2017 Edelman Trust Barometer - Canadian Results
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The Canadian data this year Edelman Trust Barometer uncovers some very worrying trends that we ignore at our peril. And this is true whether you hail from a business, the government or the media. Take a look at the results of this year’s Trust Barometer in Canada.
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2017 Edelman Trust Barometer - Canadian Results
- 2. Informed Public 9 years in 20+ markets Represents 13% of total global population 500 respondents in U.S. and China; 200 in all other countries Must meet 4 criteria: Ages 25-64 College educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news General Online Population 6 years in 25+ markets Ages 18+ 1,150 respondents per country All slides show General Online Population unless otherwise noted 2017 Edelman Trust Barometer Methodology 28-country global data margin 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). 2 Mass Population All population not including Informed Public Represents 87% of total global population 17 years of data 33,000+ respondents total All fieldwork was conducted between October 13th and November 16th, 2016 Online Survey in 28 Countries Survey in field Oct. 17-Nov. 13, 2016 1,150 General Population interviews 200 Informed Public interviews Canadian Data
- 4. Trust Index Historically neutral, Canada officially slips to the ‘distruster’ category in 2017 Average trust in institutions, General Population 2015, 2016, 2017 4 Trusters (60-100) Neutrals (50-59) Distrusters (1-49) 47 Hong Kong 44 United States 43 Argentina 42 Australia 42 Germany 42 Italy 42 S. Africa 40 Russia 39 U.K. 38 France 38 S. Korea 37 Sweden 36 Poland 36 Spain 35 Turkey 34 Japan 32 Ireland 68 India 68 UAE 67 Indonesia 63 China 60 Singapore 53 Malaysia 52 Canada 52 Netherlands 51 Mexico 50 Brazil 46 Global 49 Australia 49 Italy 49 U.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 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil 50 Global 49 Canada 48 Italy 48 Brazil 48 Malaysia 45 Argentina 44 Hong Kong 44 Spain 43 Turkey 42 Australia 42 S. Africa 41 Germany 40 U.K. 40 France 38 S. Korea 37 Sweden 36 Ireland 35 Japan 35 Poland 34 Russia 72 India 69 Indonesia 67 China 60 Singapore 60 UAE 53 Netherlands 52 United States 52 Mexico 50 Colombia 47 Global Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country's trust in the institutions of government, business, media and NGOs. General Population, 28-country global total. 2015 20172016
- 5. 45 Global 70 India 67 Indonesia 62 China 59 Singapore 59 UAE 52 Netherlands 50 Colombia 50 Mexico 47 Brazil 47 Canada 47 Italy 47 Malaysia 47 U.S. 45 Argentina 42 Hong Kong 41 S. Africa 41 Spain 41 Turkey 40 Australia 39 Germany 38 France 37 U.K. 36 S. Korea 36 Sweden 35 Ireland 34 Japan 34 Poland 31 Russia Distrust driven by mass population The Mass Population distrusts their institutions in 20 of 28 countries Informed Public 5 60 Global 80 India 79 China 78 Indonesia 77 UAE 71 Singapore 68 U.S. 62 Canada 62 Netherlands 61 Italy 61 Mexico 57 Malaysia 57 Spain 56 France 56 U.K. 55 Colombia 54 Australia 54 Germany 53 Hong Kong 51 Argentina 51 Brazil 50 S. Korea 50 Turkey 49 Japan 49 S. Africa 47 Sweden 45 Russia 44 Ireland 43 Poland General Population 2017 49 Canada 48 Italy 48 Brazil 48 Malaysia 45 Argentina 44 Hong Kong 44 Spain 43 Turkey 42 Australia 42 S. Africa 41 Germany 40 U.K. 40 France 38 S. Korea 37 Sweden 36 Ireland 35 Japan 35 Poland 34 Russia 72 India 69 Indonesia 67 China 60 Singapore 60 UAE 53 Netherlands 52 United States 52 Mexico 50 Colombia 47 Global Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country's trust in the institutions of government, business, media and NGOs. General Population, Informed Public and Mass Population, 28-country global total. Average trust in institutions, General Population, Informed Public and Mass Population, 2015, 2016, 2017 Trusters (60-100) Neutrals (50-59) Distrusters (1-49) Mass Population
- 6. Gap between Informed Public and Mass largest yet Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. Informed Public and Mass Population, Canada. 6 Per cent trust in the four institutions of government, business, media and NGOs, 2012 to 2017 21 pts 19 pts 18 pts 58 63 62 50 55 47 2012 2016 2017 Informed Public 15pt Gap8pt Gap A 7-point increase in the last year 8pt Gap Largest Gaps in 2017 Mass Population
- 7. 61 56 55 53 59 50 45 43 Trust in all four institutions declines in 2017 Source: 2017 Edelman Trust Barometer. Q11-620. 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, Canada. 7 Per cent trust in the four institutions of government, business, media and NGOs, 2016 vs. 2017 Business MediaNGOs Government Two of four institutions distrusted 50% Neutral Trusted Distrusted -2 -6 -10 -10 20172016
- 8. Credibility of leadership slipping fast Source: 2017 Edelman Trust Barometer. Q130-747 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, Canada, question asked of half the sample. 8 Per cent who rate each spokesperson as extremely/very credible, and change from 2016 to 2017 65 63 56 53 54 41 32 34 37 58 55 52 48 41 38 26 26 25 Academic expert Technical expert Apersonlike yourself Employee Financial industry analyst NGO representative Boardof directors Government official/ regulator CEO Financial Industry Analyst and CEO credibility decreased the most, both are at an all-time low -7 -8 -4 -5 -13 -3 -6 -8 -12 Y-to-Y Change+− 20172016
- 9. 2016: The Inversion of Influence 9 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. Informed Public and Mass Population, Canada.
- 10. 2017: Mass Population rejects established authority 10 Mass population now has influence and authority Establishment left empty-handed Influence & Authority
- 12. Per cent trust in government, 2012 vs. 2017 Trust in Government: A significant divide 12 56 58 51 49 65 58 45 45 41 46 50 41 2012 2013 2014 2015 2016 2017 Government Source: 2017 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, Canada. 17pt Gap Informed Public Mass Population
- 13. Source: 2017 Edelman Trust Barometer Q691. Which of the following do you believe are most to blame for the problems we face in our country today? Q692. Which of the following do you believe are most responsible for fixing the problems we face in our country today? General Population, Canada. 13 Government assigned blame & responsibility for fixing our problems 18% 16% 14% 13% 31% 66% 20% 17% 31% 7% 31% 63% Don't Know Multinational Institutions such as the EU or the UN The Media NGOs Business Government Institution to blame for our country's problems Institution responsible for fixing our country's problems
- 15. 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, Canada. Per cent trust in media, 2012 vs. 2017 Media Trust in Media: Consistent dips among Informed Public and Mass 15 9pt Gap Informed Public Mass Population 54 61 58 47 61 52 50 52 56 50 53 43 2012 2013 2014 2015 2016 2017
- 16. Traditional media Search engines* Media as an institution Online-only media** Owned media Social media Trust in Media: Traditional erodes, search steadily climbs Source: 2017 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, Canada, question asked of half the sample *From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.” **From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.” Per cent trust in each source for general news and information 16 58 44 29 33 45 2012 2016 2017 71
- 17. 17 The echo chamber in action Facts matter less Bias is the filter No humans needed 1 in 3 agree “I would support politicians I trust to make things better for me and my family even if they exaggerated the truth” 55% Do not regularly listen to people or organizations with whom they often disagree 3.5x more likely to ignore information that supports a position they do not believe in More likely to believe 60% Search Engines 40% Human Editors 53%49% Never or rarely change their position on important social issues Source: 2017 Edelman Trust Barometer. Q709-718. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) Q755 Have you ever changed your position on an important social issue? (Sum of “Yes, but rarely”, “No, never”) General Population, Canada. Q749. When someone you know provides you with some information that supports a position that you do NOT believe, which of following do you typically do with it? Q752. How often do you read or listen to information or points of view from people, media sources or organizations with whom you often disagree? (Sum of “Never”, “Almost Never”, “Several Times a year”, “Once or Twice a Month”) Q754. You are about to see a series of two choices. Each choice describes a different source of information, a different format for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are more likely to believe is giving you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the two options given--the one that is most likely to be true most often. General Population, Canada, question asked of half the sample. More than More than
- 18. Source: 2017 Edelman Trust Barometer. Q754. You are about to see a series of two choices. Each choice describes a different source of information, a different format for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are more likely to believe is giving you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the two options given--the one that is most likely to be true most often. General Population, Canada, choices shown to half the sample. 18 Canadians are more likely to trust sources outside of established areas of authority Per cent who find each source more believable than its pair 70% Individuals 30% Institutions 64% Reformer 36% Preserver of Status Quo 74% Leaked Information 26% Company Press Statements
- 20. 56 58 62 47 60 64 51 50 54 50 55 49 2012 2013 2014 2015 2016 2017 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, Canada. Per cent trust business, 2012 vs. 2017 Business Trust in Business: Informed Public and Mass diverging 20 15pt Gap Informed Public Mass Population
- 21. What Canada is worried about Source: 2017 Edelman Trust Barometer. Q693-762. Some people say they worry about many things while others say they have few concerns. We are interested in what you worry about. Specifically, how much do you worry about each of the following? Please indicate your answer using a nine point scale where one means “I do not worry about this at all” and nine means “I am extremely worried about this”. (Top 4 Box, Worried) Q709-718. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) General Population, Canada. Q349-671. For the statements below, please think about the pace of development and change and select the response that most accurately represents your opinion. (Top 4 Box, Too Fast) General Population, Canada, question asked of half the sample. 21 48% globalization is taking us in the wrong direction 53% the pace of change in business and industry is too fast CANADIANS WORRY ABOUT LOSING THEIR JOBS DUE TO: 44% 45% 48% 49% 55% Jobs moving to cheaper markets Automation Lack of training/skills Immigrants who work for less Foreign competitors
- 22. Partnerships/ programs to address societal issues Business practices/ crisis handling Financial earnings & operational performance Employees: The most credible source Source: 2017 Edelman Trust Barometer. 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, both positive and negative, and its handling of a crisis? Q612. 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. A company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614. A company’s innovation efforts and new product development? Q615. A company’s stand on issues related to the industry in which it operates? General Population, Canada, question asked of one-quarter of the sample. 22 Most trusted spokesperson to communicate each topic Innovation effortsTreatment of employees/customers Views on industry issues Company CEO Senior executive Employee Activist consumer Academic Media spokesperson 12 11 14 17 20 15 18 21 19 30 21 18 60 34 38 33 27 25 29 30 31 27 25 35 17 26 28 23 31 23 8 10 11 10 11 11
- 23. TRUST IN THE SYSTEM
- 24. Source: 2017 Edelman Trust Barometer Q672-675, 678-680, 688-690. For details on how the “system failing” measure was calculated, please refer to the Technical Appendix. The margin of error for the countries scores was added and subtracted from the global mean. Countries were considered above the global average if their score was higher than the global mean plus the margin of error. Countries were considered below the global average if their score was lower than the global mean minus the margin of error. All other scores were considered aligned. 24 Global France Italy Mexico S.Africa Spain Poland Brazil Colombia Germany U.K. Australia Ireland U.S. Netherlands Canada Sweden Argentina Malaysia Turkey Russia S.Korea Indonesia Japan India HongKong Singapore China UAE System failing 53 72 72 67 67 67 64 62 62 62 60 59 59 57 56 55 55 53 52 51 48 48 42 42 36 35 30 23 19 Uncertain 32 22 24 25 24 25 25 25 27 26 29 30 26 33 33 30 29 29 37 31 28 41 40 45 45 50 43 47 40 In 14 countries, the percent of population that has lost faith is above the global average Systemic loss of faith restricted to Western- style democraciesCanada on the tipping point Per cent of population who believe the system is not working Above global average Aligned with global average Below global average
- 25. Fear factors Source: 2017 Edelman Trust Barometer. Q709-718 For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) General Population, Canada. 25 “The influx of people from other countries is damaging our economy and national culture.” “People like me are denied access to the education and opportunities we need to get ahead.” “The elites who run our institutions are out of touch with regular people.” IMMIGRATION 1 2AGREE in INEQUALITY 40% INEQUALITY 80% “I do not have confidence that our current leaders will be able to successfully address our country’s challenges.” LEADERSHIP 61%
- 26. 61% 31% 67% 36% Corruption Globalization Eroding Social Values Immigration Pace of Innovation Canadians share their neighbours’ fears and concerns Source: 2017 Edelman Trust Barometer. Corruption Q685-687, Globalization Q681-684, Eroding social values Q676 and Q758, Immigration Q685, Pace of innovation Q677. General Population, Canada. For details on how the societal fears were measured, please refer to the Technical Appendix. 26 Per cent of respondents who are concerned or fearful regarding each issue 52% 23% 67% 30% 54% 25% 52% 28% 53% 23% Concerned Fearful 76% 41% 74% 40% 66% 39%
- 28. 28 Business has an opportunity to lead Source: 2017 Edelman Trust Barometer. Q249-757. Please indicate how much you agree or disagree with the following statements? (Top 4 Box, Agree). General Population, Canada, question asked of half the sample. . 77% agree “A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”
- 29. 66 66 66 64 62 62 60 59 57 54 47 45 42 33 32 31 29 68 68 67 64 64 61 61 61 55 55 48 49 44 35 32 33 31 Canada Sweden Switzerland Germany Australia U.K. Japan Netherlands U.S. France Italy Spain S.Korea China Brazil India Mexico Canadian companies still ranked highest in global trust Source: 2017 Edelman Trust Barometer Q26-Q422. 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 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, Canada. 29 Trust in companies headquartered in each country. 20172016
- 30. Source: 2017 Edelman Trust Barometer. Q732. What can businesses do that would cause the most damage to your trust in a better future? (Please select up to five.) General Population, Canada, question asked of half the sample. 30 First, do no harm Actions business can take that would most damage trust in a better future (top 5 most-selected) 1. Pay executives hundreds of times more than workers. 2. Pay bribes to government officials to win contracts. 3. Move profits to other countries to avoid taxes. 4. Move jobs from this country to cheaper labour markets. 5. Overcharge for products that people need to live.
- 31. Integrity 62 34 28 Has Ethical Business Practices 66 37 29 Takes Responsible Actions To Address An Issue Or A Crisis 61 34 27 Has Transparent And Open Business Practices 58 32 26 Engagement 62 35 27 Treats Employees Well 68 38 30 Listens To Customer Needs And Feedback 63 36 27 Places Customers Ahead Of Profits 62 33 29 Communicates Frequently And Honestly On The State Of Its Business 54 32 22 Products 51 36 15 Offers High Quality Products Or Services 62 38 24 Is An Innovator Of New Products, Services Or Ideas 40 33 7 Purpose 45 28 17 Works To Protect And Improve The Environment 54 31 23 Creates Programs That Positively Impact The Local Community 47 30 17 Addresses Society's Needs In Its Everyday Business 44 28 16 Partners With NGOs, Government And Third Parties To Address Societal Issues 36 25 11 Operations 39 30 9 Has Highly-Regarded And Widely Admired Top Leadership 43 28 15 Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 37 30 7 Delivers Consistent Financial Returns To Investors 38 31 7 The Trust-building attributes Company Importance vs. Performance % Performance % Importance Gap 31 Source: 2017 Edelman Trust Barometer Q80-639. 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) Q114-654. 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) General Population, Canada.
- 32. A fundamental shift 32 Current Tension Old Model: For the People New Model: With the People Elites manage institutions to do things “for” the people Influence has shifted to the people; people using influence to reject established authority Institutions working with the people; institutional silos dissolved Influence & Authority Influence & Authority Influence & Authority
- 33. With the People: The new integrated operating model 33
- 35. CANADA IS NOT IMMUNE TO THE RISE OF POPULISM 35 1
- 37. SPEAK WITH, NOT AT 37 3
Editor's Notes
- #2: This is the seventeenth year of the Trust Barometer, and before we get into the data, let me just say that this year’s is possibly the most remarkable data set we’ve seen in the Barometer’s history. 2016 was unquestionably a turbulent year on the global stage. [As Ben said], Globally trust in institutions is on the decline, with a rise in countries entering into the ‘distrusting’ territory. This has led to chaos in some Western democracies, where populism is on the rise and a pervasive resentment is taking hold about a broken, unequal system. You might assume we’ve avoided much of this chaos, but according to the data, we are not immune to this trend. Indeed, the Canadian data this year uncovers some very worrying trends that we ignore at our peril. And this is true whether you hail from a business, the government or the media. Let’s take a look at the results of this year’s Trust Barometer in Canada.
- #3: A quick overview of the methodology… For those who are new to the Edelman Trust Barometer, it is the most extensive annual review of trust globally. We survey 33,000+ people globally, over 1,300 in Canada. In addition to running the data for the general population, which includes everyone, we break results down between what we call ‘Informed Publics’ (who are university educated, top quartile income-earners and have high news-consumption), and the ‘Mass Population’ (everyone else). The survey was in the field between October 19th and November 12th, 2016 [TO BE CHECKED]. You’ll remember this was the climax of the US election right and we would expect, given the dominance of the election in our local media, this surely had some bearing on the Canadian results.
- #4: First, what is the overall state of trust in Canada?
- #5: I’m sorry to say it is not good. Here is a snapshot of where Canada falls in the Global TRUST index year over year. The Trust Index score is the average of each country’s trust in the four institutions of government, business, media and NGOs. On the far right you see the numbers for this year, compared with 2015 and 16. This is the first time in the 17 year history of the Trust Barometer that Canada has found itself in the “distrusting category,” where the level of distrusters exceeds the level of trusters among respondents. Whilst we still fare better than the global average of 47 shown at the top, this downward trend is concerning.
- #6: But let’s break this down. Here you see the relative trust index scores for the General Population and two sub-segments; Informed Publics and Mass Population. Between the latter two we see a big gap. So if you’re college educated, well-off & staying informed, then you are clearly feeling pretty good about things. But that’s less likely the case if you’re among the mass population. This might seem somewhat obvious, but the size of this gap is a cause for concern.
- #7: It’s a 15 point gap. That is almost double the gap of last year, and in fact, it is the most pronounced gap we’ve seen ever. Why does this gap matter? Because as you can see, we’re not far behind this year’s trust gaps in the US, UK and France – all three being countries that have experienced a growth in populist sentiment causing significant social and political upheavals.
- #8: Here we break down levels of trust across each institution; NGOs, Businesses, the Media and Government. We see drops in trust across all four, but most significantly in media and government with a 10 point drop each. We’ll come on to talk more about these results for business, media and government shortly. For those who recall last year’s results, we saw an increase in trust across all Canadian institutions after our own general election. Time has taken the shine off those numbers.
- #9: One of the things we look at every year is the fluctuation of trust in different types of spokespeople. In the midst of campaigning for the UK to leave the European Union before last year’s referendum, British MP, Michael Gove, famously said “The people have had enough of experts.” Whilst that’s not yet the case in Canada, it is very much the trend, with Academic and Technical experts and Financial Industry Analysts among the biggest losers. We are now almost as likely to trust a person like ourselves or an employee of a company as we are to trust an expert. But even more remarkably, we are twice as likely to trust a person like ourselves as we are a board director, government official or a CEO of a company. These are the lowest numbers we’ve ever seen, by the way, in those three categories, signaling a new model of influence…
- #10: For years the world functioned according to the triangle on the left, in which both authority and influence were concentrated in the hands of a small number of elite opinion shapers. This model was predicated on the belief that the informed publics had access to superior information, their interests were interconnected with those of the broader public and that becoming ‘an elite’ was open to all of those who work hard. You might remember last year we began to talk about how access to information and the rise of social media flipped this model on its head. The power was shifting to the masses, and the elites were becoming increasingly less influential, and more isolated from the mass population.
- #11: And, as Richard Edelman said as the global results were delivered, Elites are now holding an empty bag. The mass population now holds the authority, and is rejecting the influence and authority of the establishment. This has left the informed public scratching their heads wondering what happened. Influence is no longer automatically granted to those in authority.
- #12: Let’s break things down by institution now. Last year, we focused on the sunny ways of the Trudeau government provided Canadians with a sense of optimism. This year, though, the federal government was unable to hold to its promises on pipelines. And it stumbled through the fall with struggles on electoral reform and continued criticism of cash for access fundraisers. On the other side of the aisle, the Conservative leadership race was headlined for most of the year by Kellie Leitch and her Trump-lite calls for “screening immigrants for Canadian values” and “draining the canal of the political elite”. Provincially, Kathleen Wynne’s Ontario Liberals saw their approval ratings nosedive. In the spring, they too struggled with a cash for access fundraising scandal. Continued criticism of high hydro prices has also led to increased scrutiny. Rachel Notley, Alberta’s premier, also faced a tough year, receiving blowback over her proposed carbon tax – a move that is widely seen to further hamper the bounce back of the province’s energy industry.
- #13: We’re leading with the government numbers this year because they are startling. I should say that 2016 was somewhat anomalous. It was an election year, which usually drives a spike in trust. But two things are notable in this year’s data. The first is the gap between informed publics and mass population – 17 points – which is significant. The second is the speed of erosion of trust among the mass population to a six-year low, equal to 2014.
- #14: To better understand sentiment behind trust fluctuations in government, we asked respondents: Who is most to blame for the problems Canada faces today? And we asked, which institution is responsible for fixing those problems. The government came out overwhelmingly on top in both instances; 63% of people blame government for our problems while 66% hold them responsible for fixing them. Let’s remember. We don’t break down what “government” means at any point in this survey. Government represents the composite reflection of national, provincial and local institutions, and it is possible that perceptions of ‘Government’ were coloured by the circus going on south of the border when the survey was in field. Another thing is, 31% of people assigned blame for the country’s problems to the media, which is supposed to hold both business and government accountable.
- #15: This leads us to trust in media. 2016 was a busy year on this front as well. We saw a rise in fake news in many cases causing real reputational damage and undermining the integrity of the information we consume. Alternative media outlets like The Rebel gained traction while traditional media companies like Postmedia struggled to retain their position. Major global events such as Brexit and the American election highlighted the flaws in reporting on polling numbers, and have caused many to question biases that might exist in media. And 2016 was a year when many finally acknowledged the business model for traditional journalism was dead. Many local papers shut down the press this year, magazines went fully digital, and newsrooms of several papers were amalgamated. Combined, these had a large negative impact on trust in media.
- #16: As with other institutions, trust in media is down for both informed public and mass population – to 52% and 43% respectively. Here too, we’re seeing a growing trust gap between informed public and mass population.
- #17: Significantly, this year marks the moment that search engines have levelled with traditional media as a source of news and information. We’re now just as likely to go to a search engine as a traditional media outlet to find news. But if you look at the five year trend, traditional media has fared poorly, dropping 13 points since 2012; the most pronounced drop of all media types. But, it should be noted here that trust in every form of media has declined since 2012, which suggests we’re now more suspicious of all sources of news and information. This is unsurprising given perceptions of bias, the rise of fake news, blurred lines between earned editorial and paid content and continued contraction of traditional media.
- #18: I mentioned earlier the rise of peer-to-peer influence. I’m sure you will have heard of the Echo Chamber effect, where you’re more likely to receive and consume information that reinforces your existing point of view. We explored this phenomenon in this year’s survey and the results are startling. , Facts matter less: 1 in 3 told us they would support politicians whom they trust will act in our own personal interests…even if they exaggerated the truth. Bias is real: 55% told us they don’t listen to people or organizations they disagree with and they are a little over 3 times more likely to ignore information that supports a position they don’t believe in. In fact, 49% said they rarely change their position on social issues. Finally, and this is a really important stat if you are working in a newsroom right now; 60% told us they are more likely to believe a search engine compared to 40% trusting a human editor. This, ladies and gentlemen, is a grave concern. It is why we are seeing an increasing polarization of views and a decline in critical thinking and rational, fact-based argument.
- #19: We looked at levels of trust in different sources of information. It turns out we trust Individuals more than twice as much as we trust institutions. We trust Reformers or those who seek to disrupt the status quo, more than twice as much as those who seek to preserve it. And we are three times as likely to trust ‘leaked’ information over official company press statements. So it’s clear there is a major lack of confidence in the trustworthiness of information coming from institutions like businesses and government.
- #20: Turning to business, in 2016 concerns over the real estate market and state of the Canadian economy loomed large. We saw a number of stories play out across North America, and especially in British Columbia, regarding pipelines. Last spring, the world was hit with the revelations from the Panama Papers. This brought increased scrutiny on corporate structures. Companies were forced to be accountable, pay their fair share of taxes, and be transparent about their corporate structure. In technology, Samsung dealt with a battery fire issue in their Galaxy S7 phones. And in pharmaceutical, a number of scandals played out, highlighted in Canada by Valeant’s AIDS drug price scheme and ensuing stock crash. These are on top of broader issues such as housing prices and C-suite compensation. So what effect did these have on the overall trust in business as institution?
- #21: Here we can see that while business did not see the overall trust hit that government and media experienced, the trust gap between the informed public and mass population is as pronounced in business this year as it is with the other institutions. This year that gap is at 15 points and that amount to a very rapidly expanding gulf over last year.
- #22: Why is trust in business slipping? You can see some of the reasons here. People are worried: %53 that the pace of change in business is too fast %48 are worried globalization is taking us in the wrong direction And Canadians are worried about losing jobs to foreign competitors, to immigrants & cheap labour and because they don’t have the skills to compete. Automation is also a noted concern here. ________ US Scores for reference: %56 that the pace of change in business is too fast %59 are worried globalization is taking us in the wrong direction
- #23: When we asked people to tell us which spokespeople they trusted to communicate business news – the trend here is that employees are more trusted on almost every topic – from treatment of employees and customers to financial earnings, the handling of crises and how a company is innovating. It’s important to note that CEO’s and senior executives still have a role to play in communicating business news, but the high trust levels mean employees can be very powerful advocates for your business, and the can also be liabilities if they are not engaged or if they are inclined to speak poorly about you. And, interestingly, an activist consumer would be the best spokesperson to credibly talk about partnerships and programs that address societal issues. So as you can see, this trend towards the credibility of people like ourselves, compared to those in positions of power is very real.
- #24: So, now that we’ve explored the results institution by institution. Let’s talk about what this means for the system as a whole.
- #25: Let’s think about this globally first. Here’s Canada and where we fit on the scale of countries where people have lost faith in the system. We’re right on the cusp – aligned with the global average, at 55% – and not part of those 14 countries who have lost faith in the system…yet… So far we have looked only at global averages. Drilling down at a country level, you see that there are 14 countries where the sense that the system is not working has become the prevailing sentiment among the general population. Note that this sentiment is specific to western-style democracies, with the most intense levels in Western Europe, Latin America, and the Anglo-Saxon countries.
- #26: As we at Edelman absorbed this data, the story line became clear. Canada is susceptible to populism and, specifically, protectionism. Here’s how the trend reveals itself in real time on tangible issues. 2 in 5 say Canada shouldn’t enter into free trade agreements because they hurt Canadian workers 69% say we need to prioritize Canadian interests over the rest of the world 69% agree government should protect jobs and local industries even if it means the economy grows more slowly.
- #27: There’s more. Canadians are not miles behind our neighbours to the south in their fears and concerns on a range of issues. Only seven or 8 points difference between Canada and the US on issues such as Globalization, Immigration and the Pace of Innovation.
- #28: So, what to make of all this?
- #29: Earlier in this presentation, we told you about the burden on government to take action. To lead. But know the data also calls for business to lead as well – to maintain its license to operate, certainly, but, also, to lead in improving social conditions. The people we surveyed agreed by a pretty significant number here that business can take specific action to benefit both business and people in the community where they are operating. We’re seeing this play out in real time now south of the border as companies wade into the immigration ban controversy. Companies like Starbucks are laying out their company values with a decision to challenge the ban directly by hiring refugees – and send a message. Is this the way business needs to lead? Is it what people expect? We’re watching the evolution of business’ role in this new normal very carefully.
- #30: This is particularly true of Canadian companies, which are the most trusted worldwide, on par with companies headquartered in Sweden. Canadian companies have an opportunity to set the global agenda. And secondly, if you represent Corporate Canada and are looking to operate in the global marketplace, you should consider emphasizing your Canadian-ness as it could be a competitive advantage.
- #31: However, to earn and maintain the right to lead, there are a number of fundamental behaviours that Canadians expect, and certain misbehaviours they will not tolerate. We presented respondents with a series of actions businesses might take, and asked them which would do greatest damage to their trust. These five ranked top: paying executives exponentially more than workers bribing government officials to win contracts moving operations offshore to avoid taxes moving jobs from Canada elsewhere to save on costs And, finally, overcharging for products people need to live We know there is often pressure from shareholders or other imperatives for businesses to take actions such as these at times. But know that doing so has trust consequences. ____ For reference, these were the options presented to respondents: Pay top executives hundreds of times more than the average worker Move jobs from this country to cheaper labor markets Fight against increases in the minimum wage Move the profits it makes to other countries to avoid paying taxes Fight to weaken regulations meant to protect the environment and ensure product safety Pay bribes to government officials to win contracts Reduce costs by cutting jobs Reduce costs by lowering product quality Reduce employees’ benefits Contribute money to politicians whose values differ from yours Overcharge for products that people need to live and therefore have to buy
- #32: Beyond those five actions, each year we ask respondents to rate the importance of 16 trust-building attributes. And we ask them to rate businesses on how well they are performing against each attribute. The attributes are grouped by type; those relating to a businesses’ integrity, how it engages, its products, purpose and operations. We’ve seen Integrity and Engagement increase consistently outweigh the other three in terms of importance. Unfortunately, these are also the one where we see the most pronounced gap in how well businesses are performing. But this chart is an excellent blueprint for what actions you can take to build trust. ‘Treating employees well’, ‘having ethical business practices’ and ‘listening to your customers’ are the top three.
- #33: And if you are a leader within your organization, or if you are in a role supporting your leaders, you are encouraged to consider a new model of engagement. As we said earlier, the old model in which elites wielded power over the people no longer applies. This new normal of diminished trust demands a new model where institutions work with the people to influence outcomes.
- #34: This new dynamic cuts across all institutions. In each case the abiding principle is with the people not for the people. Whether we like it or not, the people are in the driving seat. The functions of each institution have not changed; business are still expected to provide economic benefit; the media to inform; the government to regulate, etc. But in so doing, each institution must listen and engage with the people, to build trust, protect license to operate, mitigate risk and maximize success.
- #35: Well, we’ve covered a lot of ground, but here are our key takeaways from what we can honestly say is the most revealing Trust Barometer we’ve seen. And, more importantly what it means for Canada.
- #36: First, know that Canada is not immune from the chaos we are seeing in other Western democracies. There is a real risk that the growing trust disparity between the informed elites and the general population, combined with a void in trust of traditional authority figures, could give rise to populism and a rejection of authority of the type we’ve seen in the UK and US.
- #37: Secondly, institutions including business should be looking for ways to diffuse the rising discontent among the mass population. The expectation is that government will solve issues, but there are opportunities for business to take the lead. What does this look like? It means engaging effectively with ‘the people’ and finding ways to effect positive change – be it environmental sustainability, addressing inequality, promoting diversity, reducing poverty or championing human rights It also means engaging with employees more effectively and empowering them to advocate for the company and champion the brand. Of course this means loosening the reigns of power and control
- #38: Finally, get comfortable with the new norm. It is not a world of command and control, but a world where influence is shaped by the people. You cannot influence apart from them. Businesses should act transparently, ensuring that all messages are delivered by the right source, through the right platform, and are inviting dialogue.
- #39: People have to be at the centre of every story. Canadians prefer authentic information that comes from real people – especially employees. Information that comes from these sources, via engaging dialogue, will be more credible that information found in a corporate statement. Putting audiences at the centre, and understand how they receive information, and who they want to receive it from, will be crucial for businesses to capitalize on the leadership opportunity ahead of them.