1
January 21, 2011
Asia-Pacific (APAC)AUSTRALIA
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Edelman Trust Barometer at a glance
30-minute telephone interviews conducted from October 11 – November 28, 2010. Australian sample N=200
For more than a decade, Edelman’s Trust Barometer™ has been:
• Probing the attitudes of opinion shapers on the current state of trust in business, institutions and industries
• Understanding the expectations of stakeholders regarding policy impact on business and government
• Aligning communications strategies and actions required to build trust
Participants are:
Aged between 25 and 64; college-educated; top 25% of household
income; significant consumers of media, business news and
public policy
The Edelman Trust
Barometer derives from more than
5,000 interviews across 23 countries
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State of TrustShifting centre of
gravity
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A7-10. [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, Trust) Informed Publics ages 25-64 in Australia
Trust in Australi
a rebounds since 2010
NGOs
65 %Business
54 %
Government
52 %Media
32 %+7 +2
+11
+14
Trust in institutions (2010-2011)
5
2009 2010 201120
25
30
35
40
45
50
55
60
65
70
54%52%
65%
32%
Business Government
NGOs Media
Trust in institutions (2009-2011)Australia
most trusting of NGOs; least trusting of media
Since trust was benchmarked in Australian in 2009, trust in business has steadily increased, gaining 11%. Despite a small decline in 2010, trust in NGOs surges to a high of 65%, a 10% increase since 2009.
A7-10. [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, Trust) Informed Publics ages 25-64 in Australia
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11%
increase in trust in government since 2010.
Despite a tumultuous year in politics, more than half (52%) of Australian opinion leaders trust government to do what is right. Trust in government rebounds from drop in 2010, returning to 2009 levels.(Question A9, Top 4 Box, Informed Publics aged 25-64 in Australia)
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Trust in Business
A closer look
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Media
Banks
Financial services
Insurance
Telecommunications
Energy
Consumer packaged goods
Brewing and spirits
OTC personal health care products
Biotech
Automotive
Pharmaceuticals
Entertainment
Retail
Food and beverage
Technology
28%
33%
37%
38%
38%
45%
47%
52%
53%
54%
55%
56%
59%
59%
65%
68%
A30-45. [TRACKING] 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 Australia
Trust in industries (2011)
Technology firmly on top; Media and
Finance sector at bottom
Trust in all
industries remains
steady over the past year
9
Media
Financial services
Telecommunications
Consumer packaged goods
OTC personal health care products
Automotive
Entertainment
Food and beverage
28%
33%
37%
38%
38%
45%
47%
52%
53%
54%
55%
56%
59%
59%
65%
68%
A30-45. Please tell me how much you TRUST businesses in each of the following industries to do what is right. 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 23 countries and Australia
81% 1.
66% 4.
65% 6.
63% 7.
63% 8.
69% 2.
65% 5.
57% 11.
57% 12.
59% 10.
62% 9.
68% 3.
52% 14.
50% 16.
51% 15.
54% 13.
Global ranking
Aussies LESS
trusting
Aussies MORE
trusting
In 2011, Automotive,
Telecommunications and
Biotech less trusted in Australia
than globally
Trust in industries (2011)
10
China India Japan Brazil France Australia* Russia US Germany UK Ireland*0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
78%83%
61%
48%
40%
29%
54%
71%
44% 46%
26%
90%87%
71% 69%
52%
33%
44%
25% 23%
16%
6%
2008 2011
* Compares 2009 rather than 2008 dataA30-45. [Banks TRACKING] 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
Trust in banks globally (2008/2011)
+12 +4
+10 +2
1
+12
-10
-46
-21-30
-20
Since financial crisis, trust in
banks takes big hit in the West;
Reverse is true in China, India,
Japan
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Aussies LESS
trusting
Aussies MORE
trusting
Company Headquarters
A13-29. 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. (Top 4 box) Informed Publics ages 25-64 in Australia
National identity for companies (2011)
27% India
26% China
20% Brazil
18% Russia
Australians distrusting of
companies headquartere
d in BRIC countries
76% Canada
70% Sweden
69% Switzerla
nd
67% Germany
51% US
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Reputation attributes (2011)
Has transparent and honest business practices
Offers high quality products
Is a company I can trust
Treats employees well
Prices its brands fairly and competitively
B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. How important is this factor to overall reputation on a 9-point scale where one means “not at all important” and nine means “extremely important”? (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia.
Communicates frequently and honestly64%
63%60%57%55%
51%46%33%31%30%
Is a good corporate citizen
Has highly regarded and top leadership
Delivers consistent financial returns to investors
Is an innovator of new products, services or ideas
Top 2 Box, Very/Extremely Important
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Innovator
Financial returns
Widely admired leadership
Good corporate citizen
Communicates frequently and honestly
Prices fairly and competitively
Treats employees well
Company I can trust
High quality products or services
Transparent and honest business practices
30%
31%
33%
46%
51%
55%
57%
60%
63%
64%
Attributes affecting reputation (2011)
Globally quality tops the list of reputation attributes; in Australia transparenc
y and honesty
most important
65% 2.
69% 1.
65% 3.
63% 4.
55% 5.
55% 5.
51% 7.
39% 9.
39% 9 .
46% 8.
Global ranking
B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. How important is this factor to overall reputation on a 9-point scale where one means “not at all important” and nine means “extremely important”? (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia and global in 23 countries.
Top 2 Box, Very/Extremely Important
LESSimportant to Aussies
MOREimportant to Aussies
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Price matters.
17%increase since 2010.
Australians see pricing brands fairly and competitively as an important attribute for trust and reputation in 2011.
(Question B72-81, Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia)
.
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Business and Society
Toward shared value
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Michael Porter, Mike Kramer, Harvard Business Review”
The purpose of a corporation must be redefined around creating shared value…
“Companies must take the lead in bringing business and society back together.
Creating Shared Value
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“The social responsibility of business is to increase its profits.”Milton Friedman
G124. TOTAL 52%. Please tell me if you agree/disagree with the following quote from Milton Friedman: “The social responsibility of business is to increase its profits”? (Net: Strongly agree + somewhat agree) Informed Publics ages 25-64 in Australia
.
5 out of 10 Australians agree
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Corporations need to create shareholder value in a way that aligns with society's interests, even if that means sacrificing shareholder value.
G120. TOTAL 79%. Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way in which they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in Australia
.
8 out of 10 Australians agree
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Government needs to regulate corporations activities to ensure they are behaving in a responsible manner.
G123. TOTAL 73%. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in Australia
.
7 out of 10 Australians agree
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Japan
S. Korea
Spain
Germany
France
Brazil
Mexico
US
India
China
Singapore
Russia
Indonesia
Australia
Canada
UK
Ireland
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
42%
44%
48%
49%
50%
53%
56%
61%
61%
62%
67%
69%
70%
73%
74%
82%
82%
G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in 23 countries
Government intervention (2011)
Australians more likely to
call for government to
step in to ensure business
behaves responsibly
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Roadmap to Trust
Key drivers of reputation
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67%trust atechnical expert from within the company
69%trust anacademic or expert
50%trust afinancial or industry analyst
Credible spokespeople (2011)
Credibility matters
D104-111. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Australia
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Credible spokespeople (2011)
CEO
experiences recovery of credibility
30percentage point
increase since 2009 to 49% in 2011
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Global APAC US India Japan South Korea
Singapore China Indonesia Australia0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40%
51%
31%
58%53%
50%
66%
45%
53%
38%
50%
58%
34%
78%
67%63%
58%
50% 50% 49%
2010 2011
D104-111. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
CEO credibility (2010-2011)
CEO credibi
lity increas
es globall
y+10
+7
+3
+11
Top 2 Box, Extremely Credible/Very Important
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0%
10%
20%
30%
40%
50% 47%
13%
9%
14%
6%
11%
0%
10%
20%
30%
40%
50%
36%
8%
33%
9%
3%
11%
0%
10%
20%
30%
40%
50%
21%
36%
22%
8% 7% 6%
Trusted spokespeople in a crisis (2011)
D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about that crisis. D101. Keeping the same list of people in mind, when a company issues a product recall, which one person do you want to hear information from about that recall? D102. Keeping the same list of people in mind, when a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about that damage? Informed Publics ages 25-64 in Australia.
Trusted spokesperson during a company crisis
Preferred spokesperson during a product recall
Preferred spokesperson when the local community has been
damaged
CEO must
be vocal
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Corporate/product advertising
Corporate communications
Microblogging sites, such as Twitter
Social networking sites
Content-sharing sites, such as YouTube
Blogs
News/RSS feeds
Online search engines
Television or television news
Radio or radio news
Newspapers
Magazines or business magazines
9%
21%
6%
6%
8%
9%
17%
27%
20%
23%
23%
27%
H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me if you trust it – a great deal, somewhat, not too much, or not at all as a source of information about a company? (Top Box Trust A Great Deal) Informed Publics ages 25-64 in Australia
Trusted information sources (2011)Tr
ad
itio
nal
Socia
l M
ed
iaC
orp
ora
te
Trust a Great Deal (Top Box)/Trust (Top 2 Box)
On
lin
e
Sou
rces
82%
86%
83%
76%
82%
82%
45%
47%
39%
35%
78%
58%
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Social media
Broadcast (radio/TV)
Friends and family
Print (newspapers/magazines)
Company website
Online news sources
Online search engine
0% 10% 20% 30% 40% 50%
4%
5%
7%
11%
16%
22%
35%
Source of information about a company (2011)
I139. When looking for general news or information about a company, which one type of information source would you generally consult first? Informed Publics ages 25-64 in Australia
First Source
People go to online first when looking for
news and information about a company – search,
online news sources and company
websites
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Social media
Broadcast (radio/TV)
Friends and family
Print (newspapers/magazines)
Company website
Online news sources
Online search engine
0% 10% 20% 30% 40% 50%
4%
5%
7%
11%
16%
22%
35%
Source of information about a company (2011)
(I139. When looking for general news or information about a company, which one type of information source would you generally consult first? I140. And after [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking for general news or information about a company? Informed Publics ages 25-64 in Australia
Friends and family
Social media
Print (newspapers/magazines)
Broadcast (radio/TV)
Online search engine
Company website
Online news sources
0% 10% 20% 30% 40% 50%
5%
8%
11%
14%
16%
17%
26%
Second SourceFirst Source
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Most relied upon information source (2011)
I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in Australia
1. 48%
2. 14%
3. 12%
4. 12%
5. 10%
6. 9%
7. 8%
8. 7%
9. 6%
10. 6%
Most relied on source for company information (unaided) Strong media brands rise to the top
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H137. Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia
Once (1); 14%
Twice (2); 15%
Three times (3); 27%
Four or Five times (4 - 5); 29%
Six to Nine times (6-9); 9%
Ten or more times (10+); 6%
3-5 times56%
Exposure to information (2011) Australians need
information from multiple sources and voices; And
need to hear it 3-5 times to believe
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The Benefits of TrustThe Benefits of Trust
Why Trust Matters
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Trust is a protective agent and leads to tangible benefits and sales.
Lack of trust is barrier to change.
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Series115%
38%
75%
76%
29%
42%
61%
80%
84%
Bought shares
Paid more for products/services
Chose to buy products/servicesRefused to buy products/services
Recommended them to a friend/colleagueCriticized them to a friend/colleague
Shared negative opinions online
Sold shares
Shared positive opinions online
+_Distrusted Companies Trusted Companies
Actions Taken Over Past 12 Months
F118. [TRACKING] 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. (Percent “Yes”) F119. [TRACKING] 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. (Percent “Yes”) Informed Publics ages 25-64 in Australia
Through personal action, trust has tangible benefits
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When a company is distrusted When a company is trusted
16%
31%
57%will believeNEGATIVE
information afterhearing it 1-2 times
Think about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information) about that company to believe the information is likely to be true? Please give me a number. Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia
will believe positive information after hearing it 1-2 times
will believe negative information after hearing it 1-2 times
49%will believePOSITIVE
information after hearing it 1-2 times
Trust protects reputation (2011)
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Business must align profit and purpose for social benefit.
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Control Information
Focus Solely on Profit
Pro
tect
the B
ran
d
Sta
nd A
lone
Profit With Purpose
Tran
spar
ency
Engagement
Old Trust Framework New Trust Architecture
WHAT
HOW
WHERE
The Transformation of Trust
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Current media landscape plus increased skepticism requires multiple voices and channels.
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Generational differences
Demand for authority and accountability set new expectations for corporate leadership.
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January 21, 2011
Asia-Pacific (APAC)AUSTRALIA