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WHO DO WE TRUST?



Robert Phillips
President & CEO Edelman EMEA
Edelman
TEN YEARS OF TRUST DATA
                                                    Business more
                           U.S. companies            trusted than
                           in Europe suffer                                             Trust protects
                                                     government                           reputation
                            trust discount            and media
                                                                      Business must
                                                “A person              partner with
                   Earned                        like me”              government
                  media more                   emerges as             to regain trust
                   credible                      credible
    Rising           than                     spokesperson
Influence of      advertising                                                    Trust is now
    NGOs                                                           Young               an
                                                                influencers        essential
                                     Trust shifts                                   line of
           Fall of the                  from                    have more
                                                                   trust in        business
           celebrity                “authorities”
             CEO                      to peers                    business



    2001       2002      2003    2004    2005     2006   2007      2008       2009    2010      2011
TRUST PROTECTS REPUTATION
When a company                           When a company
is distrusted
                                          is   trusted
  57%information
 negative
          will believe

    after hearing it
       1-2 times                                      51%
                                                will believe
                                            positive information
                                            after hearing it 1-2
              15%                                   times
                                   25%
                   will believe           will believe
                       positive             negative
                   information            information
                  after hearing          after hearing
                    it 1-2 times           it 1-2 times
celebrate complexity
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
TRUST IN GOVERNMENT IS HIGHER IN
         RUSSIA & CHINA THAN US & UK
90%

80%

70%                                                                                72%


60%

50%                                                                                46%
                                                                                   39%
40%                                                                                37%

30%

20%


      2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011
TRUST IN INSTITUTIONS
90%

80%

70%                       63%

      63%                        55%
60%                                    NGOs
      59%                 54%
                   45%           46%
50%                                    BUSINESS
      46%
                   36%
      43%                 46%          GOVERNMENT
40%                              40%
                   31%

30%                       38%
                   30%                 MEDIA
                                 27%
20%

            2008   2009   2010    2011
“Here is the fact of the age. People
   believe nothing. They believe
 everything is spin and lies. When
people believe nothing, they believe
             anything”
                         Peggy Noonan
Robert Phillips ICCO Summit 2011
Robert Phillips ICCO Summit 2011
SHARED VALUES
                   PAYS DIVIDENDS
70%                     65%
                                       69%   ENERGY COMPANY

                                       65%   FOOD & BEVERAGE
                                             COMPANY
                        58%
60%   61%
                        53%            56%   RETAIL COMPANY
      55%

50%

      45%

40%




            2009        2010        2011
Profit Needs Purpose
Robert Phillips ICCO Summit 2011
70%
                     NGOS ARE TRUSTED
60%                                                                                                 59%

                                                                                                    54%
                                                                  52%                               53%
      48%                                                                                           53%
50%



40%

            36%
                                31%


      2001        2002   2003         2004   2005   2006   2007         2008   2009   2010   2011
Robert Phillips ICCO Summit 2011
SIX MACRO TRENDS
1. Shift from Shareholder to a Stakeholder Society
2. The oscillating fortunes of Governments
3. The continued rise of Civil Society & Citizenship
4. The continued dispersion of authority
5. Transparency & Accountability
6. The convergence of everything
celebrate complexity
MEANINGFUL.
 CONTINUOUS.
PARTICIPATION.
transparency
                                      Treats employees well




                                           quality
         employee welfare
                                                 HIGH QUALITY
           TRUST                                 products or services




                                                                         TRUST
                                                                             to investors
                                                                             financial returns
                                                                             consistent
                                                                             Delivers
                                                     services & ideas
                                                          innovator of
                                                       new products,
Communicates FREQUENTLY &
    HONESTLY on state of its
                 business
    GOOD CORPORATE CITIZEN

A COMPANY I CAN TRUST
              prices its brands fairly                       & competitively
transparent & HONEST business practices
                    HIGHLY-REGARDED & widely ADMIRED top leadership

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Robert Phillips ICCO Summit 2011

  • 1. WHO DO WE TRUST? Robert Phillips President & CEO Edelman EMEA Edelman
  • 2. TEN YEARS OF TRUST DATA Business more U.S. companies trusted than in Europe suffer Trust protects government reputation trust discount and media Business must “A person partner with Earned like me” government media more emerges as to regain trust credible credible Rising than spokesperson Influence of advertising Trust is now NGOs Young an influencers essential Trust shifts line of Fall of the from have more trust in business celebrity “authorities” CEO to peers business 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 3. TRUST PROTECTS REPUTATION When a company When a company is distrusted is trusted 57%information negative will believe after hearing it 1-2 times 51% will believe positive information after hearing it 1-2 15% times 25% will believe will believe positive negative information information after hearing after hearing it 1-2 times it 1-2 times
  • 12. TRUST IN GOVERNMENT IS HIGHER IN RUSSIA & CHINA THAN US & UK 90% 80% 70% 72% 60% 50% 46% 39% 40% 37% 30% 20% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 13. TRUST IN INSTITUTIONS 90% 80% 70% 63% 63% 55% 60% NGOs 59% 54% 45% 46% 50% BUSINESS 46% 36% 43% 46% GOVERNMENT 40% 40% 31% 30% 38% 30% MEDIA 27% 20% 2008 2009 2010 2011
  • 14. “Here is the fact of the age. People believe nothing. They believe everything is spin and lies. When people believe nothing, they believe anything” Peggy Noonan
  • 17. SHARED VALUES PAYS DIVIDENDS 70% 65% 69% ENERGY COMPANY 65% FOOD & BEVERAGE COMPANY 58% 60% 61% 53% 56% RETAIL COMPANY 55% 50% 45% 40% 2009 2010 2011
  • 20. 70% NGOS ARE TRUSTED 60% 59% 54% 52% 53% 48% 53% 50% 40% 36% 31% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 22. SIX MACRO TRENDS 1. Shift from Shareholder to a Stakeholder Society 2. The oscillating fortunes of Governments 3. The continued rise of Civil Society & Citizenship 4. The continued dispersion of authority 5. Transparency & Accountability 6. The convergence of everything
  • 25. transparency Treats employees well quality employee welfare HIGH QUALITY TRUST products or services TRUST to investors financial returns consistent Delivers services & ideas innovator of new products, Communicates FREQUENTLY & HONESTLY on state of its business GOOD CORPORATE CITIZEN A COMPANY I CAN TRUST prices its brands fairly & competitively transparent & HONEST business practices HIGHLY-REGARDED & widely ADMIRED top leadership