PR Congress 2011 | Plenary 1 - A Thrust for Trust by Mr. Bob Grove

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In the first plenary of the 18th National PR Congress held last 22 to 23 September 2011, this session created a shared understanding among participants on how the above changes underscore the increasing role of trust in building relations with target publics.

Focus was given on how much trust target audiences have on various stakeholder groups, how trust can be gained, and the imperatives of building a culture of integrity in the corporate landscape.


Topic Presenter
Mr. Bob Grove, Managing Director, EDELMAN

Moderator: Dr. Federico Macaranas , Professsor AIM

Topic Discussants:
Rep. Anthony Golez Jr.
Lone District of Bacolod

Mr. Edgar Chua,
Country Chairman
Shell companies in the Philippines

Mr. Craig Hoy
Executive Director
PublicAffairsAsia

Published in: Education, Technology, Business
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  • These points demonstrate the relationship we (and others) see b/w trust and business.Trust is the reason you have permission (or lack of) to do what you do among your key stakeholders.Trust connects (indirectly and at times directly) to your stock price and, more specifically, the long-term view of your “value.”Trust allows you to go in new directions, bringing new products, services and solutions to market.Trust leads tomorrow’s talent to you today.Trust is a door opener and deal closer, and serves as the preeminent differentiator.Trust is a key credibility factor in your relationship with others and must not be compromised.And, as we have shown in this year’s data, Trust is a protective agent in times of crisis and need...There is no doubt, Trust impacts your business...
  • Countries like the US are brands where geo-political differences impact perceptions of their multi-nationals
  • Countries like the US are brands where geo-political differences impact perceptions of their multi-nationals
  • PR Congress 2011 | Plenary 1 - A Thrust for Trust by Mr. Bob Grove

    1. 1. 2011 Edelman Trust Barometer<br />Bob Grove<br />Managing Director<br />Edelman Southeast Asia<br />
    2. 2.
    3. 3. The Business Of Trust<br />Better-regarded companies attract more investors, who bid up companies’ market value and further improve their reputations. 1<br />A one-point change on the Fortune “Most Admired” list translates into $500 million in market value. 2<br />Companies with high employee trust levels out perform those with low trust levels by 186% (based on three-year total shareholder return). 3<br />A survey of 26,000 individuals in 26 countries found that more consumers form their impression of a company on the basis of its corporate citizenship practices than do so on brand reputation or financials. 4<br />More than 75% of people surveyed worldwide agree that they have greater respect for companies when the head of the firm speaks out in favor of corporate social responsibility. 5<br />Sources:<br />1 Harris Interactive and The Reputation Institute <br />2 University of Kansas/Ervin Black Study<br />3 Watson Wyatt Study<br />4 Arthur D. Little, Inc.<br />5 Corporate Social Responsibility Monitor<br />
    4. 4. Edelman Trust Barometer at a glance<br />Eleventh annual study<br />5,075 people in 23 countries of which 1,575 in APAC<br />Ages 25 to 64<br />College-educated<br />In top 25% of household income per age group in each country<br />Report significant media consumption and engagement in business news and public policy<br />APAC Select Countries: India, China, Japan, South Korea, Indonesia, Singapore, Australia (China N=375 aged 25-64; All others N=200 aged 25-64)<br />4<br />
    5. 5. The Edelman Trust Barometer in retrospect<br />Rising Influence of NGOs<br />2001<br />Fall of the celebrity CEO<br />2002<br />Earned media more credible than advertising<br />2003<br />U.S. companies in Europe suffer trust discount<br />2004<br />Trust shifts from “authorities” to peers<br />2005<br />“A person like me” emerges as credible spokesperson<br />2006<br />Business more trusted than government and media<br />2007<br />Young influencers have more trust in business<br />2008<br />Business must partner with government to regain trust<br />2009<br />Trust is now an essential line of business<br />2010<br />5<br />
    6. 6. Troubled Times<br />
    7. 7. State of Trust<br />Shifting center of gravity<br />
    8. 8. 8<br />Globally, trust increases in all institutions<br />Trust in Institutions – Global<br />+4<br />+5<br />+4<br />+2<br />A7-10. [Institutions 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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 countries (excludes Singapore, UAE and Argentina)<br />
    9. 9. APAC and global trust in business trend upward while US drops<br />Trust in Business (2010 – 2011)<br />2010<br />2011<br />+16<br />Trusters<br />Distrusters<br />Neutral<br />+2<br />- 8<br />A9. [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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)<br />9<br />
    10. 10. APAC and global trust in government rise significantly; APAC significantly more trusting of government than global peers <br />Trust in Government (2010 – 2011)<br />2010<br />2011<br />+14<br />Trusters<br />Distrusters<br />Neutral<br />+5<br />+5<br />- 6<br />+11<br />A7. [Government 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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)<br />10<br />
    11. 11. Global and APAC trust in media moves up; Indonesia, China and Japan drive rise in APAC<br />Trust in Media (2010 – 2011)<br />2010<br />2011<br />+11<br />+17<br />Trusters<br />Distrusters<br />Neutral<br />+7<br />+4<br />+12<br />- 11<br />A8. [Media 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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)<br />11<br />
    12. 12. 12<br />Trust in NGOs now on par with business in emerging marketsMore trusted than business in developed markets<br />Trust in Business and NGOs<br />Business<br />NGOs<br />Brazil<br />China<br />U.S.<br />UK/FR/GER<br />A7-10. [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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 in the U.S., UK/FR/GER, Brazil and China<br />
    13. 13. Trust in NGOsInformed Publics ages 35-64<br />13<br />A10. [Non-governmental organizations 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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 35-64 in US, UK/FR/GER, India and China<br />Trust in NGOs has risen over time<br />
    14. 14. 14<br />Trust Index: US joins UK, France and Germany at the bottomBRIC most trusting with Indonesia and Singapore also in top 4 places<br />2008<br />2011<br />Composite score is an average of a country’s trust in all four institutions Ages 25-64 (Global excludes Singapore, UAE and Argentina)<br />
    15. 15. Trust in Institutions<br />A7-A10. 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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 in the EU (excludes Russia), North America and Asia Pacific<br />15<br />APAC more trusting than EU and North America of all institutions<br />
    16. 16. In U.S., 2011 decline mirrors 2008-2009 drop Only country to see across-the-board fall <br />Trust in Institutions – U.S.Informed Publics ages 25-64<br />Worldwide Financial Crisis<br />A7-10. [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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in the U.S.<br />16<br />
    17. 17. Companies headquartered in South Korea, India and China among least trusted, despite rise in trust<br />Most Trusted National Identity for Companies – Global<br />2010<br />2011<br />Distrusted HQ Countries<br />Trusted HQ Countries<br />+ 3<br />+ 3<br />+ 4<br />+ 5<br />+ 5<br />N/A<br />N/A<br />A13-29. [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 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) Informed Publics ages 25-64 in 20 countries (excludes Singapore, UAE and Argentina)<br />17<br />
    18. 18. In APAC, Japan is among top three most trusted headquarter countries<br />Most Trusted National Identity for Companies – APAC<br />2010<br />2011<br />Distrusted HQ Countries<br />Trusted HQ Countries<br />+ 4<br />+ 5<br /> +7<br /> +7<br /> +7<br />+10<br />N/A<br />N/A<br />N/A<br />N/A<br />A13-29. [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 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) Informed Publics ages 25-64 in APAC<br />18<br />
    19. 19. 19<br />Technology firmly on top; automotive ralliesFinance sector at bottom<br />Asia Pacific<br />Change ‘10/ ‘11 <br />Trust in Industries<br />#1<br />#3<br />#2<br />#9<br />#8<br />#6<br />#8<br />#5<br />#7<br />#13<br />#12<br />#14<br />#11<br />#10<br />#4<br />Note Wording Changes from 2010: <br />- Media asked as Media Companies<br />- Consumer Packaged Goods asked as <br /> Consumer Packaged Goods Manufacturers<br />- Food and Beverage asked as Food<br /> <br />#9<br />Significant at 95% confidence level<br />A30-45. [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 “DO NOT TRUST THEM AT ALL” and nine means that you “TRUST THEM A GREAT DEAL.” (Top 4 Box) Informed publics ages 25-64 in 23 countries and APAC<br />
    20. 20. Business and Society<br />Toward shared value<br />
    21. 21. 21<br />What matters for corporate reputation: quality, transparency, employee welfare, trustFair pricing matters more in APAC than globally <br />Reputation Factors<br />Asia Pacific<br />#1<br />#3<br />#4<br />#3<br />#2<br />Significant at 95% confidence level<br />B72-81. [TRACKING] How important are 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. The first one is [INSERT FIRST]. How important is this factor to overall reputation on a 9-point scale where one means “not at all important” and nine means “extremely important”? (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in 23 countries and APAC<br />
    22. 22. 22<br />Majority in APAC agree with Milton Friedman; China the exception<br />Milton Friedman: “The social responsibility of business is to increase its profits”<br />% who agree<br />G124. Please tell me if you strongly agree, somewhat agree, neither agree nor disagree, somewhat disagree or strongly disagree 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<br />
    23. 23. 23<br />But also greater expectations for business to invest in society’s interests in developed and emerging markets<br />G120. Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way in which they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in 23 countries<br />
    24. 24. 24<br />And government must step in to ensure business behaves responsibly; However, South Korea and Japan least likely to agree<br />G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in 23 countries<br />
    25. 25. Roadmap to Trust<br />A new way forward<br />
    26. 26. 26<br />Credentials count CEOs gain most ground as all “authority figures” considered more credible <br />Credible Spokespeople – APAC<br />- 4<br />+ 7 <br />N/A<br />D104-111. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in APAC<br />
    27. 27. CEO credibility higher in APAC than globally<br />Credible Spokespeople – CEOAPAC<br />+7<br />+10<br />+20<br />+14<br />+13<br />+11<br />D104-111. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)<br />27<br />
    28. 28. 28<br />In crisis situations, people want to hear from multiple voices Though CEO must lead the charge<br />APAC<br />Trusted spokesperson during a company crisis<br /> Preferred spokesperson during a product recall<br />Preferred spokesperson when the local community has been damaged<br />D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about that crisis. Informed Publics ages 25-64 in APAC<br />D101. Keeping the same list of people in mind, 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 in APAC<br />D102. Keeping the same list of people in mind, when a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about that damage? Informed Publics ages 25-64 in APAC<br />
    29. 29. 29<br />Search engines first source people go for news about a company Online news, including traditional outlets, second stop<br />Where Informed Publics go for company news and information <br />First Source<br />Second Source<br />APAC<br />APAC<br />Are these the same types of sources you consult first for information about a business crisis?<br />Global<br />APACYes: 89%<br />No: 10%<br />(NETS) I139. There are a number of sources one could use to find general news or information about a company. When looking for general news or information about a company, which one type of information source would you generally consult first? I140. And after [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking for general news or information about a company? II141. Now, thinking about a business crisis, are [INSERT I139 AND I140 RESPONSE] the same types of sources you consult first for information about a business crisis? Informed Publics ages 25-64 in 23 countries and APAC<br />
    30. 30. 30<br />Strong media brands rise to the top<br />Most relied on source for company information (unaided)<br />I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in the U.S., the U.K., China and Brazil <br />
    31. 31. 31<br />Strong media brands rise to the top<br />Most relied on source for company information (unaided)<br />I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in India, Indonesia, Japan and South Korea<br />
    32. 32. Television and newspapers most trusted sources<br />Trusted Information Sources – Trust a Great Deal<br />APAC<br />Traditional<br />Online Multiple sources<br />Social Media<br />Corporate<br />H125-136. Now 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 trust it – 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<br />32<br />
    33. 33. Informed publics need information from multiple sources, multiple voices<br />33<br />And need to hear it 3-5 times to believe<br />APAC<br />3-5 times<br />58%<br />H137. 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 be exposed to something about a specific company to believe that the information is likely to be true? Please give me a number. Informed publics ages 25-64 in APAC<br />
    34. 34. The Benefits of Trust<br />
    35. 35. Through personal action, trust has tangible benefits<br />_<br />+<br />Distrusted Companies<br />Trusted Companies<br />Actions Taken Over Past 12 Months – APAC<br />Chose to buy products/services<br />Refused to buy products/services<br />Criticized them to a friend/colleague<br />Recommended them to a friend/colleague<br />Paid more for products/services<br />Shared positive opinions online<br />Shared negative opinions online<br />Sold shares<br />Bought shares<br />F118. [TRACKING] 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. (Percent “Yes”) Informed Publics ages 25-64 in APAC<br />F119. [TRACKING] 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 APAC<br />35<br />
    36. 36. Trust protects reputation<br />When a company is distrusted<br />When a company is trusted<br />APAC<br />57%<br />will believe<br />negative information<br />after hearing it 1-2 times<br />49%<br />will believe positive information after hearing it 1-2 times<br />will believe positive information after hearing it 1-2 times<br />31%<br />16%<br />will believe negative information after hearing it 1-2 times<br />Think about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information) about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in APAC<br />Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in APAC<br />36<br />
    37. 37. Share Price<br />$298 drops to $155 in 2 months<br />NetflixInc.'s move to separate its movie-streaming business and its DVD-by-mail service failed to soothe many customers' anger over the company's recent price increase…. <br />"I messed up," Mr. Hastings wrote in opening his lengthy, apologetic blog post on Netflix's website late Sunday night. "I owe everyone an explanation.“<br />20 Sep, 2011 <br />
    38. 38. Conclusions<br />Business must align profit and purpose for social benefit<br />Current media landscape plus increased <br />skepticism requires multiple voices and channels<br />Demand for authority and accountability set new expectations for corporate leadership<br />Trust is a protective agent and leads to tangible benefits and sales; lack of trust is barrier to change<br />38<br />

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