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