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2015 EDELMAN TRUST BAROMETER INDIA RESULTS

2015 Edelman Trust Barometer India

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2015EDELMAN TRUST BAROMETER

INDIA RESULTS

PG 2

EDELMAN’S 15th Annual TRUST BAROMETER METHODOLOGY

Informed Public

• 500 respondents in U.S.

and China, and 200 in

other countries

• Ages 25-64

• College-educated

• In top 25% of household

income per age group in

each country

• Report significant media

consumption and

engagement in business

news and public policy

• 15 years of data

General Online Population

• 1,000 respondents per

country surveyed

• Ages 18+

• 4 years in 25+ markets

Online Survey in 27 Countries

• 33,000 respondents

• 7 years in 20+ markets

• 10 years in 10+ markets

3

2015 TRUST IS ESSENTIAL TO INNOVATION

2014 BUSINESS TO LEAD THE DEBATE FOR CHANGE

2013 CRISIS OF LEADERSHIP

2012 FALL OF GOVERNMENT

2011 RISE OF AUTHORITY FIGURES

2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS

2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST

2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS

2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA

2006 “A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON

2005 TRUST SHIFTS FROM “AUTHORITIES” TO PEERS

2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT

2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING

2002 FALL OF THE CELEBRITY CEO

2001 RISING INFLUENCE OF NGOS

TRUST IN RETROSPECT

4

INDIA TRUST THEMES

• Trust in the global context

• Global trust in India

• Trust and information sources

• Trust and innovation

• Building trust

5

TRUST IN THE GLOBAL CONTEXT

6

TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2014 VS. 2015

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to

do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you

“trust them a great deal.” (Top 4 Box, Trust) Informed Publics in 27-country global total.

THE EVAPORATION OF TRUST: NGOS, BUSINESS, MEDIA ALL DECLINE

BUSINESS

66% 63%

2014 2015

#1

53% 51%

2014 2015

#3

59%57%

2014 2015

#2

45% 48%

2014 2015

#4GOVERNMENTMEDIA

NGOS

Informed

Public

PG 7

TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS IN INDIA,

2014 VS. 2015

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box Trust) Informed Publics in India.

TRUST IN INSTITUTIONS

BUSINESS

79% 84%

2014 2015

#1

71% 76%

2014 2015

#3

53%

82%

2014 2015

#2

75% 74%

2014 2015

#4

GOVERNMENT

MEDIA NGOS

Informed

Public

8

Lower Trust in 11 CountriesIncreased Trust in 16 Countries

% Trust

50%

TRUST IN GOVERNMENT, 2014 VS. 2015

Q11-14. [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust

that institution to do what is right using a nine-point scale where one means that you “do not trust them at all” and

nine means that you “trust them a great deal.” (Top 4 Box, Trust) Informed Publics, 27 -country global total.

TRUST IN GOVERNMENT: TRUST IN ANTICIPATION

Informed

Public

2014 2015

45

88

53

76

53

60

27

49

42

32

3734

28

19

24

1821

75

63

56

5154

4543

45 45

23

17

48

90

82 82

72

65

5450

43 42 4137

3330

2826 26

70

59

49 4945

42 41 40

33

21

16

9

China 79

UAE 79

Singapore 73

Indonesia 72

India 69

Malaysia 65

Canada 60

Netherlands 60

Hong Kong 59

Mexico 59

Australia 58

Brazil 57

Germany 57

Argentina 53

U.K. 52

S. Korea 51

Sweden 51

S. Africa 50

U.S. 49

France 46

Japan 44

Italy 43

Turkey 41

Ireland 39

Spain 39

Russia 37

Poland 35

INDIA: A NATION OF

TRUSTERS

THE TRUST INDEX:

TR

US

TE

RS

NE

UTR

AL

DIS

TR

US

TE

RS

2014

TRUSTERS from 30% to 22% in 2015

GLOBAL 56

Italy 48

S. Africa 48

Hong Kong 47

S. Korea 47

U.K. 46

Argentina 45

Poland 45

Russia 45

Spain 45

Sweden 45

Turkey 40

Ireland 37

Japan 37

2015

UAE 84

India 79

Indonesia 78

China 75

Singapore 65

Netherlands 64

Brazil 59

Mexico 59

Malaysia 56

Canada 53

Australia 52

France 52

U.S. 52

Germany 50

GLOBAL 55

DISTRUSTERS from 33% to 48% in 2015

The Trust Index is an average of a country’s trust in the

institutions of government, business, media and NGOs.

27-country global total.

Informed

Public

10

• Soaring expectations

• Trust and development

• Trust in government

• Trust factors

o Type of government

o Independent press

o Economic factors

• Lessons

11

GLOBAL TRUST IN INDIA

12

50%

76% 75% 75% 74%70% 69% 68% 65% 62%

51% 51% 50%

38% 36% 35% 34% 31%

TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES

COUNTRY OF ORIGIN: BRIC COUNTRIES REMAIN DISTRUSTED

Most Trusted

Informed

Public

Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please

indicate how much you trust global companies headquartered in the following countries to do what is right. Use the

same nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a

great deal.” (Top 4 Box, Trust) Informed Publics, 27-country global total.

13

TRUST IN COMPANIES WITH HEADQUARTERS IN DEVELOPED (U.S., U.K., GERMANY,

FRANCE, JAPAN) VS. DEVELOPING COUNTRIES (CHINA, INDIA, RUSSIA, MEXICO, BRAZIL)

Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please

indicate how much you trust global companies headquartered in the following countries to do what is right. Use the

same nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great

deal.” (Top 4 Box, Trust) Informed Publics, 27-country global total.

COUNTRY OF ORIGIN: DEVELOPING COUNTRY MULTINATIONALS CHALLENGED

Company’s

Country of Origin Type of Market

Percent in Market

Who Trust the Company

DEVELOPING

Country Multinational

Doing Business…

… in a Developing Country 57%

… in a Developed Country 22%

DEVELOPED

Country Multinational

Doing Business…

… in a Developing Country 77%

… in a Developed Country 58%

Informed

Public

14

67%

73%

55%

79%

58%

55%

47%

50%

26%

61%

22%

3…

66%

74%

54%

80%

59%

58%

49%

52%

29%

63%

25%

31%

73%

77%

55%

83%

61%

60%

51%

54%

28%

62%

26%

30%

Buy a Company

in Your Country

Buy a Minority Share in a

Company in Your Country

Make a Major

Investment in a New Plant

or Office in Your Country

DEVELOPING COUNTRIES DEVELOPED COUNTRIES

Info rmed

Pub lic

HOW MUCH DO YOU TRUST A COMPANY BASED IN [COUNTRY] TO...

COUNTRY OF ORIGIN: DEVELOPED MARKETS DISTRUST INVESTMENT FROM DEVELOPING COUNTRY COMPANIES

Q332-334. Please continue to think about global companies headquartered in specific emerging markets. How much

would you trust a company from [INSERT BRIC COUNTRY] to do what is right in the following investment situations?

(Top 4 Box, Trust) Informed Publics, 27-country global total.

15

• Sources of trust deficit

o Ease of doing business

o Policy predictability

o Transparency

o Societal issues

o Lack of international brands

o Emerging markets focus

• Is the trust deficit important?

16

TRUST & INFORMATION

SOURCES

PG 17

81%81%

87%89%

71%72%

74%

80%

68%

73%

71%

86%

74%

85%

89% 89%

52%

57%

66%

67%

2012 2013 2014 2015

Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you "do not trust it at all" and nine means that you "trust it a great deal.” (Top 4 Box, Trust) Informed Publics, in India.

TRUST IN EACH SOURCE FOR GENERAL NEWS AND INFORMATION IN INDIA

MEDIA SOURCESInformed

Public

Online Search Engines

Traditional Media

Hybrid Media

Social Media

Owned Media

PG 18

TRUST IN INFORMATION CREATED BY EACH AUTHOR ON SOCIAL NETWORKING SITES,

CONTENT SHARING SITES AND ONLINE-ONLY INFORMATION SOURCES IN INDIA

MEDIA SOURCESInformed

Public

TELEVISIONNEWSPAPERS ONLINE SEARCH

41%

47%

33%29%

24%

22%

15%

19%

25%

2013 2014 2015

13% 11% 11%

58% 58%

50%

14%

18%

22%

2013 2014 2015

21%

17%14%

38%

41%

32%

27%29%

31%

2013 2014 2015

The First Source for

General Information

The First Source for

Breaking News

Source Used Most to

Confirm/Validate News

Q183. On a typical day, what is the first source that you go to for general information about business? Informed Publics, Informed Publics, in India.Q184. What is the first source you go to for breaking news about business? Informed Publics, in India.Q185. Which of the following sources do you turn to MOST often to confirm/validate information on breaking news about business? Informed Publics, in India.

PG 19

Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Trust) Informed Publics, in India.

CREDIBILITY OF SPOKESPERSONS, 2014 VS. 2015 IN INDIA

LEADERSHIP

83%80%

69%

78%80%

70%

65%

59%

85% 82%80%

77% 77%

72%

67% 66%

Academic orIndustry Expert

CompanyTechnical Expert

A Person LikeYourself

CEO Financial orIndustry Analyst

RegularEmployee

GovernmentOfficial orRegulator

NGORepresentative

2014 2015

More Trust Less Trust

Informed

Public

PG 20

Q387-396. Thinking about the information you consume on social networking sites, such as Facebook, MySpace, LinkedIn, Meebo, Orkut, Qzone, RenRen, how much do you trust the information posted from each of the following authors or content creators? (Top 4 Box, Trust) Informed Publics, in India.Q397-406. Thinking about the information you consume on content sharing sites, such as YouTube, how much do you trust the information posted from each of the following authors or content creators? Informed Publics, in India.Q407 - 415 Thinking about the information you consume on online-only news and information sources, such as The Huffington Post, Buzzfeed, Techcrunch, etc., how much do you trust the information posted from each of the following authors or content creators? Informed Publics, in India.

54%

65%

74%

75%

78%

80%

81%

84%

89%

89%

Brands I don’t use

Celebrities

Elected officials

A well-known online personality

A journalist

Employees of a company

A company CEO

Companies I use

An academic expert

My friends and family

Informed

Public

TRUST IN INFORMATION CREATED BY EACH AUTHOR ON SOCIAL NETWORKING SITES,

CONTENT SHARING SITES AND ONLINE-ONLY INFORMATION SOURCES IN INDIA

TRUSTED

NEUTRAL

CONTENT CREATORS

PG 21

• Implications

o How to communicate

o Who communicates

o What to communicate

PG 22

TRUST &INNOVATION

PG 23

THE PACE OF DEVELOPMENT AND CHANGE IN BUSINESS AND INDUSTRY IN INDIA TODAY IS …

TRUST IN BUSINESS INNOVATION

77% Too Fast11% Too Slow

Informed

Public

12% Just Right

Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, in India.

PG 24

24%

30%

35%

54%

66%

70%

Make the World a

Better Place

Improve People's

Lives

Personal Ambition

Greed/Money

Business Growth

Targets

Technology

DRIVERS OF CHANGE IN BUSINESS AND INDUSTRY TODAY ARE PERCEIVED TO BE:

INNOVATIONS PERCEIVED AS DRIVEN BY TECHNOLOGY, BUSINESS TARGETS AND GREED/MONEY

Info rmed

Pub lic

Q353. From the list below, what do you believe are the top three drivers of change in

business and industry today? Informed Publics, 27-country global total.

25

25

35

45

55

65

75

85

95

25% 35% 45% 55% 65% 75% 85%

TR

US

T IN

IN

STIT

UTIO

NS

(TR

US

T IN

DE

X)

TRUST IN RECENT BUSINESS INNOVATIONS (AVERAGE)

Data from Table 574

RELATIONSHIP OF TRUST IN INSTITUTIONS (TRUST INDEX) AND AVERAGE

TRUST IN RECENT BUSINESS DEVELOPMENTS

Q355-359. Below are a number of recent developments in business and industry. To what degree do you trust each of

these recent developments? Informed Publics, 27-country global total. Q11-14. Below is a list of institutions. For each

one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that

you do not trust them at all and nine means that you trust them a great deal. Informed Publics, 27-country global total.

TRUST AND BUSINESS INNOVATION: HIGHER TRUST CREATES THE OPPORTUNITY FOR FASTER INNOVATION

UAE

IND

BRA

MAL

SING

MEXGLOBAL

US

ARG

ITA

S.KO

NETH

GER

JAP

FRACAN

AUS

SWE

IRE

TURPOL

S.AF

HK

SPAU.K.

Informed

Public

RUS

INDO

CHI

26

TRUST IN RECENT DEVELOPMENTS IN BUSINESS AND INDUSTRY, DEVELOPED COUNTRIES (U.S.,

U.K., GERMANY, FRANCE, JAPAN) VS. DEVELOPING COUNTRIES (CHINA, INDIA, RUSSIA, MEXICO, BRAZIL)

Q355-359. Below is a number of recent developments in business and industry. To what degree do you trust each of

these recent developments? Informed Publics, 27-country global total.

BUSINESS INNOVATION: DEVELOPING MARKETS MORE OPEN TO CHANGE

+29 +19 +26 +21 +6

83%

72% 71%

60%

37%

54% 53%45%

39%

31%

Electronic and

Mobile Payments

Electronic and

Personal Health

Trackers

Cloud Computing Hydraulic

Fracturing

Genetically

Modified Foods

DEVELOPING COUNTRIES DEVELOPED COUNTRIES

… but do not take customers in developing markets for granted.

Info rmed

Pub lic

50%

PG 27

ACTIONS THAT INCREASE TRUST IN INDUSTRY TO IMPLEMENT TECHNOLOGY CHANGES IN INDIA

Make test results available publicly for review 93%

Partner with an academic institution 86%

Run a clinical trial or beta test 83%

Partner with government 83%

Partner with an NGO 78%

Informed

Public

Q365-369. Below is a number of actions that could impact your trust in business and industry to develop and implement technology-led changes such as those you just evaluated. What impact would each of these actions have on your trust? Informed Publics, in India.Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, in India.

TRUST IN INNOVATION

65% AGREE:

New developments are not tested

enough

PG 28

• Trust vs. innovation correlation

• Trust vs. development correlation

• Emerging markets lead

• Innovation rationale

o Improving life and society

o Business growth

o Greed

BUILDING TRUST

30

Informed

Public

Q80-Q95. [TRACKING] How important is each of the following actions to building your trust in a company? Use a nine-

point scale where one means that action is “not at all important to building your trust” and nine means it is

“extremely important to building your trust” in a company. (Top 2 Box, Very/Extremely Important) Informed Public, in

India.

INTEGRITY

Has ethical business practices

Takes responsible actions to address an issue or crisis

Has transparent and open business practices

ENGAGEMENT

Listens to customer needs and feedback

Treats employees well

Places customers ahead of profits

Communicates frequently and honestly on the state of its business

PRODUCTS & SERVICES

Offers high-quality products or services

Is an innovator of new products, services or ideas

PURPOSE

Works to protect and improve the environment

Addresses society’s needs in its everyday business

Creates programs that positively impact the local community

Partners with NGOs, government and 3rd parties to address societal needs

OPERATIONS

Has highly-regarded and widely-admired top leadership

Ranks on a global list of top companies

Delivers consistent financial returns to investors

16 KEY ATTRIBUTES TO BUILDING TRUST

69%

68%

68%

72%

64%

66%

Edelman Trust Barometer

research reveals 16 specific

attributes that build trust.

These can be grouped into five

performance clusters listed here

in rank order of importance.

62%

68%

65%

62%

62%

61%

60%

50%

47%

57%

PG 31

BUILDING AND DEFENDING TRUST

53% 47% 40%

Fails to Contribute

to the Greater Good

Does Not Allow Me to

Be a Productive

Member of

Society/Lacks

Economic Growth

Provides Few/No

Public Services

61% 58% 47%

Produces

Economic Growth

Allows Me to Be a

Productive

Member of Society

Helps Me

and My Family Live

a Fulfilling Life

Reasons Trust in Business Has Increased

in INDIA

Informed

Public

Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? (Top 4 Box, Trust) Informed Publics, in India.Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? (Top 4 Box, Trust) Informed Publics, in India.Q249-252. Please indicate how much you agree or disagree with the following statements? (Top 4 Box, Trust) Informed Publics, in India.

Reasons Trust in Business Has Decreased in

INDIA

53% 60%

91%agree

“A company can take specific actions

that both increase profits and improve

the economic and social conditions in

the community where it operates.”

PG 32

BEHAVIOR BASED ON TRUST IN INDIA

TRUST MATTERSInformed

Public

Trusted CompaniesDistrusted Companies

Refused to buy products/services Chose to buy products/services-59% 89%

Criticized them to a friend/colleague Recommended them to a friend/colleague-57% 84%

Paid more for products/services

71%Shared negative opinions online

Shared positive opinions online-37%

63%

Defended company

53%I sold shares I bought shares-34%

58%

Q371-376. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please

answer yes or no to each action. Informed Publics, India.

Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust?

Please answer yes or no to each action. Informed Publics, India.

PG 33

• Trust matters

• Building blocks

• Engagement

• Positive role in society

• Transparency

• Operations and products

PG 34

TRUST IN INDIA 2015

• Internal: Trust in anticipation

• External: Trust withheld

• Trust vs. development

• Trust vs. innovation

• Trust matters

35

On the cover, from top left: India’s Prime Minister Narendra Modi: REUTERS/Lucas Jackson; Financial Times article on the forex rigging scandal; Ukrainian tanks: REUTERS/Valentyn

Ogirenko; Sony Pictures Entertainment Studios: AP PHOTO/Damian Dovarganes; Uber: REUTERS/Kai Pfaffenbach; Wall of hope for Malaysia Airlines Flight MH370: REUTERS/Samsul

Said; Protester calls for for G20 leaders to address the Ebola issue: REUTERS/Jason Reed. On slide 4; Financial Times article; Ebola issue: REUTERS/Jason Reed; Sony Pictures: AP

PHOTO/Damian Dovarganes; Malaysia Airlines Flight MH370: REUTERS/Samsul Said. On slide 22: Health Fitness Trackers: AP PHOTO/Richard Drew. On slide 31: Narendra Modi:

REUTERS/Lucas Jackson. On slide 35: laboratory testing: REUTERS/Tobias Schwarz.