1 © Edelman, 2012. All rights reserved.
Robert Phillips
President & CEO, EMEA
February 2012
EDELMAN TRUST
BAROMETER 2012
GLOBAL HEADLINES
• Government Suffers Steepest Trust Decline In
Barometer History
• Business Still Has It‟s Own Hurdles To Clear,
Especially In Developed Markets; CEO Trust
Significantly Down
• Banks & Financial Services Remain Least
Trusted; Technology Leads
• NGOs Remain Most Trusted Institution Globally
• Social Media Surges As Scepticism Rises
• Business Can Earn License To Lead BUT New
Trust Dynamics At Play
3 © Edelman, 2012. All rights reserved.
52% 53% 54%
57% 59%
54%
44% 48% 46%
45% 46%
47% 52%
51% 49%
53% 53%
47%
40%
43% 44%
46% 49%
38%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012
NGOs
Media
Business
Government
BUSINESS
GOVERNMENT
TRUST IN INSTITUTIONS – 18-COUNTRY GLOBAL TOTAL
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 4 Box, Trust) Informed Publics ages 35-64 in 18 country global total (excludes Argentina, Australia, Hong Kong, Indonesia, Malaysia, Singapore and UAE)
GLOBALLY, NGOS AND BUSINESS FALL TO 2009 TRUST LEVEL – GOVERNMENT RECORD DECLINE
EUROPE:
THE CRUCIBLE
OF TRUST • Trust in Eurozone Governments down 19 points to 27%;
7 out of 9 are Distrusted
• Contagion Spreads to Business; France, Germany and
Spain Suffer Dramatic Declines
• UK Trust in Government Holds; But Significant
Expectation Gap versus Delivery
• Trust in CEOs & Regulators Falls Sharply; Big Rises for
„Person Like Yourself‟ and Regular Employees
• Other Big Trust Winners are Traditional Media Sources
plus Social Media
• Opportunity for Business to Lead: Profit + Purpose +
Engagement
5 © Edelman, 2012. All rights reserved.
TRUST IN INSTITUTIONS
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 4 Box, Trust) General Population AND Informed Publics ages 25-64 in downgrade (France, Italy, Spain) and non downgrade countries (UK, Germany, Netherlands, Ireland)
IN S&P RECENT DOWNGRADE COUNTRIES, TRUST IN GOVERNMENT AND BUSINESS DROPS SHARPLY
Business
2011 Informed Public
2012 Informed Public
2012 General Public
Government
Business Government
+18 adults
+18 +18
Downgrade countries (France, Italy, Spain)
25% 27%
46%
37% 41%
55%
+18 +18
Non downgrade countries (UK, Germany, Netherlands,
Ireland)
32%
42% 43%
40% 45%
54%
+18 +18
6 © Edelman, 2012. All rights reserved.
7 © Edelman, 2012. All rights reserved.
27%
29%
36%
40%
46%
27%
35%
28%
34%
37%
40%
28%
39%
42%
45%
38% 39%
36%
32%
38%
43%
40%
46%
23% 20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012
NGOs
Media
Business
Government
BUSINESS
GOVERNMENT
TRUST IN INSTITUTIONS – RUSSIA
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 4 Box, Trust) Informed Publics ages 35-64 in Russia
RUSSIA IS NOT IMMUNE FROM FALLING GLOBAL TRUST SCORES –
ESPECIALLY AMONG OLDER „INFORMED PUBLICS‟
8 © Edelman, 2012. All rights reserved.
TRUST IN INSTITUTIONS - RUSSIA
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 4 Box, Trust) General Population AND Informed Publics ages 25-64 in the European Union Region (excludes Russia)
NGOs
Business
Media
Government
2011 Informed Public
2012 Informed Public
2012 General Public
29% 26%
39%
32%
41% 41%
32% 33% 37%
28% 28%
42%
IN RUSSIA, TRUST IN THREE OF FOUR INSTITUTIONS DECLINES OVERALL
9 © Edelman, 2012. All rights reserved.
Trust Steady
TRUST IN BUSINESS IN RUSSIA LOW BUT STABLE TRUST IN BUSINESS
Q11-14. [Business in General 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 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries
N/A N/A
Trust Trust
50%
2011 Informed Public
2012 Informed Public
56%
61%
50%
46%
54%
44%
52%
41%
70%
64%
46%
81%
44%
53%
74%
78%
52%
81%
48%
53% 53%
71%
56%
50%
57%
46%
54%
41%
69%
62%
43%
77%
38%
47%
65% 67%
34%
63%
28%
32%
2011 Informed Public EMEA
2012 Informed Public EMEA
10 © Edelman, 2012. All rights reserved.
19%
39%
28%
27%
28%
27%
29%
25%
33%
32%
49%
30%
50%
32%
47%
59%
32%
34%
37%
46%
46%
53%
54%
55%
55%
57%
59%
60%
60%
64%
77%
84%
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESSSOCIETAL ISSUES
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BESTCOMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES'
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITYIN WHICH THE COMPANY OPERATES
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
TREATS EMPLOYEES WELL
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITSBUSINESS
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS
PLACES CUSTOMERS AHEAD OF PROFITS
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
HAS ETHICAL BUSINESS PRACTICES
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
GLOBAL CHALLENGES IN BUSINESS ARE ALSO REFLECTED AMONG THE GENERAL POPULATION Gap
Q52-69. 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) General Population in Russia (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in Russia
RUSSIA Business Importance
Company Performance
- 25
- 30
- 32
- 10
- 30
- 10
- 25
- 22
- 30
- 25
- 26
- 18
- 19
- 9
+ 5
- 13
11 © Edelman, 2012. All rights reserved.
49%
77%
70% 68%
64%
58%
54% 54% 53% 51% 48% 48%
40% 40% 38%
36% 35% 34%
30% 30%
50%
Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (% who selected ‘not enough’) Informed Publics ages 25-64 in 25 country global total and across 25 countries
% WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH
DESPITE LACK OF TRUST IN GOVERNMENT, CALLS FOR INCREASED REGULATIONS. THIS CONFIRMS THE CALL FOR BUSINESS TO BE SOCIALLY RESPONSIBLE
EMEA
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HIGH LEVEL OF IMPORTANCE FOR SOLVING SOCIAL AND ENVIRONMENTAL PROBLEMS
Q128. & 129. How important is it for companies to take each of the following actions? Please use a nine-point scale where one means that it is 'not at all important' for a company to
take that action and nine means it is 'extremely important' for a company to take that action. (Top 4 Box) General Population in Europe
86%
76% 76% 76% 76% 76% 74% 74%
72%
61%
Italy Sweden Russia Germany Netherlands France Ireland Spain UK Poland
% WHO THINK IT IS IMPORTANT FOR A COMPANY TO BE INVOLVED IN SOLVING SOCIAL AND
ENVIRONMENTAL PROBLEMS IN THEIR COUNTRY
+18 adults
13 © Edelman, 2012. All rights reserved.
81%
73%
60%
53%
40%
38%
28%
18%
Academic or expert
Technical expert in the company
A person like yourself
Financial or industry analyst
Regular employee
CEO
NGO representative
Government official or regulator
66%
63%
58%
56%
42%
40%
40%
39%
Academic or expert
Technical expert in the company
CEO
Financial or industry analyst
Government official or regulator
NGO representative
A person like yourself
Regular employee
CREDIBLE SPOKESPEOPLE – RUSSIA
2012 2011
Q119-126. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Russia
- 12
- 24
- 20
+ 15
+ 20
+ 10
CREDIBILITY OF „PERSON LIKE ME‟ SURGES IN RUSSIA; CEO DECLINES
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20%
24%
12% 15%
9%
21%
13%
7%
2011 Informed Public
2012 Informed Public
- 8
Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate 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 Russia
ONLINE SEARCH ENGINES AND SOCIAL MEDIA ARE NOW MORE TRUSTED THAN TRADITIONAL MEDIA
ONLINE MULTIPLE SOURCES
TRADITIONAL SOCIAL MEDIA CORPORATE
- 11
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RUSSIA
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 4 Box, Trust) General Population in Russia; Q52-69. 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) General Population in Russia (excludes ‘Don’t Know’ responses)* ‘Current Trust’ results based on regression analysis of the general population
32% TRUST BUSINESS
1) Ranks on a global list
2) Highly regarded, top leadership
3) Delivers consistent financial returns
1) High quality products or services
2) Listens to customer needs and feedback
3) Has ethical business practices
4) Places customers ahead of profits
4) Innovator of new products
6) Addresses society's needs
7) Takes actions to address issue or crisis
8) Treats employees well
8) Communicates frequently and honestly
10) Works to protect/improve environment
11) Has transparent and open business
12) Positively impacts the local community
12) Highly regarded, top leadership
14) Delivers consistent financial returns
15) Ranks on a global list
16) Partners with third parties
BUSINESS: THE PATH FORWARD BUSINESS COMPETENCE + SOCIETAL COMPETENCE + ENGAGEMENT BEHAVIOURS
CURRENT TRUST BUILDING FUTURE TRUST
Societal
Operational
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• Profit - Business competence - the ability to deliver great products and services; to innovate; and to make money
• Purpose - Social imperatives - treating employees well; protecting the environment; being a force for good in society
• Engagement - Behaviors we characterize as Public Engagement – transparency; honest & frequent communications; active partnerships for common good
TO EARN LICENSE TO LEAD BUSINESSES ARE EXPECTED TO
MEET A “THREE-DIMENSIONAL” CHALLENGE
Profit
Purpose
Engagement
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