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trust2011 Edelman Trust Barometer Executive Summary
Business and Government: Trust Stabilizes Globally    In a year marred by corporate crises and financial turmoil for Europ...
Trust in Banks Plunges in Most of the West butRemains Stable in Canada; Technology HoldsFirm in Top SpotTechnology, which ...
The United States: The Stark Exception    In a reversal of last year’s                Figure 6: In U.S., 2011 decline mirr...
Credentials Count More Than EverTrust in experts rises—and after years of being at or near the bottom, CEOs see increase i...
Surround Sound Needed in Time of Skepticism    A jumbled media landscape and               Figure 8: Developed markets mor...
Trust Is a Protective AgentTrust has tangible value. Companies that are distrusted and facing an onslaught of negative new...
The Transformation of Trust    Trust in business may have stabilized                            Figure 13: Expectations hi...
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2011 Trust Barometer Canadian Summary

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The 2011 Edelman Trust Barometer is the firm's 11th annual trust and credibility survey. The survey was produced by research firm StrategyOne and consisted of 30-minute telephone interviews conducted from October 11-November 28, 2010, with the exception of France and Germany, fielded January 3-13, 2011. The 2011 Edelman Trust Barometer survey sampled 5,075 informed publics, including 200 in Canada in two age groups (25-34 and 35-64) in 23 countries. 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, contact: Heather Conway, CEO, Edelman Canada 416-979-3310 / heather.conway@edelman.com

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2011 Trust Barometer Canadian Summary

  1. 1. trust2011 Edelman Trust Barometer Executive Summary
  2. 2. Business and Government: Trust Stabilizes Globally In a year marred by corporate crises and financial turmoil for European governments, the 2011 Edelman Trust Barometer finds trust in business and government markedly resilient and sees a shifting centre of gravity. Trust in NGOs, “the fifth estate” in global governance, stays strong. In this year’s Barometer, a three-part Figure 1: Emerging markets dominate as “business trusters;” picture emerges of trusters, neutrals, and distrusters of business and gov- Canada remains neutral ernment (figures 1 and 2). Countries How much do you trust business to do what is right? including Canada that are hover- ing in the 50 per cent range, so Trusters Neutral Distrusters called “neutrals,” occupy a middle 100 ground as the divide widens between +19 90 trusters (over 60 per cent, includ- 80 ing Brazil and China) and distrusters 81% +12 +12 -8 (under 50 per cent, including the U.S., 70 70% U.K., France, and Russia). 60 67% 64% 62% 62% 61% 50 59% 57% 54% 54% The United States, which last year en- 53% 52% 48% 49% 40 50% 46% joyed an 18-point spike in trust in busi- 44% 42% 40% 41% 30 36% ness, saw an eight-point drop, placing the world’s largest economic power 20 within five points of last-place Russia. 10 Trust in government tumbled in the 0 U.S., where the two political parties Brazil India Italy China Japan Germany Canada France U.S. U.K. Russia were at loggerheads (see page 4 for 2010 2011 2010 2011 2010 2011 more on the U.S.). Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64 By contrast, Canada continues to enjoy stable levels of trust in both business and government, Figure 2: China and Brazil drive rise in trust in government; Canada on par a finding that’s consistent with the with Japan fact that Canada was less affected by the economic downturn than many How much do you trust government to do what is right? other countries. Trusters Neutral Distrusters 100 In the early years of the Barometer, +14 +46 90 trust in business and government 88% 80 85% tended to move in opposition. In- creased trust in one was met by de- 70 74% -10 -6 creased trust in the other. We generally 60 now see the two moving in tandem, 50 an important step as the expecta- 51% 49% 52% 49% 40 43% 45% 43% 44% 46% 43% tion is for the world’s two dominant 42% 43% 39% 38% 40% 38% 39% 30 36% 33% institutions to work together. 20 10 0 China Brazil Japan Canada France Italy India U.K. U.S. Russia Germany 2010 2011 2010 2011 2010 2011 Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 642 2011 EDELMAN TRUST BAROMETER
  3. 3. Trust in Banks Plunges in Most of the West butRemains Stable in Canada; Technology HoldsFirm in Top SpotTechnology, which is in the No. 1 spot Figure 3: Banks in Canada maintain consistent trust levels before andglobally for the third straight year, isnow followed by automotive and tele- after world financial crisis; automotive climbs across the globecommunications. In Canada, brewingand spirits hold the second spot at How much do you trust the following industries to do what is right?58 per cent, and food and beveragealong with retail are tied for third at Banks Technology Auto56 per cent. The starkest contrast, how- 100 +12 +21 93% 93%ever, is between technology and banks 90% 98% 90 87% +7 85%(figure 3). The dramatic three-year drop 83% 82% 80%in trust in banks in the West keeps this 80 78% 77% 78% -46 73% 73%industry stuck at the bottom in global in- 71% 69% 70%68% 70 75%dustry rankings. By contrast, Canadian -30banks have enjoyed year-over-year 60 53% 51% 52% +17 51% 49% 48%stability, with virtually no change in 50 46%trust from 2008 to 2011. 42% 40 32%All four BRIC countries have gained 30 25%trust as headquarter countries for global 20 16%companies (figure 4). The trust comesmainly from fellow emerging markets, in- 10dicating that the BRIC strategy to target 0emerging economies is producing results. China India U.S. U.K. Canada China India U.S. U.K. Canada China India U.S. U.K. CanadaHowever, when compared to Ger-many and Canada, longtime leaders 2008 2011 2008 2011 2009 2011in the most-trusted-headquarter-country category, the BRICs still have Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64a ways to go to be considered reliablebusiness hubs. Figure 4: Trust in BRIC-based Figure 5: Trust in NGOs on par withIn 16 of the 23 countries surveyed, NGOs companies rises; Canadian- business in emerging markets;are as or more trusted than business – headquartered companies In Canada, trust in NGOs exceedsespecially in Canada, where informedpublics trust NGOs much more than maintain high levels of trust trust in businessbusiness (72 per cent vs. 50 per cent). How much do you trust global How much do you trust business toIn fact, trust in NGOs jumped from companies headquartered in the do what is right? How much do you58 per cent to 72 per cent from 2010 following countries to do what is right? trust NGOs to do what is right?to 2011; NGOs were the only institu- 100 100tion to experience such a significantchange in trust this year in Canada. 90 90This rise may be attributed to a percep- 80 80 75%76% 76%75%tion of NGOs as a stable force amidst 81% 80%corporate and government crises both 70 +4 +3 70 +5 72%at home and abroad, and reflects global 60 +5 60findings that show a strong need for cor- 61% 63% 50 50 55% 55%porations to create shareholder value in 40% 39% 42% 50% 39% 48%a way that aligns with society’s interests. 40 36% 34% 35% 40 46% 30% 30 30Historically trusted most in developedmarkets, NGOs continue to gain trust in 20 20emerging markets (figure 5). In Brazil and 10 10China, where NGOs are on par with busi- 0 0ness, higher economic levels come with Germany Canada Brazil India China Russia Brazil China U.S. U.K./Fr/Ger Canadaa greater concern for environmental re-sponsibility, education, and public health, 2010 2011 2010 2011 Business NGOsthe very province of NGOs. Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64 3
  4. 4. The United States: The Stark Exception In a reversal of last year’s Figure 6: In U.S., 2011 decline mirrors 2008-2009 drop; only country uptick, the U.S. suffers an to see trust fall in all four institutions across-the-board tumble, with declines in all four institutions. Trust in institutions: 2008-2011 70 The downturn in trust in the U.S. in 65 63% 63% 2010 echoed the drop that resulted 60 from the worldwide financial crisis. Worldwide 54% 55 59% nancial crisis 55% While not as steep a decline, the country lost half the gains it earned 50 46% 45% 46% back in 2009 (figure 6). 45 46% Several explanations emerge for the 40 43% 36% 40% grim U.S. picture: the prolonged 35 31% 38% fighting between business and 30 government; unemployment rates— 30% 27% not the full recovery the country 25 expected; and the nation’s spot as the 20 epicentre of many of the headline crises Jan 2008 Jan 2009 Jan 2010 Jan 2011 of 2010, including the oil spill, product recalls, and the SEC investigation of Responses 6-9 only on 1-9 scale; 9=highest NGOs Business Government Media Goldman Sachs. Informed publics ages 25 to 64 A four-year view paints a bleaker picture according to the Trust Barometer Index, in which each country’s score is an average of its trust in business, Trust Barometer Index U.S. drops while Brazil rises in composite scoring government, NGOs, and media. The U.S., fourth from the top in trust in 2008, sinks to the bottom this year, 2008 2011 barely above the U.K. and Russia. On the other hand, Canada climbs Global — Global 55 to 5th spot, up from 7th in 2008. Mexico 69 Brazil 80 The BRICs hew closer to their 2008 China 62 China 73 rankings, with the exception of Brazil, India 60 Mexico 69 which climbs sharply. U.S. 53 India 56 Japan 50 Canada 55 But if American business is largely not S. Korea 50 S. Korea 53 trusted by Americans, the opposite Canada 48 Japan 51 appears to be the case for American Brazil 48 France 50 business abroad. Continuing a trend France 44 Germany 44 we have seen in recent years, trust U.K. 43 U.S. 42 in U.S.-based multinationals moved Germany 36 U.K. 40 up in many markets, including China Russia 36 Russia 40 (+15), Brazil (+16), India (+16), and Indonesia (+16), possibly a halo effect of President Obama’s good standing abroad. Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64 Composite score is an average of a country’s trust in business, government, NGOs, and media4 2011 EDELMAN TRUST BAROMETER
  5. 5. Credentials Count More Than EverTrust in experts rises—and after years of being at or near the bottom, CEOs see increase in credibility.Trust in credentialed spokespeople is cent of Canadian informed pub- In the wake of last year’s globalhigher this year, signaling a desire for lics say CEOs are credible spokes- crises, the Barometer posed a series ofauthority and accountability — a likely people for a company, a 10-point questions about who should speak forresult of the skepticism wrought by increase over 2009. a company in a challenging time.last year’s string of corporate crises.In Canada, 99 per cent of in- By contrast, a “person like me” “Multiple voices” is the first conclusionformed publics find academics and dropped significantly, falling from the drawn, as CEOs, third parties, com-experts — long the front runners — top four to the bottom two, virtually pany chairmen, government officials“extremely,” “very,” or “some- swapping spots with the CEO. This and technical experts all have a rolewhat” credible. may be a result of changing attitudes to play when a company confronts a about what constitutes “a person crisis. In the case of a productFor the first time, the Barometer like me,” rather than an indication of recall, the technical expert and theasked about the credibility of a com- a significant decrease in the actual CEO are the preferred spokespeo-pany’s technical expert who is, in credibility of peer-to-peer communica- ple in Canada (35 per cent for both).turn, deemed “somewhat,” “very,” or tion. With some estimates indicating In Canada, in a situation where the“extremely credible” by a majority in that the average Facebook user does local community has been dam-Canada (95 per cent). not know one-fifth of the 500 people aged, more people want to hear typically listed as friends on his or her from the CEO (50 per cent) than theyCEOs are now considered more page, it is reasonable to ask whether do a third-party representative (15credible spokespeople, a shift from the meaning of the word “friend”— and per cent), government official (12 pertwo years ago when they sat at the by association “a person like me”— cent), or company technical expertbottom (figure 7). Eighty-nine per has become devalued. (12 per cent).Figure 7: CEOs rise in trust in authority, but “person like me” drops amid flight to credentialed spokespeopleIf you heard information about a company from one of these people, how credible would that information be? 2009 2011 Academic/expert 98% Academic/expert 99%Financial/industry analyst 96% Technical expert in company 95% NGO representative 94% NGO representative 95% Regular employee 91% Person like yourself 91% CEO 89% Regular employee 89% Government of cial 89% Government of cial 88% Financial/industry analyst 88% CEO 79% Person like yourself 80%Informed publics ages 25 to 64 in Canada“Extremely credible,” “very credible” and “somewhat credible” responses only 5
  6. 6. Surround Sound Needed in Time of Skepticism A jumbled media landscape and Figure 8: Developed markets more distrustful of media though trust in media the domino effect of corporate in Canada remains steady with an upward trend and government crises have How much do you trust media to do what is right? increased skepticism in some Trusters Neutral Distrusters 100 Western nations. +17 90 +19 80 80% While trust in media as an institu- 70 73% tion inched up globally, it remained 60 +12 -11 63% 54% 58% -9 steady in Canada and declined 50 50% 48% 45% 45% 45% significantly in the U.S. and the U.K. 40 38% 39% 37% 37% 37% 38% 36% 36% 38% (figure 8). As in 2009, Canadians 30 31% 20 27% need to hear something between 22% 10 three and five times to believe it 0 (figure 9). But in the U.S. and the U.K., China Brazil India Japan Canada France Italy Germany Russia U.S. U.K. approximately one-quarter say they 2010 2011 2011 2010 2011 need to hear something six or more times to believe it, twice as many as Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64 two years ago. Figure 9: Repetition enhances credibility In Canada, search engines rank No. 1 as the place people go first 10+ times Once Twice 11% 2% for information about a company, 8% followed by online news sources, and How many times in general do you need to hear something 6-9 times print (figure 10). Their second stop 13% is both on the screen as well to tra- about a specific company to ditional print media, with 23 per cent believe that the information saying they go to both newspapers or is likely to be true? 3 times magazines and online news sources, 33% which do include the Web versions of Informed publics ages 25 to 64 3 to 5 times traditional media like newspapers and in Canada 4-5 times 65% 32% television. Thirty three per cent of informed publics in Canada say they trust magazines or business magazines a great deal, followed Figure 10: Search engines “go-to” source; online news second by 27 per cent who say the same for newspapers. Where do you generally go first for news about a company? Then where do you go? The data portray a savvy consumer First Source Second Source who turns first to search engines to see what is available on the topic of inter- Online search engine 34% Online news sources 23% est, and who then seeks out traditional Online news sources 19% Print (newspapers/magazines) 23% media to confirm or expand on what he or she has learned. Information Print (newspapers/magazines) 15% Online search engine 19% ubiquity has changed the playbook for Company website 11% Company website 15% corporate communications, the data Friends and family 11% Broadcast (radio/TV) 10% suggest, signaling to companies that they cannot simply be present with Broadcast (radio/TV) 7% Friends and family 7% their messages, but rather must be Social media 2% Social media 4% omnipresent through an approach that encompasses mainstream, new, so- Informed publics ages 25 to 64 in Canada cial, and owned media.6 2011 EDELMAN TRUST BAROMETER
  7. 7. Trust Is a Protective AgentTrust has tangible value. Companies that are distrusted and facing an onslaught of negative news willhave a harder time changing opinion after the storm than they would if they were trusted at the outset.This year’s Barometer explored wheth- Figure 11: Quality, transparency, trust, and employee welfare moster trust can diminish the impact bad important to corporate reputationnews has on a company. The answeris yes (figure 12). In Canada, 63 per How important are these factors to corporate reputation?cent will believe negative informa-tion about a company they do nottrust after hearing it just once or Transparent and honest business practices 83%twice. When a company is trusted,however, only 22 per cent will believe High quality products or services 81%negative news about it after hearing Company I can trust 78%the news once or twice. The same Treats employees well 72%holds true for positive information, withfar fewer believing good news about Good corporate citizen 68%a distrusted company. These findings Communicates frequently 63%send a strong signal that corporateleaders would be well advised to cre- Prices fairly 52%ate a trust foundation so that positive Widely admired leadership 50%information has an echo chamber in Innovator 49%which to resonate. Financial returns 38%The most important corporate reputa-tion factors remain quality products,transparency, trustworthiness, and Responses 8-9 only on 1-9 scale; 9=highest. Informed publics ages 25 to 64 in Canadaemployee welfare, while a company’sfinancial performance sits at the bot-tom along with being an innovator(figure 11).Figure 12: Trust protects reputation When a company is distrusted When a company is trusted 63% will believe negative information after hearing it 1-2 times 40% 57% will believe need to hear positive positive information information 3-5 times to beleive it after hearing it 1-2 times will believe positive information 7% after hearing it 1-2 times 22% will believe negative information after hearing it 1-2 timesInformed publics ages 25 to 64 in Canada 7
  8. 8. The Transformation of Trust Trust in business may have stabilized Figure 13: Expectations high for business to invest in society globally, but it is different and condi- tional, premised on what a company A. Agree: Should corporations create shareholder value in a way that aligns with does and how it communicates. In this society’s interests, even if that means sacrificing shareholder value? B. Agree: Should transformation, there are new expec- government regulate corporations’ activities to ensure business behaves responsibly? tations for governments, corporations, 100 and leaders—as well as a new archi- 91% 89% 89% 89% 90 85% 85% 85% tecture for earning trust. It supplants 82% 81% 81% 80% 79% 78% 78% 80 the “fortress framework” in which cor- 82% 82% 74% 73% 72% 71% 71% 74% 67% porations have customarily protected 70 70% 73% 63% 62% 69% 67% their brands, controlled information, 66% 58% 60 62% 61% 63% 61% 63% and given short shrift to partners, 50 56% 57% 53% 55% 53% aiming to maximize returns solely for 48% 40 50% 44% 42% shareholders. The new model, a “trust 49% 30 triangle,” is based on the expectation for companies to act collaboratively to 20 benefit society not just shareholders 10 (What); be transparent about their op- 0 erations and profit engines (How); and Ire . Me . any Sw s n d ina Ind ico Ca a Ne ada Au a Sin alia Arg ore ina ia y nce ain d rea zil an E U.K U.S Ital nd si ssi ede lan lan UA Ind Bra Jap one x Ch ent Sp gap Ko str rm rla Fra n Ru Po engage using a range of spokespeople the Ge S. and all forms of media—mainstream, Informed publics ages 25 to 64 in 23 countries Question A Question B new, social, and owned (Where). Trust is no longer a commodity that is acquired, but rather a benefit that is Old Trust Framework New Trust Architecture bestowed. Business has the opportu- nity to build an enduring foundation of Control Information trust by asking its leaders to commit to a strategy that brings value to both Eng Protect the Brand cy ren investors and society. age Stand Alone WH spa me W n HO nt ER Tra Richard Edelman E President and CEO, Edelman WHAT Focus Solely on Profit Profit with Purpose About the Edelman Trust Barometer About Edelman The 2011 Edelman Trust Barometer is the firm’s 11th annual trust and credibility Edelman is the world’s largest independent public relations firm, with wholly- survey. The survey was produced by research firm StrategyOne and consisted of owned offices in 53 cities including three in Canada and 3,700 employees world- 30-minute telephone interviews conducted from October 11-November 28, 2010, wide. Edelman was named Advertising Age’s top-ranked PR firm of the decade with the exception of France and Germany, fielded January 3-13, 2011. The 2011 and one of its “2010 A-List Agencies” and “2010 Best Places to Work;” European Edelman Trust Barometer survey sampled 5,075 informed publics including 200 in Excellence Awards’ “2010 Agency of the Year;” PRWeek’s “2009 Agency of the Canada in two age groups (25-34 and 35-64) in 23 countries. All informed publics Year;” Holmes Report’s “Agency of the Decade” and “2009 Asia Pacific Consul- met the following criteria: college-educated; household income in the top quartile tancy of the Year;” and among Glassdoor’s top five “2011 Best Places to Work.” for their age in their country; read or watch business/news media at least several Edelman owns specialty firms Blue (advertising), StrategyOne (research), Ruth times a week; follow public policy issues in the news at least several times a week. (integrated marketing), DJE Science (medical education/ publishing and science For more information, visit http://www.edelman.com/trust or call 212.704.4530. communications), and MATTER (sports, sponsorship, and entertainment). Visit www.edelman.ca for more information. For more information contact: Heather Conway, CEO, Edelman Canada 416.979.3310 / heather.conway@edelman.com On the cover, from top left: newspaper stall in Dublin, Ireland; Wikileaks founder Julian Assange at press conference; oil-soaked pelican in wake of BP Deepwater Horizon rig explosion; Flag at Parliament, Ottawa, Canada; unemployed worker holds sign at rally; Dilma Rousseff, Brazilian president, receives presidential sash from Lula da Silva; Hudson’s Bay Co. Red Mittens © Edelman, 2011. All rights reserved.8 2011 EDELMAN TRUST BAROMETER

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