2. We believe that trust is the ultimate currency in the relationship
that all institutions—companies, governments, NGOs and media
—build with their stakeholders.
It defines an organization’s license to operate, lead and succeed.
Trust is the foundation that allows an organization to take
responsible risk, and, if it makes mistakes, to rebound from them.
For a business, especially, lasting trust is the strongest insurance
against competitive disruption, the antidote to consumer
indifference, and the best path to continued growth.
Without trust, credibility is lost – putting a business or
organization at risk.
Our Belief
2
3. 3
We’ve been studying trust for nearly
two decades.
Over this past year, we broke new ground.
We invested heavily in scientific R&D, working with
world-class partners to make the magic of trust
actionable for businesses and organizations.
Our Breakthrough
We asked:
• What is trust?
• What is trust made of?
• How does it manifest?
• Does trust have cultural contexts?
• How is it connected to expectations and risk?
4. Our process to
augment the
science of trust.
Review of 18 years of Trust Barometer data, where
we’ve asked over 2 million respondents about trust
over 23 million times
4
Meta-analysis of 150+ peer-reviewed academic
articles and 80+ models on trust in partnership with
world renowned academics
Interviews with 50+ business leaders
Trust analysis of 145 companies through online study
of 90k+ members of the general population in 2
countries
1M articles and 80k employee reviews analyzed
Analysis of relationship between trust and stock price
for 80 companies in 9 sectors
Validated construct of our proprietary framework
through online survey in 3 countries and advanced
statistical analysis
6. Trust is very complex – but we unearthed
four dimensions critical to defining its core
6
Ability Integrity Dependability Purpose
A believes B has the
skills, competencies,
and resources to have
influence in some
domain (competence,
capabilities, expertise)
A believes B adheres
to a set of principles
that A finds acceptable
(fairness, transparency,
credibility, honesty)
A believes B consistently
adheres to a set of
principles that A finds
acceptable (reliability,
dependability)
A believes B wants
to do good for A
(loyalty, caring, non-
opportunistic)
Good at what
they do
Is honest Keeps its
promises
Works hard to
have a positive
impact on society
7. 6 Key Insights
7
Trust has an impact on:
1. Consumer buying and advocacy
2. Employee engagement
3. Regulatory scrutiny
4. Institutional investment and investor opportunity
6. Resilience in the face of crisis or risk
5. Stock performance
8. 01 6 in 10 would be among the first
to buy the products or services
of companies they trust as soon
as they come out…
…and 6 in 10 would
actively defend a
company they trust if
criticized.
Consumers:
Trust leads consumers
to buy, recommend and
advocate
3 in 4 actively recommend
a business they trust.
Source: 2018 Edelman Trust Management Validation study. Q17.When thinking about [COMPANY], how likely would you be to do the following? Please use a scale of one to seven, where 1 means “I would be very unlikely to do this” and 7
means “I would be very likely to do this”. Top 3 summary, likely to do this, for positive behaviors. Bottom 3 summary, not likely to do this, for negative behaviors.
Q2: Please indicate how much you trust [COMPANY] to do what is right. For each one, please use a 9-point scale where 1 means that you “do not trust it at all” and 9 means that you “trust it a great deal.” Questions asked to those aware of
each companies. 20 companies. 5 sectors. High trusting: top 3 at Q2. Low trusting: Bottom 4 at Q2. General Population 18+. N=6,000+ respondents. 3 countries: UK, US, China.
9. 02
…versus half who
would be ashamed if
they, or someone they
know, worked for a
company
they distrust.
7 in 10 are proud to
work or know people
who work for
companies they
trust…Employees:
Trust drives employer
brand
Source: 2018 Edelman Trust Management Validation study. Q17.When thinking about [COMPANY], how likely would you be to do the following? Please use a scale of one to seven, where 1 means “I would be very unlikely to do this” and 7
means “I would be very likely to do this”. Top 3 summary, likely to do this, for positive behavior. Bottom 3 summary, not likely to do this, for negative behavior.
Q2: Please indicate how much you trust [COMPANY] to do what is right. For each one, please use a 9-point scale where 1 means that you “do not trust it at all” and 9 means that you “trust it a great deal.” Questions asked to those aware of
each companies. 20 companies. 5 sectors. High trusting top 3 at Q2. Low trusting: Bottom 4 at Q2. General Population 18+ n=6,000+ respondents. 3 countries: UK, US, China.
10. 03 Only 1 in 5 would
lobby for more
regulations for
companies they trust
versus 2 in 5 for
distrusted businesses.
Trust lowers the
demand for
regulatory scrutiny.
Regulators:
Trusted companies
have a greater license
to operate
Source: 2018 Edelman Trust Management Validation study. Q17.When thinking about [COMPANY], how likely would you be to do the following? Please use a scale of one to seven, where 1 means “I would be very unlikely to do this” and 7
means “I would be very likely to do this”. ‘’Lobby for them to have greater regulation’’. Top 3 summary, likely to do this, for negative behaviors. Bottom 3 summary, unlikely to do this, for positive behaviors.
Q2: Please indicate how much you trust [COMPANY] to do what is right. For each one, please use a 9-point scale where 1 means that you “do not trust it at all” and 9 means that you “trust it a great deal.” Questions asked to those aware of
each companies. 20 companies. 5 sectors. High trusting: top 3 at Q2. Low trusting: bottom 4 at Q2. General Population 18+. N=6,000+ respondents. 3 countries: UK, US, China.
11. 04Investors:
Trusted companies are
more likely to receive
institutional investment
Source: 2018 Edelman Institutional Investor Trust Survey. Q4: How important are each of the following when considering a company to invest in (or to recommend doing so)? For each one, please indicate how important it is using a 9-point
scale where 1 means “not at all important” and 9 means “most important”. - Top 2 Summary. 18 statements. 500 chief investment officers, portfolio managers, and buy-side analysts in five countries (U.S., Canada, UK, Germany and Japan),
representing firms that collectively manage over $4.5 trillion in assets.
…compared to 17 other
factors, including financial
valuation, an engaged
Board of Directors, ability
to meet financial
guidance, or reputation, to
name a few.
When considering what drives
investment decisions, investors
say “my trust in the company”
is the single most important
factor…
12. 05
Over a one year period,
trusted companies' stocks
outperform their sector
indexes by more than 5%...
... this represents an
average of $9.4B
extra market cap per
trusted company.
The market:
Trusted companies
outperform the
stock market
Source: 2017 Edelman Trust Management survey and Yahoo! Finance. US-based companies listed on US exchanges and part of the S&P 500. The stock price index is the straight average value of the stock of 32 trusted companies (Edelman
Net Trust Score = 45+, top quartile of database gathered between November to December 2017); relative to January 2, 2018 until October 18, 2018. The sector index represents average value of the index relative to January 2, 2018 and is
weighted by the number of companies in that sector. See appendix for full list of companies included. Trust-related market cap is the additional 5% return of trusted companies over the sectors times the current market cap (stock price times
shares outstanding)
13. High trust companies outperform their sector
Stock performance of 31 high trust U.S. companies compared to a weighted sector average. Jan 2018 – Dec 2018
13
85
90
95
100
105
110
115
120
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Value of $100 Invested January 2018
Stock Price Index - Trusted companies average
Sector Index
Source: 2017 Edelman Trust Management survey and Yahoo! Finance. Data represents US-based companies listed on US exchanges and part of the S&P 500. The stock price index represent the straight average value of the stock of 32
trusted companies (Edelman Net Trust Score = 45+, top quartile of database gathered between November to December 2017); relative to January 2, 2018. The sector index represents average value of the index relative to January 2, 2018
and is weighted by the number of companies in that sector. See appendix for full list of companies included. Trust-related market cap is the additional 5% return of trusted companies over the sectors times the current market cap (stock price
times shares outstanding)
97.5
93
High trust companies
outperformed their sector
index by an average of
5%
January 2018 – December 2018.
97.5
93
14. 06
On average, in the case
of adverse events,
trusted companies lose
4.7 percentage points
less than distrusted
companies.
In the case of adverse
events or crisis, the value
of the stock of trusted
companies is less affected
than distrusted companies.
Resilience against risk:
Trusted companies are
more resilient in the
face of crisis
Source: 2018 Workplace Analytics analysis. 51 adverse events for 31 companies (November 20, 2017 – July 19, 2018). See Appendix for details. Expected stock price calculated using Fama French 3-factor model aggregate. 2017 – 2018
Edelman Trust Management study. Q2: Please indicate how much you trust [COMPANY} to do what is right. Please use a 9-point scale where 1 means that you “do not trust it at all” and 9 means that you “trust it a great deal.” 9-point scale;
ENTS calculated from NET: top 3 minus bottom 4. Trusted companies. (ENTS = 45+) top quartile of the Edelman Trust database. Distrusted companies (ENTS=15-) lower quartile of the Edelman Trust database. US. General population
18+.
15. • How trusted are you?
• How much do each of your unique audiences and stakeholders trust you?
• How do you fare against your competition?
• How does your trust manifest across geographies?
• What are the levers that drive trust that you can make work for you?
Trust applied to
Trust is significant and ever-present, but you need to understand how it applies
to your unique business or organization to impact it, dimensionalizing:
15
YOU
24. Building Trust
1Understand
what you are
asking people
to risk
2Act before you
talk
3Tell your story
with people,
not at them
4Be a part of
culture, not
just an intruder
26. Challenge
The New York Times
journalistic integrity is under
attack at a time when the
value of quality journalism is
not fully understood or
appreciated.
27. The New York Times Mission
We seek the truth and help people understand the
world.
29. 1
Understand what
you are asking
people to risk
2
Act before you talk
3
Tell your story
with people, not at
them
4
Be a part of
culture, not just an
intruder
Building Trust
33. Product
Quality
Innovation Transparency CitizenshipEthical business
practices
OUR PASSION
Our people,
processes and
products - doing
them in ways no one
else can
OUR WAY
Sharing the values
inherent in what we
do - why would we
think to do it any
other way?
OUR FAMILY
The wider context of
our family, our
projects and plans -
the world and where
we sit in it
DependabilityAbility Integrity Dependability Purpose
36. 1
Understand what
you are asking
people to risk
2
Act before you talk
3
Tell your story
with people, not at
them
4
Be a part of
culture, not just an
intruder
Building Trust
39. "
"
ACTION
OTHER BEERS HAVE CUSTOMERS, BUT BREWDOG HAS FANS. IN 2010, THE COMPANY LEVERAGED THE INTENSITY OF
ITS SUPPORTERS INTO A NEW FINANCING MODEL, RAISING CROWDFUNDED CAPITAL WITHOUT HAVING TO BEND
ITSELF TO FINANCIAL TARGETS SET BY BANKS OR INVESTORS
40. 1
Understand what
you are asking
people to risk
2
Act before you talk
3
Tell your story
with people, not at
them
4
Be a part of
culture, not just an
intruder
Building Trust
41. Focussing on what matters
41
Ability Integrity Dependability Purpose
A believes B has the
skills, competencies,
and resources to have
influence in some
domain (competence,
capabilities, expertise)
A believes B adheres
to a set of principles
that A finds acceptable
(fairness, transparency,
credibility, honesty)
A believes B consistently
adheres to a set of
principles that A finds
acceptable (reliability,
dependability)
A believes B wants
to do good for A
(loyalty, caring, non-
opportunistic)
Good at what
they do
Is honest Keeps its
promises
Works hard to
have a positive
impact on society