Trust
  6. 6. 60 64 65 63 66 50 53 54 51 55 46 48 45 48 51 38 41 39 42 43 2012 2013 2014 2015 2016 54 58 58 56 62 47 50 49 49 53 2012 2013 2014 2015 2016 Source: 2016 Edelman Trust Barometer 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 nine-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 Public and General Population, 25-country global total. 6 Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016 53 57 53 51 56 46 49 48 46 49 NGOs Government Media Business Post-Recession Highs Informed Public General Population
  7. 7. 2 Trust Inequality
  8. 8. 53 58 56 56 60 44 47 46 46 48 2012 2013 2014 2015 2016 A Significant Divide Source: 2016 Edelman Trust Barometer 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 nine-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 Public and Mass Population, 25-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 8 Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2016 Informed Public Mass Population 12pt Gap 9pt Gap in trust inequality-- which jumps to a 5-point increase among the GDP5 3-point increase
  9. 9. A Global Phenomenon Source: 2016 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs, 28-country global total. 9 Trust Index, Informed Public vs. Mass Population, 15 countries with double-digit trust gaps in 2016 Country Informed Public Mass Population Gap U.S. 64 45 19 U.K. 57 40 17 France 55 39 16 India 78 62 16 Australia 63 47 16 Mexico 72 57 15 Italy 58 47 11 China 82 71 11 Brazil 58 48 10 Ireland 49 39 10 Netherlands 62 52 10 Sweden 46 36 10 S. Africa 54 44 10 S. Korea 50 40 10 Singapore 72 62 10
  10. 10. 3 Inversion of Influence
  11. 11. Mass Population The Inversion of Influence 11 Authority & Influence Influence Authority Source: 2016 Edelman Trust Barometer 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 nine-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 Public and Mass Population, 28-country global total. 85% of population 48 Trust Index 15% of population 60 Trust Index Informed Public
  12. 12. 71 69 67 45 32 28 Search TV Social Newspapers Magazines Blogs Influence of Peer-Driven Media Source: 2016 Edelman Trust Barometer - How often do you read, view, click on or engage with the following types of content, media or information sources? Online search engines, such as Google… (Q285), Television news and information (Q287), Social networking sites, such as Facebook, LinkedIn, Instagram, Twitter, etc.(Net of Q278 Social Networking, Q279 Blogs, Q289 Online message boards, forums or newsgroups), articles in printed newspapers (Q284), articles in printed magazines(Q283), Blogs (Q279) (Several times a week+) General Population, 28-country global total, question asked of half the sample. 12 Percent who use each media source several times a week or more 2 of top 3 most-used sources of news and information are peer- influenced media General Population
  13. 13. 63 64 57 50 48 41 50 39 33 67 64 63 53 52 49 48 44 35 Peers Rise to Level of Experts Employees More Credible than Leaders Source: 2016 Edelman. Trust Barometer Q130-587. 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) General Population, 27-country global total. 13 Percent who rate each spokesperson as extremely/very credible 2015 2016 +8 Technical expert Academic expert A person like yourself Financial industry analyst Employee CEO NGO representative Board of Directors Government official/regulator CEO credibility increased the most General Population +6
  14. 14. 4 An Opportunity for Business
  15. 15. 63 57 51 48 67 63 57 51 63 69 62 47 51 48 45 41 55 53 48 42 55 61 56 41 NGOs Business Media Government Business Most Trusted to Keep Pace 15 Percent trust, 2015 and 2016, and percent who trust each institution to keep up with the changing times, 2016 Informed Public General Population Trust 2016 Trusted to keep pace Source: 2016 Edelman Trust Barometer 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 nine-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 Public and General Population, 27-country global total. Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, 28-country global total. Business in the lead Trust 2015
  16. 16. Higher trust in business in 21 countries 53 50 76 71 70 69 64 60 58 57 56 56 53 52 51 48 46 46 46 43 43 42 38 42 70 67 60 39 38 33 42 46 32 58 32 65 21 16 39 30 53 49 26 45 39 26 45 36 24 39 32 39 19 42 79 80 74 45 53 35 Global GDP5 Mexico Indonesia Colombia India Brazil S.Africa Malaysia Italy Canada Netherlands Argentina Australia U.S. Spain Sweden U.K. France Japan Ireland Germany Poland Turkey China UAE Singapore HongKong Russia S.Korea 50% Business More Trusted than Government Source: 2016 Edelman Trust Barometer 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 nine-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) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 16 Percent trust in business vs. government, 2016, ranked by trust in business Business Government General Population
  17. 17. Greater or equal trust in public companies in 21 countries 50% Public-Listed Companies More Trusted than State-Owned 17 Percent trust in public companies vs. state-owned companies, 2016, ranked by trust in public companies Public Companies State-Owned General Population Source: 2016 Edelman Trust Barometer Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a nine-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) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 52 49 79 72 70 65 63 60 59 58 53 52 51 50 49 47 47 45 45 44 43 42 40 67 61 44 43 39 34 24 46 46 73 61 68 53 39 43 40 23 38 47 44 46 49 39 38 43 39 39 33 42 29 74 65 47 62 41 42 35 Global GDP5 China Indonesia India Mexico Brazil Malaysia Colombia S.Africa HongKong U.S. Turkey Canada Australia Italy Poland U.K. S.Korea Ireland Japan Sweden Argentina UAE Singapore Netherlands Russia Spain France Germany
  18. 18. Business Must Lead to Solve Problems Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, 27-country global total, question asked of half the sample. . 80% agree “A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.” up from 74% in 2015 General Population 18
  19. 19. Purpose Impacts Trust 19 Percent who cite each as a reason for why their trust in business has increased or decreased Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, 28-country global total. Reasons Trust in Business Has Increased Reasons Trust in Business Has Decreased Produces economic growth Contributes to the greater good Allows me to be a productive member of society Fails to contribute to the greater good Lacks economic growth No public services 59% 45% 40% 50% 39% 36% General Population
  20. 20. 5 Building Leadership in a Time of Turbulence Energy Sector
  21. 21. 40% 45% 50% 55% 60% 65% 70% 75% Sector Trends: Energy Sector Trust Rising Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-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) General Population, 25-country global total. *From 2012-2014, Pharma included as subsector(Q). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector. Trust in each industry sector, 2012-2016 (25-country global total) 2012 2013 2014 2015 2016 General Population 21 Industry 2012 2013 2014 2015 2016 5 yr. Trend Technology 76% 73% 75% 73% 74% 2 Food & Beverage 63% 63% 64% 63% 64% 1 Consumer Packaged Goods 57% 60% 61% 60% 61% 4 Telecommunications 58% 60% 61% 59% 60% 2 Automotive 62% 65% 69% 66% 60% 2 Energy 53% 57% 57% 56% 58% 5 Pharmaceutical 54% 54% 55% 54% 53% 1 Financial Services 43% 47% 48% 48% 51% 8
  22. 22. 40% 45% 50% 55% 60% 65% 70% 75% 2013 2014 2015 2016 Sub-sectors 2013 2014 2015 2016 4 yr. Trend **Cleantech 68% 70% 68% 65% 3 Natural Gas 58% 58% 58% 56% 2 Utilities 53% 54% - 53% 0 Oil 49% 50% 50% 47% 2 Mining - 50% - 47% - Nuclear - - 41% - - Pipelines - - 50% - - Industry Sub-sectors: Oil, Gas and Cleantech Decline 22 Source: 2016 Edelman Trust Barometer Q61C-65C. Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors 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.” General Population, 25-country global total, question asked of one-fifth the sample. **Asked as Renewables before 2015 General Population Percent trust in various industry sub-sectors, 2013 - 2016, (25-country global total)
  23. 23. 53% 56% 46% 47% 63% 46% 43% 45% 35% 56%55% 59% 62% 46% 61% 65% 67% 69% 61% 67% 45% 49% 44% 38% 52% 23 Source: 2016 Edelman Trust Barometer Q61C-65C. Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors 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.” General Population, 28-country global total and regions, question asked of one-fifth the sample. Utilities Oil Natural Gas Cleantech Mining General Population Industry Sub-sectors: Cleantech Leads in All Regions, Europe Most Skeptical Across Sector Trust in various industry sub-sectors, global and regional Latin AmericaGlobal North America European Union APAC
  24. 24. 86 India 85 UAE 84 China 80 Indonesia 75 Singapore 73 Malaysia 69 Brazil 68 Russia 66 Hong Kong 65 Mexico 63 S. Korea 60 Italy 60 Global 64 Global 91 India 88 China 83 UAE 81 Mexico 77 Indonesia 77 Singapore 75 Malaysia 72 U.S. 71 Colombia 66 Brazil 63 Italy 63 Hong Kong 63 S. Korea 62 France 61 Australia 60 Russia 60 Turkey 47 Japan 46 Sweden 45 South Africa 43 Spain 40 Germany 49 Australia 49 Canada 49 Japan 48 Poland 47 Turkey 46 Spain 46 Ireland 44 Sweden 42 Argentina 38 U.K. 37 Germany 59 Netherlands 58 Poland 54 Ireland 52 Argentina 52 Canada 51 U.K. 59 U.S. 57 France 56 Netherlands 50 South Africa Energy Trust: Increasing Trust Among Informed Public Trust in the energy sector, Informed Public, 2015 vs. 2016 (27-country global total) 2015 2016 Informed Public trust up 4 points Trusters from 44% in 2015 to 61% in 2016 Distrusters from 41% in 2015 to 18% in 2016 Trusters Neutrals Distrusters 24 Source: 2016 Edelman Trust Barometer Q45-429. 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 Public, 27-country global total.
  25. 25. 46 Japan 44 Germany 43 U.K. 42 S. Africa 39 Spain 39 Sweden 82 China 79 India 79 UAE 74 Indonesia 70 Mexico 69 Singapore 68 Malaysia 65 Colombia 61 U.S. 59 Hong Kong 59 S. Korea 57 Russia 56 Brazil 56 Italy 55 France 54 Netherlands 53 Poland 52 Canada 52 Turkey 51 Argentina 51 Australia 50 Ireland Energy Trust: General Population Is In Neutral Territory Trust in the energy sector, Informed Public vs. General Population, 2016 Only 3 in 10 countries are trusters among the General Population Source: 2016 Edelman Trust Barometer Q45-429. 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 Public and General Population, 28-country global total. Informed Public General Population 57 Global 25 Trusters Neutrals Distrusters 65 Global 91 India 88 China 83 UAE 81 Mexico 77 Indonesia 77 Singapore 75 Malaysia 72 U.S. 71 Colombia 66 Brazil 63 Italy 63 Hong Kong 63 S. Korea 62 France 61 Australia 60 Russia 60 Turkey 47 Japan 46 Sweden 45 South Africa 43 Spain 40 Germany 59 Netherlands 58 Poland 54 Ireland 52 Argentina 52 Canada 51 U.K.
  26. 26. 58 Hong Kong 57 Russia 57 S. Korea 57 U.S. 55 Italy 54 Brazil 54 France 54 Netherlands 53 Poland 52 Canada 51 Argentina 51 Turkey 49 Australia 49 Ireland 45 Japan 44 Germany 42 U.K. 42 South Africa 38 Spain 38 Sweden 81 China 78 UAE 77 India 75 Indonesia 68 Mexico 67 Malaysia 67 Singapore 64 Colombia Energy Trust: Mass Population Trust Lags Trust in energy sector, Informed Public vs. General Population vs. Mass Population For the mass population, 8 of 28 countries are distrusters Source: 2016 Edelman Trust Barometer Q45-429. 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 Public, General Population, and Mass Population, 28-country global total. Mass Population 56 Global 26 Trusters Neutrals Distrusters Informed Public General Population 46 Japan 44 Germany 43 U.K. 42 S. Africa 39 Spain 39 Sweden 82 China 79 India 79 UAE 74 Indonesia 70 Mexico 69 Singapore 68 Malaysia 65 Colombia 61 U.S. 59 Hong Kong 59 S. Korea 57 Russia 56 Brazil 56 Italy 55 France 54 Netherlands 53 Poland 52 Canada 52 Turkey 51 Argentina 51 Australia 50 Ireland 57 Global65 Global 91 India 88 China 83 UAE 81 Mexico 77 Indonesia 77 Singapore 75 Malaysia 72 U.S. 71 Colombia 66 Brazil 63 Italy 63 Hong Kong 63 S. Korea 62 France 61 Australia 60 Russia 60 Turkey 47 Japan 46 Sweden 45 South Africa 43 Spain 40 Germany 59 Netherlands 58 Poland 54 Ireland 52 Argentina 52 Canada 51 U.K.
  27. 27. Informed 72 91 81 61 66 77 60 51 62 63 75 46 88 71 63 63 54 59 58 43 83 60 45 77 47 52 52 40 Mass 57 77 68 49 54 67 51 42 54 55 67 38 81 64 57 58 49 54 53 38 78 57 42 75 45 51 52 44 Gap 15 14 13 12 12 10 9 9 8 8 8 8 7 7 6 5 5 5 5 5 5 3 3 2 2 1 0 -4 Gap 10-15 5-9 1-4 0 Below 0 Trust in energy sector, Informed Public vs. Mass Population A Disparity Across All Regions Source: 2016 Edelman Trust Barometer. Q45-429. 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 Public, General Population and Mass Population. 27 France U.K. U.S. Spain Mexico Singapore S.Korea Malaysia India China Brazil Germany Australia Ireland Russia Poland Canada Japan Indonesia Italy Argentina UAE HongKong Netherlands Sweden Turkey Colombia S.Africa
  28. 28. A Widening Trust Gap 28 Percent trust in business vs trust in energy, 2012 to 2016 (25-country global total) Informed Public Mass Population 7pt Gap Trust in Energy 4pt Gap 9pt Gap Trust in Business 11pt Gap54 58 58 56 62 45 49 48 47 51 2012 2013 2014 2015 2016 Source: 2016 Edelman Trust Barometer 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 nine-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). Q45-429. 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 Public and Mass Population, 25-country global total. 56 59 60 60 63 52 56 56 55 56 2012 2013 2014 2015 2016
  29. 29. 50% Energy More Trusted Than Government Source: 2016 Edelman Trust Barometer Q11-14. [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 nine-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) Q45-429. 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) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 29 Percent trust in energy vs. trust in government, 2016, ranked by trust in energy General Population Greater trust in 24 countries Energy Government 57 55 82 79 74 70 68 65 61 59 59 57 56 56 55 54 53 52 51 51 50 46 44 43 42 39 79 69 52 39 42 46 79 65 58 32 39 32 39 45 35 53 30 21 24 49 19 42 45 26 32 39 39 36 16 26 80 74 53 45 Global28 GDP5 China India Indonesia Mexico Malaysia Colombia U.S. HongKong S.Korea Russia Italy Brazil France Netherlands Poland Turkey Australia Argentina Ireland Japan Germany U.K. S.Africa Spain UAE Singapore Canada Sweden
  30. 30. 6 Leadership in a Divided World
  31. 31. Addressing Trust Inequality 31 Actions Values Employee Advocacy Engagement Trust
  32. 32. Actions: Trust-Building Behaviors Leadership in a Divided World: Energy Sector
  33. 33. Trust-Building Behaviors: Largest Gaps For Energy in Transparency, Leadership and Data Importance vs. performance of behavior in building trust in a company % Performance % Importance Gap General Population 33 Source: 2016 Edelman Trust Barometer. Q335-440 How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale where one means that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Importance) Q346A-J How well do you think the energy industry is performing on the behaviors listed below. Use a 9- point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. (Top 4 Box, Performing) General Population, 28-country global total. Protects consumer data 86 62 24 Ensures quality control 85 62 23 Keeps me and my family safe 81 61 20 Is transparent in reporting progress on company’s social responsibilities 80 54 26 Makes my life easier 80 68 12 Embraces sustainable business practices 80 58 22 Has leadership that effectively represents the interests of all stakeholders 79 54 25 Supports local charities and good causes 75 53 22 Develops intellectual property 74 57 17 Makes me feel connected to something bigger 70 51 19
  34. 34. Trust-Building Behaviors: Tech Outperforms Where Energy Should General Population Source: 2016 Edelman Trust Barometer Q335-440. How important is each of the following factors to building your TRUST in a company? Use a 9-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 4 Box, Trust) General Population, 28-country global total. Q344-348. How well do you think the [INSERT SECTOR BEING RATED] industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. General Population, 28- country global total. 34 Gap in importance of behaviors in building trust vs. percent who agree each industry is performing well against these behaviors Technology Energy Protects consumer data 19 24 Ensures quality control 11 23 Keeps me and my family safe 15 20 Is transparent in reporting progress on company’s social responsibilities 18 26 Makes my life easier 1 12 Embraces sustainable business practices 14 22 Has leadership that effectively represents the interests of all stakeholders 14 25 Supports local charities and good causes 15 22 Develops intellectual property 1 17 Makes me feel connected to something bigger 4 19 AVERAGE GAP 11 21
  35. 35. Values: Trust and the CEO Energy Sector Leadership in a Divided World:
  36. 36. 46 46 28 29 30 31 33 34 34 35 36 38 40 41 41 42 42 43 45 46 49 53 53 55 56 60 68 76 79 83 Global GDP5 Russia Sweden Germany Spain Japan Ireland S.Africa Canada U.K. Australia Argentina France Italy Poland S.Korea Turkey Netherlands Brazil U.S. HongKong Malaysia Colombia Singapore Mexico Indonesia UAE India China Fewer Than Half Trust Energy CEOs Percent who trust CEOs to do what is right, energy sector Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the energy industry to do what is right. Please use the 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) General Population, 28-country global total. * Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 10-country global total 36 General Population 50% In 23 of the 28 countries, the general population do not trust energy CEOs to do what is right cannot name any CEOs* 60% of global respondents
  37. 37. 61% 54% 51% 48% 46% Energy CEOs Least Trusted Among Sectors Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the [INSERT INDUSTRY] industry to do what is right. Please use the 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) General Population, 28- country global total. 37 Percent who trust CEOs in each industry Financial ServicesHealth EnergyTechnology Food & Beverage General Population
  38. 38. Purpose and Profits Matter Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, 28-country global total, question asked of half the sample. 38 Percent who agree that CEOs should be personally visible in discussing… 8in10 Societal Issues ‣ Income inequality ‣ Public policy discussions ‣ Personal views on societal issues 7in10 Financial Results General Population
  39. 39. 62%65% 70% 79% Their education and how it shaped them Their personal success story The obstacles they have overcome Their personal values Personal Values and History Matter Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a nine-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. [Media Engagement net = Q507 ‘Interviews with the media,’ and ‘Q512 ‘Sharing their views on a blog or on social media.’ Direct Engagement net = Q508 ‘Communications with employees,’ and ‘Participation in industry conferences.’] Q516-524. For you to trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a nine-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Important) General Population, 28-country global total, question asked of half the sample. Percent who agree that each type of information is important in building trust in a CEO both directly (86%) and via media (75%) General Population 39 CEOs must engage
  40. 40. Employee Advocacy: Your Greatest Asset Leadership in a Divided World: Energy Sector
  41. 41. 25 27 19 25 28 33 27 28 24 28 37 3132 30 48 24 25 26 21 21 22 23 20 16 19 19 14 19 18 18 8 9 8 13 10 11 Employees are Essential Advocates Source: 2016 Edelman Trust Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611 a company’s business practices, both positive and negative, and its handling of a crisis? Q612 a company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613 a company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 a company’s innovation efforts and new product development? Q615 Who do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, 28-country global total. 41 Most trusted spokesperson to communicate each topic Innovation effortsFinancial earnings & operational performance Business practices/ crisis handling Treatment of employees/customer Partnerships/ Programs to address societal issues Views on industry issues Employees Most Trusted General Population Company CEO Senior executive Employee Activist consumer Academic Media spokesperson
  42. 42. 74 83 68 77 82 91 Global GDP 5 APAC European Union Latin America North America 1 in 4 Energy Workers Do Not Trust Their Employer Source: 2016 Edelman Trust Barometer Q525-526. Thinking about your own company and other companies in your industry, please indicate how much you trust each to do what is right using a nine-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) General Population, 28-country global total, question was asked of half the sample. GDP 5 = U.S., China, Japan, Germany, U.K. 42 Percent who trust the company for which they work, energy sector General Population
  43. 43. Integrity 54 31 23 Has Ethical Business Practices 51 31 24 Takes Responsible Actions To Address An Issue Or A Crisis 54 31 23 Has Transparent And Open Business Practices 55 31 24 Engagement 55 32 23 Treats Employees Well 58 33 25 Listens To Customer Needs And Feedback 58 33 25 Places Customers Ahead Of Profits 55 31 24 Communicates Frequently And Honestly On The State Of Its Business 48 29 19 Products 49 34 15 Offers High Quality Products Or Services 58 35 23 Is An Innovator Of New Products, Services Or Ideas 41 32 9 Purpose 43 28 15 Works To Protect And Improve The Environment 50 30 20 Creates Programs That Positively Impact The Local Community 44 29 15 Addresses Society's Needs In Its Everyday Business 45 29 16 Partners With NGOs, Government And Third Parties To Address Societal Issues 34 24 10 Operations 37 28 9 Has Highly-Regarded And Widely Admired Top Leadership 39 27 12 Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 36 27 9 Delivers Consistent Financial Returns To Investors 36 28 8 Trust-Building Attributes Company Importance vs. Performance % Performance % Importance Gap General Population 43 Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where one means that attribute 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, Importance) Q114-129 Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9- point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performance) General Population, 28- country global total.
  44. 44. Engagement: Every Voice Matters Leadership in a Divided World:
  45. 45. 58 53 44 63 46 2012 2013 2014 2015 2016 Transformed Media Landscape Source: 2016 Edelman Trust Barometer 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 nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) General Population and Millennials, 25-country global total. *From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.” **From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.” Percent trust in each source for general news and information Millennials even more trusting of digital media than general population 2012 2013 2014 2015 2016 Search engines* 61 58 61 62 63 Traditional media 62 59 61 57 58 Online-only media** 46 44 47 45 53 Owned media 41 40 43 43 46 Social media 44 41 44 45 44 General Population 45 Millennials Gap 66 3 58 0 58 5 51 5 51 7
  46. 46. 50% 67 61 53 46 39 46 40 34 30 26 78 65 62 55 49 44 42 37 32 31 My friends and family An academic expert Companies that I use Employees of a company A company CEO A journalist A well-known online personality Elected officials Celebrities Companies I don’t use* Every Voice Matters Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General Population, 27-country global total, question asked of half the sample. * Asked as “Brands I don’t use” in 2015. 46 Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs. 2016 +11 General Population +10 2015 2016
  47. 47. Peers Influence Purchase Source: The Edelman Earned Brand study 2015, Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and services you purchase, what impact do they have on you? The impact of online and offline conversations about brands with friends and other people like me Source: 2015 Earned Brand Study of Global Consumers purchase decisions at the moment of truth 75% Build Inspiration % They give me a sense of community 16 They get me 17 Push Consideration % They push me to try new things 25 They suggest products/services 27 They make me trust the brand more 29 Moment of Truth % They help me overcome concerns 37 They help me make decisions 44 They warn me about the risks 45 peers influence 47
  48. 48. Opportunities to Connect 7
  49. 49. Access to education/training Address income inequality Access to healthcare Protecting/improving the environment Reducing poverty Supporting human & civil rights Modern infrastructure E E P H Source: 2016 Edelman Trust Barometer Q561-573 Thinking about businesses in your country, how important is it that they play a role in solving each of the following societal issues? Please use a nine-point scale where one means that it is “not at all important” and nine means that it is “extremely important”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of one quarter the sample. Connect to What Matters Most 49 Most important issue for business to address in each country Canada Brazil Germany France China U.S. Poland Argentina Sweden Mexico U.K. Ireland Netherlands Turkey Singapore Hong Kong Malaysia Colombia Japan Australia Russia S. Korea Italy Spain Indonesia UAE S. Africa India General Population R I I E E R H E E E E E P P E H P E H H H E E E E E P I H E I
  50. 50. Actions Values Employee Advocacy Engagement Embracing the New Reality of Influence to Address Trust Inequality ‣ Create societal impact in addition to profits through purposeful action ‣ Express your values through honest, ethical engagement in which you share your story ‣ Ignite your most powerful advocate, your employees ‣ Engage cross channel to meet stakeholders, where they are, about what most interests/concerns them Influence TRUST 50 Leadership TRUST
  51. 51. Thank You For more information, please contact Amy Hemingway, Global Chair, Energy amy.hemingway@edelman.com 1-202-350-6661

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