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Comprised of 21 countries, Latin America is a land of enormously diverse peoples, climates and geographies. Yet across the region we find two commonalities — what people eat and their high trust in the food and beverage industry.
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As part of this year’s Edelman Trust Barometer, we conducted a special piece of supplementary research on trust in the CEO. The findings included in this presentation reveal a critical trust challenge for CEOs but also a rich opportunity for leadership. We believe a new model of CEO leadership is emerging and there are clear actions a CEO can take to rebuild trust and credibility.
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The 2017 Edelman TRUST BAROMETER Special Report: Family Business is a general population survey conducted amongst 15,000 respondents across 12 markets: U.S., UK, China, Indonesia, Saudi Arabia, India, Germany, Brazil, Italy, France, Canada and Mexico.
The study looks at trust in family business as it relates to business performance; perception of next-generation leaders; expectations of the wealthy; and philanthropy.
Learn more here: http://edl.mn/2ha727I
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Our 2016 Edelman TRUST BAROMETER revealed trust levels in all four institutions have reached its highest level since the Great Recession, with business receiving the largest increase in trust among both the informed public and the larger general population.
There is a growing trust disparity that has put business in a new situation of strength, a unique position that translates into an opportunity to help mend the trust divide.
For more information, visit www.edelman.com/trust2016
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Today's economic climate has lead most companies to be more budget constrained and risk adverse than ever before. As a result, more project strategies and purchase decisions have been shifted upwards. This trend makes it more important to implement marketing programs that enable sales teams to engage and sell to senior level executives directly. Yet these executives are suffering from Frugalnomics – more overloaded, skeptical and frugal than ever before – plus they are plain busy, making successful engagements harder than ever.
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What techniques work best to break-the-ice and engage with value?
What needs to change when traditional lead generation programs aren't yielding the same return?
Based on proven methods, implemented by B2B leaders such as HP, IBM and Microsoft, this webinar will present 5 proven and practical ways, with specific case studies, of how to best break through the noise and achieve senior level engagement success.
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This year was certainly a year of events, and as we will see a single event can greatly impact trust.
This is the 12th year we have conducted the Trust Barometer. In previous years we only surveyed the Informed Public audience. This year we added the general population audience increasing our sample from about 5,000 to over 30,000 respondents. We also added two new countries, Hong Kong and Malaysia, increasing our country total to 25 markets. In Singapore, this is the third year we have conducted the Trust Barometer – since 2010.In addition to a more robust methodology, we also developed a new trust construct which we will dive deeper into later in the presentation. We believe the more robust methodology and instrument will enable us to garner greater insights and a broader knowledge base, while providing diagnostic and prescriptive recommendations to clients. The icons in the top right corner indicate the audience presented on each slide of this deck.IF ASKED: Why is the tracked CATI data comparable to the online data?The 2012 Trust Barometer marks a significant evolution of the twelve year tracking study. This year’s study expanded the sample of respondents to include the general population in addition to the traditional informed publics audience. Additionally, the study transitioned online to allow for a more robust audience with 1,000 general population respondents and an oversample of 200 informed publics per market (500 informed publics in U.S. and China); thus collecting data from over 30,000 respondents in 25 different markets. During this transitional year, the top ten GDP countries were also conducted by telephone. Conducting the top ten GDP countries using a telephone and online methodology allowed StrategyOne to explore any methodological differences when collecting the data. Hard and soft quotas were set on gender, age, education, and income to ensure comparability of the two samples. This isolated a number of variables to make certain any differences truly were due to the methodology. StrategyOne analysts as well as a third-party statistician analyzed the data collected by both the telephone and online methodologies across 39 tracked questions. The analysis accounted for the margin of error followed by calculating the significant differences between the two methodologies and then comparing any significant differences to the CATI trend. After a very thorough analysis both the analysts and statisticians concluded the online data is comparable to the CATI data, thus allowing the study to transition to the online methodology without affecting tracking data.
We have conducted the study for the past 12 years and this slide illustrates the key takeaways from each year we have conducted the study. As we have seen in previous years (namely 2007 and 2009) business and government have always had an interesting dynamic. Their relationship is now more important than ever, as we will see throughout this presentation.
From Left to Right, top to bottom rowGlobalFukushima Daiichi nuclear disaster – 11 Mar 2011Middle East Arab Spring – Began 18 Dec 2010, as a series of uprisings around the MiddleEast, with key events such as Gaddafi’s death on 20 Oct 2011. Occupy Wall Street – 17 Sept2011 Protests on Brazil’s Independence Day – 7 Sep 2011 News of the World closure – 7 Jul 2011 SingaporeSingtel Service Breakdown – 7 Sep 2011Night Safari’s Halloween Horrors at cancelled – 14 Sep 2011 SLA Corruption Case – Charged on25 Jun 2011Singapore Presidential Elections – 27 Aug 2011 Singapore Parliamentary Elections – 7 May2011
As you may recall, Japan experienced a tragic earthquake, tsunami and the effects of a nuclear reactor. As this slide illustrates, one event can shake an entire nation which further emphasizes the fragility of trust. Japan has always maintained fairly steady trust levels, so to see these mass declines is astonishing. *The 55 percentage point drop in government official credibility is the largest decline in the history of the Trust Barometer for a government official.
StrategyOne conducted a Trust Index, illustrated here, which is the composite score of four institutions: business, government, media and NGOs. Over the past year we have seen a growing distrust among a number of markets. Not only are there nearly twice as many countries in the distrusters category, but overall the Index scores are lower. For example, in 2011 five markets had an index score of 70+. One year later, only one market has an index score over 70. Singapore is ranked third globally as most trusting nation (i.e. ranks among the highest for trust across all four institutions – government, business, media, NGOs); improvement from seventh position in 2011
Diving deeper into the state of trust, we will explore trust levels across four institutions, industries and the state of various markets around the world.
Trust Levels in Singapore remain high – the third ranked globally after UAE and China in the trust indexThis is the largest decline in trust in government we have seen in the history of the Barometer. In 13 markets trust in government declined over the past year. And in 17 of the 25 markets, less than 50% trust government to do what is right. We see the most dramatic decreases in Spain, Japan and Brazil. Brazil’s decline is more a return to normal…. At the time of last year’s Trust Barometer, Brazil had just been awarded 2014 World Cup and the 2016 Summer Olympics and President DilmaRousseff had just been elected. This year’s declines represent a return to normalcy for businesses and the arrest of four government officials for corruption.
Trust in business remains steady in Singapore (66% in 2012, 67% in 2011) among informed publicsTrust rose in only one country (China) and declined in 7 markets, notably South Korea, Germany, France, and Brazil. Now business is trusted by less than half of Informed Public respondents in 10 of the 25 markets. Interesting General Population Fact:- Emerging markets are significantly more likely to trust business than developed markets (54% to 42% respectively)
In Asia Pacific region, top four most trusted industies consistent from 2011 to 2012, while brewing and spirits remain least trustedTechnology remains among the Top industry across the world – Globally, APAC and Singapore and compared to 2011Food and Beverage is more trusted in Singapore than in APAC and globallyBanks and financial services are least trusted globally, but are more trusted in Asia Pacific – banks are in the top 4 trusted industries in Asia Pacific.At 63% trust in media in APAC and 65% in Singapore this year, trust in media is in the ‘truster’ category, so while it ranks low, its percentage is technically not considered low. Interesting General Population Fact (Global Data)- Parents are significantly more trusting of all industries, with the exception of ‘brewing and spirits’.
Trust in F&B industry in Singapore increases significantly (10 point increase to 79%) and rises to second most trusted industry.Possibly due to increased awareness of food security and sustainable food for Singaporeans – e.g. AVA targets for 95 coastal fish farms to increase output (May 2011)Possibly depressed trust in F&B in 2011 results due to negative coverage around YOG/ Singapore Food Industries in 2010.However, overall trust in industries have remained stable– eg: lowest ranking industry was 57% in 2011 (Brewing and Spirits), but 64% in 2012 (Financialal services) F&B saw a +10 percentage point increase
Media Institutions across the world saw trust levels increaseNote: News of the World Scandal might be raised as a talking pointMedia was the only institution of the four we study to see an increase in trust globally– in Singapore, trust in media remained stable at 65% in 2012 from 59% in 2011 Media is the only institution to see a trust increase over the past year. The rise in media was attributed by some surprising markets: U.S., U.K. and Australia, especially the U.K. with the Murdoch phone hacking scandal.
Info from Top BoxSocial media saw the biggest increase in trust among media sources. Yet, traditional media still remains the most trusted source of information. Interesting General Population facts (global data):Executive level management is more likely to trust digital information sources than the regular employee. Younger adults (18-29 year olds) are more likely to trust digital information sources than older generations.Parents are more likely to trust digital information sources than people who are not parents. Emerging markets are more likely to trust digital information sources than developed markets (62% vs. 43% respectively for top 2 box)
Traditional Media – newspapers and TV news remain among the most trusted sources in Singapore, and saw a significant increase from 2011.
People still need to hear something 3-5 times to believe it,Numbers for this category increased from 2011:2011 2012Three to five times (SG) 63% 70% (Increase of 7 percentage points)Three to five times (APAC) 58% 64% (increase of 6 percentage points)(Without HK and Malaysia)There are changing dynamics which we believe are associated with higher trust in media. First we are seeing high levels of skepticism with nearly 2/3rds needing to hear something 3-5 times to believe it. This is as high as 82% in Japan.
The last institution – NGOs are still the most trusted institution with only 5 markets trusting NGOs by less than 50%. Although we are seeing declines in some markets, notably Russia and Japan. Trust in NGOs has been on the rise in China. NGOs are now more trusted in India and China than in some Western markets. Why have we seen such a dramatic rise in Trust in NGOs in China -The perception of NGOS have changed over the past few years as they have shifted from being a state owned/ controlled industry to more independent organizations. Our colleagues in China and India have also indicated that working in the NGO sector is actually a sign of wealth, as people who work in that industry tend to do fairly well given the funding India and China receives from western markets.
NOTE: Singapore data adds to 101% due to a rounding error.
“A person like me” saw significant increase in trust and has emerged as the most trusted spokesperson behind academics and technical experts. Together with increases in trust for Social Media and Online Sources globally, this might show a democratization of trust CEO credibility also experienced its largest decline in Barometer history. They are now the second least trusted spokespeople globally. In Singapore, there was a significant decrease of 12 points to 46% - CEO credibility has been falling significantly since 2010; however CEOs are still the fourth most trusted spokesperson.-Some stories in 2011 that might have impacted this was Night Safari and CEO cancelling Halloween Horrors, SIA apology 2 months late for their website problemsInteresting General Population facts (global data):Individuals that hold less than a university degree are more likely than a university graduate to believe a regular employee is credible.University graduates are more likely than those that do not hold a university degree to believe experts are credible.Lower and Medium income individuals are more likely than higher income individuals to believe a CEO is credible. Males are more likely than females to believe a CEO is credible.18-29 year olds are more likely than older generations to believe a CEO is credible.
In Singapore, trust for Financial or industry analyst falls significantlyA person like yourself increased by 21% percentage points
Despite lower credibility of CEOs, business leaders are more trusted than government leaders to tell the truth in 24 of the 25 markets. APAC tends to be more of an outlier being more trusting of both business and government leaders, especially in comparison to markets in the EUAsia Pacific markets, particularly Singapore, are more likely than other regions to trust both business and government leaders to tell the truth.Singapore respondents are most trusting globally of government leaders to tell the truth, no matter how complex or unpopular.
Businesses are not meeting public’s expectations – whether globally, in Asia Pacific or in Singapore. Factors that Singapore public consider most important to trust in businesses have a common theme of transparency and two way communications with customers.Top three factors that have the largest gaps in perceived performance in Singapore are:Takes responsible actions to address an issue or crisisHas transparent and open business practicesPlaces customers ahead of profitsTop 3 Trust Drivers for Global : Percentage (Gap)Listens to customer needs and Feedback: 67% (-31)Offers High Quality Product and Services: 67% (-19)Treats Employees Well: 61% (-37)Note: Largest Gap globally is in Treats Employees Well (-37), smallest Gap is Innovator of Product and Services (-5)Top 3 Trust Drivers for APAC: Percentage (Gap)Listens to customer needs and Feedback: 63% (-28)Offers High Quality Product and Services: 63% (-20)Takes Responsible actions to address an issue or crisis: 61% (-33)Largest Gap in APAC is in Takes responsible actions to address an issue or crisis (-33), smallest Gap is Innovator of Product and Services (-7) AND ranks on a global list of top companies (-7)We asked a two part series of questions on the importance and performance of the following attributes. We have defined these attributes as Trust Building attributes (SEE BELOW FOR ADDITIONAL INFORMATION ON HOW WE ARRIVED AT THESE ATTRIBUTES).Business is not meeting public expectations on a number of trust building attributes, particularly the more societal attributes i.e. treats employees well, places customers ahead of profits, and ethical business practices. Business is closing the gap on expectations for the operational attributes such as financial returns and ranks on a global list. How did Edelman ascertain the attributes?StrategyOne conducted extensive secondary research to determine the most common factors that positively and negatively influence trust in a company. Although trust is a broad term that applies to a wealth of different topics, our secondary research focused on trust in business and drew insights from published studies, white papers and literature reviews. Publications included (but not limited to) the Reputation Institute, Gallup, Better Business Bureau, Journal of Business Strategy, and PWC. We then divided and organized the secondary research into relevant, overarching categories. Ultimately, the results of the secondary research were used to inform a series of 29 attributes that potentially build or damage trust in a company.
That being said, the calls for greater regulation are to ensure consumers are being protected and business is behaving responsibly. However, these are areas that business can address on its own and it is an opportunity for business to step-up and begin acting responsibly.
Globally, Singapore least likely to want more government regulation of business. Despite the lack of trust in government, about half the markets believe government does not regulate business enough. This slide gets to the heart of the dynamic between business and government.
This slide is simply a sample to illustrate our analyses capabilities and potential client offerings. These are not actual results from the study.
Operational attributes that correlate to ‘current trust’ in Singapore: Ranks on a global listInnovator of new productsDelivers consistent financial returnsPartners with third parties NOTE: Does not mean that 41% does not trust businessEXPLANATION:‘41% in Singapore already do not trust business’ is not correctTrust in business was asked with the following question:“On a 1 to 9 scale of trust, where one means that that you ‘DO NOT TRUST THEM AT ALL’ and nine means that you ‘TRUST THEM A GREAT DEAL,’ how much do you trust [INSERT INSTITUTION OR SECTOR] to do what is right?” We then define Trust as being the Top 4 Box of those people who rated something either a 6, 7, 8 or 9 on that 1-9 scale. Thus, the bottom 4 box of the scale (1-4) would be categorized as the percent of respondents who do not trust business. Furthermore, the Bottom 4 Box score in Singapore is 12%, indicating that only 12% of the general public in Singapore do not trust business. This is because 27% of respondents in Singapore chose response option ‘5’ on the scale of 1-9 and 2% chose ‘Don’t Know.’Based on this, I recommend replacing ‘41% in Singapore already do not trust business’ on the slide to ‘59% in Singapore trust business,’ which is what was included in the original version of this slide we delivered.