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2011 Edelman Trust Barometer January 27, 2011
Norwegian findings
© Edelman & Dinamo, 2011. All rights reserved.
Edelman Trust Barometer at a glance
2
Eleventh annual study – first in Norway
5,278 people in 24 countries of which 203 in Norway
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
EU Select Countries: UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, Poland (Each country N=200 aged 25-64)
Global tracking: Informed Publics ages 25-64 in 20 countries
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The Edelman Trust Barometer in retrospect
3
Rising Influence of NGOs 2001
Fall of the celebrity CEO 2002
Earned media more credible than advertising 2003
U.S. companies in Europe suffer trust discount 2004
Trust shifts from “authorities” to peers 2005
“A person like me” emerges as credible spokesperson 2006
Business more trusted than government and media 2007
Young influencers have more trust in business 2008
Business must partner with government to regain trust 2009
Trust is now an essential line of business 2010
© Edelman & Dinamo, 2011. All rights reserved.
4
Trust is essential to:
•! Maintain a company’s license to operate with customers, investors and regulators
•! Facilitate growth of new products and businesses
•! Enable improved recruitment/retention of top talent
•! Maintain premium brands and price positioning
•! Facilitate relationships and alliances with key partners
•! Create easier access to capital
•! Create greater resiliency in times of crisis
•! Ensure that communications are heard and acted upon
Essential Nature Of Trust
© Edelman & Dinamo, 2011. All rights reserved.
2010 Year in review
© Edelman & Dinamo, 2011. All rights reserved.
State of Trust Shifting center of gravity
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Globally, trust increases in all institutions
7
A7-10. [Institutions 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, Trust) Informed Publics ages 25-64 in 20 countries (excludes Singapore, UAE and Argentina)
57 % 54 %
47 % 45 %
61 % 56 %
52 % 49 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
NGOs Business Government Media
2010 2011
Trust in Institutions – Global
+4 +5 +4
+2
© Edelman & Dinamo, 2011. All rights reserved.
62 % 58 %
54 % 51 %
59 % 53 %
46 % 44 %
72 %
44 %
74 %
28 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
NGOs Business Government Media
Global E.U. Norway Trust in institutions
Norway has high government and NGO trust, low media trust vs. EU peers
8
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 23 countries, the EU (excludes Russia), Sweden, and Norway.
© Edelman & Dinamo, 2011. All rights reserved.
74 %
64 %
53 % 52 % 52 % 48 % 46 % 46 % 44 % 44 % 44 %
41 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Norway trust in business in the lower segment of the EU markets
9
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, Trust) Informed Publics ages 25-64 in the US, EU countries, Russia, and Norway
Trust in Business (2011)
Trusters Distrusters (< 50%) Neutral
© Edelman & Dinamo, 2011. All rights reserved.
75 % 74 %
64 %
49 % 45 % 43 % 43 % 42 % 40 % 39 %
33 %
20 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Trust in government higher in Norway than in most other EU markets
10
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 the US, EU countries, Russia, and Norway
Trust in Government (2011)
Trusters Distrusters (< 50%)
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69 %
53 % 46 % 45 % 45 %
38 % 37 % 37 % 37 %
28 % 27 % 22 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Trust in Media (2011)
Norway trust in media lower than most other EU markets, similar to US
11
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 the US, EU countries, Russia and Norway
Trusters Distrusters (< 50%) Neutral
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74 % 72 % 71 %
60 % 59 % 57 % 56 % 55 % 55 % 54 % 52 %
44 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Trust in NGOs (2011)
Norway trust in NGOs above most other EU markets
12
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 the US, EU countries, Russia and Norway
Trusters Distrusters (< 50%) Neutral
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Emerging markets’ trust in NGOs caught up to developed markets
13
Trust in NGOs Informed Publics ages 35-64
36 %
53 %
48 %
55 % 52 %
59 %
31 %
53 %
30 %
35 %
40 %
45 %
50 %
55 %
60 %
65 %
70 %
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
US UK/FR/GER India China
A10. [Non-governmental organizations 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 35-64 in US, UK/FR/GER, India and China
© Edelman & Dinamo, 2011. All rights reserved.
Trust Index: 2009 – 2011 Norway assumes relatively high score, slightly above Sweden
14
Composite score is an average of a country’s trust in all four institutions Ages 25-64 (Global excludes Singapore, UAE and Argentina)
2009 2011
Global 49
Netherlands 69
China 61
Brazil 58
India 58
Poland 47
Sweden 46
Russia 44
Italy 43
UK 42
Germany 42
France 41
Spain 40
Ireland 39
US 36
UAE N/A
Global 55
Brazil 80
UAE 78
Netherlands 73
China 73
Italy 56
India 56
Norway 54
Sweden 52
Spain 51
France 50
Poland 49
Germany 44
US 42
UK 40
Russia 40
Ireland 39
© Edelman & Dinamo, 2011. All rights reserved.
50 %
67 %
51 % 44 %
36 % 30 %
15 %
25 %
16 % 18 % 14 %
76 % 73 %
69 % 69 % 64 % 63 %
50 %
42 % 40 % 39 %
35 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Germany Sweden U.K. Japan U.S. France Italy India Brazil China Russia
Norwegian have trust in neighbouring countries’ national companies but have low trust in BRIC HQ companies.
15
Most Trusted National Identity for Companies – Norwegian/Global
A13-29. [TRACKING] 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 20 countries (excludes Singapore, UAE and Argentina)
Distrusted HQ Countries Trusted HQ Countries
Norway
Global
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Technology most trusted industry. Pharmaceuticals low in Norway relatively to other industries.
16
Trust in Industries – Norway
36 %
36 %
38 %
46 %
48 %
48 %
50 %
50 %
50 %
58 %
60 %
62 %
69 %
Media
Pharmaceuticals
Financial services
Telecommunications
Bank and insurance
Oil and energy
Aquaculture
Food and beverage
Retail
Construction
Transport and logistics
Travel and tourism
Technology
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 Norway.
*Energy asked as “Oil and energy”
© Edelman & Dinamo, 2011. All rights reserved.
Technology most trusted industry. Everywhere Norway less trusting than global peers of most industries.
17
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 23 countries, the EU (excludes Russia), Sweden, and Norway.
50 %
51 %
52 %
54 %
57 %
57 %
59 %
62 %
63 %
63 %
65 %
65 %
66 %
68 %
69 %
81 %
Financial services Banks
Insurance Media
Brewing and spirits OTC personal health care products
Consumer packaged goods Energy
Pharmaceuticals Entertainment
Retail Biotech
Food and beverage Telecommunications
Automotive Technology
Trust in Industries 78% 74% 69%
64% 61% N/A
61% 54% 46%
63% 50% 50%
63% 56% N/A
63% 59% 50%
62% 45% N/A
57% 62% 36%
56% 49% 48%
54% 49% N/A
52% 39% N/A
57% 54% N/A
48% 32% 36%
41% 43% 48% 33% 41%
36% 35% 38% Significant at 95% confidence level compared to global
© Edelman & Dinamo, 2011. All rights reserved.
78 % 83 %
61 %
48 %
40 %
54 %
71 %
44 % 46 %
26 %
90 % 87 %
71 % 69 %
52 %
44 %
25 % 23 %
16 %
6 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
China India Japan Brazil France Russia US Germany UK Ireland*
2008 2011
Since financial crisis, trust in banks takes big hit in the West Reverse is true in China, India, Japan, Brazil
18
Trust in Banks
*Note: Data for 2009/ 2011 displayed
A30-45. [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
+12
- 46
- 30
- 20
+21 +10 - 10
+12 - 21
2010-2011 Drops: -8 -9 -22
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54 % 53 % 48 % 45 % 44 % 43 % 42 %
31 % 31 % 26 %
19 % 15 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
2011
Norway trust in banks and insurance in upper segment of the “distrusters”
19
*Note: Data for 2009/ 2011 displayed
A30-45. [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 in the US, EU countries, Russia and Norway
Trust in Banks and insurance
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Roadmap to Trust A new way forward
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Trust, transparency and employee welfare are the most important reputation factors in Norway. Company leaders and financial returns least valued
21
B72-81. [TRACKING] 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. 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 23 countries, the EU (excludes Russia), Sweden, and Norway.
39 %
39 %
46 %
51 %
55 %
55 %
65 %
63 %
69 %
65 %
Delivers consistent financial returns to investors
Has highly-regarded and widely admired top leadership
Is an innovator of new products, services or ideas
Is a good corporate citizen
Prices its brands fairly and competitively
Communicates frequently and honestly on the state of its business
Has transparent and honest business practices
Treats employees well
Offers high quality products or services
Is a company I can trust
Reputation Factors
65% 74% 62%
63% 70% 54%
62% 58% 61%
61% 49% 60%
49% 42% 47%
48% 43% 43%
43% 39% 44%
40% 29% 33%
33% 27% 28%
28% 16% 14%
Significant at 95% confidence level compared to global
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Norway trust in experts on one hand but have least trust in CEOs and analysts
22
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 1 Box, Credible: Extremely Credible) Informed Publics ages 25-64 in Norway.
50 % 49 %
36 % 36 % 33 %
26 %
21 %
15 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
Technical expert within the company
An academic or expert
Government official
Person like yourself
NGO representative
Regular employee
A financial or industry analyst
CEO
Norway*
Credible Spokespeople – Norway (extremely credible)
© Edelman & Dinamo, 2011. All rights reserved.
19 %
40 %
23 % 29 % 29 %
16 % 23 % 23 %
29 %
19 % 18 %
68 %
58 % 56 %
46 % 45 % 43 % 39 % 38 %
35 % 34 %
24 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 % 2009 2011
In contrast, CEO credibility higher and rising in most EU markets
23
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 the US, EU Countries and Russia
Credible Spokespeople – CEO (Extremely credible or very credible)
+18 +33 +49
+17 +16 +16 +15 +15 +27
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Internationally, people want to hear from CEO—and technical expert in a product recall
24
Who Informed Publics Want to Hear from During a Product Recall
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? Informed Publics ages 25-64 in U.S., EU (excludes Russia and Sweden).
35 %
11 %
32 %
14 %
3 % 4 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
EU
33 %
5 %
35 %
18 %
7 % 2 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
US
© Edelman & Dinamo, 2011. All rights reserved.
When local community damaged, most want to hear from CEO
25
Who Informed Publics Want to Hear from When the Local Community Has Been Damaged
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 U.S., EU (excludes Russia and Sweden).
38 %
19 %
10 %
18 %
11 %
3 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
EU
47 %
7 % 10 %
24 %
10 %
2 % 0 %
10 %
20 %
30 %
40 %
50 %
60 %
US
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Trust in the Media
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Traditional media and online news most trusted for information about a company
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? (Trust A Great Deal) Informed Publics ages 25-64 in 23 countries, the EU (excludes Russia) Sweden, and Norway.
11 %
18 %
7 %
9 %
9 %
11 %
18 %
29 %
27 %
28 %
31 %
33 %
Corporate/product advertising
Corporate communications such as press releases
Microblogging sites, such as Twitter
Social networking sites
Content-sharing sites, such as YouTube
Blogs
News/RSS feeds
Online search engines
Radio or radio news
Magazines or business magazines
Television or television news
Newspapers
Traditional Social M
edia C
orporate Trusted Information Sources – Trust a Great Deal
Online
Multiple
sources
Significant at 95% confidence level compared to global
26% 28% 28%
27% 28% 38%
26% 28% 32%
26% 33% 35%
24% 22% 19%
15% 17% 30%
9% 9% 15%
7% 8% 9%
6% 5% 14%
6% 7% 12%
12% 19% 24%
7% 6% 15%
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Informed publics need information from multiple sources, multiple voices
28
Norway
Once (1); 7 %
Twice (2); 18 %
Three times (3); 40 %
Four or Five times (4 - 5); 18 %
Six to Nine times (6-9); 2 %
Ten or more times (10+); 4 %
Don’t know/refused (vol); 11 %
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 Norway.
3-5 times 58%
And need to hear it 3-5 times to believe it
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The Benefits of Trust
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Through personal action, trust has tangible benefits
19%
33%
67%
73%
30 %
44 %
54 %
75 %
85 %
30
Bought shares
Paid more for products/services
Chose to buy products/services Refused to buy products/services
Recommended them to a friend/colleague Criticized 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 – Global
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”) Informed Publics ages 25-64 in 23 countries 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 23 countries
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When a company is distrusted
31
When a company is trusted
15% 25%
57% will believe negative information
after hearing 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. Informed publics ages 25-64 in 23 countries 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 23 countries
Trust protects reputation Communications is much easier when you’re trusted
will believe positive information after hearing it 1-2 times
will believe negative information after hearing it 1-2 times
51% will believe
positive information after hearing it 1-2 times
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The Transformation of Trust
32
Control Information
Focus Solely on Profit
Pro
tect
the
Bra
nd
Stand A
lone
Profit With Purpose
Old Trust Framework New Trust Architecture
WHAT
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Conclusions – International
33
Business must align profit and purpose for social benefit
Trust is a protective agent and leads to tangible benefits; lack of trust is barrier to communications
Current media landscape plus increased skepticism requires multiple voices and channels
Demand for authority and accountability set new expectations for corporate leadership
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Conclusions – Norway
34
Norway like it’s neighbours Sweden, Netherlands has high trust in government and NGOs, but lower trust in business and media than most other EU countries
Trust, transparency and employee welfare are the most important reputation factors in Norway.
CEOs and financial analysts start out at a trust discount compared to other European markets
Companies would do well to ally with government or NGOs, and include technical experts as spokespeople
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