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2015EDELMAN TRUST BAROMETERGLOBAL RESULTS
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
3
2015 TRUST IS ESSENTIAL TO INNOVATION
2014 BUSINESS TO LEAD THE DEBATE FOR CHANGE
2013 CRISIS OF LEADERSHIP
2012 FALL OF GOVERNMENT
2011 RISE OF AUTHORITY FIGURES
2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS
2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST
2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS
2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA
2006 “A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON
2005 TRUST SHIFTS FROM “AUTHORITIES” TO PEERS
2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT
2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING
2002 FALL OF THE CELEBRITY CEO
2001 RISING INFLUENCE OF NGOS
TRUST IN RETROSPECT
4
2014: A YEAR OF THE
UNPREDICTABLE &
UNIMAGINABLE
5Q11-14. [TRACKING] 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 in 27-country global total.
TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2014 VS. 2015
THE EVAPORATION OF TRUST: NGOS, BUSINESS, MEDIA ALL DECLINE
BUSINESS
2014 2015
66% 63%
#1
2014 2015
53% 51%
#3
2014 2015
59% 57%
#2
2014 2015
45% 48%
#4 GOVERNMENT
MEDIA
NGOS
Informed Public
6
China 79UAE 79Singapore 73Indonesia 72India 69Malaysia 65Canada 60Netherlands 60Hong Kong 59Mexico 59Australia 58Brazil 57Germany 57Argentina 53U.K. 52S. Korea 51Sweden 51S. Africa 50U.S. 49France 46Japan 44Italy 43Turkey 41Ireland 39Spain 39Russia 37Poland 35
NUMBER OF TRUSTER COUNTRIES AT AN ALL-TIME LOW
THE TRUST INDEX:
TRUS
TERS
NEUT
RAL
DIST
RUST
ERS
2014
TRUSTERS from 30% to 22% in 2015
GLOBAL 56
Italy 48S. Africa 48Hong Kong 47S. Korea 47U.K. 46Argentina 45Poland 45Russia 45Spain 45Sweden 45Turkey 40Ireland 37Japan 37
2015
UAE 84India 79Indonesia 78China 75Singapore 65Netherlands 64
Brazil 59Mexico 59Malaysia 56Canada 53Australia 52France 52U.S. 52Germany 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
7
DEFICIT NEARLY 10 POINTS LOWER AMONG GENERAL POPULATION, WITH AN AVERAGE 3 POINT DECREASE IN TRUST ACROSS ALL COUNTRIES
THE NEW TRUST DEFICIT:
TRUS
TERS
NEUT
RAL
DIST
RUST
ERS
2015GLOBAL 55
2015GLOBAL 46
Italy 48S. Africa 48Hong Kong 47S. Korea 47U.K. 46Argentina 45Poland 45Russia 45Spain 45Sweden 45Turkey 40Ireland 37Japan 37
UAE 84India 79Indonesia 78China 75Singapore 65Netherlands 64
Brazil 59Mexico 59Malaysia 56Canada 53Australia 52France 52U.S. 52Germany 50
India 68UAE 68Indonesia 67China 63Singapore 60Malaysia 53Canada 52Netherlands 52Mexico 51Brazil 50Hong Kong 47U.S. 44Argentina 43Australia 42Germany 42Italy 42S. Africa 42Russia 40U.K. 39France 38S. Korea 38Sweden 37Poland 36Spain 36Turkey 35Japan 34Ireland 32
Nearly 2/3 of countries are nowDISTRUSTERSamong the General Online Population
Informed Public
General Population
The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. 27-country global total.
8Q11-14. [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.
Lower/Equal Trust in 19 CountriesIncreased Trust in 8 Countries
50%
TRUST IN NGOS, 2014 VS. 2015
TRUST IN NGOS: STILL MOST TRUSTED BUT NOW WANING
2014 2015
Informed Public
% Trust
Global UAE
Indon
esiaFra
nceBraz
ilU.S.
Italy
SpainPo
land
IndiaMex
icoChina
Argentin
a
Singapore
S. Kore
a
Malaysi
a
Canad
a
Australia
Hong K
ong
Netherl
ands
S. Afric
a
German
yTu
rkey
U.K.
Irelan
dRussi
a
Sweden
Japan
66
76 73
64 62 61 6259
47
75 74
84
76 7670
75
6770
77
67 6669
58
67
58
4147
37
63
8177
71 7065 64 63
58
74 73 72 71 71 68 67 67 6663 62 61 59 57
5148
38 37
29
9
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
Global
Indonesi
aUAE
India
Netherl
andsFra
nce
S. Kore
aIta
lySpain
Russia
U.S.
Polan
dTu
rkeyChina
Singapore
Mexico
Brazil
S. Afric
a
Canad
a
Malaysi
a
German
y
Australia
Hong Kon
g
Argentin
aU.K.
SwedenIre
landJap
an
53
78
70 71
60
4548
40 4035
42
30
19
79
70
61 63
5558 59
5448
63
54
4144
3740
51
80 7976
62
51 5048 47
44 43 42
20
77
59 57 5652
47 46 45 43 41 40 3834 34
31
10
2012 2013 2014 2015
67%
63%65%
62%
52%
50%
53% 53%
45%43%
45%48%
62%
60%
63%64%
43% 42%44%
47%
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, 20-country global total.
TRUST IN EACH SOURCE FOR GENERAL NEWS AND INFORMATION
MEDIA SOURCES:SEARCH ENGINES NOW MOST TRUSTED
Online Search Engines
72% (+8)
Traditional Media 64% (+2)
Hybrid Media 63% (+10)
Social Media 59% (+11)Owned Media 57% (+10)
Informed Public
Millennials Are Even More
Trusting of Digital Media
11
WHEN IT COMES TO INFORMATION ABOUT BUSINESS, PERCENT WHO USE EACH SOURCE:
MEDIA SOURCES: SEARCH ENGINES NOW USED FIRST AND MOST Informed
Public
TELEVISIONNEWSPAPERS ONLINE SEARCH
2013 2014 2015
25%25%
21%24%
22%22%
25%
29%31%
2013 2014 2015
20%19% 18%
28% 27% 27%
26% 27% 27%
2013 2014 2015
19% 19% 18%
22%20% 20%
34%36% 37%
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, 20-country global total.Q184. What is the first source you go to for breaking news about business? Informed Publics, 20-country global total.Q185. Which of the following sources do you turn to MOST often to confirm/validate information on breaking news about business? Informed Publics, 20-country global total.
12
Q387-396. Thinking about the information you consume on social networking sites, such as Facebook, MySpace, LinkedIn, Meebo, Orkut, Qzone, RenRen, how much do you trust the information posted from each of the following authors or content creators? (Top 4 Box, Trust) Informed Publics, 27-country global total. | Q397-406. Thinking about the information you consume on content sharing sites, such as YouTube, how much do you trust the information posted from each of the following authors or content creators? Informed Publics, 27-country global total. | Q407-415. Thinking about the information you consume on online-only news and information sources, such as The Huffington Post, Buzzfeed, TechCrunch, etc., how much do you trust the information posted from each of the following authors or content creators? Informed Publics, 27-country global total.
Brands I don’t useCelebrities
Elected officialsA well-known online personality
A company CEOEmployees of a company
A journalistCompanies I use
An academic expertMy friends and family
32%34%
40%45%46%
52%53%
60%70%
72%
Informed Public
TRUST IN INFORMATION CREATED BY EACH AUTHOR ON SOCIAL NETWORKING SITES, CONTENT SHARING SITES AND ONLINE-ONLY INFORMATION SOURCES
CONTENT CREATORS:FRIENDS/FAMILY AND EXPERTS ARE MOST TRUSTED
TRUSTED
NEUTRAL
DISTRUSTED
13
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
Global UAE
India
China
Indonesi
a
Netherl
...Russi
a
German
yU.K.
France
U.S. Braz
il
Mexico
Polan
dIta
lySpain
Irelan
d
Singapore
Sweden
Australia
Canad
a
Malaysi
a
Hong .
..
Turke
yJap
an
S. Kore
a
Argentin
a
S. Afric
a
45
88
53
76
53
60
27
49
42
3237
3428
1924
1821
75
63
5651
54
45 43 45 45
2317
48
90
82 82
72
65
5450
43 42 4137
3330 28 26 26
70
59
49 4945
42 41 40
33
2116
14Q11-14. [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.
Lower Trust in 16 CountriesIncreased Trust in 11 Countries% Trust
50%
TRUST IN BUSINESS, 2014 VS. 2015
TRUST IN BUSINESS:HALF BELOW 50% Informed
Public
2014 2015
Global UAE
Indonesi
aIndia
Brazil
Netherl
...
S. Afric
aU.S.
ItalyPo
landFra
nceSpain
Mexico
China
Malaysi
a
Singapore U.K.
Sweden
Australia Jap
an
Canad
a
Argentin
a
German
yRussi
a
Hong Kon
gTu
rkeyIre
land
S. Kore
a
59
82 8279
70
54
6358
45 45 4338
7377
72 71
5651
5953
6258 57
4549
43 41 39
57
85 84 84
73
66 6460
5348
45 43
72 7067
61
5249 48 48 47 46 45 45
42 4138 36
15
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
16
50%
Techn
ology
Cons
umer
Electr
onics
Autom
otive
Enter
tainm
ent
Food a
nd Be
verag
e
Cons
umer
Packa
ged G
oods
Brewing
and S
pirits
Telec
ommun
icatio
nsPh
armac
eutic
als
Energ
yCo
nsum
er Heal
thCh
emica
lsFin
ancia
l Serv
ices
Bank
s
Media
80%77%
72%66% 67% 66%
63% 64%61% 61% 61%
57%53% 54% 52%
78%75%
71%67% 67% 66%
63% 63% 61% 60% 60%57%
54% 53% 51%
TRUST IN INDUSTRIES 2014 VS 2015, DECLINES COMPARED TO 2014
INDUSTRY SECTORS: TECHNOLOGY-BASED INDUSTRIES DECLINE Informed
Public
Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again please 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.
2014 2015More Trust Less Trust
70% 74% 67%
*% of countries in which trust decreased
* * *
17
50%
Sweden
Canada
Germany
Switz
erland
U.K.
Netherlands
JapanU.S.
France Ita
ly
South Korea
Spain
BrazilChina
Russia
India
Mexico
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.
18
TRUST IN COMPANIES WITH HEADQUARTERS IN DEVELOPED (U.S., U.K., GERMANY, FRANCE, JAPAN) VS. DEVELOPING COUNTRIES (CHINA, INDIA, RUSSIA, MEXICO, BRAZIL)
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.
COUNTRY OF ORIGIN: DEVELOPING COUNTRY MULTINATIONALS CHALLENGED
Company’s Country of Origin Type of Market
Percent in Market Who Trust the
Company
DEVELOPING Country Multinational Doing Business…
… in a Developing Country 57%
… in a Developed Country 22%
DEVELOPED Country Multinational Doing Business…
… in a Developing Country 77%
… in a Developed Country 58%
Informed Public
19
44% 45%
72%64%
75%69%
TRUST IN DIFFERENT TYPES OF BUSINESS, DEVELOPED (U.S., U.K., GERMANY, FRANCE, JAPAN) VS. DEVELOPING COUNTRIES (CHINA, INDIA, RUSSIA, MEXICO, BRAZIL)
ENTERPRISE TYPE: DEVELOPING COUNTRIES MORE OPEN TO BIG BUSINESS
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, 27-country global total.
Edelman’s 2014 Summer Trust Supplement found that, in most emerging markets, large family-owned businesses were the most trusted company type, whereas small family-owned businesses were significantly less trusted. Note that this distinction between large and small family-owned companies used for the Summer Report makes direct comparisons with the 2015 Barometer not possible.
DEVELOPED COUNTRIES DEVELOPING COUNTRIES
State-owned Big BusinessFamily-ownedState-owned Big BusinessFamily-owned
20
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, Very/Extremely Credible) Informed Publics, 27-country global total.
CREDIBILITY OF SPOKESPERSONS, 2014 VS. 2015
LEADERSHIP: EXPERT AND “A PERSON LIKE YOURSELF” MORE CREDIBLE THAN CEO
70% 68%63%
54% 55% 53%
46%
37%
70%67%
63%
56%53%
49%
43%38%
2014 2015
More Trust Less Trust
Informed Public
21
2009 2010 2011 2012 2013 2014 2015
31%
40%
50%
38%43% 43% 41%
25%
33%
41%
26%
34% 34%31%
47%51%
67%
56%60%
63%61%
50%
Global
CEO CREDIBILITY AS A SPOKESPERSON, 2009 – 2015, GLOBAL, DEVELOPED COUNTRIES (U.S., U.K., GERMANY, FRANCE, JAPAN) VS. DEVELOPING COUNTRIES (CHINA, INDIA, RUSSIA, MEXICO, BRAZIL),ALL DATA BASED ON 20-COUNTRY TOTALS
LEADERSHIP: FRESH DECLINES FOR CEOS
CEOs not credible as
spokesperson in three-quarters
of countries
Developing Countries
Developed Countries
Informed Public
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, 20-country global total.
TRUST AND INNOVATION IN BUSINESS
23
- JEFF BEZOS
“New inventions and things that customers like are usually good for society.”
NOT SO FAST…
24Q349-351. 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, 27-country global total.
THE PACE OF DEVELOPMENT AND CHANGE IN BUSINESS AND INDUSTRY TODAY IS…
TRUST IN BUSINESS INNOVATION: PACE IS TOO FAST BY A 2-TO-1 MARGIN
51% Too Fast28% Too Slow
Informed Public
19% Just Right
25
Make the World a Better Place
Improve People's Lives
Personal Ambition
Greed/Money
Business Growth Targets
Technology
24%
30%
35%
54%
66%
70%
DRIVERS OF CHANGE IN BUSINESS AND INDUSTRY TODAY ARE PERCEIVED TO BE:
INNOVATIONS PERCEIVED AS DRIVEN BY TECHNOLOGY, BUSINESS TARGETS AND GREED/MONEY Informed
Public
Q353. From the list below, what do you believe are the top three drivers of change in business and industry today? Informed Publics, 27-country global total.
26
46%54% 54%
40%
53% 52%
24%
15% 16%20% 17% 14%
Informed Public2014 TRUST BAROMETER:
51% 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, 27-country global total. Q262/Q263/Q264/Q381/Q382. When it comes to government regulation of the [financial services industry / energy industry / food and 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, 27-country global total.
27
TRUST IN RECENT DEVELOPMENTS IN BUSINESS AND INDUSTRY
BUSINESS INNOVATION: TRUST IN NEW DEVELOPMENTS VARIES
69%
59%55%
47%
32%
Electronic and Mobile Payments
Electronic and Personal Health
Trackers
Cloud Computing
Informed Public
Q355-359. Below are a number of recent developments in business and industry. To what degree do you trust each of these recent developments? Informed Publics, 27-country global total.
50%
28Q355-359. Below is a number of recent developments in business and industry. To what degree do you trust each of these recent developments? Informed Publics, 27-country global total.
TRUST IN RECENT DEVELOPMENTS IN BUSINESS AND INDUSTRY, DEVELOPED COUNTRIES (U.S., U.K., GERMANY, FRANCE, JAPAN) VS. DEVELOPING COUNTRIES (CHINA, INDIA, RUSSIA, MEXICO, BRAZIL)
BUSINESS INNOVATION: DEVELOPING MARKETS MORE OPEN TO CHANGE
+29 +19 +26 +21 +6
83%
72% 71%
60%
37%
54% 53%45%
39%31%
DEVELOPING COUNTRIES DEVELOPED COUNTRIES
… but do not take customers in developing markets for granted.
Informed Public
50%
29
25% 35% 45% 55% 65% 75% 85%25
35
45
55
65
75
85
95Data from Table 574
TRUST IN RECENT BUSINESS INNOVATIONS (AVERAGE)
TRUS
T IN
INST
ITUT
IONS
(TRU
ST IN
DEX)
RELATIONSHIP OF TRUST IN INSTITUTIONS (TRUST INDEX) AND AVERAGE TRUST IN RECENT BUSINESS DEVELOPMENTS
Q355-359. Below are a number of recent developments in business and industry. To what degree do you trust each of these recent developments? Informed Publics, 27-country global total. 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. Informed Publics, 27-country global total.
TRUST AND BUSINESS INNOVATION: HIGHER TRUST CREATES THE OPPORTUNITY FOR FASTER INNOVATION
UAE
IND
BRAMAL
SING
MEXGLOBAL
US
ARG
ITAS.KO
NETH
GER
JAP
FRACANAUS
SWE
IRE
TURPOL
S.AFHK
SPAU.K.
Informed Public
RELATIONSHIP BETWEEN TRUST IN
INSTITUTIONS AND TRUST IN
INNOVATIONS
RUS
INDOCHI
30
Q360-364: Now thinking specifically about each of the following industries, how much do you trust them to responsibly develop and release each of these recent developments? (Showing % who trust, rated 6-9). Informed Publics, 27-country global total. Q43-60. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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.” Informed Publics, 27-country global total.
Informed Public
TRUST IN INDUSTRIES’ ABILITIES TO RESPONSIBLY DEVELOP AND RELEASE INDUSTRY-SPECIFIC DEVELOPMENTS, COMPARED TO TRUST IN INDUSTRIES
BUSINESS INNOVATION: TRUST IN INDUSTRY SECTORS DOES NOT GUARANTEE INNOVATIONS ARE TRUSTED
35%
48%
61%
61%
62%
67%
60%
78%
60%
54%Financial ServicesElectronic Payments
HealthPersonal Health Trackers
TechnologyCloud Computing
EnergyHydraulic Fracturing
Food and BeverageGenetically Modified Foods
TRUST INDUSTRY SECTOR TRUST INDUSTRY TO IMPLEMENT EACH DEVELOPMENT
+8
+1
-17
-12
-32
GapTrust in Industry Sector
vs. Trust in Industry to
Innovate
BUILDING TRUST
32
16 KEY ATTRIBUTES
TO BUILDING TRUST INTEGRITY
Has ethical business practicesTakes responsible actions to address an issue or crisisHas transparent and open business practices
ENGAGEMENTListens to customer needs and feedbackTreats employees wellPlaces customers ahead of profitsCommunicates frequently and honestly on the state of its business
PRODUCTS & SERVICESOffers high-quality products or servicesIs an innovator of new products, services or ideas
PURPOSEWorks to protect and improve the environmentAddresses society’s needs in its everyday businessCreates programs that positively impact the local communityPartners with NGOs, government and 3rd parties to address societal needs
OPERATIONSHas highly-regarded and widely-admired top leadershipRanks on a global list of top companiesDelivers consistent financial returns to investors
Edelman Trust Barometer research reveals 16 specific
attributes that build trust. These can be grouped into five performance clusters
listed here in rank order of
importance.
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. (Top 2 Box, Very/Extremely Important) Informed Public, 27-country global total.
33
STATED IMPORTANCE VS. STATED PERFORMANCE ON 16 TRUST ATTRIBUTES - GLOBAL
ENGAGEMENT AND INTEGRITY: PRIORITY AREAS FOR COMPANIES TO BUILD TRUST
TRUST-BUILDING OPPORTUNITY QUADRANTUNDER-PERFORMING ON HIGH PRIORITIES HIGH-PERFORMING ON HIGH PRIORITIES
UNDER-PERFORMING ON LOWER EXPECTATIONS HIGH-PERFORMING ON LOWER PRIORITIES
ENGAGEMENT
INTEGRITY
OPERATIONS
PRODUCTS & SERVICES
Stat
ed Im
porta
nce
Stated Performance
PURPOSE
OPERATIONS in 2008
Informed Public
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. (Top 2 Box, Very/Extremely Important) Informed Public, 27-country global total. Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a nine-point scale, where one means they are "performing extremely poorly" and nine means they are "performing extremely well." (Top 2 Box, Performing Extremely Well) Informed Public, 27-country global total.
34
BUILDING AND DEFENDING TRUST: CLEAR PERSONAL AND SOCIETAL BENEFITS ARE KEY
53% 39% 32%Fails to
Contribute to the Greater
Good
Lacks Economic Growth
Does Not Help Me and My Family Live
a Fulfilling Life
57% 51% 47%Produces
Economic GrowthAllows Me to Be a
Productive Member of Society
Contributes to Greater Good
Reasons Trust in Business Has
Increased
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 [INSERT COUNTRY] and 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 [INSERT COUNTRY].Q249-252. Please indicate how much you agree or disagree with the following statements? (Top 4 Box, Trust) Informed Publics, 27-country global total.
Reasons Trust in Business Has Decreased
47% 53%
81%agree
“A company can take specific actions that both increase profits and
improve the economic and social conditions in the community where
it operates.”
BUILDING TRUST IN
INNOVATION
36
ACTIONS THAT INCREASE TRUST IN INDUSTRY TO IMPLEMENT TECHNOLOGY CHANGES
Make test results available publicly for review 80%
Partner with an academic institution 75%
Run a clinical trial or beta test 71%
Partner with an NGO 63%
Partner with government 55%
55% AGREE:New developments
are not tested enough
TRUST IN INNOVATION:TRANSPARENCY AND 3RD-PARTY VALIDATION ARE ESSENTIAL
Informed Public
Q365-369. Below are 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 [INSERT COUNTRY]. 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 [INSERT COUNTRY].
37
THE INNOVATION TRUST MATRIX
Less TransparencyLess Accessible
Lower Understanding
Lower ParticipationLess Control
Trusted Innovation
APATHY
MoreTransparencyMore Accessible
Greater Understanding
Greater ParticipationMore Control
More Clear Benefit Greater Personal BenefitGreater Societal Benefit
Less Clear BenefitLess Personal BenefitLess Societal Benefit
Informed Public
Distrusted Innovation
FEAR
38
THE NEW FORMULA FORBUSINESS INNOVATION
TITrusted
Innovation Discovery Business brings an unrivaled agility and nimbleness, a multi-stakeholder and often global view, founded in specific expertise no other institution can bring.
= (DBenefit Benefit is twofold: personal and societal, referring to the trust placed in companies that address individual needs or challenges, as well as larger, macro-issues facing society.
B+IntegrityAttributes that build trust in any company, chiefly having ethical business practices, managing risk, treating employees well and operating responsibly as a good corporate citizen.
I)+E Engageme
ntThe multiplier factor: the transparency and 3rd-party validation that is integral to innovation. Making test results publically available for review and partnering with other institutions all increase trust. Ensuring information is easy to find, understand, and share is critical.
39
TOWARDS TRUSTED INNOVATIONA REQUIRED SET OF ACTIONS
BehaveSolve EngageFundamentally, business must conduct itself with new rigor and self-awareness. A commitment to robust relationships, transparency and consistency in reporting, active listening to stakeholders’ concerns and a willingness to modify products and services is required. Ultimately this is an action of leadership, culture and conduct.
Business must continue to apply its unparalleled perspective and skill to the world’s greatest problems. Enterprise must bring ideas and products to market that yield benefit, while ensuring the public sees the connection between new developments and societal benefit. Innovative product and service solutions should be recognized by stakeholders as more than profit-drivers.
Business must adopt a new frameworkrooted in facilitating dialogue, sharing information and fostering collaboration. Realizing that new developments do not speak for themselves, enterprises must actively engage a broad range of stakeholders to facilitate greater understanding through stories that reach and touch their audiences. Business must explain benefits completely, elucidate the technology behind the innovations and communicate its ethical practices in bringing those discoveries to market. A business that does this well is one that invites partnership, encouraged feedback and interaction and listens openly.
40
Trusted Companies
BEHAVIOR BASED ON TRUSTTRUST IN INNOVATION MATTERS
Distrusted CompaniesRefused to buy products/services Chose to buy products/services-63% 80%
Criticized them to a friend/colleague Recommended them to a friend/colleague-58% 68%
Paid more for products/services 54%
Shared negative opinions online
Shared positive opinions online-37% 48%
Defended company 40%
Sold shares Bought shares-18% 28%
Informed 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, 27-country global total. 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, 27-country global total.
41
Trusted Companies
BEHAVIOR BASED ON TRUSTTRUST IN INNOVATION MATTERS
Distrusted CompaniesRefused to buy products/services Chose to buy products/services-63% 80%
Criticized them to a friend/colleague Recommended them to a friend/colleague-58% 68%
Paid more for products/services 54%
Shared negative opinions online
Shared positive opinions online-37% 48%
Defended company 40%
Sold shares Bought shares-18% 28%
Informed 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, 27-country global total. 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, 27-country global total.
#1 most trusted
media source: ONLINE SEARCH
ENGINES
#1 most trusted
content creators: FRIENDS AND
FAMILY
42
On the cover, from top left: India’s Prime Minister Narendra Modi: REUTERS/Lucas Jackson; Financial Times article on the forex rigging scandal; Ukrainian tanks: REUTERS/Valentyn Ogirenko; Sony Pictures Entertainment Studios: AP PHOTO/Damian Dovarganes; Uber: REUTERS/Kai Pfaffenbach; Wall of hope for Malaysia Airlines Flight MH370: REUTERS/Samsul Said; Protester calls for for G20 leaders to address the Ebola issue: REUTERS/Jason Reed. On slide 4; Financial Times article; Ebola issue: REUTERS/Jason Reed; Sony Pictures: AP PHOTO/Damian Dovarganes; Malaysia Airlines Flight MH370: REUTERS/Samsul Said. On slide 22: Health Fitness Trackers: AP PHOTO/Richard Drew. On slide 31: Narendra Modi: REUTERS/Lucas Jackson. On slide 35: laboratory testing: REUTERS/Tobias Schwarz.
43
APPENDIX
44
THE FORTUNE 500 BY LOCATION, NUMBER OF COMPANIES
COMPANIES BASED IN EMERGING MARKETS ARE A LARGER AND GROWING SHARE OF GLOBAL BUSINESS
*Africa, Eastern Europe and Central Asia, Latin America, Middle East, South Asia and Southeast Asia. **China, Hong Kong, Macau and Taiwan.
Source: http://www.mckinsey.com/insights/urbanization/urban_world_the_shifting_global_business_landscape
1980 1990 2000 2010 2025 (Projected)2 1 12 31
120
21 22 1254
109
477 477 476415
271 DEVELOPED REGIONS
EMERGING MARKETS, EXCLUDING CHINA*
GREATER CHINA**
EMERGING MARKETS TOTAL SHARE5% 5% 5% 17% 46%
The McKinsey
Global Institute
predicts that by 2025, companies
headquartered in emerging markets will
make up more than 45%
of the Fortune 500
45
Global UAE
Netherl
...
Singapore
German
yFra
nce
Canad
a
Australia U.S.
Malaysi
aU.K.
Japan
Polan
dSpain
Argentin
aTu
rkey
S. Afric
a
S. Kore
aIta
lyChina India
Indon
esia
Sweden
Russia
Hong K
ong
Brazil
Mexico
Irelan
d
50
90
70 69
57 5653 52 52 51 50
4642
35 34 32
20
3934
7570 69
54
38 37 36 34
25
50
89
67 68
5450 50 51
41
4844
3731 29
24
31
18
3934
85 85
73
64
49
3943
35
27
Higher Trust in Local/State Government in 16 Countries
Higher Trust in Central/Federal Government in 9 Countries
Neutral
% Trust
50%
2015 TRUST IN LOCAL/STATE VS. CENTRAL/FEDERAL GOVERNMENT
TRUST IN GOVERNMENT: MOST COUNTRIES TRUST LOCAL GOVERNMENTS MORE THAN FEDERAL Informed
Public
LOCAL/STATE
CENTRAL/FEDERAL
Q322-323. [Local/State Government and Central/Federal Government] 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.
46
21 countries are below 50% in trust of one or both institutions
GOVERNMENT BUSINESS
% Trust
50%
GAP BETWEEN TRUST IN BUSINESS VS. GOVERNMENT, 2015
TRUST IN BUSINESS AND GOVERNMENT: 80% DISTRUST ONE OR BOTH
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.
Informed Public
2015
GLOBAL
UAEInd
ia
Indon
esia
China
Singap
ore
Netherl
ands
Malays
iaBraz
il
Sweden
Mexico U.S
Russia
German
y
Austra
lia
Canad
aU.K
.
France
Japa
n
Hong K
ong
Turkey Ita
ly
S. Afric
a
Poland
S. Kore
aSpa
in
Argenti
na
Irelan
d
48
90
82
72
82
7065
45
37
59
33
41
5450 49 49
43 42 40 42 41
28
16
3033
2621
26
57
85 84 84
70
6166 67
73
49
72
60
45 4548 47
52
4548
42 41
53
64
48
36
4346
38
47
China
India
67%
73%
55%
79%
58%
55%
47%
50%
26%
61%
22%
30%
66%
74%
54%
80%
59%
58%
49%
52%
29%
63%
25%
31%
73%
77%
55%
83%
61%
60%
51%
54%
28%
62%
26%
30%
Buy a Company in Your Country
Buy a Minority Share in a
Company in Your Country
Make a Major Investment in a New Plant
or Office in Your Country
DEVELOPING COUNTRIES DEVELOPED COUNTRIES
Brazil
Germany
U.K.
U.S
Informed Public
HOW MUCH DO YOU TRUST A COMPANY BASED IN [COUNTRY] TO...
COUNTRY OF ORIGIN: DEVELOPED MARKETS DISTRUST INVESTMENT FROM DEVELOPING COUNTRY COMPANIES
Q332-334. Please continue to think about global companies headquartered in specific emerging markets. How much would you trust a company from [INSERT BRIC COUNTRY] to do what is right in the following investment situations? (Top 4 Box, Trust) Informed Publics, 27-country global total.
48
21%
31% 29%
23%
29%
47%
34%30%
23%
31%33%
22%
29%
34%
26%22%
27%
37%34%
31%
14%
23%
13%
19%15%
OperationsPurposeProductsIntegrityEngagement
Q197-201(Global Summary). We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select which person you trust MOST to provide you with credible and honest information about a company. Informed Publics, 27-country global total.
MOST TRUSTED INFLUENCER TO COMMUNICATE EACH TOPIC
INFLUENCERS:EMPLOYEES, ACADEMICS, CONSUMERS MOST TRUSTED
Informed Public
COMPANY’S EMPLOYEECOMPANY CEO ACTIVIST CONSUMER ACADEMIC MEDIA SPOKESPERSON
