New Zealand Report

2016 Edelman Trust Barometer

Join the conversation #TrustBarometerNZ

Informed Public

‣ 8 years in 20+ markets

‣ Represents 15% of total global population

‣ 500 respondents in U.S. and China; 200 in all other countries

Must meet 4 criteria:

‣ Ages 25-64‣ Tertiary educated‣ In top 25% of household income per age group in each country‣ Report significant media consumption and engagement in business news

General Online Population

‣ 5 years in 25+ markets

‣ Ages 18+

‣ 1,150 respondents per country

Methodology

28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).

‣ 16 years of data

‣ 33,000+ respondents total

‣ All fieldwork was conducted between October 13th and November 16th, 2015

Online Survey in 29 Countries

Mass Population

‣ All population not including Informed Public

‣ Represents 85% of total global population

2

‣ 1 year of data

‣ 1,000 respondents

‣ All fieldwork was conducted in November, 2015

New Zealand Survey

3

72

59

34

34

30

12

54

50

24

35

17

6

Trust Matters

Source: 2016 Edelman Trust Barometer Q371-589. 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. General Population, New Zealand, question asked of half the sample. 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. General Population, New Zealand, question asked of half the sample.

Percent who engage in each behaviour based on trust

Behaviours for Distrusted Companies Behaviours for Trusted Companies

Refused to buy products/services

Criticised Companies

Paid More than wanted

Shared Negative Opinions

Disagreed with others

Sold Shares

Chose to buy products/services

Recommended them to a friend/colleague

Paid More for Products/Services

Shared positive opinions online

Defended Company

BoughtShares

most trusted content creators: #1

Friends and Family

most trusted media source: #1

Online Search Engines

General Population

1 State of Trust

5

Trust Rising Globally; But in NZ, Media Much Less Well Regarded

Source: 2016 Edelman Trust Barometer 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.” (Top 4 Box, Trust) Informed Public and General Population, 27-country global total; Informed Public and General Population, New Zealand.

Percent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016

Informed Public

General Population

2016 NZ 2016

67 6963

57 57

47

NGOs Business Media Government

51 53

55 54 53 51 4738 42 41

6

6064 65

6366

5053 54

5155

2012 2013 2014 2015 2016

4648

4548

51

3841

3942 43

2012 2013 2014 2015 2016

54

58 5856

62

4750 49 49

53

Source: 2016 Edelman Trust Barometer 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.” (Top 4 Box, Trust) Informed Public and General Population, 25-country global total; Informed Public and General Population, New Zealand.

Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016

53

57

5351

56

46

49 4846

49

NGOs

Government

Media

Business

Post-Recession Highs Globally; In NZ, Trust Gap Least for Business

Informed Public

GeneralPopulation69

54

57

51

47

38

53

41

Global totals exclude Colombia and New Zealand in 2016.

11 gap 15 gap

9 gap 6 gap

7 gap 9 gap

8 gap 12 gap

57 Mexico55 Canada55 Colombia52 Netherlands50 Argentina50 Malaysia48 Brazil47 Australia47 Italy46 Hong Kong45 U.S.44 New Zealand44 S. Africa44 Spain42 Germany40 S. Korea40 U.K.39 France39 Ireland39 Russia39 Turkey38 Japan36 Sweden34 Poland

71 China65 UAE62 India62 Indonesia62 Singapore

Trust Index:Mass Population Left BehindAverage trust in institutions, Informed Public vs. General Population vs. Mass Population

For the mass population,

18 of 29 countries are distrusters

The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. 28-country global total.

Global totals exclude New Zealand

MassPopulation

48 Global For the mass population, the

global index falls into distruster territory

7

Trusters

Neutrals

Distrusters 49 Australia49 Italy49 U.S.47 Hong Kong46 Spain46 New

Zealand45 S. Africa42 Germany42 S. Korea42 U.K.41 France41 Ireland41 Turkey39 Russia38 Japan37 Sweden35 Poland

73 China66 UAE65 India64 Singapore62 Indonesia60 Mexico56 Canada55 Colombia52 Netherlands51 Argentina51 Malaysia50 Brazil

GeneralPopulation

50 Global60 Global82 China78 India74 UAE72 Mexico72 Singapore70 Indonesia64 U.S.63 Australia63 Canada62 Netherlands61 Colombia

49 Ireland47 Turkey46 Sweden42 Poland42 Russia41 Japan

58 Brazil58 Italy58 Malaysia57 U.K.56 New

Zealand55 France54 S. Africa53 Argentina53 Spain52 Hong Kong51 Germany50 S. Korea

Informed Public

2 Trust Inequality

9

A Significant Divide

Source: 2016 Edelman Trust Barometer 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.” (Top 4 Box, Trust) Informed Public and Mass Population, 25-country global total; Informed Public and General Population, New Zealand.

Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2016

Informed Public

MassPopulation

12pt Gap

9pt Gap

12pt Gap

56

44

2016

Global totals exclude Colombia and New Zealand in 2016.

60

48

44

47

2012 2013 2014 2015 2016

46 46

53

58

56 56

10

50%

19 of 29 countries have a double-digit trust gap between high-income and low-income respondents

Trust Index:A Link to Income Inequality

Source: 2016 Edelman Trust Barometer Q13. 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) General Population, 28-country global total, lower vs. upper quartile income in each country.

GDP 5 = U.S., China, Japan, Germany, U.K.

Average trust in institutions, respondents in top quartile of income vs. respondents in bottom quartile of income in each country, ranked by the size of the gap between them

Glo

bal

GD

P 5

U.S

.

Fran

ce

Bra

zil

Indi

a

Net

herla

nds

Rus

sia

U.K

.

Italy

Sin

gapo

re

Japa

n

Hon

g K

ong

Turk

ey

Sw

eden

Spa

in

Pol

and

Col

ombi

a

New

Zea

land

Mex

ico

Irela

nd

Sou

th A

frica

UA

E

Arg

entin

a

Sou

th K

orea

Ger

man

y

Indo

nesi

a

Aus

tralia

Mal

aysi

a

Can

ada

Chi

na

6057

7164

78 78

68

49 52

6267

4945 46

50 53

40

74

49

79

46

65 68

59

3844

80

5562

58

71

4642 40

35

5256

48

30 33

4550

32 31 3237

40

27

62

37

69

36

56 59

51

3037

73

4855 52

66

19192022262931

Low-income respondents

High-income respondents

Global totals exclude Colombia and New Zealand in 2016.

3 Inversion of Influence

12

Influence

The Inversion of Influence

Influence& Authority

Authority

Old Model

‣ Elites have access to more/better information

‣ Elites’ interests interconnected with those of mass

‣ Becoming an “elite” open to all

New Reality

‣ Peer-to-peer influence more powerful than top-down

‣ Increasing distrust among mass population

‣ Mass movements based on dissatisfaction and urgency

The Divide

‣ Democratization of information and more information

‣ High-profile revelations of greed and misbehavior

‣ Income inequality

New ZealandMass

Population

87% of population

44 Trust Index

13% of population

56 Trust IndexNew Zealand

Informed Public

GlobalMass

Population

85% of population

48 Trust Index

15% of population

60 Trust IndexGlobal

Informed Public

Influence of Peer-Driven Media

Source: 2016 Edelman Trust Barometer - How often do you read, view, click on or engage with the following types of content, media or information sources? Online search engines, such as Google… (Q285), Television news and information (Q287), Social networking sites, such as Facebook, LinkedIn, Instagram, Twitter, etc.(Net of Q278 Social Networking, Q279 Blogs, Q289 Online message boards, forums or newsgroups), articles in printed newspapers (Q284), articles in printed magazines(Q283), Blogs (Q279) (Several times a week+) General Population, New Zealand, question asked of half the sample.

Percent who use each media source several times a week or more

General Population

2 of top 3 most-used sources of news and information are peer-

influenced media

13

Search

TV

Social

Radio

Newspapers

Magazines

69

64

57

56

38

20

NZ 2016

55

52

40

32

26

IndustryGlobal 2016

Search engines* 63

Traditional media 58Online-only media** 53

Owned media 46

Social media 44

2012 2013 2014 2015 2016

58

53

44

63

46

Transformed Media Landscape

Source: 2016 Edelman Trust Barometer 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) General Population and Millennials, 25-country global total; General Population, New Zealand

*From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.”**From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.”

Percent trust in each source for general news and information

Millennials even more trusting of digital media thangeneral population

General Population

14

Millennials Gap

66 3

58 0

58 5

51 5

51 7

63 64

57

50 48

41

50

39

33

6764 63

53 5249 48

44

35

6764

59

48

54

4642 41

34

Peers, Experts More Credible than Leaders

Source: 2016 Edelman. Trust Barometer Q130-587. 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) General Population, 27-country global total and New Zealand, question asked of half the sample.

Percent who rate each spokesperson as extremely/very credible2015 2016

+6

Technical Expert

A person like

yourself

Academic Expert

Financial Industry Analyst

CEO Board of Directors

Employee NGO representative

A person like yourself credibilityincreased the most globally

General Population

Government official/

regulator

15

NZ 2016

Employees amongst the most credible in New Zealand

Global totals exclude Colombia and New Zealand in 2016.

+8

4 An Opportunity for Business

17

Business Most Trusted to Keep Pace

Source: 2016 Edelman Trust Barometer 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.” (Top 4 Box, Trust) Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) General Population and Informed Public, New Zealand

Percent trust, and percent who trust each institution to keep up with the changing times, 2016

Informed Public

General Population

Trust Trusted to keep paceBusiness in the lead

Informed Public

General Population

69

5557 61

57

4753 48

54 49 5156

5038 41 40

NGOs Business Media Government

40%

45%

50%

55%

60%

65%

70%

75%

Sector Trends:Financial Services Rebounds Globally

Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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) General Population, 25-country global total; General Population, New Zealand. *From 2012-2014, Pharma included as subsector(Q). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector.

Trust in each industry sector, 2012-2016

2012 2013 2014 2015 2016

General Population

18

Industry 2012 2013 2014 2015Global2016

5 yr. Trend

NZ2016

Technology 76% 73% 75% 73% 74% 2 67%

Food & Beverage 63% 63% 64% 63% 64% 1 64%

Consumer Packaged Goods 57% 60% 61% 60% 61% 4 56%

Telecommunications 58% 60% 61% 59% 60% 2 54%

Automotive 62% 65% 69% 66% 60% 2 56%

Energy 53% 57% 57% 56% 58% 5 53%

Pharmaceutical 54% 54% 55% 54% 53% 1 34%

Financial Services 43% 47% 48% 48% 51% 8 47%

Global totals exclude Colombia and New Zealand in 2016.

Business Must Lead to Solve Problems

Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, New Zealand, question asked of half the sample.

“A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”

General Population

19

77% agree

Purpose Impacts TrustPercent who cite each as a reason for why their trust in business has increased or decreased

Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, New Zealand.

Reasons Trust in Business Has Increased

Reasons Trust in Business Has Decreased

Produces economic growth

Contributes to the greater good

Provides a range of public services

Fails to contribute to the greater good

Does not help me and my family live a fulfilling life

Provides few/no public services // Lacks economic growth

56%

46%

44%

48%

37%

35%

General Population

20

5 Building Trust in a Divided World

22

Building Trust

Actions

ValuesEmployeeAdvocacy

EngagementTrust

23

CEO Focus Misplaced

Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs do too much lobbying,’ ‘Given that the average tenure of CEOs is just 4 years, CEOs aren’t in their role long enough to make a positive impact,’ ‘CEOs are too focused on short-term financial results,’ (Top 4 Box, Agree); ‘CEOs can be trusted to create jobs’ (Bot 5 Box, Do not agree)] General Population, New Zealand.

Percent who agree with each statement about CEOs

Focus on short-term financial results

Lobbying

Too Much

65%

43%

Job creation

Positive long-term impact

Not Enough

63%

47%

General Population

24

Purpose and Profits Matter

Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, New Zealand, question asked of half the sample.

Percent who agree that CEOs should be personally visible in discussing…

80%Societal Issues

‣ Income inequality‣ Public policy discussions‣ Personal views on

societal issues

72%Financial Results

General Population

25

Access to education/training

Address income inequality

Access to healthcare

Protecting/improving the environment

Reducing poverty

Supporting human & civil rights

Modern infrastructure

E

E

P

H

Source: 2016 Edelman Trust Barometer Q561-573 Thinking about businesses in your country, how important is it that they play a role in solving each of the following societal issues? Please use a nine-point scale where one means that it is “not at all important” and nine means that it is “extremely important”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of one quarter the sample.

Societal Expectations VaryMost important issue for business to address in each country

Canada

Brazil

Germany

FranceChina

U.S.

Poland

Argentina

Sweden

Mexico

U.K.Ireland

Netherlands

Turkey

Singapore

Hong Kong

MalaysiaColombia

Japan

Australia

Russia

S. KoreaItaly

Spain

Indonesia

UAE

S. Africa

India

General Population

R

I

IE

E

R

H

E

EE

EE

P

P

E

H

P

E

H

H

H

E

E

E

E

E

P

I

H

E

I

I

New Zealand

Integrity 57% 15% 42Exhibits highly ethical behaviors 58% 14% 44Takes responsible actions to address an issue or crisis 56% 19% 37Behaves in a way that is transparent and open 55% 13% 42Engagement 54% 14% 40Treats employees well 60% 15% 45Listens to customer needs and feedback 57% 14% 43Places customer ahead of profits 51% 12% 39Communicates frequently and honestly on the state of their company 48% 13% 35Products 36% 19% 17Places a premium on offering high quality products or services 40% 19% 21Is focused on driving innovation and introducing new products/services/ideas 33% 19% 14Purpose 35% 14% 21Is dedicated to protecting and improving the environment 41% 13% 28Ensures that the company creates programs that positively impact the local community in which it operates 36% 15% 21Ensures that the company addresses society's needs in its everyday business 35% 15% 20Ensures that the company partners with NGOs, government and third parties to address societal issues 29% 14% 15Operations 31% 18% 13Attracts and retains a highly-regarded and widely admired top leadership team 36% 19% 17Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 16% 12% 4Manages the company in a way that delivers consistent financial returns 40% 22% 18

Leaders Seen As Underperforming

Source: 2016 Edelman Trust Barometer. Q462-478 How important is each of the following attributes to building your trust in CEOs? (Top 2 Box, Important) Q479-495 Please rate CEOs 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.” CEO questions use the same scales as the business questions. (Top 2 Box, Performance) General Population, New Zealand

Importance vs. performance of 16 trust-building leadership attributesCEO

ImportanceCEO

Performance Gap

General Population

26

27

Glob

al

GDP

5

Japa

n

Russ

ia

Fran

ce

Swed

en

Aust

ralia

S. K

orea

Pola

nd U.K.

Italy

Hong

...

New

Zea.

..

Irela

nd

Germ

any

Neth

erl..

.

Spai

n

Turk

ey

Cana

da U.S.

S. A

frica

Sing

apor

e

Mal

aysia

UAE

Indo

nesia

Braz

il

Arge

ntin

a

Chin

a

Indi

a

Colo

mbi

a

Mex

ico

6560

4048 48 50

54 55 56 57 58 59 59 60 62 62 63 64 64 6472 73 76 76 77 77 78 79

83 8589

50%

Significant Employee Lack of Trust

Source: 2016 Edelman Trust Barometer Q525-526. Thinking about your own company and other companies in your industry, please indicate how much you trust each 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) General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K.

Percent who trust the company for which they work

TrustedNot Trusted

General Population

Global totals exclude Colombia and New Zealand.

28

Employee Advocacy IncreasesWith Societal Issue Engagement

Source: 2016 Edelman Trust Barometer Q527-529. Does your company and your company’s CEO get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Thinking about your current company, please indicate how much you agree with each of the following statements using a 9-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, New Zealand, question asked of half the sample.

Percent who agree with each statement, comparing those who work at companies involved in addressing broader societal issues vs. those who do not

General Population

82Stay working for the company

Recommend company as an employer

Confidence in the future of the company

Motivated to perform

Recommend products and services to others

Committed to achieving our strategy

Do the best possible job for the customer

55

52

55

54

69

68

81

Impact of Company

Engagement

10

18

16

29

26

29

25

91

86

85

83

81

81

80

Company NOT engaged in societal issues

Company engaged in societal issues

29

Peers Influence Purchase

Source: The Edelman Earned Brand study 2015, Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and services you purchase, what impact do they have on you?

The impact of online and offline conversations about brands with friends and other people like me

Source: 2015 Earned Brand Study of Global Consumers

purchase decisions at the moment of truth

75%

Build Inspiration %They give me a sense of community 16They get me 17

Push Consideration %They push me to try new things 25They suggest products/services 27They make me trust the brand more 29

Moment of Truth %They help me overcome concerns 37They help me make decisions 44They warn me about the risks 45

peersinfluence

Actions

ValuesEmployeeAdvocacy

Engagement

Embracing the New Reality of Influence to Address Trust Inequality

‣ Create societal impact in addition to profits through purposeful action

‣ Express your values through honest, ethical engagement in which you share your story

‣ Ignite your most powerful advocate, your employees

‣ Engage cross channel to meet stakeholders, where they are, about what most interests/concerns them

Influence

TRUST

30

Leadership

TRUST

Q & A