2016 Edelman Trust Barometer - Trust and the CEO

Trust and the CEO: A Global PerspectivePresented by Edelman’s Global Executive Positioning Team

2016 Edelman Trust Barometer

Table of Contents

1The Opportunity for Business to Lead

3The New Model of Leadership

A Plan of Action

4The Leadership Trust Challenge

2Appendix5

Informed Public

‣ 8 years in 20+ markets‣ Represents 15% 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

‣ 5 years in 25+ markets‣ Ages 18+‣ 1,150 respondents per country

2016 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).

‣ 16 years of data‣ 33,000+ respondents total‣ All fieldwork was conducted between

October 13th and November 16th, 2015

Online Survey in 28 Countries

3

‣ 10,0000+ respondents total; 1,000+ general population per market

‣ Fieldwork conducted 4th - 14th December, 2015

‣ 10 Markets:

CEO Supplement in 10 Countries

U.K.U.S.MexicoBrazil

AustraliaJapanChinaIndia

FranceGermany

The Opportunity for Business to Lead

Business Operating From a Position of Strength

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, 27-country global total.

5

Percent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016

51 48 4541

55 5347

42

6357

51 48

67 6357

51

NGOs Business Media Government

+4 +6 +6 +3

+4 +5 +2 +1

Informed Public

General Population

2015 2016Business closing NGO’s long-held lead in trust

67 6357

51

6369

62

47

55 5348

42

5561

56

41

NGOs Business Media Government

Business Most Trusted to Keep Pace

6

Percent trust in 2016, and percent who trust each institution to keep up with the changing times

Informed Public

General Population

Trust2016

Trusted to keep pace

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust), Informed Public and General Population, 27-country global total. Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, 28-country global total.

Business Most Trusted to Keep Pace with Changing Times

Business Has the License to Lead

Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, 27-country global total, question asked of half the sample..

80% agree

“A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”

up from 74% in 2015

General Population

7

63 64

57

5048

41

50

39

33

6764 63

53 5249 48

44

35

CEO Credibility Rising

Source: 2016 Edelman. Trust Barometer Q130-587. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 27-country global total.

8

Percent who rate each spokesperson as extremely/very credible2015 2016

+8

Technical expert

Academic expert

A person like

yourself

Financial industry analyst

Employee CEO NGO representative

Board of Directors

Government official/regulator

Peers, employees still far more credible than leaders

General Population

+6

The Leadership Trust Challenge

More Than Half Do Not Trust CEOs

Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.

10

Percent who trust CEOs to do what is rightGeneral Population

47 46

30 3031

34 35 35 35 35 36 3639 39 40 40

43 43 45 4649

57 57 5861

6568 69

79 80

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In 19 of the 28 countries, the general population do not trust CEOs to do what is right

50%

CEOs Not Getting High Marks

Source: 2016 Edelman Trust Barometer Q451-461 Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs are fairly paid relative to rest of workforce,’ ‘CEOs can relate to people like me,’ (Bottom 5 Box, Do Not Agree), ‘CEOs are too focused on short-term financial results (Top 4 Box, Agree), General Population, 28-country global total. 11

Percent who agree with each statement about CEOs

Not fairly paid relative to everyone else

Overpaid

54% Cannot relate to people like me

Unrelatable

50%

General Population

Misplaced Focus

Too focused on short-term67%

CEOs Underperforming On Most Important AttributesImportance vs. performance of 16 trust-building leadership attributes

% Performance

% Importance Gap

General Population

122016 Edelman Trust Barometer. Q462-478 How important is each of the following attributes to building your trust in CEOs? Q479-495 Please rate CEOs on how well you think they are performing on each. (Top 2 Box) General Population, 28-country global total.

Integrity 51 27 24Exhibits highly ethical behaviors 50 24 26Takes responsible actions to address an issue or crisis 53 33 20

Behaves in a way that is transparent and open 50 24 26

Engagement 49 24 25Treats employees well 52 25 27Listens to customer needs and feedback 50 25 25Places customer ahead of profits 47 23 24Communicates frequently and honestly on the state of their company 46 23 23Products 45 33 12Places a premium on offering high-quality products or services 48 34 14Is focused on driving innovation and introducing new products/services/ideas 42 32 10Purpose 40 25 15Is dedicated to protecting and improving the environment 41 22 19Ensures that the company creates programs that positively impact the local community in which it operates 42 28 14Ensures that the company addresses society's needs in its everyday business 43 26 17Ensures that the company partners with NGOs, government and third parties to address societal issues 33 24 9Operations 37 28 9Attracts and retains a highly regarded and widely admired top leadership team 40 29 11Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 29 25 4Manages the company in a way that delivers consistent financial returns 41 29 12

#1 importance

#2 importance

Table stakes

50% 4752

71 68 64 63 59 58 58 58 57 57 56 54 52 48 48 46 46 4540 40 36 35 34 30

24 22 1812

Glo

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8

GD

P 5

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CEOs Are Not Well Known

13

Percent who say that they cannot name any CEOs

Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K.

Lower Awareness Higher Awareness

Majority acknowledge inability to name a CEO

General Population

47 46

30 3034 35 35 35 36 36

39 3943

57

68

79

4640

26 2529 29 30

27 2833 30 29

34

53

67

78

Glo

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GDP

5

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Foreign CEOs Less Trusted in Key Markets

Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. Q448-449. Now thinking about different types of CEOs, please indicate how much you trust each type of CEO to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K.

14

Percent who trust CEOs in general, vs. CEOs of large companies based outside of their country

General Population

50%

Trust in CEOs Trust in Foreign CEOs

In 14 countries, foreign CEOs face additional trust challenges

-5 -5 -6 -5 -8 -8 -9 -10 -9

Trust Challenges Facing CEOs Today

Broad lack of trust in CEOs

Company experts and employees more credible spokespeople

1.

Lack of awareness of CEOs

3.

New expectations for business to lead

4.

2.

16

The New Model of Leadership

The Age of Engaged Leadership

17

The Celebrity CEO

The Invisible CEO

The Engaged CEO

1980’s and 90’s The Recession Years Today

Jeffrey A. SonnenfeldSenior Associate Dean for Leadership Programs & Lester Crown Professor in the Practice of Management, Yale University

18

“ A corporation’s public purpose is conveyed through its leaders.

Despite the pulse of 24/7 multimedia inquiries and the endless critiques of global stakeholders, many CEOs remain insulated and protected.

CEOs can only look to rebuild trust by stepping out and embracing their critical role of direct public engagement with a genuine two-way exchange with key constituents.

“

47 46

30 30 3134 35 35 35 35 36 36

39 39 40 4043 43 45 46

49

57 57 5861

6568 69

79 80

64 63

48 46 45

53 51 50

59 58

50 52

6357 59

43

5864

55

6559

7368

7672

77 7582 84

89

Glo

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GD

P 5

Fran

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Swed

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Trust in CEOs Rises When They Know CEOs

Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 28-country global total. Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you“trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.


19

Percent trust in CEOs vs. percent trust in CEOs among respondents who can name 2 or more CEOs

General Population

Trust among respondents who can name 2+ CEOsAverage Trust in CEOs

A Universal Desire for Honest, Ethical, Competent LeadershipCharacteristics that make a CEO trustworthy: percent who selected each as one of the top five in each region

20

North AmericaHonest 59%

Ethical 48%

Competent 26%

Transparent 26%

Sincere 24%

Latin AmericaEthical 47%

Honest 44%

Competent 36%

Visionary 34%

Innovative 33%

EuropeHonest 53%

Competent 43%

Experienced 28%

Ethical 27%

Transparent 27%

APACHonest 39%

Visionary 35%

Decisive 31%

Ethical 31%

Competent 26%

General Population

Source: 2016 Edelman Trust Barometer Q515. Which of the following personal characteristics make a CEO trustworthy? Please select the five most important characteristics that make a CEO trustworthy. General Population, 28-country global total, question asked of half the sample.

A CEO’s Personal Values and History Are Important

Source: 2016 Edelman Trust Barometer Q516-524. For you to trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a nine-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Important) General Population, 28-country global total, question asked of half the sample.

21

Percent who agree that each type of information is important in building trust in a CEO

General Population

62%65%70%

79%

Their education and how it shaped them

Their personal success story

The obstacles they have overcome

Their personal values

60%63%

68%

69%74%

71%71%

72%72%72%

73%76%

Personal views on societal issuesPublic policy discussions

Income inequality

Economic trendsFuture of the industry

Company benefits to societyDeveloping products and services

CrisisFinancial results

Company cultureLaunching new products/services

Purpose and vision

What the CEO Stands For Matters

Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, 28-country global total, question asked of half the sample.

22

Percent who agree that CEOs should be personally visible in each of these business situations

General Population

Industry issues

Societal issues

Company issues

Employees of companies with CEOs NOT engaged in societal issues

Employees of companies with CEOs engaged in societal issues

CEO Engagement Increases Employee Advocacy

Source: 2016 Edelman Trust Barometer Q527-529 Does your company’s CEO get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Q530-536. Thinking about your current company, please indicate how much you agree with each of the following statements using a nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample. 23

58

63

61

63

70

68

78

Recommend company as an employer

Stay working for the company

Confidence in the future of the company

Motivated to perform

Committed to achieving our strategy

Recommend products and services to others

Do the best possible job for the customer

Percent who agree with each statement, comparing those who work for companies with CEOs involved in addressing broader societal issues vs. those who do not

Impact of CEO Engagement

13

21

19

24

25

23

27

91

89

89

87

86

86

85

General Population

Employee Advocacy/Commitment

57%

68%

68%

68%

74%

74%

75%

81%

Sharing their view on social media

Interviews with the media

Meetings with NGOs and community organizations

Discussions with government

Participation in industry conferences

Issuing communications through their company, such as press releases, newsletters, website updates and annual reports

Meetings with investors and analysts

Communications with employees

High Expectations for CEO Engagement Across Stakeholders and Channels

24

Percent who agrees that each of the following activities is important in building trust in a CEO

Source: 2016 Edelman Trust Barometer Q507-514 Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of half the sample.

General Population

Your most important audience

Employees

In his early career, Mark Zuckerberg battled negative perceptions driven by coverage portraying him as a ruthless, Silicon Valley executive driven by greed and power. But when the CEO made a conscious decision to tell his own story, particularly on Facebook, perceptions began to shift.

Zuckerberg now engages in an authentic and relatable way with his target audiences:

25

Mark Zuckerberg: A Case Study in Engaged Leadership

47% percent say that they cannot name any CEOs

Only one CEO achieved double-digit recall globally

General Population

10% Mark Zuckerberg

Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about CEOs of companies in general, how many can you name? Please be specific and use their full names in the boxes below. General Population, [Open ended question, coded for industry sector] 10-country global total.

• Shares a mix of content and commentary across personal, company and industry interests

• Advocates for key issues, such as parental leave and taking a strong stand around issues that matter, such as the hatred many Muslims faced following the Paris terror attacks

• Uses Facebook to shows a human side by offering a glimpse into personal interests and life outside of work such as a Chinese New Year greeting with wife Priscilla and baby Max

• Revealed the personal struggles he and Priscilla overcame (miscarriages) on their path to pregnancy

• Takes on an annual challenge to advance his personal development and builds engaged communities around them using Facebook

• Provides behind-the-scenes access to events or offering a Q&A to share additional context around a major announcement using owned channels

• Hosts regular Town Hall meetings for employees

• Speaks openly to media and participates in industry conferences and events

A Plan of Action

Tru s t Ch a l l e n g e s F o r CEO s Pl a n o f Ac t i o n

Recommendations for Building Engaged Leadership

Broad lack of trust in CEOs BE VISIBLE, OPEN AND AUTHENTIC1.

BROADEN THE VOICES Company experts and employees more credible than CEOs3.

ENGAGE ACROSS CHANNELSLack of awareness of CEOs4.

TAKE ON ISSUES THAT MATTERNew expectations for business to lead2.

Thank You

Appendix 1:Addressing CEO Trust Challenges

Tru s t Ch a l l e n g e s F o r CEO s

There is a broad lack of trust in CEOs

O b j e c t i v e

The CEO must be visible and accessible, and all CEO communications must be authentic, personal, relatable, purpose-driven.

The CEO must express their values and purpose through direct engagement with stakeholders and by utilizing multiple online and off line platforms to tell a consistent, relevant story that is easily discovered.

Pl a n o f Ac t i o n

BE VISIBLE, OPEN AND

AUTHENTIC

Company experts and employees are more credible spokespeople than CEOs

The CEO must engage the most credible voices—experts and employees— directly and frequently to inspire and mobilize them as ambassadors for the CEOs story around the organization’s vision, purpose and performance.

BROADEN THE VOICES TO

TELL YOUR STORY

BE ACCESSIBLE BY ENGAGING DIRECTLY

AND ACROSS CHANNELS

Recommendations for Building Engaged Leadership

1.

There is a lack of awareness of CEOs, despite an explosion in communication channels

3.

The CEO should have a point of view on how the organization and industry contributes to society in positive ways.

TAKE ON ISSUES THAT MATTER TO YOUR

INDUSTRY OR SOCIETYThere are new expectations for business and leaders

4.

2.

Plan of Action to Build Engaged Leadership: Be Visible, Open and Authentic

IMP E R ATIV E S TO B U ILD E N GA GE D LE A D E R S H IP

A D D R E S S IN G TH E C H A LLE N GE

C E O TR U S T C H A LLE N GE

There is a broad lack of trust in CEOs. 47 percent do not trust CEOs to do what is right. Only 49 percent believe a CEO is a credible company spokesperson, compared to a technical expert within a company (67percent) or a regular employee (52 percent). This is in part because 50 percent of respondents think CEOs are not relatable and 79 percent want to understand the CEOs personal values.

The CEO must be visible and accessible, and all CEO communications must be authentic, personal, relatable and articulate a clearbenefit and purpose.

1. The CEO must share their personal story including their personal career journey, successes and the obstacles you have overcome.

2. CEOs must communicate clearly, authentically, and transparently, avoiding robotic and corporate speech.

A C TION S TO TA K E

1. Develop a differentiating, authentic narrative platform that offers a distinct, personal and contextual point of view. 2. Conduct individualized speakers training – not to rehash corporate messaging – but to ensure the CEO communicates the

corporate narrative and vision in a real and relevant manner and in way that connects to diverse audience groups from employees to industry partners.

1.

IMP E R ATIV E S TO B U ILD E N GA GE D LE A D E R S HIP




There are new expectations for business and leaders. While 72 percent agree CEOs must be sharing financial results and performance, 74 percent expect them to have a point of view on the future of their industry and 80 percent want CEOs to be personally visible in addressing societal issues such as income inequality.

Your stakeholders fully expect to hear from CEOs frequently and openly about their dual mandate of earning profits and providing societal benefits. The CEO should have a clear point of view on how the organization and industry contributes to society in positive ways.

1. Speak beyond spreadsheets and address relevant topics including industry trends and social purpose.2. Engage directly with your staff on these issues. Employees of companies with CEOs who are engaged in societal issues are more

productive, confident, and likely to recommend the organization as an employer of choice.

1. Identify an industry issue or social cause that matters to the CEO, employees and your stakeholder community and advocate forthis issue through multiple channels – from employees to media to industry events.

Plan of Action to Build Engaged Leadership: Take on Issues That Matter to Your Industry or Society

2.

IMP E R ATIV E S TO B U ILD E N GA GE D LE A D E R S H IP




Company experts and employees are more credible spokespeople than CEOs. Only 49 percent believe a CEO is a credible company spokesperson, compared to a technical expert within a company (67percent) or a regular employee (52 percent).

The CEO must engage your most credible voices—experts and employees— directly and frequently to inspire and mobilize them as ambassadors who can bolster and echo the CEOs story around the organization’s vision, purpose and performance.

1. Foster understanding among employees of the company’s vision and strategy and their role in fulfilling it.2. Engage and empower multiple leaders including the C-Suite, experts within the company, and employees to help tell and

humanize the company’s story.

1. Deploy your C-Suite and company experts as spokespeople. Devise engagement plans consisting of speaking, media and stakeholder outreach that align with each leader’s experience and responsibilities within the company.

2. Create compelling, customized content that brings to life the voice of each leader/expert.3. Arm employees with the right messages and tools needed to easily share content with their personal networks.

Plan of Action to Build Engaged Leadership: Broaden the Voices to Tell Your Story

3.

IMP E R ATIV E S TO B U ILD E N GA GE D LE A D E R S HIP




There is a lack of awareness of CEOs, despite an explosion in communication channels. CEOs are now expected to be engaging frequently and directly with employees (81%), investors (75%), NGOs and government (68%) as well as communicating through owned media (78%), conferences (78%) and media (68%).

The CEO must express their values and purpose through direct engagement with stakeholders—particularly employees—and utilizing multiple online and off line platforms to tell a consistent, relevant story that is easily discovered.

1. Make the CEO accessible to engage with key stakeholders—namely employees—directly and frequently.2. With a clear narrative and point of view established, share the CEO’s story through multiple channels to engage all audiences.

1. Convene multi-stakeholder dialogue on topics that matter. This could be done through employee town halls meetings, salons, media roundtables or 1:1 meetings with influencers.

2. Raise positive profile on search engines by creating and sharing relevant content across digital, social, traditional and corporate owned channels.

Plan of Action to Build Engaged Leadership: Be Accessible by Engaging Directly Across Channels

4.

Appendix 2:CEO Awareness, Supplementary Study

50%48

5764

68

46

56 5854

36

2418

60

8074

68 65 64 63

53 50 4738

Global 10 Germany Australia U.K. Brazil Japan France U.S. Mexico China India

Percent who say they cannot name a CEO vs percent who cannot actually name a CEO

Less Than Half Can Actually Name a CEO

Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population and Informed Public, 10-country total, and

2016 Edelman Trust Barometer CEO Supplementary Study Q1. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 10-country total.

36

General Population

Acknowledge inability to name a CEO

Cannot name a CEO

Global Top 10


37

Percent who mention each CEO name, across all 10 markets

10% Mark Zuckerberg 8% Bill Gates 4% Steve Jobs 4% Tim Cook 3% Carlos Slim

3% Jack Ma 3% Satya Nadella 2% Sundar Pichai 2% Carlos Ghosn 2% Richard Branson

Only one CEO achieved double-digit recall

General Population

Most Recalled CEOs: Tech Sector Leads


38

Sector associated with the main business of spontaneously mentioned CEOs

49

14

8

7

5

17

Technology

Conglomerate

Telecommunications

Retail

Automotive

Other

General Population

Tech CEO Awareness Highest in Most Markets


39

Sector associated with the main business of mentioned CEOsTechnologyConglomerateTelecommunicationsRetailAutomotiveOther

731222

32

45

1237

32

51

7

27

16 22

10

15113

39

Australia Brazil China France

50

1 1

37

10

Germany

6210

28

49

31

3116

5822

1416

India Japan Mexico United Kingdom

49

148

75

17

United States

22

1

67

General Population

Appendix 3:CEO Trust, Sector Data

61%

54%51%

48% 46%

Tech CEOs Most Trusted

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the health industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.

41

Percent who trust CEOs to do what is right in each industry sector

Technology Food & Beverage Healthcare Financial Services Energy

General Population

61%54%

51%48% 46%

75%

63%61%

52%57%

Trust in CEOs Lags Trust in Their Industry

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the [INSERT INDUSTRY] industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. 42

Trust in the sector vs. trust in CEOs in the sectorSector Trust Trust in CEOs

in this Sector


General Population

61%54%

51%48% 46%

57%52%

46% 47% 48%

76%

66%

57%61%

50%49% 46%

37%32%

37%

67%

58%64%

58% 56%

CEO Sector Trust Varies Regionally

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the [INSERT INDUSTRY] industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.

43

Percent who trust CEOs in each industry

Financial ServicesHealth EnergyTechnology Food & Beverage

Global

North America

Latin America

European Union

APAC

General Population

46 46

28 29 30 31 33 34 3435 36 38 40 41 41 42 42 43 45 46

49 53 53 55 5660

6876

7983

Glo

bal 2

8

GDP

5

Russ

ia

Swed

en

Ger

man

y

Spai

n

Japa

n

Irela

nd

S. A

frica

Can

ada

U.K

.

Aust

ralia

Arge

ntin

a

Fran

ce

Italy

Pola

nd

S. K

orea

Turk

ey

Net

herla

nds

Braz

il

U.S

.

Hon

g Ko

ng

Mal

aysi

a

Col

ombi

a

Sing

apor

e

Mex

ico

Indo

nesi

a

UAE

Indi

a

Chi

na

More Than Half Do Not Trust Energy CEOsPercent who trust CEOs to do what is right, energy sector

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the energy industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K. 44

General Population

50%

In 23 of the 28 countries, the general population do not trust energy CEOs to do what is right

More Than Half Do Not Trust Financial Services CEOsPercent who trust CEOs to do what is right, financial services sector

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the financial services industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.


45

General Population

50% 48 45

26 27 29 30 31 31 3233

39 40 40 40 41 42 44 47 50 51 53 56

64 65 68 69 71 7176 76

Glo

bal 2

8

GDP

5

Irela

nd

Swed

en

Fran

ce

Spai

n

U.K

.

Russ

ia

Ger

man

y

Net

herla

nds

Italy

Pola

nd

Japa

n

Aust

ralia

S. K

orea

Can

ada

Arge

ntin

a

U.S

.

S. A

frica

Turk

ey

Hon

g Ko

ng

Sing

apor

e

Col

ombi

a

Braz

il

UAE

Mal

aysi

a

Mex

ico

Indo

nesi

a

Indi

a

Chi

na

In 20 of the 28 countries, the general population do not trust CEOs in the financial services industry to do what is right

54 52

35 3538 39 43 44

45 4546 46 48 48 50 50 51 53 55

5862 63 64 64

69 7072 72 73 73

Glo

bal 2

8

GDP

5

Fran

ce

Russ

ia

Japa

n

Swed

en

S. K

orea

Irela

nd

Aust

ralia

Ger

man

y

Net

herla

nds

Turk

ey

Hon

g Ko

ng

Spai

n

Pola

nd

U.K

.

Can

ada

U.S

.

Italy

Arge

ntin

a

Mal

aysi

a

Col

ombi

a

Sing

apor

e

S. A

frica

Mex

ico

UAE

Braz

il

Chi

na

Indi

a

Indo

nesi

a

More Than Half Do Not Trust CEOs in Food & BeveragePercent who trust CEOs to do what is right, food & beverage sector

46

General Population

50%

In 18 of the 28 countries, the general population do not trust food and beverage CEOs to do what is right

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the food and beverage industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.


More Than Half Do Not Trust Tech CEOsPercent who trust CEOs to do what is right, technology sector

47

General Population

50%

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the technology industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.


6158

34

44 45 45 46 48 49 49 50 53 53 5457 57 58 59 61

6568 69 71

7578 78 79 83

8793

Glo

bal 2

8

GDP

5

Swed

en

Russ

ia

Japa

n

Net

herla

nds

Fran

ce

U.K

.

Ger

man

y

Spai

n

Aust

ralia

Can

ada

Pola

nd

S. K

orea

Irela

nd

U.S

.

Italy

Turk

ey

Hon

g Ko

ng

S. A

frica

Arge

ntin

a

Mal

aysi

a

Sing

apor

e

Col

ombi

a

Braz

il

UAE

Indo

nesi

a

Mex

ico

Indi

a

Chi

na

In 16 of 28 countries, the general population do not trust technology CEOs to do what is right

51 51

2730 31 31

37 39 3940 44 44 45 45 46 46 48 48

5255 56 56

61 62

69 71 73 7478

81

Glo

bal 2

8

GDP

5

Pola

nd

Swed

en

Irela

nd

Russ

ia

Italy

Ger

man

y

Net

herla

nds

Fran

ce

S. A

frica

Japa

n

U.K

.

Col

ombi

a

U.S

.

Turk

ey

Can

ada

Spai

n

Arge

ntin

a

S. K

orea

Aust

ralia

Hon

g Ko

ng

Braz

il

Sing

apor

e

Mex

ico

Indo

nesi

a

UAE

Mal

aysi

a

Indi

a

Chi

na

More Than Half of Countries Do Not Trust Healthcare CEOs

Source: 2016 Edelman Trust Barometer Q450. Please indicate how much you trust CEOs in the health industry to do what is right. Please use the 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K. 48

Percent who trust CEOs to do what is right, healthcare sector

General Population

50%

In 20 of the 28 countries, the general population do not trust healthcare CEOs to do what is right

61%

52% 51%

62% 60%53%

40% 41%

52% 52%

A Missed Opportunity for CEOs to Lead on Societal Issues

Source: 2016 Edelman Trust Barometer Q527-529. Does your company and your company’s CEO get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? (Yes summary) General Population, 28-country global total, question was asked of half the sample.

49

Respondents who say their company and their CEO are engaged in societal issues, by industry sector

CEO engaged

Company engaged


General Population

Appendix 4:Additional Data, Trust and CEO Trust

Leading With Purpose Impacts Trust

51

Percent who cite each as a reason for why their trust in business has increased or decreased

Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, 28-country global total.

Reasons Trust in Business Has Increased

Reasons Trust in Business Has Decreased

Produces economic growth

Contributes to the greater good

Allows me to be a productive member of society

Fails to contribute to the greater good

Lacks economic growth

No public services

59%

45%

40%

50%

39%

36%

General Population

47 46

30 3034 35 35 35 36 36

39 3943

57

68

79

3135

40 4043 45 46

49

6157 58

6965

80

46

40

26 2529 29 30

27 2833

30 2934

53

67

78

35 35

4349 50 48

51 52

6166 68 69

73

81

Glo

bal

GDP

5

Fran

ce

Swed

en

Japa

n

Irela

nd

Net

herla

nds

U.K

.

Ger

man

y

Russ

ia

Aust

ralia

Can

ada

U.S

.

Sing

apor

e

UAE

Indi

a

Spai

n

Pola

nd Italy

S. K

orea

Turk

ey

Hon

g Ko

ng

Arge

ntin

a

S. A

frica

Mal

aysi

a

Col

ombi

a

Braz

il

Indo

nesi

a

Mex

ico

Chi

na

The Global CEOForeign CEOs Less Trusted in Half the Markets

Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. Q448-449. Now thinking about different types of CEOs, please indicate how much you trust each type of CEO to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 52

Percent who trust CEOs in general, vs. percent who trust CEOs of large companies based outside of their country

General Population

50%

Trust in CEOs Trust in Foreign CEOs

In 14 countries, foreign CEOs are less trusted

-5 -5 -6 -5 -8 -8 -9 -10 -9 9 7 5 9 10 8

In 11 markets, foreign CEOs have a trust advantage

48

52

59

66

60

62

64

66

81

58

63

63

64

68

70

77

81

86

40

39

47

48

52

54

56

63

76

56

56

62

67

65

63

69

75

79

Hobbies outside of work

Their family/spouse/children

How they choose to spend their money

Their personal philanthropic activities

Their lifestyle choices

Where they were educated and how it shaped them

Their personal success story

The obstacles they overcame to become successful

Their personal values

Getting Personal – How Much to Share

53Source: 2016 Edelman Trust Barometer Q516-524 For you to trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Importance) General Population, 28-country global total.

General Population

APAC

Europe

Latin AmericaNorth America

Percent who agree the following aspects of the CEO’s personal life outside of their business is important

47 46

30 30 3134 35 35 35 35 36 36

39 39 40 4043 43 45 46

49

57 57 5861

6568 69

79 80

57 56

3642

3740

3642

4751

38

45 46

53

41

5056

60

49

5852

63

72 72

61

77

67

78

9286

Glo

bal

GDP

5

Swed

en

Fran

ce

Spai

n

Japa

n

Irela

nd

Pola

nd

U.K

.

Net

herla

nds

Russ

ia

Ger

man

y

Can

ada

Aust

ralia

S. K

orea

Italy

Turk

ey

U.S

.

Hon

g Ko

ng

Arge

ntin

a

S. A

frica

Sing

apor

e

Col

ombi

a

Braz

il

Mal

aysi

a

Mex

ico

UAE

Indo

nesi

a

Indi

a

Chi

na

In 19 of 28 countries, the general population do not trust CEOs to do what is right

Informed Public More Trusting of CEOs

54Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population and Informed Public, 28-country global total.


Informed Public

GeneralPopulation

Percent who trust CEOs, in general, to do what is right

50%

+10 +12 +12 +16 +14 +10 +13 +17 +12 +12 +12

50%53 50

7671 70

6460 60 57 56 56 53 52 51 48 46 46 46 43 43 42 42

38 38

70 69 67

58

3933

47 46

6569

57 58 5749

40 3935

4639

43

3135

30 3035 34

4336 36 35

80 79

6861

4540

Glo

bal 2

8 C

ount

ryG

DP 5

Mex

ico

Indo

nesi

a

Col

ombi

a

Braz

il

Sing

apor

e

S. A

frica

Italy

Can

ada

Net

herla

nds

Arge

ntin

a

Aust

ralia

U.S

.

Spai

n

U.K

.

Fran

ce

Swed

en

Irela

nd

Japa

n

Turk

ey

Ger

man

y

Russ

ia

Pola

nd

Chi

na

Indi

a

UAE

Mal

aysi

a

Hon

g Ko

ng

S. K

orea

CEOs Trusted Less Than Business

Source: 2016 Edelman Trust Barometer Q11-14. [TRACKING] [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.“ Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.

55

Percent Trust, Business vs. CEOs

11 13 11 17 17 21 13 17 11 16 16

Business CEOs

Business is more trusted in 22 of 28 countries

General Population

North America Latin America EU APACCommunications with employees 1 1 1 1Meetings with investors/analysts 4 2 2 2Participation in industry conferences 3 3 4 3Issuing communications through their companies 2 4 3 4Interviews with the media 6 6 7 6Discussions with government 7 8 6 5Meetings with NGOs/community organizations 5 5 5 7Sharing their views on blogs/social media 8 7 8 8

Your Communications Strategy May Need to Change For Each MarketRank order of activities it is important for a CEO to engage in

56

General Population

Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Important) General Population, across regions, question asked of half the sample.

66 66 66 64 62 62 60 5956 54

47 4542

33 31 30 29

Can

ada

Swed

en

Switz

erla

nd

Ger

man

y

Aust

ralia

U.K

.

Japa

n

Net

herla

nds

U.S

.

Fran

ce

Italy

Spai

n

Sout

h Ko

rea

Chi

na

Bra

zil

Indi

a

Mex

ico

Companies Headquartered in Developed Markets More Trusted

Source: 2016 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, 25-country global total.

57

Trust in companies headquartered in each country, and percentagepoint change, 2013 vs. 2016

+6 -2 +6 +8 -2+1+1n/a+1+4+5+3 +2 +2 +1 0 +34 Year Trend

General Population

25 27

19

2528

33

27 2824

28

37

3132 30

48

24 25 2621 21 22 23

2016

19 1914

19 18 18

8 9 813

10 11

Employees and Other Executives Seen As More Credible Spokespeople

Source: 2016 Edelman Trust Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611 a company’s business practices, 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 Who do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, 28-country global total. 58

Most trusted spokesperson to communicate each topic

Innovation effortsFinancial earnings & operational performance

Business practices/crisis handling

Treatment of employees/customer

Partnerships/Programs to address societal issues

Views on industry issues

Employees Most Trusted

General Population

Company CEO

Senior executive

Employee

Activist consumer

Academic

Media spokesperson

58

53

44

63

46

2012 2013 2014 2015 2016

A Transformed Media Landscape

Source: 2016 Edelman Trust Barometer Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) General Population and Millennials, 25-country global total.

*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.”

Percent trust in each source for general news and information

Millennialseven more trusting of digital media thangeneral population

2012 2013 2014 2015 2016

Search engines* 61 58 61 62 63

Traditional media 62 59 61 57 58

Online-only media** 46 44 47 45 53

Owned media 41 40 43 43 46

Social media 44 41 44 45 44

General Population

59

Millennials Gap

66 3

58 0

58 5

51 5

51 7

Employees of companies NOT engaged in societal issues

Employees of companies engaged in societal issues

Employee Advocacy Increases With Societal Issue Engagement

Source: 2016 Edelman Trust Barometer Q527-529 Does your company get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Q530-536. Thinking about your current company, please indicate how much you agree with each of the following statements using a nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample. 60

Percent who agree with each statement, comparing those who work at companies involved in addressing broader societal issues vs. those who do not

57

61

60

62

68

66

78

Recommend company as an employer

Stay working for the company

Confidence in the future of the company

Motivated to perform

Committed to achieving our strategy

Recommend products and services to others

Do the best possible job for the customer

Impact of Company

Engagement

12

21

19

22

24

22

25

90

87

87

84

84

83

82

General Population

Level of Employee Advocacy/Commitment