2017 Edelman Trust Barometer 1 - Trust... · 2017-03-08 · Source: 2017 Edelman Trust Barometer....

2017 Edelman

Trust BarometerTrust and the CEO

1

Table of Contents

1 3 4The

Leadership

Trust

Challenge

2 5The New

Model of

Leadership

Trust in

Crisis

The Broken

System

The Plan

of

Action

Informed

Public

9 years in 20+ markets

Represents 13% of total global population

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

Must meet 4 criteria:

Ages 25-64

College educated

In top 25% of household income per age group in each country

Report significant media consumption and engagement in business news

General Online

Population

6 years in 25+ markets

Ages 18+

1,150 respondents per country

All slides show General Online Population unless otherwise noted

2017 Edelman Trust Barometer 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).

3

17 years of data

33,000+ respondents total

All fieldwork was conducted

between October 13th and

November 16th, 2016

Online Survey in

28 Countries

Mass

Population

All population not including Informed Public

Represents 87% of total global population

Trust in Crisis

2016: The Inversion of Influence

5

Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs.

Informed Public and Mass Population, 28-country global total.

MassPopulation

85%of population

48 Trust Index

15%of population

60 Trust IndexInformed

Public

12pt

Gap

Influence & Authority

Influence

Authority

Elites manage

institutions to

do things “for”

the people

Two worlds operating

independently with a gap

growing between them

2017: Trust Gap Widens

Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. Informed Public and Mass Population, 25-country global total.

6

• Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2017

21 pts

19 pts

18 pts

53

60 60

44

48

45

2012 2016 2017

Informed

Public

15pt

Gap

9pt

Gap

A 3-point

increase in

the last year

12pt

Gap

Largest Gaps

Mass

Population

45 Global

70 India

67 Indonesia

62 China

59 Singapore

59 UAE

52 Netherlands

50 Colombia

50 Mexico

47 Brazil

47 Canada

47 Italy

47 Malaysia

47 U.S.

45 Argentina

42 Hong Kong

41 S. Africa

41 Spain

41 Turkey

40 Australia

39 Germany

38 France

37 U.K.

36 S. Korea

36 Sweden

35 Ireland

34 Japan

34 Poland

31 Russia

Trust Index

Mass Population Left Behind• Average trust in institutions,

Informed Public vs. Mass Population

The Mass Population

distrusts

their institutions in

20 of 28 countries

Source: 2017 Edelman Trust Barometer.

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

institutions of government, business, media and NGOs.

Informed Public and Mass Population, 28-country global

total.

MassPopulation

InformedPublic

7

60 Global

80 India

79 China

78 Indonesia

77 UAE

71 Singapore

68 U.S.

62 Canada

62 Netherlands

61 Italy

61 Mexico

57 Malaysia

57 Spain

56 France

56 U.K.

55 Colombia

54 Australia

54 Germany

53 Hong Kong

51 Argentina

51 Brazil

50 S. Korea

50 Turkey

49 Japan

49 S. Africa

47 Sweden

45 Russia

44 Ireland

43 Poland

Trusters (60-100)

Neutrals (50-59)

Distrusters (1-49)

2017: Mass Population Rejects Established Authority

8

Mass population now has influence

and authority

Establishment left empty-handed

Influence& Authority

The Leadership Trust Challenge

Source: 2017 Edelman. Trust Barometer Q130-747 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, 28-country global total, question asked of half the sample.

10

With Rejection of Establishment, Credibility of Leadership in Crisis • Percent who rate each spokesperson as

very/extremely credible

CEOs

37% Credible

CEOs are not seen as

individuals but as part of the

untrustworthy “elite” class

50%47

7168

64 6359 58 58 58 57 57 56 54 52

48 48 46 46 4540 40

36 35 3430

24 2218

12

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CEOs Themselves Are Not Well Known

11

Percent who say that they cannot name any CEOs

Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 28-country global total

Lower Awareness Higher Awareness

Majority acknowledge inability to name a CEO

2016: Edelman Trust

Barometer CEO Supplement

37

18

23 23 24 25 26 27 27 27 28 28 2831

3436

3840 40

42 43 4448 48

51 5255

61

70

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India

All-time Low for CEO Credibility;Drops in Every Market


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

12

• Percent rate CEOs as extremely/very credible, 2016 vs. 2017

CEOs not credible in 23 countries

50%

-12 -15 -8-7 -12-16-6-16-18-13-17-10-16-5-14-10 -10 -12 -11 -15-12 -13 -19 -7-9 -12 -11-12 -16

Declines in all 28 countries

Y-to-Y Change+−

NeutralDistrust Trust

1

60 60 60

48 4643

37 35

29

A p

ers

on lik

eyo

urs

elf

Te

chn

ical

expe

rt

Acad

em

ice

xpe

rt

Em

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ye

e

Fin

ancia

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na

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tive

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rd o

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ire

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Gove

rnm

en

to

ffic

ial/

reg

ula

tor

Employees More Credible Than CEOs


13

• Percent who rate each spokesperson as extremely/very credible, and change from 2016 to 2017

CEO credibility decreased the

most, dropping to an all-time low

-7 -5

“People in this

country have

had enough

of experts.”

– Michael Gove,

Member of Parliament, U.K.

Technical experts within your company as well

as employees are more credible than the CEO

-3 -7 -5 -4 -7 -5 -12 -10 -6

Y-to-Y Change+−

Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of information, a different format

for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are more likely to believe is giving

you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the two options given--the one that is most likely to

be true most often. General Population, 28-country global total, choices shown to half the sample. 14

Non-Establishment Sources More Believable;Want Authentic, Outspoken, Reformers• Percent who find each source more believable

than its pair

55% Individuals

45% Institutions

71% Reformer

29% Preserver of

Status Quo

54% Blunt and

outspoken

46% Diplomatic

and Polite

CEOs Not Getting High Marks

Source: 2016 Edelman Trust Barometer Q451-461 Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs are fairly paid relative to rest of workforce,’ ‘CEOs can relate to people like me,’ (Bottom 5 Box, Do Not Agree), ‘CEOs are too focused on short-term financial results (Top 4 Box, Agree), General Population, 28-country global total.

15

• Percent who agree with each statement about CEOs

Not fairly paid

relative to

everyone else

Overpaid

54% Cannot relate to

people like me

Unrelatable

50%

Misplaced Focus

Too focused on

short-term67%

2016: Edelman Trust


The SystemIs Broken

50% 55 5348

42

53 52

43 41

Trust in All Four Institutions Declines

Source: 2017 Edelman Trust Barometer Q11-620. 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.

17

• Percent trust in the four institutions of government, business, media and NGOs, 2016 vs. 2017

Business MediaNGOs Government

Two of four institutions distrusted

Neutral

Trusted

Distrusted

-2 -1 -5 -1

20172016

How true is

this for you?

Sense of injustice

Lack of hope

Lack of confidence

Desire for change

53%

32%

15%

Majority Believe the System is Failing Them

Source: 2017 Edelman Trust Barometer Q672-675, 678-680, 688-690. For details on how the “system failing” measure was calculated, please refer to the Technical Appendix.

18

Not at all true

9 8 7 6 5 4 3 2 1

1 in 3 are uncertain

Completely true

System failing System working

Approximately

Corruption Globalization Eroding Social Values Immigration Pace of Innovation

Widespread corruption

Compromising the safety of

our citizens

Makes it difficult to institute the

changes necessary to solve our

problems

Protect our jobs from

foreign competition

Foreign companies/influence

damaging our economy/

national culture

Foreign corporations favor their

home country

Most countries cannot be

trusted to engage in fair

trade practices

Values that made this country

great are disappearing

Society changing too quickly and

not in ways that benefit people

like me

Influx of people from other

countries damaging our economy

and national culture

Technological innovations

happening too quickly and leading

to changes not good for

people like me

Concerns Have Become Fears

Source: 2017 Edelman Trust Barometer. Corruption Q685-687, Globalization Q681-684, Eroding social values Q676 and Q758, Immigration Q685, Pace of innovation Q677.For details on how the societal fears were measured, please refer to the Technical Appendix.

19

• Percent of respondents who are concerned or fearful regarding each issue

69% Concerned

40% Fearful

55% Concerned

28% Fearful

56% Concerned

25% Fearful

62% Concerned

27% Fearful

51% Concerned

22% Fearful

The Cycle of Fear and Distrust

20

2

1

Most Trusted

Business is the most trusted

among the 1 in 3 who are

uncertain about the system

The Last Retaining Wall:

Business Most Trusted

by the Uncertain

Source: 2017 Edelman Trust Barometer Q11-620. 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) General Population, 28-

country global total, cut by “the system is failing’ segments. Q672-675, 678-680, 688-690. For details on how the “system failing” measure was calculated, please refer

to the Technical Appendix.

NeutralDistrust Trust

% trust in each

institution

Among those

who believe the

System

is Working

Among those

who are

Uncertain

Among those

who believe the

System

is Failing

Most Trusted

Most Trusted

NGOs 51 57 52

Business 47 58 58

Media 37 50 47

Government 29 53 62

22

Business Expected to Lead

Source: 2017 Edelman Trust Barometer Q249-757. Please indicate how

much you agree or disagree with the following statements. (Top 4 Box,

Agree). General Population, 28-country global total, question asked of half

the sample.

.

75% agree

“A company can take specific

actions that both increase

profits and improve the economic

and social conditions in the

community where it operates.”


23

CEOs Have More Credibility to Lead than Government LeadersForced choice, percent who rate each spokesperson as more credible

CEOs

61% Credible

Government

Officials

39% Credible

Challenges Facing CEOs in Today’s Crisis of Trust

CEOs lose credibility; prefer authentic, outspoken reformers

Company experts and employees more credible spokespeople

1. Lack of awareness of CEOs; seen as part of the establishment elite

3.

New expectations for business to lead and rebuild trust in the system4.

2.

25

The New Model of Leadership

The Age of Engaged Leadership

26

The

Celebrity CEO

The

Invisible CEO

The

Engaged CEO

1980’s and 90’s The Recession Years Today

Jeffrey A. Sonnenfeld

Senior Associate Dean for Leadership Programs & Lester Crown Professor in the Practice of Management, Yale University

27

“A corporation’s public purpose is conveyed through its

leaders.

Despite the pulse of 24/7 multimedia inquiries and the

endless critiques of global stakeholders, many CEOs remain

insulated and protected.

CEOs can only look to rebuild trust by stepping out

and embracing their critical role of direct public engagement

with a genuine two-way exchange with key constituents.

“

47 46

30 30 3134 35 35 35 35 36 36

39 39 40 4043 43 45 46

49

57 57 5861

6568 69

79 80

64 63

48 46 45

53 51 50

59 58

50 52

63

57 59

43

58

64

55

65

59

7368

7672

77 75

82 8489

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India

Ch

ina

Trust in CEOs Rises When They Know CEOs

Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 28-country global total. Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population, 28-country global total.

28

• Percent trust in CEOs vs. percent trust in CEOs among respondents who can name 2 or more CEOs

Trust among respondents

who can name 2+ CEOsAverage Trust in CEOs

2016: Edelman Trust


There is a Universal Desire for Honest, Ethical, Competent Leadership• Characteristics that make a CEO trustworthy:

• percent who selected each as one of the top five in each region

29

North America

Honest 59%

Ethical 48%

Competent 26%

Transparent 26%

Sincere 24%

Latin America

Ethical 47%

Honest 44%

Competent 36%

Visionary 34%

Innovative 33%

Europe

Honest 53%

Competent 43%

Experienced 28%

Ethical 27%

Transparent 27%

APAC

Honest 39%

Visionary 35%

Decisive 31%

Ethical 31%

Competent 26%

Source: 2016 Edelman Trust Barometer Q515. Which of the following personal characteristics make a CEO trustworthy? Please select the five most important characteristics that make a CEO trustworthy. General Population, 28-country global total, question asked of half the sample.

2016: Edelman Trust


A CEO’s Personal Values and History Are Important

Source: 2016 Edelman Trust Barometer Q516-524. For you to trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a nine-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Important) General Population, 28-country global total, question asked of half the sample.

30

• Percent who agree that each type of information is important in building trust in a CEO

62%65%

70%

79%

Their education andhow it shaped them

Their personalsuccess story

The obstaclesthey have overcome

Their personal values

2016: Edelman Trust


31

58%do not believe that corporate

initiatives to address societal

issues are sincere

unless the company’s

CEO is personally involved

CEOs Need to be Actively Engaged in Addressing Social Issues

60%

63%

68%

69%

74%

71%

71%

72%

72%

72%

73%

76%

Personal views on societal issues

Public policy discussions

Income inequality

Economic trends

Future of the industry

Company benefits to society

Developing products and services

Crisis

Financial results

Company culture

Launching new products/services

Purpose and vision

What the CEO Stands For Matters

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, 28-country global total, question asked of half the sample.

32

• Percent who agree that CEOs should be personally visible in each of these business situations

Industry issues

Societal issues

Company issues

2016: Edelman Trust


• Which is more believable?

The Way the CEO Communicates Matters

33

Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of information, a

different format for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are

more likely to believe is giving you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the

two options given-the one that is most likely to be true most often. General Population, 28-country global total, choices shown to half the sample.

51% Personal

experience

49% Data

57% Spontaneous

speaker

43% Rehearsed

speaker

54% Blunt and

outspoken

46% Diplomatic

and polite

Employees of companies with CEOs

NOT engaged in societal issues

Employees of companies with

CEOs engaged in societal issues

CEO Engagement Increases Employee Advocacy

Source: 2016 Edelman Trust Barometer Q527-529 Does your company’s CEO get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Q530-536. Thinking about your current company, please indicate how much you agree with each of the following statements using a nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample.

34

57

61

60

62

68

66

78

Recommend company as an employer

Stay working for the company

Confidence in the future of the company

Motivated to perform

Committed to achieving our strategy

Recommend products and services toothers

Do the best possible job for the customer

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

Impact of CEO Engagement

13

21

19

24

25

23

27

91

89

89

87

86

86

85

Employee Advocacy/Commitment

2016: Edelman Trust


57%

68%

68%

68%

74%

74%

75%

81%

Sharing their view on social media

Interviews with the media

Meetings with NGOs and community organizations

Discussions with government

Participation in industry conferences

Issuing communications through their company, such as pressreleases, newsletters, website updates and annual reports

Meetings with investors and analysts

Communications with employees

High Expectations for CEO Engagement Across Stakeholders and Channels

35

• Percent who agrees that each of the following activities is important in building trust in a CEO

Source: 2016 Edelman Trust Barometer Q507-514 Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of half the sample.

Your most important

audience

Employees

2016: Edelman Trust


A Plan of Action

Tr u s t C h a l l en ge s F o r C E O s P l a n o f Ac t i o n

Recommendations for Building Engaged Leadership

Lack of awareness of CEOs; seen as part of

the establishment eliteBE ACCESSIBLE, ENGAGE ACROSS CHANNELS1.

BROADEN THE VOICESCompany experts and employees more

credible spokespeople3.

TAKE ON ISSUES THAT MATTERNew expectations for business to lead and rebuild trust in the system4.

BE VISIBLE, OPEN AND AUTHENTICCEOs lose credibility; prefer authentic,

outspoken reformers2.

Thank You

2017 Edelman Trust Barometer 1 - Trust... · 2017-03-08 · Source: 2017 Edelman Trust Barometer....

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