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![CEO Focus Misplaced
30
Percent who agree with each statement about CEOs
CEOs should focus less on lobbying/profit and more on providing positive impact to society
Lobbying
Too Much
Focus on short-term
financial results68%
75%
Not Enough
Job creation60%
Positive
long-term impact52%
Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs do too much lobbying,’ ‘Given that the
average tenure of CEOs is just 4 years, CEOs aren’t in their role long enough to make a positive impact,’ (Top 4 Box, Agree) ‘CEOs are too focused on short-term financial results,’ ‘CEOs can
be trust to create jobs’ ] (Bot 5 Box, Do not agree) General Population, South Korea.
General
Population
vs. 57% Global Avg.](https://image.slidesharecdn.com/korea-trust2016web-160203104940/85/2016-Edelman-Trust-Barometer-Korea-26-320.jpg)
![52%
62%
72%
82%
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 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”. [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 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. (Top 4 Box, Important) General Population, South Korea, question asked of half the sample.
Percent who agree that each type of information is important in building trust in a CEO
CEO’s personal values matter most
35
General
Population](https://image.slidesharecdn.com/korea-trust2016web-160203104940/85/2016-Edelman-Trust-Barometer-Korea-31-320.jpg)
![66
59
48 46
35 34
38
35
29
22
73
57
53
45 43 43 42 42
36
24
My friends
and family
An academic
expert
Companies
that I use
A journalist Employees of
a company
A company
CEO
A well-known
online
personality
Celebrities Elected
officials
Companies
[brands] 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, South Korea, question asked of half the sample.
* Asked as “Brands I don’t use” in 2015. 43
+8 +9
50%
2015 2016
General
Population](https://image.slidesharecdn.com/korea-trust2016web-160203104940/85/2016-Edelman-Trust-Barometer-Korea-38-320.jpg)
Uploaded byEdelman APACMEA
2016 Edelman Trust Barometer Korea
This document provides methodology details and key findings from the 2016 Edelman Trust Barometer survey conducted in 28 countries. It includes information on: - The methodology including sample sizes, margins of error, and dates of fieldwork. - Overview of the different population segments surveyed: General Population, Informed Public, and Mass Population. - Trends in trust levels for different institutions (government, business, media, NGOs) from 2015 to 2016 globally and for South Korea specifically. - A comparison of trust levels between the Informed Public and Mass Population, noting a growing trust gap. - Other findings related to trusted companies and credibility of different spokesperson types.
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2016 Edelman Trust Barometer Korea
- 1. Korea Report 2016 Edelman TrustBarometer
- 2. Methodology 28-country global datamargin 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 2 General Population ‣ Ages 18+ ‣ 1,150 respondents per country Informed Public ‣ 8 years in 20+ markets ‣ Represents 15% of total global population ‣ 200 respondents Must meet 4 criteria: ‣ Ages 25-64 ‣ College educated ‣ In top 25% of household income/age group ‣ Report significant media consumption/ engagement in business news Mass Population ‣ All population not including Informed Public ‣ Represents 85% of total global population + = Online Survey in 28 Countries
- 3. 1 State ofTrust
- 4. 63 57 51 48 67 63 57 51 51 48 45 41 55 53 47 42 TrustRising 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. 5 Percent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016 Upward trend for all institutions globally NGOs Business Media Government +4 +6 +6 +3 Informed Public General Population 2015 2016 +4 +5 +2 +1
- 5. 52 30 41 30 58 33 43 35 68 36 50 33 72 37 52 38 Trust Rising Source: 2016Edelman 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, South Korea. 6 Percent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016 Recovering trust for all institutions in Korea, especially government and NGO Informed Public General Population NGOs Business Media Government +4 +1 +2 +5 2015 2016 +6 +3 +2 +5
- 6. 67 66 70 68 72 54 54 58 52 58 33 4445 33 38 31 36 39 30 35 2012 2013 2014 2015 2016 31 31 39 36 37 30 35 32 30 33 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, South Korea. 8 Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016 45 49 48 50 52 42 47 44 41 43 NGO’s Government Media Business Post-Recession Highs Informed Public General Population
- 7. Source: 2016 EdelmanTrust 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, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Global Increase in Business Trust 9 Percent trust in business, 2015 vs. 2016 Korea has the lowest trust in business across all countries surveyed 2015 2016 General Population 48 47 64 70 58 68 65 59 56 57 48 51 43 46 51 36 44 30 46 36 40 32 42 38 36 37 30 60 57 53 50 76 71 70 69 67 64 60 60 57 56 53 52 51 48 46 46 46 43 43 42 42 39 38 38 33 58 56 Global27 GDP5 Mexico Indonesia China India UAE Brazil S.Africa Singapore Italy Canada Argentina Australia U.S. Spain U.K. France Sweden Ireland Japan Turkey Germany HongKong Poland Russia S.Korea Malaysia Netherlands 50% Increased or equal trust in business in 25 countries +12 +12 +10 +12 +16 +10
- 8. Trusted Companies byNationality Percent Most Trusted National Identities for Companies by Koreans 2015 vs. 2016 Koreans rank Korean companies 12th (37%) out of 17 countries Source : Q. Now we would like to focus on global companies headquartered in specific countries. Please indicate 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”. 10 General Population 67% 65% 63% 71% 60% 0 58% 53% 57% 37% 41% 40% 31% 22% 24% 26% 21% 72% 72% 70% 69% 68% 62% 60% 59% 56% 44% 44% 37% 34% 28% 26% 24% 23% Switzerland Sweden Canada Germany Netherlands Australia UK US France Spain Italy SouthKorea Japan China India Brazil Mexico 50% 2015 2016
- 9. 58 58 60 52 47 45 43 44 43 47 42 43 42 45 40 53 52 56 58 56 31 32 33 35 32 2012 20132014 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, South Korea, question asked of half the sample. Trust in each source for general news and information Deteriorating trust in traditional and social media *From 2012-2015, we included Online Search Engines as a media type. In 2016, we changed to Search Engines. **From 2012-2015, we included Hybrid as a media type. In 2016, we changed this over to Online-Only. 11 General Population Source Search Engines Traditional Media Online-only Media Social media Owned media
- 10.
- 11. 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, South Korea. 13 Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2016 Trust gap between Informed Public and Mass Population has increased since 2012 Informed Public Mass Population 10pt Gap 6pt Gap 44 47 51 47 50 38 42 41 35 40 2012 2013 2014 2015 2016 12pt Gap for Global
- 12. Trust Index 2012– 2016, percentage point change in the size of the trust gap between Informed Public and Mass Population Most of the countries have seen growing gaps An Accelerating Disparity 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, 2012 vs 2016. GDP 5 = U.S., China, Japan, Germany, U.K. 14 Increased Gap Decreased Gap Gap has increased in 16 of 25 countries Global25 GDP5 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 2012 Gap 9 7 4 7 11 1 8 6 6 4 13 8 7 6 14 8 2 7 8 3 10 13 6 13 10 14 15 2016 Gap 12 12 16 17 19 9 15 10 10 8 16 11 10 9 16 10 3 8 8 3 8 11 3 9 6 10 10 Sweden 3 5 12 10 8 8 7 4 4 4 3 3 3 3 2 2 1 1 0 0 -2 -2 -3 -4 -4 -4 -5
- 13. 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. 15 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
- 14.
- 15. 55 Global 60Global 82 China 78 India 74 UAE 72 Mexico 72 Singapore 70 Indonesia 64 U.S. 63 Australia 63 Canada 62 Netherlands 61 Colombia 84 UAE 79 India 78 Indonesia 75 China 65 Singapore 64 Netherlands 49 Ireland 47 Turkey 46 Sweden 42 Poland 42 Russia 41 Japan 48 Italy 48 S. Africa 47 Hong Kong 47 S. Korea 46 U.K. 45 Argentina 45 Poland 45 Russia 45 Spain 45 Sweden 40 Turkey 37 Ireland 37 Japan 58 Brazil 58 Italy 58 Malaysia 57 U.K. 55 France 54 S. Africa 53 Argentina 53 Spain 52 Hong Kong 51 Germany 50 S. Korea 59 Brazil 59 Mexico 56 Malaysia 53 Canada 52 Australia 52 France 52 U.S. 50 Germany Trust Index: Informed Public Drives Rebound Average trust in institutions, Informed Public, 2015 vs. 2016 2015 2016 Informed Public trust up 5 points Trusters from 22% in 2015 to 39% in 2016 Distrusters from 48% in 2015 to 21% in 2016 Trusters Neutrals Distrusters 17 The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. 27-country global total.
- 16. 49 Australia 49 Italy 49U.S. 47 Hong Kong 46 Spain 45 S. Africa 42 Germany 42 S. Korea 42 U.K. 41 France 41 Ireland 41 Turkey 39 Russia 38 Japan 37 Sweden 35 Poland 73 China 66 UAE 65 India 64 Singapore 62 Indonesia 60 Mexico 57 Mexico 55 Canada 55 Colombia 52 Netherlands 50 Argentina 50 Malaysia 48 Brazil 47 Australia 47 Italy 46 Hong Kong 45 U.S. 44 S. Africa 44 Spain 42 Germany 40 S. Korea 40 U.K. 39 France 39 Ireland 39 Russia 39 Turkey 38 Japan 36 Sweden 34 Poland 71 China 65 UAE 62 India 62 Indonesia 62 Singapore 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil Trust Index: General Population Lags Average trust in institutions, Informed Public vs. General Population, 2016 General Population Mass Population 50 Global48 Global 49 Ireland 47 Turkey 46 Sweden 42 Poland 42 Russia 41 Japan 82 China 78 India 74 UAE 72 Mexico 72 Singapore 70 Indonesia 64 U.S. 63 Australia 63 Canada 62 Netherlands 61 Colombia 58 Brazil 58 Italy 58 Malaysia 57 U.K. 55 France 54 S. Africa 53 Argentina 53 Spain 52 Hong Kong 51 Germany 50 S. Korea Informed Public 60 Global Trusters Neutrals Distrusters The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. 27-country global total. Nearly 6 in 10 countries are distrusters among the General Population 18
- 17. The Inversion ofInfluence 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, South Korea. Authority & Influence Influence Authority 19 Mass Population 82% of population 40 Trust Index 18% of population 50 Trust Index Informed Public Mass Population 85% of population 48 Trust Index 15% of population 60 Trust Index Informed Public
- 18. 56 42 45 42 37 30 27 21 23 62 51 48 45 45 37 35 27 26 Peers,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, South Korea, question asked of half the sample. Percent who rate each spokesperson as extremely/very credible 2015 2016 +8 Technical Expert Academic Expert A person like yourself Financial Industry Analyst Employee CEONGO representative Board of Directors Government official/regul ator A person like yourself credibility increased the most +9 +8 General Population 21
- 19. 4 An Opportunity forBusiness
- 20. 72 37 52 38 62 59 59 41 58 33 43 35 5658 57 39 NGOs Business Media Government Business Most 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, South Korea 24 Percent trust, and percent who trust each institution to keep up with the changing times, 2016 However, business is expected to solve problems in changing times Informed Public General Population Trust Trusted to keep pace
- 21. 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Sector Trends: Innovative IndustriesRebound 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) General Population, South Korea. *From 2012-2014, Pharma included as subsector(Q61f-65f). **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 2012 2013 2014 2015 2016 Industry 2012 2013 2014 2015 2016 5 yr. Trend Technology 75% 72% 75% 67% 69% 6 Energy 56% 61% 62% 58% 59% 3 Pharmaceutical 44% 52% 55% 50% 57% 13 Financial Service 44% 53% 57% 45% 52% 8 Automotive 63% 64% 64% 53% 51% 12 Consumer Packaged Goods 39% 52% 54% 46% 51% 12 Food & Beverage 47% 49% 52% 45% 48% 1 Telecommunications 47% 50% 54% 44% 48% 1 25 General Population
- 22. 54 37 36 29 23 18 40 14 34 23 38 13 Trust Matters Source: 2016Edelman 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, South Korea, question 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, South Korea, question asked of half the sample. Percent who engage in each behavior based on trust 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 most trusted content creators:#1 Friends and Family most trusted media source:#1 Search Engines General Population 26
- 23. 5 Leadership ina Divided World
- 24.
- 25. Actions Leadership in aDivided World:
- 26. CEO Focus Misplaced 30 Percentwho agree with each statement about CEOs CEOs should focus less on lobbying/profit and more on providing positive impact to society Lobbying Too Much Focus on short-term financial results68% 75% Not Enough Job creation60% Positive long-term impact52% Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs do too much lobbying,’ ‘Given that the average tenure of CEOs is just 4 years, CEOs aren’t in their role long enough to make a positive impact,’ (Top 4 Box, Agree) ‘CEOs are too focused on short-term financial results,’ ‘CEOs can be trust to create jobs’ ] (Bot 5 Box, Do not agree) General Population, South Korea. General Population vs. 57% Global Avg.
- 27. Purpose and ProfitsMatter 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, South Korea question asked of half the sample. 31 Percent who agree that CEOs should be personally visible in discussing… 79% Societal Issues ‣ Income inequality ‣ Public policy discussions ‣ Personal views on societal issues 63% Financial Results General Population
- 28. Purpose Impacts Trust Percentwho cite each as a reason for why their trust in business has increased or decreased Greater distrust arises from failing to contribute to the greater good 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, South Korea. Reasons Trust in Business Has Increased Reasons Trust in Business Has Decreased Produces economic growth Has good leadership Contributes to the greater good Fails to contribute to the greater good Lacks economic growth Provides few services 47% 36% 35% 67% 46% 41% 32 General Population
- 29. Values Leadership in aDivided World:
- 30. Integrity 10% 34%24% Exhibits highly ethical behaviors 9% 31% 22% Takes responsible actions to address an issue or crisis 13% 38% 25% Behaves in a way that is transparent and open 10% 31% 21% Engagement 9% 30% 21% Treats employees well 9% 29% 20% Listens to customer needs and feedback 9% 33% 24% Places customer ahead of profits 10% 31% 21% Communicates frequently and honestly on the state of their company 7% 26% 19% Products 18% 32% 14% Places a premium on offering high quality products or services 19% 36% 17% Is focused on driving innovation and introducing new products/services/ideas 17% 28% 11% Purpose 10% 24% 14% Is dedicated to protecting and improving the environment 9% 22% 13% Ensures that the company creates programs that positively impact the local community in which it operates 11% 25% 14% Ensures that the company addresses society's needs in its everyday business 10% 25% 15% Ensures that the company partners with NGOs, government and third parties to address societal issues 10% 23% 13% Operations 13% 23% 10% Attracts and retains a highly-regarded and widely admired top leadership team 10% 23% 13% Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 13% 18% 5% Manages the company in a way that delivers consistent financial returns 16% 27% 11% Leaders Seen As Underperforming Source: 2016 Edelman Trust Barometer. Q462-478 How important is each of the following attributes to building your trust in CEOs? (Top 2 Box, Important) Q479-495 Please rate CEOs 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.” CEO questions use the same scales as the business questions. (Top 2 Box, Performance) General Population, South Korea. Importance vs. performance of 16 trust-building leadership attributes Gap 34 General Population CEO Importance (Expected) CEO Performance (Perceived)
- 31. 52% 62% 72% 82% Their education and howit 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 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”. [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 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. (Top 4 Box, Important) General Population, South Korea, question asked of half the sample. Percent who agree that each type of information is important in building trust in a CEO CEO’s personal values matter most 35 General Population
- 32. Employee Advocacy Leadership in aDivided World:
- 33. 50% 65 60 40 48 48 50 5455 56 57 58 59 60 62 62 63 64 64 64 72 73 76 76 77 77 78 79 83 85 89 Global GDP5 Japan Russia France Sweden Australia S.Korea Poland U.K. Italy HongKong Ireland Germany Netherlands Spain Turkey Canada U.S. S.Africa Singapore Malaysia UAE Indonesia Brazil Argentina China India Colombia Mexico Significant Employee Lack of Trust 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. GDP 5 = U.S., China, Japan, Germany, U.K. 37 Percent who trust the company for which they work Almost half of Korean employees do not trust the company they work for TrustedNot Trusted General Population
- 34. Activist Consumers andEmployees 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 and handling of a crisis: Who do you trust MOST to provide you with credible and honest information about a company’s business practices, both positive and negative, and its handling of a crisis? Q612 Who do you trust MOST to provide you with credible and honest information about 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 Who do you trust MOST to provide you with credible and honest information about a company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 Who do you trust MOST to provide you with credible and honest information about 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, South Korea, question asked of half the sample. 39 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 15 12 12 15 22 19 10 14 12 12 16 20 29 25 31 14 34 29 42 47 50 40 33 29 20 19 14 25 16 22 20 23 22 27 17 22 Company CEO Senior executive Employee Activist consumer Academic Media spokesperson General Population
- 35. Company NOT engaged in societalissues Company engaged in societal issues Employee Advocacy Increases With Societal Issue Engagement 40 47 51 54 57 55 61 72 Recommend company as an employer Confidence in the future of the company Stay working for the company Recommend products and services to others Motivated to perform Committed to achieving our strategy Do the best possible job for the customer Impact of Company Engagement 11 20 25 21 18 20 22 83 81 80 78 72 71 69 Source: 2016 Edelman Trust Barometer Q527-529. Does your company and your company’s CEO get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Q530-536. Thinking about your current company, please indicate how much you agree with each of the following statements using a 9-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, South Korea, question asked of half the sample. General Population
- 36. Engagement Leadership in aDivided World:
- 37. Integrity 12% 44%32% Has Ethical Business Practices 12% 40% 28% Takes Responsible Actions To Address An Issue Or A Crisis 13% 45% 32% Has Transparent And Open Business Practices 11% 45% 34% Engagement 13% 43% 30% Treats Employees Well 14% 49% 35% Listens To Customer Needs And Feedback 14% 46% 32% Places Customers Ahead Of Profits 13% 40% 27% Communicates Frequently And Honestly On The State Of Its Business 13% 38% 25% Products 16% 37% 21% Offers High Quality Products Or Services 16% 43% 27% Is An Innovator Of New Products, Services Or Ideas 17% 30% 13% Purpose 11% 31% 20% Works To Protect And Improve The Environment 11% 36% 25% Creates Programs That Positively Impact The Local Community 13% 30% 17% Addresses Society's Needs In Its Everyday Business 9% 30% 21% Partners With NGOs, Government And Third Parties To Address Societal Issues 10% 27% 17% Operations 12% 29% 17% Has Highly-Regarded And Widely Admired Top Leadership 11% 25% 14% Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 12% 33% 21% Delivers Consistent Financial Returns To Investors 13% 30% 17% Trust Building 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) South Korea. Company Importance vs. Business Performance Gap 42 Company Importance (Expected) Business Performance (Perceived) General Population
- 38. 66 59 48 46 35 34 38 35 29 22 73 57 53 4543 43 42 42 36 24 My friends and family An academic expert Companies that I use A journalist Employees of a company A company CEO A well-known online personality Celebrities Elected officials Companies [brands] 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, South Korea, question asked of half the sample. * Asked as “Brands I don’t use” in 2015. 43 +8 +9 50% 2015 2016 General Population
- 39.
- 40. Influence The Inversion of Influence Influence &Authority Authority Old Model ‣ Elites have access to more/better information ‣ Elites’ interests interconnected with those of mass ‣ Becoming an “elite” open to all New Reality ‣ Peer-to-peer influence more powerful than top- down ‣ Increasing distrust among mass population ‣ Mass movements based on dissatisfaction and urgency The Divide ‣ Democratization of information and more information ‣ High-profile revelations of greed and misbehavior ‣ Income inequality 44
- 41.
- 42. Embracing the NewReality of Influence to Address Trust Inequality 46 ‣ 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 Actions Values Employee Advocacy Engagement Influence AuthorityLeadership TRUST
- 43.
Editor's Notes
- #4 This year’s overarching theme is the “Growing Inequality of Trust : Inversion of Influence” Introducing the concept of inequality of trust in Korean context Income and class inequality a very live issue in Korea, too. Eg.: Many young adults describe life in Korea as a "Hell Korea." They have "given up," and their lives have nothing special. Korean phrases such as "sampo," "opo" and "chilpo" describe doubts about jobs, marriages and children.
- #6 There is a general upward trend for all institutions globally
- #7 Overall slightly upward trend Government Bouncing back from last year’s sentiment impacted by Sewol Ferry disaster, this year’s been relatively better , but still low NGO’s Higher compared to other institutions
- #9 Similar trend to Global – slight recovery So you might think things are going well
- #10 Not quite so, if you look at Korean results in comparison with other countries Trust in business is the lowest in Korea among all countries in the survey
- #11 Slight change in the question, we asked Koreans which nationality of global companies would they trust more. In this question, as well, Korean businesses ranked low – 12th out of 17 countries.
- #12 Looking at trust in sources of news and information, as well, trust level decreased in major sources such as Search, Traditional AND social media. Search Engines : Inaccurate issue buzzing for social problems that were not accurate (e.g. MERS, NK issues)
- #14 As I said in the beginning of the presentation, the divide of opinions and view points between IP and MP was the key finding of this year’s Trust results. This chart shows the growing gap
- #15 We are seeing growing gaps in more countries Note: Please spend time a little bit to explain how to read this graph, as it was not intuitive for many
- #16 And this is a global phenomenon. More than half of our countries today have a double-digit trust gap. As you can see from the map, this is not a developed vs developing country issue. Not an east vs. west issue. It’s truly a global phenomenon. Its an everywhere problem, that exists across a mix of economies.
- #18 Note: Please explain that index is like a score. The higher, the better.
- #19 In case of Korea, too, one might think that Korea is doing much better if you look at only IP. However, not so much, if you take MP into consideration. In the eyes of General Population, Korea is still one of the distrusters.
- #20 Global trend very relevant for Korea
- #21 And when it comes to forming opinions about companies, who do people listen to? It still is experts, both technical and academic. But here in 2016, a person like yourself has risen to the same level as experts. This year, we also see an 8 point rise in CEOs credibility. This is a huge opportunity for leaders.
- #22 In Korea, too, the influence of peers has grown significantly.
- #24 So, we know trust in business is low in Korea. However, there is still a huge opportunity….(show next slide)
- #25 This is why. Even though the trust in business is low, it is still seen as an important institution to “solve problems of changing times”, and the score has grown quite a lot this year.
- #26 And we confirmed this opportunity when we looked at trust in business by sectors. In Korea, as you can imagine, Tech has traditionally scored high in comparison to other sectors. (Samsung) This year, we also saw other innovation-intensive sectors such as Pharma (Green) along with Tech leading the way. (Hanmi Pharma, Samsung BioLogics) However, it is still too early to say that we are seeing a clear upward trend, because the increase is still too small. This is why we think that now is the critical moment for Korean businesses to really gain back the trust and make this slight increase into a lasting and powerful trend moving forward.
- #27 We have seen year over year that those who trust, are most likely to ‘buy products,’ ‘pay more,’ ‘recommend to friends and colleagues,’ ‘share positive opinions online’ Trust actually makes a bottom-line difference for business
- #35 In this year’s results, Integrity was the attribute where we saw the biggest Performance-Importance gap, when the respondents thought about CEOs The unique Korean context of Chaebol-driven economy might have been a factor. - Inheritance issues in most large conglomerates (Samsung, Lotte, Doosan, CJ, SK, Hanwha) … linked to: complex shareholding structure and relatively vulnerable governance issues
- #36 Like the global result, ‘Personal value’ is the most important in building trust in CEO Two recent big movie hits (Insiders” and “Veterans”) both depicting business owners as extremely corrupted and immoral characters probably show the sentiment
- #38 When outsiders like myself talk about Korea, we often point out how highly educated and highly skilled Korean workforce is. What we found out in this survey – probably not so obvious -- was that they are also highly skeptic. It is quite stunning that almost half of the employees actually do not trust the companies they work for. This probably represents the internal sentiment in many businesses where the possibility of large scale job reduction and early retirement has become a routine.
- #39 So, employees are not very trusting and they will always be the toughest to convince, because they will not be bought into a company’s PR message. They know and are part of the real decisions company makes every day. Yet, they are the most important sources of information to those who are outside of the company. Let’s say you read an article about how company A is an awesome place to work in the paper. You might be influenced by the article, but you will always trust more, what a real person who has worked for that company has to say about the experience.
- #40 In Korea, too, we see employees are essential part of the picture. We also see that activist consumers play a very important role in Korean context. (Note: “Activist” might be interpreted slightly differently for Koreans. More as “vocal consumers” such as power bloggers)
- #43 Following Integrity, we saw the largest importance-performance gap in Engagement in Korean businesses.