Edelman Trust Barometer 2014

Page 1

2014 EDELMAN TRUST BAROMETER! GLOBAL AND BRAZIL RESULTS!


GLOBAL

EDELMAN’S

14TH

ANNUAL SURVEY

ONLINE SURVEY IN 27 COUNTRIES •  33,000 respondents

INFORMED PUBLICS

•  6 years in 20+ markets

•  500 respondents in U.S. and China & 200 in other countries

•  9 years in 10+ markets

•  Ages 25-64 •  College-educated

GENERAL POPULATION •  1000 respondents per country surveyed •  Ages 18+ •  3 years in 25+ markets

2

•  In top 25% of household income per age group in each country •  Report significant media consumption and engagement in business news and public policy •  14 years of data


ONE | The State of Trust


TRUST IN BUSINESS AND NGOS REMAINS STABLE, TRUST IN GOVERNMENT AND MEDIA DECREASES

TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014

63%

64%

58%

58%

NGOS

22%

#1

2013

2014

57%

MEDIA

17%

2013

4

23%

#3

52% 16%

2014

17%

#2

2013

2013

BUSINESS

2014

48%

16%

16%

44%

#4

15%

GOVERNMENT

2014

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 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 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics in 20country global total.


THE TRUST INDEX: SLIGHT DECLINE IN TRUST OVER THE PAST YEAR WITH STRONG REGIONAL VARIATIONS; MAJOR DECLINES IN POLAND, U.S. & MEXICO

DISTRUSTERS

NEUTRAL

TRUSTERS

2013

5

2014

GLOBAL

57

GLOBAL

54

China Singapore India Mexico Hong Kong UAE Malaysia Canada Indonesia U.S. Netherlands Brazil Germany France Sweden U.K. Italy Australia Poland S. Korea Ireland Argentina Spain Turkey Japan Russia

80 76 71 68 67 66 64 62 62 59 59 55 55 54 54 53 51 50 48 47 46 45 42 42 41 36

UAE China Singapore Indonesia India Malaysia Canada Netherlands Mexico

79 79 73 72 69 65 60 60 59

Hong Kong

59

Australia Brazil Germany Argentina U.K. Sweden S. Korea S. Africa U.S. France Japan Italy Turkey Spain Ireland Russia Poland

58 57 57 53 52 51 51 50 49 46 44 43 41 39 39 37 35

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE).

BIG TRUST INCREASES FROM 2013 UAE +13 pts. Indonesia +10 pts. Australia + 8 pts. Argentina + 8 pts.

BIG TRUST DECREASES FROM 2013 Poland -13 pts. U.S. -10 pts. Mexico -9 pts.


SUBSTANTIALLY LOWER TRUST AMONG GENERAL PUBLIC THAN INFORMED PUBLIC

2014

DISTRUSTERS

NEUTRAL

TRUSTERS

2014

6

GLOBAL

56

GLOBAL

47

UAE China Singapore Indonesia India Malaysia Canada Netherlands Mexico Hong Kong Australia Brazil Germany Argentina U.K. Sweden S. Korea S. Africa U.S. France Japan Italy Turkey Spain Ireland Russia Poland

79 79 73 72 69 65 60 60 59 59 58 57 57 53 52 51 51 50 49 46 44 43 41 39 39 37 35

China UAE Singapore Indonesia India Malaysia Canada Mexico Netherlands Hong Kong Brazil Argentina Australia Germany S. Korea U.K. S. Africa U.S. Italy Japan Turkey Sweden Spain Ireland France Poland Russia

67 64 64 62 61 57 54 53 51 50 49 49 44 44 43 42 42 42 41 40 39 38 36 35 33 32 31

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 27-country global total.

GLOBAL TRUST DIFFERENCE OF

9 points MARKETS WITH LARGEST PERCEPTION GAPS:

ü  UAE (15 pts.) ü  Australia (14 pts.) ü  Germany (13 pts.) ü  France (13 pts.) ü  Sweden (13 pts.)


TRUST IN NGOS ON THE RISE, WITH MAJORITY OF MARKETS AT OR ABOVE 60% TRUST LEVEL TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS), 2013 VS. 2014 2013

NGOs most trusted institution in 20 of the 27 countries surveyed in 2014

2014

LOWER/EQUAL TRUST IN 9 COUNTRIES

HIGHER TRUST IN 17 COUNTRIES 81% 76%

73%

63% 64%

67%66%

66%

57% 51%

76% 75% 69%

67%

70% 69% 66% 64%

84%

83% 76%77% 75%76%

76% 75%

70% 67% 64% 61%

73% 69%

62% 59%59%

55%

63%62% 64% 63% 58% 56%

58% 46%47% 40% 41% 37%37%

N.A.

7

Q11-14. [NON-GOVERNMENTAL ORGANIZATIONS] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics, 20-­‐ country global total.

67%

74% 70% 62% 61%

50%

47%


GLOBAL TRUST IN MEDIA REVERTS TO 2010 LEVELS; NEARLY 80% OF COUNTRIES REPORT TRUSTING MEDIA LESS OVER THE LAST YEAR TRUST IN MEDIA, 2013 VS. 2014 2013 2014

HIGHER TRUST IN 5 COUNTRIES 77% 70%

LOWER/EQUAL TRUST IN 21 COUNTRIES 81% 79%

78%

79%

70%70% 66%

59% 55%

57% 52%

60% 57%

54% 47%

48% 42%

60% 59%

61% 58%

66%

63%

71%

68% 63%

61%

61% 54%

54% 49%48% 47% 44% 43% 40%

51%

47% 38% 35%

50% 45%

45% 41%

42% 37%

50%

40%

50% 45%

40% 30%

26% 19%

N.A.

8

Q11-14. [MEDIA 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 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) Informed Publics, 20-­‐country global total.


THE POWER OF SEARCH LEVELS OF TRUST IN SOURCES OF INFORMATION

65%

65%

ONLINE SEARCH ENGINES

TRADITIONAL MEDIA

FIRST SOURCE TO TURN TO FOR GENERAL BUSINESS INFORMATION

30% Online search"

26% Newspapers"

54%

21% Television"

HYBRID MEDIA

FIRST SOURCE TO TURN TO FOR BREAKING NEWS ABOUT BUSINESS

47%

45%

SOCIAL MEDIA

OWNED MEDIA

SOURCE USED TO CONFIRM/ VALIDATE INFORMATION BREAKING NEWS ABOUT BUSINESS 36%

28%

25%

20%

Online search"

Television"

Newspapers"

Online search"

20%

19%

Television"

Newspapers"

Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-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, 27-country global total Q183. On a typical day, what is the first source that you go to for general information about business? ; Q184. What is the first source you go to for breaking news about business? ; Q185. Which of the following sources do you turn to MOST often to confirm/ validate information on breaking news about business? Informed Publics, 27-country 9global total


TRUST IN BUSINESS STABILIZES; WESTERN SKEPTICISM ENTRENCHED, DEVELOPING MARKETS SOAR TRUST IN BUSINESS, 2013 VS. 2014 2013 2014

HIGHER TRUST IN 12 COUNTRIES 82%

82%

63%65%

70%

63% 59%

48%

58%

49%

64%

57%

45% 39%

77%

40%

73%

71% 62%

62% 58%

48%

82%

81% 79%

77% 74%

74%

72%

58%58%

LOWER/EQUAL TRUST IN 15 COUNTRIES

44%43%

61%

58%

56% 56% 52% 53%

51%

47%

44% 41%

58% 54%

43%

44% 38%

31%

N.A.

10

Q11-14. [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 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) Informed Publics, 20-­‐country global total.

60% 56% 56%

50%

49% 45%

45%


INDUSTRY SECTOR

LEADERSHIP/ CEO TRUST

4

KEY FACTORS SHAPE TRUST IN BUSINESS

ENTERPRISE TYPE 11

COUNTRY OF ORIGIN (HEADQUARTERS)


TECHNOLOGY CONTINUES TO LEAD, BANKS TRAIL TRUST IN INDUSTRIES, 2009 VS. 2014

2009

2014 76%

TECHNOLOGY

58%

AUTOMOTIVE

FOOD AND BEVERAGE

56%

2009 VS. 2014 79%

TECHNOLOGY

70%

AUTOMOTIVE

+3 +12

FOOD AND BEVERAGE

66%

+10

65%

+11

CONSUMER PACKAGED GOODS

54%

CONSUMER PACKAGED GOODS

ENERGY

55%

ENERGY

59%

+4

PHARMACEUTICALS

59%

+6

PHARMACEUTICALS

MEDIA

BANKS

12

53%

43%

47%

MEDIA

51%

+8

BANKS

51%

+4

Q43-60. [TRACKING] 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) Informed Publics, 20-country global total.


COMPANIES HEADQUARTERED IN BRIC NATIONS SUFFER A TRUST DEFICIT COMPARED TO WESTERN BASED COMPANIES TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES

78%

75%

74%

71%

68%

67% 55%

50%

54%

53%

13

Brazil

Spain

South Korea

Italy

France

U.S.

The Netherlands

Japan

U.K.

Canada

Switzerland

Germany

Sweden

42%

38%

36%

35%

34%

Mexico

79%

India

79%

China

80%

TRUSTED

Russia

MOST

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 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) Informed Publics, 27-country global total.


FAMILY-OWNED AND SMALL- AND MEDIUM-SIZED BUSINESSES HAVE A TRUST ADVANTAGE EXCEPT IN ASIA TRUST IN DIFFERENT TYPES OF BUSINESS – BY REGION

FAMILY-OWNED

SMALL- & MEDIUM-SIZED

PUBLICLY-TRADED

PRIVATELY-HELD

BIG BUSINESS

STATE-OWNED

71% 68% 63%62%61% 54%

74% 65% 62%

73%

62%

63%

85% 78%

76% 68% 57% 48%

GLOBAL

APAC

EU

47%47%

83% 80% 72%74%70%

63% 60% 45%46%

NORTH AMERICA

Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business 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) Informed Publics, 27-country global total.

14

45%

LATIN AMERICA


DIFFERENCES EXIST IN PERCEPTIONS OF COMPANY TYPES - POLITICAL INFLUENCE, CUSTOMER NEEDS AND ENTREPRENEURIALISM SHOW LARGEST GAPS PHRASES ASSOCIATED WITH PUBLICLY-TRADED & PRIVATELY-HELD BUSINESSES

PUBLICLY-TRADED

PRIVATELY-HELD 58%

RESPONSIVE TO CUSTOMERS' NEEDS

62%

ARE ENTREPRENEURIAL

60%

ARE INNOVATIVE

ACT RESPONSIBLY TOP LEADERSHIP

+8 +6 +4

+4

52% 55%

+3

52% 53%

+1

38% 39%

+1 63% 63%

THINK LONG-TERM

46% 44%

-2 58% 54%

DELIVER CONSISTENT FINANCIAL RETURNS

15

+9

+4

45% 49%

RESPONSIVE TO EMPLOYEES' NEEDS

HAVE TOO MUCH POLITICAL INFLUENCE

66%

50% 54%

RESPONSIVE TO SOCIETY'S NEEDS

ARE TRANSPARENT IN THEIR BUSINESS PRACTICES

70%

61% 65%

OFFER HIGH QUALITY PRODUCTS OR SERVICES

ARE PHILANTHROPIC

67%

43%

60%

Q296-311. [SPLIT SAMPLE] Based on the information you know about PRIVATELY-HELD BUSINESSES OR COMPANIES, please tell us how much you associate each statement with PRIVATELY-HELD BUSINESSES OR COMPANIES. Please use a 9point scale, where nine means you strongly associate that statement with PRIVATELYHELD BUSINESSES OR COMPANIES and one means you do not associate that statement at all with PRIVATELY-HELD BUSINESSES OR COMPANIES. (Top 4 Box, Associate) General Publics, 27-country global total.

-4 -17


FROM 2009 TO 2014, SIGNIFICANT GAINS FOR REGULAR EMPLOYEES, A PERSON LIKE YOURSELF. CEOS FLAT FROM 2013. CREDIBILITY OF SPOKESPEOPLE

2009

2014 62%

ACADEMIC OR EXPERT

TECHNICAL EXPERT*

2009 VS. 2014

ACADEMIC OR EXPERT

67%

TECHNICAL EXPERT

66%

+5

A PERSON LIKE YOURSELF

47%

A PERSON LIKE YOURSELF

FINANCIAL OR INDUSTRY ANALYST

49%

FINANCIAL OR INDUSTRY ANALYST

53%

+4

NGO REPRESENTATIVE

52%

+9

52%

+20

NGO REPRESENTATIVE

41%

REGULAR EMPLOYEE

32%

REGULAR EMPLOYEE

CEO

31%

CEO

GOVERNMENT OFFICIAL OR REGULATOR

29%

GOVERNMENT OFFICIAL OR REGULATOR

16

62%

43% 36%

+15

+12 +7

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, Very/Extremely Credible) Informed Publics, 20-country global total.

* Not tested in 2009


THERE IS VERY LITTLE TRUST IN EITHER BUSINESS LEADERS OR THEIR GOVERNMENT COUNTERPARTS ON KEY METRICS TRUST IN BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING

BUSINESS LEADERS

26%

26%

CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS

20%

2013 2014

21%

MAKE ETHICAL AND MORAL DECISIONS

18%

20%

TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS

GOVERNMENT LEADERS

15%

15%

CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS

17

19%

19%

SOLVE SOCIAL OR SOCIETAL ISSUES

2013 2014

14%

15%

MAKE ETHICAL AND MORAL DECISIONS

12%

13%

TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS

15%

16%

SOLVE SOCIAL OR SOCIETAL ISSUES

Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following?; Q144B-147B. [SPLIT SAMPLE] How much do you trust government leaders to do the following? (Top Box, Trust a great deal) General Publics, 27-country global total.


SIGNIFICANT TRUST DECLINE FOR GOVERNMENT; LARGEST TRUST DROPS IN U.S., FRANCE AND HONG KONG TRUST IN GOVERNMENT, 2013 VS. 2014 = HISTORIC LOW

2013

GLOBAL HISTORIC LOW (2009) = 43%

2014

HIGHER TRUST IN 9 COUNTRIES

LOWER/EQUAL TRUST IN 17 COUNTRIES

88%

82%

81% 76%

75%

73%

62% 56% 53% 48%

45%47%

44%

43%

43% 40%

47%

63% 58% 54%

53%

51% 41%

37%

35% 30%

23% 19%

20%18%

32%

28%

24% 19%

N.A.

18

49%

50% 45%

42%

29% 27% 17%

60%

53%

49% 45% 48% 44%

33%34%

32%

65% 63% 60% 57%

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 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) Informed Publics, 20-­‐country global total.

21%

32%


GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST IN BUSINESS AND GOVERNMENT TRUST IN BUSINESS VS. GOVERNMENT BUSINE SS GOVERNMENT

HIGHER TRUST IN GOVERNMENT

HIGHER TRUST IN BUSINESS

88%

20+ PT. HIGHER TRUST IN BUSINESS 82%

82%

79%

77%76%

73%

72%

70% 63% 58%

58% 53% 45%

44%

53%

51% 45%

45% 37%38%

34%

41%

42%

43%

60%

59% 56%

49% 49% 45% 45%

54% 43% 43%

27%

24%

23% 19%

51% 45% 39%

32%

28% 17%

57%

54% 56%

53%

50%

63%

62%

58%

75% 71%

21% 18%

Q11-14. [BUSINESS IN GENERAL & 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 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) Informed 19 Publics, 20-country global total.


HISTORIC GAP BETWEEN BUSINESS AND GOVERNMENT TRUST GLOBAL TRUST IN GOVERNMENT AND BUSINESS SINCE 2009

BUSINESS

70%

60% 54%

GOVERNMENT

58%

56%

trust gap between business and government Â

53% 50%

52%

50%

48%

47%

44%

43% 43%

40%

30% 2009

2010

2011

2012

2013

2014

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 9-point scale where one

20 means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (4 Box, Trust) Informed Publics in 20-country global total.

14 point

58%


TWO | The Intersection Between Business and Government


BY A THREE-TO-ONE MARGIN INFORMED PUBLICS CALL FOR INCREASED GOVERNMENT REGULATION OF FINANCIAL SERVICES, ENERGY AND FOOD & BEVERAGE INDUSTRIES GOVERNMENT REGULATION OF BUSINESS AND SECTORS – GLOBAL

NOT ENOUGH REGULATION

GERMANY: 66% SAY NOT ENOUGH REGULATION OF FINANCIAL SERVICES INDUSTRY

53%

TOO MUCH REGULATION

UK: 73% SAY NOT ENOUGH REGULATION OF ENERGY INDUSTRY 51%

CHINA: 84% SAY NOT ENOUGH REGULATION OF FOOD & BEVERAGE INDUSTRY

48%

42% 27% 16%

17%

12%

Government Regulation Government Regulation Government Regulation Government Regulation of Business of Financial Services of the Energy Industry of the Food & Beverage Industry Industry

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q263. When it 22 comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.


OVER HALF SEE GOVERNMENT ROLE AS PROTECTING CONSUMERS FROM BUSINESSES MOST IMPORTANT ROLE FOR GOVERNMENT IN BUSINESS

51 % 28% 23%

21% 18%

5%

4% 1%

PROTECT CONSUMERS FROM IRRESPONSIBLE BUSINESSES

REGULATE BUSINESS

BUILD BUSINESS ENSURE FREE GOVERNMENT FINANCIALLY HELP INFRASTRUCTURE MARKET ACCESS SHOULD NOT PLAY BUSINESS DURING A ROLE IN CRISES BUSINESS

23 Q149. [TRACKING] Which of the following is the most important role that government should play in business? Informed Publics, 27-country global total.

DON'T KNOW


THREE | Building Trust Through Context


16 KEY ATTRIBUTES TO BUILDING TRUST 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

Edelman Trust Barometer research reveals 16 specific attributes which build trust.

INTEGRITY HAS ETHICAL BUSINESS PRACTICES TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

These can be grouped into five performance clusters listed here in rank order of importance.

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 25

DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS


DIFFERENT STAKEHOLDERS TRUSTED ON DIFFERENT TOPICS; EMPLOYEES ARE TRUSTED SOURCE ACROSS AREAS MOST TRUSTED INFLUENCER TO COMMUNICATE EACH TOPIC - INFLUENCER MESSAGE MAPPING

COMPANY'S CEO

COMPANY'S EMPLOYEE

ACADEMIC

MEDIA SPOKESPERSON

ACTIVIST CONSUMER

50%

37% 31% 32%

32%

30%

21% 21%

23%

INTEGRITY

PRODUCTS & SERVICES

27% 23%22%

25% 21% 16%

14%

13%

12%

ENGAGEME NT

26% 24%

30%

19%

17%

15%

26

31%

27% 25%

21%

36%

34%

PURPOSE

OPERATION S

Q197-201(Global Summary). We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select which person you trust MOST to provide you with credible and honest information about a company. General Publics, 27-country global total.

TOTALS


WHAT CEOS SHOULD DO TO BUILD TRUST ACTIONS A CEO CAN TAKE TO BUILD TRUST IN THEMSELVES AND THEIR COMPANY

82%

81%

80%

79% 69% 53%

Communicates Tells the truth, Engages with Is front and Is personally Has an active clearly and regardless of employees center during involved in media presence transparently how complex or regularly to challenging times supporting local unpopular it is discuss the state (product recalls, charities and of the business lawsuits, etc.) good causes

27

Q254A-261A. [SPLIT SAMPLE ] Thinking about the following actions a CEO can take, how important is each of the following to building your TRUST in that CEO?; Q254B-261B. [SPLIT SAMPLE ] Thinking about the following actions a CEO can take, how important is each of the following to building your TRUST in that CEO's company? (Top 4 Box, Total Important) General Publics, 27-country global total.


2014 EDELMAN TRUST BAROMETER! BRAZIL RESULTS!


TRUST IN GOVERNMENT REMAINS LOW IN BRAZIL; BUSINESS TAKES THE LEAD AND NGOS REGAIN CREDIBILITY

BRAZIL TRUST IN THE FOUR INSTITUTIONS: GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014

TOTAL TRUST TRUST A GREAT DEAL

70%

64%

63%

66%

BUSINESS

26%

#1

2013

2014

26%

2013

29

28%

#2

2013

19%

MEDIA

2014

62%

59%

NGOS

27%

#3

33% 29% 12%

2014

2013

#4

34% 9%

GOVERNMENT

2014

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 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 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics.


IN THE LAST THREE YEARS, TRUST IN GOVERNMENT FACES A LOW LEVEL; UNCERTAINTY GROWS IN AN ELECTION YEAR BRAZIL TRUST IN THE FOUR INSTITUTIONS SINCE 2008

NGOs Media

90%

Business

85%

Government

80%

70%

81% 80% 67% 62%

60%

50%

59% 56% 56%

60%

62%

73% 63%

57%

61%

64%

70% 63% 62%

59%

54% 49%

43%

40%

66%

39% 32%

33%

34%

30%

20%

20%

2008

30

2009

2010

2011

2012

2013

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 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (4 Box, Trust) Informed Publics.

2014


ALL MEDIA BECOME STRATEGIC IN BRAZIL; SEARCH ENGINES “DETERMINE” THE RELEVANCE OF CONTENTS BRAZIL TRUST IN DIFFERENT SOURCES OF INFORMATION

Global

Latin America

79% 81% 65%

Brazil

72% 74% 65%

62%

65%

60%

63%

61% 63%

54% 47%

ONLINE SEARCH ENGINES

31

TRADITIONAL MEDIA

HYBRID MEDIA

SOCIAL MEDIA

45%

OWNED MEDIA

Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-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.


TECH COMPANIES MAINTAIN THE HIGH LEVEL OF TRUST; BANKS EXPERIENCE A HUGE GROWTH TRUST IN INDUSTRIES, 2013 VS. 2014 - BRAZIL

2013

2014

TECHNOLOGY

80%

TECHNOLOGY

ENTERTAINMENT

81%

ENTERTAINMENT

84%

+3

CONSUMER ELECTRONICS MANUFACTURING

84%

+6

AUTOMOTIVE

83%

+13

77% FOOD AND BEVERAGE

82%

+5

CONSUMER HEALTH COMPANIES

82%

+12

81%

+8

CONSUMER ELECTRONICS MANUFACTURING

78% 70%

AUTOMOTIVE FOOD AND BEVERAGE CONSUMER HEALTH COMPANIES

70%

PHARMACEUTICALS

73%

PHARMACEUTICALS

ENERGY

71%

ENERGY

CHEMICALS

66%

CONSUMER PACKAGED GOODS BREWING AND SPIRITS MEDIA FINANCIAL SERVICES BANKS TELECOMMUNICATIONS 32

2013 vs. 2014 +10 90%

69% 61% 65% 56% 52% 60%

78%

+7

CHEMICALS

75%

+9

CONSUMER PACKAGED GOODS

73%

+4

BREWING AND SPIRITS

71%

+10

MEDIA

64%

-1

FINANCIAL SERVICES

64%

+8

BANKS

64%

+12

TELECOMMUNICATIONS

63%

+3

Q43-60. [TRACKING] 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) Informed Publics.


JAPAN LEADS PREFERENCE IN BRAZIL; EUROPEAN COUNTRIES HAVE A HIGH CREDIBILITY BRAZIL TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES

MOST 89%

87%

86%

TRUSTED 85%

83%

82%

78%

75%

74%

71%

68%

64%

62% 54%

33

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 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) Informed Publics.

53%

49%

47%


STATE-OWNED COMPANIES ARE DISTRUSTED IN BRAZIL BRAZIL TRUST IN DIFFERENT TYPES OF BUSINESSES

Global

Latin America

83% 82% 71%

80%

Brazil

84%

68%

79%

74%

72% 63%

79%

62%

79% 70% 61%

56%

54% 45%

FAMILY-OWNED

34

SMALL- AND MEDIUM-SIZED

PUBLICLY-TRADED PRIVATELY-HELD

BIG BUSINESS

Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business 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) Informed Publics, 27-country global total.

STATE-OWNED


INDIVIDUAL POWER VERSUS INSTITUTIONAL VOICES CREDIBILITY OF SPOKESPEOPLE , 2013 VS. 2014 - BRAZIL

2013

2014 80%

A PERSON LIKE YOURSELF TECHNICAL EXPERT IN THE COMPANY

74%

A PERSON LIKE YOURSELF

70%

ACADEMIC OR EXPERT

*SUCCESSFUL ENTREPRENEUR

71%

*ENTREPRENEUR

59%

74% 70% 66%

0 0 -5

61%

+2

CEO

60%

+8

59%

+11

REGULAR EMPLOYEE

48%

REGULAR EMPLOYEE

BOARD OF DIRECTORS

50%

BOARD OF DIRECTORS

NGO REPRESENTATIVE

48%

NGO REPRESENTATIVE

GOVERNMENT OFFICIAL OR REGULATOR

32%

GOVERNMENT OFFICIAL OR REGULATOR

BLOGGER

30%

BLOGGER

54% 45% 34% 30%

*Changed from “Successful Entrepreneur” in 2013

35

+4

FINANCIAL OR INDUSTRY ANALYST

52%

CEO

84%

TECHNICAL EXPERT IN THE COMPANY

ACADEMIC OR EXPERT

FINANCIAL OR INDUSTRY ANALYST

2013 vs. 2014

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, Very/Extremely Credible) Informed Publics.

+4 -3 +2 0


LEADERSHIP CRISIS AFFECTS COMPANIES AND GOVERNMENT BRAZIL TRUST IN BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING

BUSINESS LEADERS 49%

51% 40%

CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS

2013 2014 44%

MAKE ETHICAL AND MORAL DECISIONS

39%

43%

TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS

GOVERNMENT LEADERS

21%

20%

CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS 36

37%

41%

SOLVE SOCIAL OR SOCIETAL ISSUES

2013 2014

19%

19%

MAKE ETHICAL AND MORAL DECISIONS

19%

18%

TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS

18%

19%

SOLVE SOCIAL OR SOCIETAL ISSUES

Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following?; Q144B-147B. [SPLIT SAMPLE] How much do you trust government leaders to do the following? (Top Box, Trust a great deal) General Publics.


BRAZILIANS WANT AN ACTIVE ROLE BY GOVERNMENT MOST IMPORTANT ROLE FOR GOVERNMENT IN BUSINESS - BRAZIL

56% 30% 26% 20%

18%

3% PROTECT REGULATE CONSUMERS FROM BUSINESS IRRESPONSIBLE ACTIVITIES TO BUSINESS ENSURE PRACTICES COMPANIES ARE BEHAVING RESPONSIBLY

37

2%

BUILD WORK TO ENSURE GIVE OR LOAN GOVERNMENT INFRASTRUCTURE FREE MARKET MONEY TO SHOULD NOT PLAY THAT PROMOTES ACCESS AND OPEN BUSINESS WHEN IT A ROLE IN AND FACILITATES COMPETITION EXPERIENCES BUSINESS BUSINESS WITHIN FINANCIAL CRISIS OPPORTUNITIES INDUSTRIES

Q149. [TRACKING] Which of the following is the most important role that government should play in business? Informed Publics.

0% DON'T KNOW


BRAZILIAN BRANDS: BEHAVIOR DRIVES PERCEPTION BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - BRAZIL

ENGAGEMENT

HIGH QUALITY PRODUCTS

IMPORTANCE PERFORMANCE

TREATS EMPLOYEES WELL

INTEGRITY PRODUCTS & SERVICES PURPOSE OPERATIONS

68%

57%

LISTENS TO CUSTOMERS

54%

ACTS RESPONSIBLY IN CRISIS

54%

IS ETHICAL

66%

57%

PROTECTS ENVIRONMENT

52%

TRANSPARENT & OPEN

54%

CUSTOMERS BEFORE PROFITS

52%

POSITIVELY IMPACTS COMMUNITY

50%

INNOVATOR

56%

COMMUNICATES OFTEN

53%

ADDRESSES SOCIETY'S NEEDS

49% 53% 48% 53% 49% 51% 52% 47%

TOP GLOBAL COMPANY ADMIRED TOP LEADERSHIP CONSISTENT FINANCIAL RETURNS PARTNERS WITH NGOS

71%

60%

41%

Gap -11 -11 -12

64%

-10

64%

-7

63%

-11

63%

-9

63%

-11

61%

-11

61%

-5

61%

-8

59%

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 Publics, 2738 country global total.; Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performing Extremely Well) Informed Publics.

-10 -5 -4 +1 -6


WHAT CEOS SHOULD DO TO BUILD TRUST ACTIONS A CEO CAN TAKE TO BUILD TRUST IN THEMSELVES AND THEIR COMPANY - BRAZIL

81%

79%

79%

78%

73% 63%

Communicates clearly and transparently

Tells the truth, Is front and center Engages with Is personally involved Has an active media regardless of how during challenging employees regularly to in supporting local presence complex or unpopular times (product recalls, discuss the state of charities and good it is lawsuits, etc.) the business causes

39 Q254A-261A. [SPLIT SAMPLE ] Thinking about the following actions a CEO can take, how important is each of the following to building your TRUST in that CEO? (Top 4 Box, Total Important) Informed Publics.


A NEW TRUST ENVIRONMENT There has been a significant change in the trust environment since 2009. Business must now lead the debate for change. People trust business to innovate, unite and deliver across borders in a way that government can’t. This trust comes with the expectation and responsibility to maintain it. Doing this is less risky than not doing it at all.

Operations and CSR programs are now tablestakes (compared to 2008). Business must

Engagement and Integrity to build trust. focus on

84% believe a company can take specific actions that both increase profits and

improve the economic and social conditions in the communities where it operates.

CEO must become Chief Engagement Officer 40


WE NEED TO EVOLVE‌

From only

to include

Micro

Macro

Transactional

Shared Value(s)

Legal Requirements

Societal Expectations

What

How and Why


BUSINESS TO LEAD THE DEBATE FOR CHANGE

42

Participate

Partner, listen and build relationships to inform strategy.

Advocate

Offer a clearly articulated strategy that delivers context. Engage and enable to amplify. Create mass movement.

Evaluate

Establish transparent metrics. Report frequently. Acknowledge performance and amend as needed.


On the cover, from top left: Japanese Prime Minister Shinzo Abe: REUTERS/Toru Hanai; Malala Yousefzai: REUTERS/Darren Staples; Brazilian Oil and Gas Magnate Eike Batista: REUTERS/Fred Prouser; Anti-Government Protests in Turkey: REUTERS/Murad Sezer; Lord Justice Leveson, chair of The Leveson Inquiry: REUTERS/Stefan Wermuth; Hong Kong Protests in Favor of Edward Snowden: REUTERS/Bobby Yip; U.S. Government Shutdown: REUTERS/Mike Theiler


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