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2015 EDELMAN TRUST BAROMETER CHINA RESULTS 2015 EDELMAN TRUST BAROMETER CHINA RESULTS

2015 Edelman Trust Barometer China

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2015EDELMAN TRUST BAROMETERCHINA RESULTS2015

EDELMAN TRUST BAROMETERCHINA RESULTS

PG 2

EDELMAN’S 15th Annual TRUST BAROMETER METHODOLOGY

Informed Public

• 500 respondents in U.S.

and China, and 200 in

other countries

• 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 and public policy

• 15 years of data

General Online Population

• 1,000 respondents per

country surveyed

• Ages 18+

• 4 years in 25+ markets

Online Survey in 27 Countries

• 33,000 respondents

• 7 years in 20+ markets

• 10 years in 10+ markets

PG 3

China 79

UAE 79

Singapore 73

Indonesia 72

India 69

Malaysia 65

Canada 60

Netherlands 60

Hong Kong 59

Mexico 59

Australia 58

Brazil 57

Germany 57

Argentina 53

U.K. 52

S. Korea 51

Sweden 51

S. Africa 50

U.S. 49

France 46

Japan 44

Italy 43

Turkey 41

Ireland 39

Spain 39

Russia 37

Poland 35

NUMBER OF TRUSTER

COUNTRIES AT AN

ALL-TIME LOW

THE TRUST INDEX:

TR

US

TE

RS

NE

UTR

AL

DIS

TR

US

TE

RS

2014

TRUSTERS from 30% to 22% in 2015

GLOBAL 56

Italy 48

S. Africa 48

Hong Kong 47

S. Korea 47

U.K. 46

Argentina 45

Poland 45

Russia 45

Spain 45

Sweden 45

Turkey 40

Ireland 37

Japan 37

2015

UAE 84

India 79

Indonesia 78

China 75

Singapore 65

Netherlands 64

Brazil 59

Mexico 59

Malaysia 56

Canada 53

Australia 52

France 52

U.S. 52

Germany 50

GLOBAL 55

DISTRUSTERS from 33% to 48% in 2015

The Trust Index is an average of a country’s trust in the

institutions of government, business, media and NGOs.

27-country global total.

Informed

Public

PG 4

Lower/Equal Trust in 15 CountriesIncreased Trust in 12 Countries

50%

TRUST IN MEDIA, 2014 VS. 2015

TRUST IN MEDIA: 60% OF COUNTRIES DISTRUST MEDIA

2014 2015

Informed

Public

Q11-14. [MEDIA IN GENERAL] 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 Publics, 27-country global total.

% Trust

53

78

70 71

60

4548

40 40

35

42

30

19

79

70

6163

5558 59

54

48

63

54

4144

3740

51

80 7976

62

51 5048 47

44 43 42

20

77

59 57 5652

47 46 45 43 41 4038

34 3431

PG 5

Lower/Equal Trust in 19 CountriesIncreased Trust in 8 Countries

50%

TRUST IN NGOS, 2014 VS. 2015

Q11-14. [NGOs IN GENERAL] 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 Publics, 27-country global total.

TRUST IN NGOS: STILL MOST TRUSTED BUT NOW WANING

2014 2015

Informed

Public

% Trust

66

7673

6462 61 62

59

47

75 74

84

76 76

70

75

6770

77

67 6669

58

67

58

41

47

37

63

8177

71 7065 64 63

58

74 73 72 71 7168 67 67 66

63 62 6159

57

5148

38 37

29

PG 6

Lower Trust in 11 CountriesIncreased Trust in 16 Countries

% Trust

50%

TRUST IN GOVERNMENT, 2014 VS. 2015

Q11-14. [GOVERNMENT IN GENERAL] 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 Publics, 27-country global total.

TRUST IN GOVERNMENT: 19 OF 27 COUNTRIES DISTRUST GOVERNMENT

Informed

Public

2014 2015

45

88

53

76

53

60

27

49

42

3237

34

28

19

24

1821

75

63

56

5154

4543

45 45

23

17

48

90

82 82

72

65

5450

43 42 4137

3330

2826 26

70

59

49 4945

42 41 40

33

2116

PG 7

Lower Trust in 16 CountriesIncreased Trust in 11 Countries

% Trust

50%

TRUST IN BUSINESS, 2014 VS. 2015

Q11-14. [BUSINESS IN GENERAL] 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 Publics, 27-country global total.

TRUST IN BUSINESS:HALF BELOW 50%

Informed

Public

2014 2015

59

82 8279

70

54

63

58

45 4543

38

7377

72 71

56

51

59

53

6258 57

4549

4341

39

57

85 84 84

73

6664

60

53

4845

43

72 7067

61

5249 48 48 47 46 45 45

42 4138 36

PG 8

FOUR KEY FACTORS AFFECT TRUST IN BUSINESS

COUNTRY OF ORIGIN

INDUSTRY SECTOR

LEADERSHIP

ENTERPRISE TYPE

BUSINESS

All are showing similar patterns of a post-recovery increase in trust,

followed by new declines in the last 12 – 18 months

PG 9

50%

76% 75% 75% 74%70% 69% 68% 65% 62%

51% 51% 50%

38% 36% 35% 34% 31%

TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES

COUNTRY OF ORIGIN: BRIC COUNTRIES REMAIN DISTRUSTED

Most Trusted

Informed

Public

Q26-Q42. [TRACKING] 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) Informed Publics, 27-country global total.

PG 10

50%

57%

68%

State-owned Big Business Family-owned

Informed

Public

Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business 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 Publics, in China and 27-country global total.

GLOBAL CHINA

TRUST IN DIFFERENT TYPES OF BUSINESS, GLOBAL VS. CHINA

ENTERPRISE TYPE

74%

83%

61%

State-owned Big Business Family-owned

PG 11

THE PACE OF DEVELOPMENT AND CHANGE IN BUSINESS AND INDUSTRY IN CHINA TODAY IS …

Q349-351. Below are a number of statements. For each, please think about the pace of development and change in

business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too

Much) Informed Publics, in China.

TRUST IN BUSINESS INNOVATION PACE IS TOO FAST BY A 2-TO-1 MARGIN

59% Too Fast19% Too Slow

Informed

Public

21% Just Right

51% Too Fast28% Too Slow 19% Just Right

PG 12

63%59%

77%

46%

59%

83%

15%12%

5%

15% 13%

4%

Business Financial Services

Industry

Health Industry Technology Industry Energy Industry Food and Beverage

Industry

Informed

Public2014 TRUST BAROMETER:

50% say the most important

role for government in business is

to protect consumers and regulate business

NOT ENOUGH REGULATION TOO MUCH REGULATION

GOVERNMENT REGULATION OF BUSINESS AND ACROSS

INDUSTRY SECTORS IS PERCEIVED TO BE:

BUSINESS INNOVATION: NOT ENOUGH GOVERNMENT REGULATION

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, China. Q262/Q263/Q264/Q381/Q382. When it comes to government regulation of the [financial services industry / energy industry / foodand beverage industry / health industry / technology industry], do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, China.

PG 13

ACTIONS THAT INCREASE TRUST IN INDUSTRY TO IMPLEMENT TECHNOLOGY CHANGES IN CHINA

Informed

Public

Q365-369. Below is a number of actions that could impact your trust in business and industry to develop and implement

technology-led changes such as those you just evaluated. What impact would each of these actions have on your trust?

Informed Publics, in China.

Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business

and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed

Publics, in China.

ENGAGEMENT AND THIRD PARTY VALIDATION ARE ESSENTIAL

Make test results available publicly for review 86%

Partner with an academic institution 80%

Run a clinical trial or beta test 80%

Partner with an NGO 77%

Partner with government 74%

55% AGREE:

New developments are not tested

enough

COMMUNICATING VIA ENGAGEMENT

PG 15

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) Informed Publics, in China.

TRUST IN EACH SOURCE FOR GENERAL NEWS AND INFORMATION IN CHINA

SEARCH ENGINES AND TRADITIONAL MEDIA ARE MOST TRUSTED

Informed

Public

80%

83%84%

80%

81%

80% 79%

75%76% 77%

78%

73%

81%

80%

85%

80%

74%

69% 69%68%

2012 2013 2014 2015

Traditional Media

Online Search Engines

Social Media

Hybrid Media

Owned Media

PG 16

HIGH LEVEL OF TRUST IN INFORMATION POSTED ON SOCIAL NETWORKING SITES, CONTENT SHARING

SITES AND ONLINE-ONLY INFORMATION SOURCES IN CHINA

SEARCH ENGINES ARE EVERYWHEREInformed

Public

TELEVISIONNEWSPAPERS ONLINE SEARCH

The First Source for

General Information

The First Source for

Breaking News

Source Used Most to

Confirm/Validate News

Q183. On a typical day, what is the first source that you go to for general information about business? Informed Publics, Informed Publics, in China.Q184. What is the first source you go to for breaking news about business? Informed Publics, in China.Q185. Which of the following sources do you turn to MOST often to confirm/validate information on breaking news about business? Informed Publics, in China.

7% 4%

4%

29%

24%23%

32%

44% 43%

2013 2014 2015

11%

7%

10%

34%32%

29%

28%

32%

33%

2013 2014 2015

10%

7% 7%

40%

34% 34%

19%

23%

26%

2013 2014 2015

PG 17

Q130-143. [TRACKING] 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, Trust) Informed Publics, in China.

CREDIBILITY OF SPOKESPERSONS, 2014 VS. 2015 IN CHINA

COMPANY TECHNICAL EXPERT MOST TRUSTED

70% 71%68%

59%57%

44%

51%

45%

69%66%

64%

58%55%

50%46% 45%

CompanyTechnical Expert

A PersonLike Yourself

NGORepresentative

Academic orIndustry Expert

CEO GovernmentOfficial

or Regulator

RegularEmployee

Financial orIndustry Analyst

2014 2015

More Trust Less Trust

Informed

Public

BUILDING TRUST

PG 19

Edelman Trust Barometer research

reveals 16 specific attributes which

build trust.

These can be grouped into

five performance clusters listed here

in rank order of importance.

19

16 KEY ATTRIBUTES TO BUILDING TRUST

DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

RANKS ON A GLOBAL LIST OF TOP COMPANIES

OPERATIONS

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY

PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS

PURPOSE

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

PRODUCTS & SERVICES

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

HAS ETHICAL BUSINESS PRACTICES

INTEGRITY

COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELL

PLACES CUSTOMERS AHEAD OF PROFITS

ENGAGEMENT

PG 20

32%

34%

31%

32%

37%

36%

32%

38%

39%

32%

33%

37%

34%

31%

35%

34%

48%

44%

45%

42%

53%

50%

56%

51%

62%

54%

58%

58%

55%

55%

56%

60%

Delivers Consistent Financial Returns To Investors

Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired

Has Highly-Regarded And Widely Admired Top Leadership

Partners With NGOs, Government And Third Parties To Address Societal Issues

Addresses Society'S Needs In Its Everyday Business

Creates Programs That Positively Impact The Local Community

Works To Protect And Improve The Environment

Is An Innovator Of New Products, Services Or Ideas

Offers High Quality Products Or Services

Communicates Frequently And Honestly On The State Of Its Business

Places Customers Ahead Of Profits

Listens To Customer Needs And Feedback

Treats Employees Well

Has Transparent And Open Business Practices

Takes Responsible Actions To Address An Issue Or A Crisis

Has Ethical Business Practices

INTEGRITY AND ENGAGEMENT ARE IMPORTANTInformed

Public

BUSINESS IMPORTANCE VS. COMPANY PERFORMANCE

OPERATIONS

PURPOSE

PRODUCTS

INTEGRITY

ENGAGEMENT

Gap

-26

-21

-24

-21

-21

-25

-22

-23

-13

-24

-14

-16

-10

-14

-10

-16

Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not

at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. Informed Publics, China.

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". Informed Publics, China.

*Excludes don’t know responses

PG 21

BUILDING AND DEFENDING TRUSTCLEAR PERSONAL AND SOCIETAL BENEFITS ARE KEY

53% 48% 47%

Lacks Economic

Growth

Fails to Contribute

to the Greater Good

Provides Few/No

Public Services

51% 50% 47%

Produces Economic

Growth/Helps me and

My Family Live a

Fulfilling Life

Allows Me to Be a

Productive

Member of Society

Contributes

to the Greater Good

Reasons Trust in Business Has Increased

in CHINA

Informed

Public

Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? (Top

4 Box, Trust) Informed Publics, in China. Q330-331. For which of the following reasons, if any, has your trust in each institution listed

below decreased over the past year? (Top 4 Box, Trust) Informed Publics, in China.

Q249-252. Please indicate how much you agree or disagree with the following statements? (Top 4 Box, Trust) Informed Publics, in

China.

Reasons Trust in Business Has Decreased in

CHINA

48% 52%

86%agree

“A company can take specific actions

that both increase profits and improve

the economic and social conditions in

the community where it operates.”

PG 22

BEHAVIOR BASED ON TRUST IN CHINA

TRUST MATTERSInformed

Public

Q371-376. 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. Informed Publics, China.

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. Informed Publics, China.

Trusted CompaniesDistrusted Companies

Refused to buy products/services Chose to buy products/services-72% 87%

Criticized them to a friend/colleague Recommended them to a friend/colleague-61% 83%

Paid more for products/services 73%

Shared negative opinions online

Shared positive opinions online-52% 70%

Defended company

51%I sold shares I bought shares-39%

45%

PG 23

TAKE AWAY FOR YOU

Create a narrative around “transparency and openness”,

“ethical business practices” and “placing customers ahead

of profits” to build your brand equity.

Get third party validation and maximize public review of

test results to increase Trust in your story

Make all your information searchable online.

Take the long-term approach. Avoid taking short-cuts

Use company technical expert or “a person like you” to

articulate your story and engage your audience.

PG 24