Trust Barometer 2010 APAC Findings

2010 Edelman Trust Barometer

Asia Pacific Findings

Edelman Trust Barometer at a glance

Tenth annual study

4,875 people in 22 countries

1,575 people in Asia Pacific across 7 countries: China, Japan,

South Korea, India, Indonesia, Australia, and Singapore

Ages 25 to 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

2

The Operating Environment

• Half Full?

• Economic questions/opinions

• Self interests creeping back in

• Should we drink it?

• Product issues re-appearing

• Supply chains a vulnerability

• How clear is it?

• Transparency #2 driver of reputation

• Lip service not enough

3

Relative Trust in Institutions

4

Business back; NGOs have “arrived”

A7-A10. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top

4 Box) Informed Publics ages 25-64 in 22 countries (globally), U.S., EU and APAC (China, India, Japan, S. Korea, Indonesia, Singapore, Australia)

49%

55%57%

46%46%

54%

63%

38%

43%

50%

59%

40%

59% 58%

53% 54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Government Business NGOs Media

Globally U.S. EU APAC

Trust in institutions

5

Governments “moving” and moving

A7-A10. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right.

On 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, how much

do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 in Asia (China, India, Japan, South Korea and Indonesia)

51%

60%

50%

59%57% 60%

52%

57%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2009 2010

Trust in institutions – Asia 2009 vs. 2010

6

Emerging markets (and Singapore!) more trusting

A7-A10. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64

84%

74%

43% 42%

50%

41%

62%63% 62%

67%

57%

45%47%

64%

56%54%

47%

39%

69%

51% 52%

63% 63%

58%

36%

49%

30%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Singapore China India Japan S. Korea Australia Indonesia


Trust in institutions

7

43%

51%

45%

37%

72%

42% 41%

56%

47%

57%

84%

62%

50%

74%

43% 42% 41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global Asia Singapore Indonesia South Korea

China India Japan Australia

2009 2010

Trust in Government – Asia Pacific

Government on the rise …not so fast, Mr Rudd

A7. [Government in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top

4 Box) Informed Publics ages 25-64 in 20 countries (global excludes Singapore and UAE) & Asia (China, India, Japan, South Korea and Indonesia)

+4

+17

N/A

+13

- 15

8

+6

50%

60%

39%43%

62% 62%

71%

63%

54%

60%

45%47%

64%62% 63%

67%

57%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global Asia South Korea Australia Indonesia China Singapore India Japan

2009 2010

Trust in Business – Asia Pacific

Business, generally, continues to outperform

A9. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box)

Informed Publics ages 25-64 in 20 countries (global excludes Singapore and UAE) & Asia (China, India, Japan, South Korea and Indonesia)

+4

N/A

9

54%50%

58%

46%50%

55%

44%

54%57%

52%

69%

56%52%

54%51%

39%

47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global Asia South Korea

Singapore Indonesia China Australia Japan India

2009 2010

Trust in NGOs – Asia Pacific

NGOs continue to emerge

A10. [NGOs TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed

Publics ages 25-64 in 20 countries (global excludes Singapore and UAE) & Asia (China, India, Japan, South Korea and Indonesia)

+3

+11

N/A

Trust decreased

among ages 25-

34 and increased

among ages 35-

64

Trust increased

among ages 25-

34 and decreased

among ages 35-

64

10

47%

59% 59%

47%

77%

35%

65%

49%45%

57%

63% 63%

49%

75%

30%

58%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global Asia Singapore China South Korea

Indonesia Australia India Japan

2009 2010

Trust in Media – Asia Pacific

Media declining

A8. [Media in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4

Box) Informed Publics ages 25-64 in 20 countries (global excludes Singapore and UAE) & Asia (China, India, Japan, South Korea and Indonesia)

N/A

11

-13

-7

Business: A Closer Look

12

37%

39%

42%

43%

58%

67%

67%

70%

73%

75%

75%

75%

77%

Brazil

Russia

India

China

Italy

US

Netherlands

France

Japan

UK

Canada

Sweden

Germany

APAC least trusting of companies headquartered in BRIC countries

Significant at 95%

confidence level

13

A13-25. Now I would like to focus on global companies headquartered in specific countries. Please tell me how much you TRUST global

companies headquartered in the following countries to do what is right. 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) Informed Publics ages 25-64 in Asia Pacific (China, India,

Japan, S. Korea, Indonesia, Singapore, Australia)

Asia

Pacific BRICs in the Wall

• Japan has lowest trust in companies

headquartered in Brazil (15%), Russia

(10%) and China (6%)

• China-headquartered companies trusted by

a majority only in China and Indonesia

• India-headquartered companies trusted by a

majority only in India

• Companies headquartered in Brazil and

Russia trusted by a majority only in China

52%

53%

54%

59%

62%

64%

67%

68%

69%

71%

72%

75%

82%

Entertainment

Insurance

Media companies

CPG manufacturers

Food

Retail

Health care industry

Biotech

Pharmaceuticals

Banks

Energy

Automotive

Technology

Technology remains most trusted industry sector in APAC

A26-38. Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following

industries to do what is right. Again, please use 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) Informed publics ages 25-64 in Asia Pacific (China, India, Japan, S. Korea, Indonesia, Singapore, Australia)

Asia

Pacific

14

• Australia and Japan less trusting

• Australia less trusting of energy industry

(-49%)

• Japan less trusting of healthcare industry

(-27%)

• South Korea less trusting of entertainment,

and retail industries (-52% / -31%)

• China has lowest trust in CPG

manufacturers (-24%); also least trusted

sector in China

41%

45%

46%

47%

49%

61%

63%

66%

67%

71%

Has highly-regarded and widely admired top leadership

Is an innovator of new products, services or ideas

Delivers consistent financial returns to investors

Is a good corporate citizen

Prices its brands fairly and competitively

Communicates frequently and honestly on the state of its business

Treats employees well

Is a company I can trust

Has transparent and honest business practices

Offers high quality products or services

Corporate reputation based on transparency and trust as much as quality

B63.-72. How important are each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important” and nine means it is “extremely important” to overall reputation. (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Asia Pacific (China, India, Japan, S. Korea, Indonesia, Singapore, Australia)

Asia Pacific

15

68%

62%

75%

72%

62% 61% 59%

51%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global APAC China Singapore Australia South Korea India Japan Indonesia

More likely to trust a company that partners with a NGO to battle global issues

Corporate partnerships with NGOs build trust

C80. Would you be more or less likely to trust a company that partners with NGOs to battle global issues such as climate

change, alleviating poverty or curing diseases, than you would be to trust a company that works alone? (Net More Likely: Much

More + A Little More) Informed Publics ages 25-64 in Asia Pacific (China, India, Japan, S. Korea, Indonesia, Singapore, Australia)

Asia Pacific

16

A stakeholder, not a shareholder, world

D83. When a CEO makes business decisions for his or her company, which stakeholder SHOULD BE most important to a CEO’s

business decisions? Informed Publics ages 25-64 in Asia Pacific (China, India, Japan, S. Korea, Indonesia, Singapore, Australia)

Which stakeholder should be most important to a CEO’s business decisions?

Government3%

Employees6%

Society at Large11%

Customers 12%

Investors/ Shareholders

15%

All stakeholders are equally important

53%

Asia Pacific

17

• Japan and South Korea least

likely to say that all shareholders

are important

• South Korea also gives weight to

customers followed by society

• Japan also gives weight to

customers followed by investors

Managing Sources and Channels

18

APAC higher than global, but only minority support

19

E84-97. Now I’m going to read you a list of places where you might get information about a company. Please tell me how credible you

believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or

not credible at all? (Top 2 box, very + extremely credible) Informed Publics ages 25-64 in Asia Pacific (China, India, Japan, S. Korea,

Indonesia, Singapore, Australia)

18%

19%

19%

31%

33%

33%

36%

37%

42%

37%

46%

40%

50%

38%

19%

20%

22%

29%

38%

38%

38%

40%

42%

44%

44%

45%

45%

48%

Blogs

Social Networking sites such as Facebook or MySpace

Corporate or product advertising

Free content sources, such as Wikipedia or web portals

Corporate communications such as press releases, reports, and …

A company’s own Web site

Online search engines e.g. Google news, YouTube

Conversations with your friends and peers

Conversations with company employees

Articles in newspapers

Articles in business magazines

News coverage on the radio

Stock or industry analyst reports

Television news coverage

Asia Pacific 22-country Global Total

Traditional information sources have moderate credibility in all countries

except Singapore which gives them high credibility



not credible at all? (Top 2 box, very + extremely credible) Informed Publics ages 25-64

49%

36%

42%44%

35%

60%

44%

54%

36% 37%

51%

42%

66%

42%

33%

40%

55%

46%

38%

68%

38%

50%

40%

27%

39%

29%

40%42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China India Japan S. Korea Indonesia Singapore Australia

Radio news TV news Newspaper articles Conversations with friends

Credible Sources of Information – Traditional

China JapanIndia IndonesiaS. Korea Singapore Australia

20

Online search engines most credible digital information sourceRivals credibility of traditional media sources in many countries




27%

56%

30%

40%

47%

43%

33%

16%

41%

22%

30%

43%

37%

27%

13%

27%

11%

37%

22%

15%

23%

19%16%

7%

28%25%

15%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Online search engines Free content sources Social networking sites Blogs

Credible Sources of Information – Digital


21

Corporate communication sources also enjoy moderate credibility in most

countries




32%

48%46%

50%

33%

52%

40%

32%

46%

42%

34% 34%

54%

32%

36%

46%

40%

31%34%

46%

35%

11%

32%

25%

21%

15%

35%

28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Employee conversations Corporate communications Company web site Advertising

Credible Sources of Information – Corporate


22

Academics/experts most credible spokespeople in most APAC countriesSpokespeople have high credibility in Singapore

32%

41%

45%

46%

51%

52%

65%

0% 10% 20% 30% 40% 50% 60% 70%

Regular employee

Person like yourself

NGO representative

Government official

CEO

Financial or industry analyst

An academic or expert

Credible Spokespeople

23

Asia

Pacific

F99-105. Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that 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 ages 25-64 in Asia Pacific (China, India, Japan, S. Korea, Indonesia, Singapore, Australia)

• All spokespeople have higher

credibility in Singapore

• Australia least likely of all APAC

countries to believe CEOs are

credible

• Financial/industry analyst and a

regular employee of a company

less credible in China

• Japan and Indonesia give less

credibility to government officials

Academics/experts still most credible spokespeopleGovernment officials, NGO reps, academic and CEOs have gained ground

F99-105. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a

company from that 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 ages 25-64 in Asia (China, India, Japan, South Korea, Indonesia)

34%38%

46%

58%

44%

31%

48%

40%43%

51%

62%

47%

30%

38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Government official

NGO representative

CEO An academic or expert

A financial or industry analyst

Regular employee

Person like yourself

2009 2010

Credible Spokespeople – Asia

24

+6+5

+4

+5

- 10

Implications

25

• Understand “the paradox”

of transparency

• “Trust Management” is a

new competency

26

Seven new behaviors

1. Listen with new intelligence

2. Participate in the conversation: real time/all the time

3. Create and co-create content

4. Socialise media relations

5. Champion open advocacy

6. Build active partnerships: for common good

7. Embrace complexity

27

2010 Edelman Trust Barometer

Asia Pacific Findings