2011 Australian Edelman Trust Barometer

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January 21, 2011

Asia-Pacific (APAC)AUSTRALIA

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Edelman Trust Barometer at a glance

30-minute telephone interviews conducted from October 11 – November 28, 2010. Australian sample N=200

For more than a decade, Edelman’s Trust Barometer™ has been:

• Probing the attitudes of opinion shapers on the current state of trust in business, institutions and industries

• Understanding the expectations of stakeholders regarding policy impact on business and government

• Aligning communications strategies and actions required to build trust

Participants are:

Aged between 25 and 64; college-educated; top 25% of household

income; significant consumers of media, business news and

public policy

The Edelman Trust

Barometer derives from more than

5,000 interviews across 23 countries

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State of TrustShifting centre of

gravity

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A7-10. [INSTITUTIONS] For each one, please tell me how much you TRUST that institution to do what is right. On a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL” and nine means that you “TRUST THEM A GREAT DEAL, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in Australia

Trust in Australi

a rebounds since 2010

NGOs

65 %Business

54 %

Government

52 %Media

32 %+7 +2

+11

+14

Trust in institutions (2010-2011)

5

2009 2010 201120

25

30

35

40

45

50

55

60

65

70

54%52%

65%

32%

Business Government

NGOs Media

Trust in institutions (2009-2011)Australia

most trusting of NGOs; least trusting of media

Since trust was benchmarked in Australian in 2009, trust in business has steadily increased, gaining 11%. Despite a small decline in 2010, trust in NGOs surges to a high of 65%, a 10% increase since 2009.

A7-10. [INSTITUTIONS] For each one, please tell me how much you TRUST that institution to do what is right. On a 9-point scale where one means that you “DO NOT TRUST THEM AT ALL” and nine means that you “TRUST THEM A GREAT DEAL, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in Australia

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11%

increase in trust in government since 2010.

Despite a tumultuous year in politics, more than half (52%) of Australian opinion leaders trust government to do what is right. Trust in government rebounds from drop in 2010, returning to 2009 levels.(Question A9, Top 4 Box, Informed Publics aged 25-64 in Australia)

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Trust in Business

A closer look

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Media

Banks

Financial services

Insurance

Telecommunications

Energy

Consumer packaged goods

Brewing and spirits

OTC personal health care products

Biotech

Automotive

Pharmaceuticals

Entertainment

Retail

Food and beverage

Technology

28%

33%

37%

38%

38%

45%

47%

52%

53%

54%

55%

56%

59%

59%

65%

68%

A30-45. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you “DO NOT TRUST THEM AT ALL” and nine means that you “TRUST THEM A GREAT DEAL.” (Top 4 Box) Informed publics ages 25-64 in Australia

Trust in industries (2011)

Technology firmly on top; Media and

Finance sector at bottom

Trust in all

industries remains

steady over the past year

9

Media

Financial services

Telecommunications

Consumer packaged goods

OTC personal health care products

Automotive

Entertainment

Food and beverage

28%

33%

37%

38%

38%

45%

47%

52%

53%

54%

55%

56%

59%

59%

65%

68%

A30-45. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Use a nine-point scale where one means that you “DO NOT TRUST THEM AT ALL” and nine means that you “TRUST THEM A GREAT DEAL.” (Top 4 Box) Informed publics ages 25-64 in 23 countries and Australia

81% 1.

66% 4.

65% 6.

63% 7.

63% 8.

69% 2.

65% 5.

57% 11.

57% 12.

59% 10.

62% 9.

68% 3.

52% 14.

50% 16.

51% 15.

54% 13.

Global ranking

Aussies LESS

trusting

Aussies MORE

trusting

In 2011, Automotive,

Telecommunications and

Biotech less trusted in Australia

than globally

Trust in industries (2011)

10

China India Japan Brazil France Australia* Russia US Germany UK Ireland*0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

78%83%

61%

48%

40%

29%

54%

71%

44% 46%

26%

90%87%

71% 69%

52%

33%

44%

25% 23%

16%

6%

2008 2011

* Compares 2009 rather than 2008 dataA30-45. [Banks TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you “DO NOT TRUST THEM AT ALL” and nine means that you “TRUST THEM A GREAT DEAL.” (Top 4 Box) Informed publics ages 25-64

Trust in banks globally (2008/2011)

+12 +4

+10 +2

1

+12

-10

-46

-21-30

-20

Since financial crisis, trust in

banks takes big hit in the West;

Reverse is true in China, India,

Japan

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Aussies LESS

trusting

Aussies MORE

trusting

Company Headquarters

A13-29. Please tell me how much you TRUST global companies headquartered in the following countries to do what is right. Use the same 9-point scale. (Top 4 box) Informed Publics ages 25-64 in Australia

National identity for companies (2011)

27% India

26% China

20% Brazil

18% Russia

Australians distrusting of

companies headquartere

d in BRIC countries

76% Canada

70% Sweden

69% Switzerla

nd

67% Germany

51% US

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Reputation attributes (2011)

Has transparent and honest business practices

Offers high quality products

Is a company I can trust

Treats employees well

Prices its brands fairly and competitively

B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. How important is this factor to overall reputation on a 9-point scale where one means “not at all important” and nine means “extremely important”? (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia.

Communicates frequently and honestly64%

63%60%57%55%

51%46%33%31%30%

Is a good corporate citizen

Has highly regarded and top leadership

Delivers consistent financial returns to investors

Is an innovator of new products, services or ideas

Top 2 Box, Very/Extremely Important

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Innovator

Financial returns

Widely admired leadership

Good corporate citizen

Communicates frequently and honestly

Prices fairly and competitively

Treats employees well

Company I can trust

High quality products or services

Transparent and honest business practices

30%

31%

33%

46%

51%

55%

57%

60%

63%

64%

Attributes affecting reputation (2011)

Globally quality tops the list of reputation attributes; in Australia transparenc

y and honesty

most important

65% 2.

69% 1.

65% 3.

63% 4.

55% 5.

55% 5.

51% 7.

39% 9.

39% 9 .

46% 8.

Global ranking

B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. How important is this factor to overall reputation on a 9-point scale where one means “not at all important” and nine means “extremely important”? (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia and global in 23 countries.

Top 2 Box, Very/Extremely Important

LESSimportant to Aussies

MOREimportant to Aussies

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Price matters.

17%increase since 2010.

Australians see pricing brands fairly and competitively as an important attribute for trust and reputation in 2011.

(Question B72-81, Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia)

.

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Business and Society

Toward shared value

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Michael Porter, Mike Kramer, Harvard Business Review”

The purpose of a corporation must be redefined around creating shared value…

“Companies must take the lead in bringing business and society back together.

Creating Shared Value

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“The social responsibility of business is to increase its profits.”Milton Friedman

G124. TOTAL 52%. Please tell me if you agree/disagree with the following quote from Milton Friedman: “The social responsibility of business is to increase its profits”? (Net: Strongly agree + somewhat agree) Informed Publics ages 25-64 in Australia

.

5 out of 10 Australians agree

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Corporations need to create shareholder value in a way that aligns with society's interests, even if that means sacrificing shareholder value.

G120. TOTAL 79%. Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way in which they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in Australia

.


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Government needs to regulate corporations activities to ensure they are behaving in a responsible manner.

G123. TOTAL 73%. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in Australia

.


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Japan

S. Korea

Spain

Germany

France

Brazil

Mexico

US

India

China

Singapore

Russia

Indonesia

Australia

Canada

UK

Ireland

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

42%

44%

48%

49%

50%

53%

56%

61%

61%

62%

67%

69%

70%

73%

74%

82%

82%

G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in 23 countries

Government intervention (2011)

Australians more likely to

call for government to

step in to ensure business

behaves responsibly

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Roadmap to Trust

Key drivers of reputation

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67%trust atechnical expert from within the company

69%trust anacademic or expert

50%trust afinancial or industry analyst

Credible spokespeople (2011)

Credibility matters

D104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Australia

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Credible spokespeople (2011)

CEO

experiences recovery of credibility

30percentage point

increase since 2009 to 49% in 2011

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Global APAC US India Japan South Korea

Singapore China Indonesia Australia0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40%

51%

31%

58%53%

50%

66%

45%

53%

38%

50%

58%

34%

78%

67%63%

58%

50% 50% 49%

2010 2011

D104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

CEO credibility (2010-2011)

CEO credibi

lity increas

es globall

y+10

+7

+3

+11

Top 2 Box, Extremely Credible/Very Important

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0%

10%

20%

30%

40%

50% 47%

13%

9%

14%

6%

11%

0%

10%

20%

30%

40%

50%

36%

8%

33%

9%

3%

11%

0%

10%

20%

30%

40%

50%

21%

36%

22%

8% 7% 6%

Trusted spokespeople in a crisis (2011)

D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about that crisis. D101. Keeping the same list of people in mind, when a company issues a product recall, which one person do you want to hear information from about that recall? D102. Keeping the same list of people in mind, when a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about that damage? Informed Publics ages 25-64 in Australia.

Trusted spokesperson during a company crisis

Preferred spokesperson during a product recall

Preferred spokesperson when the local community has been

damaged

CEO must

be vocal

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Corporate/product advertising

Corporate communications

Microblogging sites, such as Twitter

Social networking sites

Content-sharing sites, such as YouTube

Blogs

News/RSS feeds

Online search engines

Television or television news

Radio or radio news

Newspapers

Magazines or business magazines

9%

21%

6%

6%

8%

9%

17%

27%

20%

23%

23%

27%

H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me if you trust it – a great deal, somewhat, not too much, or not at all as a source of information about a company? (Top Box Trust A Great Deal) Informed Publics ages 25-64 in Australia

Trusted information sources (2011)Tr

ad

itio

nal

Socia

l M

ed

iaC

orp

ora

te

Trust a Great Deal (Top Box)/Trust (Top 2 Box)

On

lin

e

Sou

rces

82%

86%

83%

76%

82%

82%

45%

47%

39%

35%

78%

58%

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Social media

Broadcast (radio/TV)

Friends and family

Print (newspapers/magazines)

Company website

Online news sources

Online search engine

0% 10% 20% 30% 40% 50%

4%

5%

7%

11%

16%

22%

35%

Source of information about a company (2011)

I139. When looking for general news or information about a company, which one type of information source would you generally consult first? Informed Publics ages 25-64 in Australia

First Source

People go to online first when looking for

news and information about a company – search,

online news sources and company

websites

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Social media


Friends and family


Company website

Online news sources


0% 10% 20% 30% 40% 50%

4%

5%

7%

11%

16%

22%

35%

Source of information about a company (2011)

(I139. When looking for general news or information about a company, which one type of information source would you generally consult first? I140. And after [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking for general news or information about a company? Informed Publics ages 25-64 in Australia

Friends and family

Social media




Company website

Online news sources

0% 10% 20% 30% 40% 50%

5%

8%

11%

14%

16%

17%

26%

Second SourceFirst Source

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Most relied upon information source (2011)

I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in Australia

1. 48%

2. 14%

3. 12%

4. 12%

5. 10%

6. 9%

7. 8%

8. 7%

9. 6%

10. 6%

Most relied on source for company information (unaided) Strong media brands rise to the top

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H137. Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia

Once (1); 14%

Twice (2); 15%

Three times (3); 27%

Four or Five times (4 - 5); 29%

Six to Nine times (6-9); 9%

Ten or more times (10+); 6%

3-5 times56%

Exposure to information (2011) Australians need

information from multiple sources and voices; And

need to hear it 3-5 times to believe

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The Benefits of TrustThe Benefits of Trust

Why Trust Matters

http://photo.net/photodb/photo?photo_id=2718544&size=lg

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Trust is a protective agent and leads to tangible benefits and sales.

Lack of trust is barrier to change.

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Series115%

38%

75%

76%

29%

42%

61%

80%

84%

Bought shares

Paid more for products/services

Chose to buy products/servicesRefused to buy products/services

Recommended them to a friend/colleagueCriticized them to a friend/colleague

Shared negative opinions online

Sold shares

Shared positive opinions online

+_Distrusted Companies Trusted Companies

Actions Taken Over Past 12 Months

F118. [TRACKING] Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. (Percent “Yes”) F119. [TRACKING] Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. (Percent “Yes”) Informed Publics ages 25-64 in Australia

Through personal action, trust has tangible benefits

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When a company is distrusted When a company is trusted

16%

31%

57%will believeNEGATIVE

information afterhearing it 1-2 times

Think about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information) about that company to believe the information is likely to be true? Please give me a number. Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia

will believe positive information after hearing it 1-2 times

will believe negative information after hearing it 1-2 times

49%will believePOSITIVE

information after hearing it 1-2 times

Trust protects reputation (2011)

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Business must align profit and purpose for social benefit.

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Control Information

Focus Solely on Profit

Pro

tect

the B

ran

d

Sta

nd A

lone

Profit With Purpose

Tran

spar

ency

Engagement

Old Trust Framework New Trust Architecture

WHAT

HOW

WHERE

The Transformation of Trust

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Current media landscape plus increased skepticism requires multiple voices and channels.

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Generational differences

Demand for authority and accountability set new expectations for corporate leadership.

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January 21, 2011

Asia-Pacific (APAC)AUSTRALIA

2011 Australian Edelman Trust Barometer

Business

Transcript of 2011 Australian Edelman Trust Barometer