2016 Edelman Trust Barometer. Global Report

Transcription

1 2016 Edelman Trust Barometer Global Report

2 Methodology General Online 5 years in 25+ markets Ages 18+ 1,150 respondents per country Online Survey in 28 Countries 16 years of data 33,000+ respondents total All fieldwork was conducted between October 13th and November 16th, 2015 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 College educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news Mass All population not including Informed Public Represents 85% of total global population 28-country global data margin of error: General +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass +/- 0.6% (26,000). Countryspecific data margin of error: General +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online +/- 0.8 (N=16,100). 2

3 Trust in Retrospect Rising Influence of NGOs Fall of the Celebrity CEO Earned Media More Credible Than Advertising U.S. Companies in Europe Suffer Trust Discount Trust Shifts from Authorities to Peers A Person Like Me Emerges as Credible Spokesperson Business More Trusted Than Government and Media Young Influencers Have More Trust in Business Business Must Partner with Government to Regain Trust Trust is Now an Essential Line of Business Rise of Authority Figures Fall of Government Crisis of Leadership Business to Lead the Debate for Change Trust is Essential to Innovation Growing Inequality of Trust 3

4 Trust Matters Percent who engage in each behavior based on trust General Behaviors for Distrusted Companies Behaviors for Trusted Companies 48 Refused to buy products/services Chose to buy products/services Criticized companies Recommended them to a friend/colleague Shared negative opinions Shared positive opinions online 41 most trusted #1 content creators: 35 Disagreed with others Defended company 38 Friends and Family 20 Paid more than wanted Paid more 37 most trusted #1 media source: 12 Sold shares Bought shares 18 Online Search Engines Source: 2016 Edelman Trust Barometer Q 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, 28-country global total, questions asked of half the sample. Q 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, 28-country global total, question asked of half the sample. 4

5 1 State of Trust

6 Trust Rising Percent trust in the four institutions of government, business, media and NGOs, 2015 vs Informed Public General NGOs Business Media Government Source: 2016 Edelman Trust Barometer Q 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, 27-country global total. 6

7 Post-Recession Highs Percent trust in the four institutions of government, business, media and NGOs, 2012 vs NGOs Media Informed Public General Business Government Source: 2016 Edelman Trust Barometer Q 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, 25-country global total. 7

8 Trust Index: Informed Public Drives Rebound Average trust in institutions, Informed Public, 2015 vs Trusters Neutrals Distrusters The Trust Index is an average of a country s trust in the institutions of government, business, media and NGOs. 27-country global total G lobal 60 G lobal 84 UAE 79 India 78 Indonesia 75 China 65 Singapore 64 Netherlands 59 Brazil 59 Mexico 56 Malaysia 53 Canada 52 Australia 52 France 52 U.S. 50 Germany 48 Italy 48 S. Africa 47 Hong Kong 47 S. Korea 46 U.K. 45 Argentina 45 Poland 45 Russia 45 Spain 45 Sweden 40 Turkey 37 Ireland 37 Japan 82 China 78 India 74 UAE 72 Mexico 72 Singapore 70 Indonesia 64 U.S. 63 Australia 63 Canada 62 Netherlands 61 Colombia 58 Brazil 58 Italy 58 Malaysia 57 U.K. 55 France 54 S. Africa 53 Argentina 53 Spain 52 Hong Kong 51 Germany 50 S. Korea 49 Ireland 47 Turkey 46 Sweden 42 Poland 42 Russia 41 Japan Informed Public trust up 5 points Trusters from 22% in 2015 to 39% in 2016 Distrusters from 48% in 2015 to 21% in

9 Trust Index: General Lags Average trust in institutions, Informed Public vs. General, 2016 Trusters Neutrals 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. Informed Public 82 China 78 India 74 UAE 72 Mexico 72 Singapore 70 Indonesia 64 U.S. 63 Australia 63 Canada 62 Netherlands 61 Colombia 58 Brazil 58 Italy 58 Malaysia 57 U.K. 55 France 54 S. Africa 53 Argentina 53 Spain 52 Hong Kong 51 Germany 50 S. Korea 49 Ireland 47 Turkey 46 Sweden 42 Poland 42 Russia 41 Japan General 60 G lobal 50 G lobal 73 China 66 UAE 65 India 64 Singapore 62 Indonesia 60 Mexico 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil 49 Australia 49 Italy 49 U.S. 47 Hong Kong 46 Spain 45 S. Africa 42 Germany 42 S. Korea 42 U.K. 41 France 41 Ireland 41 Turkey 39 Russia 38 Japan 37 Sweden 35 Poland Nearly 6 in 10 countries are distrusters among the General 9

10 Trust Index: Mass Left Behind Average trust in institutions, Informed Public vs. General vs. Mass Trusters Neutrals 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. Informed Public 82 China 78 India 74 UAE 72 Mexico 72 Singapore 70 Indonesia 64 U.S. 63 Australia 63 Canada 62 Netherlands 61 Colombia 58 Brazil 58 Italy 58 Malaysia 57 U.K. 55 France 54 S. Africa 53 Argentina 53 Spain 52 Hong Kong 51 Germany 50 S. Korea 49 Ireland 47 Turkey 46 Sweden 42 Poland 42 Russia 41 Japan General 73 China 66 UAE 65 India 64 Singapore 62 Indonesia 60 Mexico 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil 49 Australia 49 Italy 49 U.S. 47 Hong Kong 46 Spain 45 S. Africa 42 Germany 42 S. Korea 42 U.K. 41 France 41 Ireland 41 Turkey 39 Russia 38 Japan 37 Sweden 35 Poland Mass 60 G lobal 50 G lobal 48 G lobal For the mass population, the global index falls into distruster territory 71 China 65 UAE 62 India 62 Indonesia 62 Singapore 57 Mexico 55 Canada 55 Colombia 52 Netherlands 50 Argentina 50 Malaysia 48 Brazil 47 Australia 47 Italy 46 Hong Kong 45 U.S. 44 S. Africa 44 Spain 42 Germany 40 S. Korea 40 U.K. 39 France 39 Ireland 39 Russia 39 Turkey 38 Japan 36 Sweden 34 Poland For the mass population, 17 of 28 countries are distrusters 10

11 2 Trust Inequality

12 A Significant Divide Percent trust in the four institutions of government, business, media and NGOs, 2012 to Informed Public Mass pt Gap 9 pt Gap point increase in trust inequality-- which jumps to a 5-point increase among the GDP Source: 2016 Edelman Trust Barometer Q 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, 25-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 12

13 Global 25 GDP 5 France U.K. U.S. Spain Mexico Singapore S. Korea Malaysia India China Brazil Germany Australia Ireland Russia Poland Canada Japan Indonesia Italy Argentina UAE Hong Kong Netherlands Sweden An Accelerating Disparity Trust Index , percentage point change in the size of the trust gap between Informed Public and Mass Increased Gap Decreased Gap Gap has increased in 16 of 25 countries Gap Gap Source: 2016 Edelman Trust Barometer Q 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, 25-country global total, 2012 vs GDP 5 = U.S., China, Japan, Germany, U.K. 13

14 A Global Phenomenon Trust Index, Informed Public vs. Mass, 15 countries with double-digit trust gaps in 2016 Country Informed Public Mass Gap U.S U.K France India Australia Mexico Italy China Brazil Ireland Netherlands Sweden S. Africa S. Korea Singapore Source: 2016 Edelman Trust Barometer. The Trust Index is an average of a country s trust in the institutions of government, business, media and NGOs, 28-country global total. 14

15 Global GDP 5 U.S. France Brazil India Netherlands Russia U.K. Italy Singapore Japan Hong Kong Turkey Sweden Spain Poland Colombia Mexico Ireland South Africa UAE Argentina South Korea Germany Indonesia Australia Malaysia Canada China Trust Index: A Link to Income Inequality 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 High-income respondents Low-income respondents 18 of 28 countries have a double-digit trust gap between high-income and low-income respondents 50% 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, 28-country global total, lower vs. upper quartile income in each country. [ CEOs are fairly paid relative to the rest of the workforce ] GDP 5 = U.S., China, Japan, Germany, U.K. 15

16 G lobal G DP 5 J apan Franc e G ermany U.K. Australia Italy S. Korea Netherlands S weden Poland Hong Kong C anada Russia U.S. S ingapore Turkey Ireland S. Africa S pain Malaysia Mexico Argentina Brazil C hina UAE Indonesia C olombia India Mass Less Optimistic Percent of the Informed Public vs. Mass who believe they and their families will be better off in five years time Informed Public Mass 50% In 19 of 28 countries, less than half of Mass think they will be better off in five years Source: 2016 Edelman Trust Barometer Q445. Thinking about the economic prospects for yourself and your family, how do you think you and your family will be doing in five years' time? (Top 2 Box, Much better off than today, and Somewhat better off than today. ) Informed Public and Mass, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 16

17 3 Inversion of Influence

18 The Inversion of Influence Authority & Influence Mass 85% of population 48 Trust Index Influence Authority Informed Public 15% of population 60 Trust Index Source: 2016 Edelman Trust Barometer Q 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, 28-country global total. 18

19 Influence of Peer-Driven Media Percent who use each media source several times a week or more General S earch TV of top 3 most-used sources of news and information are peerinfluenced media S ocial 67 Newspapers 45 Magazines 32 Blogs 28 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, 28-country global total, question asked of half the sample. 19

20 Peers Recommend Companies and Influence Purchasing Actions taken in the last 12 months based on trust Impact of conversations about brands with peers 59% recommended companies to a friend/colleague 75% make decisions/overcome concerns/warn me about risks Source: 2015 Earned Brand Study of Global Consumers General Source: 2016 Edelman Trust Barometer Q 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, 28-country global total, question asked of half the sample. Source: 2015 Earned Brand. 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? [Net of They warn me about the risks, They help me make decisions, They help me overcome my concerns about the product / service, and They help me overcome my concerns about my data being collected / my privacy being respected. ] 20

21 Peers, Employees More Credible than Leaders Percent who rate each spokesperson as extremely/very credible General CEO credibility increased the most Technical expert Academic expert A person like yourself Financial industry analyst Employee CEO NGO representative Board of Directors Government official/regulator Source: 2016 Edelman. Trust Barometer Q 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, 27-country global total. 21

22 4 An Opportunity for Business

23 A Position of Strength Percent trust in the four institutions of government, business, media and NGOs, 2015 vs Business closing NGO s long-held lead in trust Informed Public General NGOs Business Media Government Source: 2016 Edelman Trust Barometer Q 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, 27-country global total. 23

24 Business Most Trusted to Keep Pace Percent trust, 2015 and 2016, and percent who trust each institution to keep up with the changing times, 2016 Business in the lead Trust 2015 Trust 2016 Trusted to keep pace Informed Public General NGOs Business Media Government Source: 2016 Edelman Trust Barometer Q 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, 27-country global total. Q 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) Informed Public and General, 28-country global total. 24

25 G lobal 27 G DP5 Mexico Indonesia C hina India UAE Brazil S. Africa S ingapore Italy C anada Argentina Australia U.S. S pain U.K. Franc e S weden Ireland J apan Turkey G ermany Hong Kong Poland Russia S. Korea C olombia Malaysia Netherlands Global Increase in Business Trust Percent trust in business, 2015 vs General Increased or equal trust in business in 25 countries 50% n/a Source: 2016 Edelman Trust Barometer Q 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, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 25

26 Sector Trends: Financial Services Rebounds Trust in each industry sector, General 75% Industry yr. Trend 70% 65% 60% 55% 50% 45% 40% Technology 76% 73% 75% 73% 74% 2 Food & Beverage 63% 63% 64% 63% 64% 1 Consumer Packaged Goods 57% 60% 61% 60% 61% 4 Telecommunications 58% 60% 61% 59% 60% 2 Automotive 62% 65% 69% 66% 60% 2 Energy 53% 57% 57% 56% 58% 5 Pharmaceutical 54% 54% 55% 54% 53% 1 Financial Services 43% 47% 48% 48% 51% 8 Source: 2016 Edelman Trust Barometer Q 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, 25-country global total. *From , Pharma included as subsector(q). **From , Pharma included as an industry sector (Q43-60) data recalibrated as a sector. 26

27 G lobal G DP 5 Mexico Indonesia C olombia India Brazil S. Africa Malaysia Italy C anada Netherlands Argentina Australia U.S. S pain S weden U.K. Franc e J apan Ireland G ermany Poland Turkey C hina UAE S ingapore Hong Kong Russia S. Korea Business vs. Government Percent trust in business vs. government, 2016, ranked by trust in business General Business Government Higher trust in business in 21 countries 50% Source: 2016 Edelman Trust Barometer Q 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, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 27

28 Business Must Lead to Solve Problems General 80% agree up from 74% in 2015 A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates. Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General, 27-country global total, question asked of half the sample.. 28

29 Societal Expectations Vary Most important issue for business to address in each country E Canada H U.S. R Sweden H Poland E Netherlands E Ireland E U.K. E Germany E France P Spain E Turkey I Russia E China General E Japan P Mexico P Italy H India E S. Korea E I H E P R Access to education/training Address income inequality Access to healthcare Protecting/improving the environment Reducing poverty Supporting human & civil rights E Colombia E Brazil E Argentina H S. Africa H UAE E E P Malaysia Singapore Indonesia I H Australia Hong Kong I Modern infrastructure Source: 2016 Edelman Trust Barometer Q 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, 28-country global total, question asked of one quarter the sample. 29

30 5 Leadership in a Divided World

31 Addressing Trust Inequality Actions Trust Engagement Values Employee Advocacy 31

32 Leadership in a Divided World: Actions

33 CEO Focus Misplaced Percent who agree with each statement about CEOs General Too Much Not Enough 67% Focus on short-term financial results 57% Positive long-term impact 57% Lobbying 49% Job creation Source: 2016 Edelman Trust Barometer Q Thinking about CEOs, how strongly do you agree or disagree with the following statements? General. [ CEOs do too much lobbying, Given that the average tenure of CEOs is just four 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 (Bottom 5 Box, Do Not Agree)], 28 country global total. 33

34 Purpose and Profits Matter Percent who agree that CEOs should be personally visible in discussing General 7 in10 Financial Results 8 in10 Societal Issues Income inequality Public policy discussions Personal views on societal issues Source: 2016 Edelman Trust Barometer Q 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, 28-country global total, question asked of half the sample. 34

35 Purpose Impacts Trust Percent who cite each as a reason for why their trust in business has increased or decreased General Reasons Trust in Business Has Increased Reasons Trust in Business Has Decreased 59% Produces economic growth 50% Fails to contribute to the greater good 45% Contributes to the greater good 39% Lacks economic growth 40% Allows me to be a productive member of society 36% No public services Source: 2016 Edelman Trust Barometer Q For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General, 28-country global total. 35

36 Leadership in a Divided World: Values

37 Leaders Seen As Underperforming Importance vs. performance of 16 trust-building leadership attributes % Importance % Performance Gap General Integrity Exhibits highly ethical behaviors Takes responsible actions to address an issue or crisis Behaves in a way that is transparent and open Engagement Treats employees well Listens to customer needs and feedback Places customer ahead of profits Communicates frequently and honestly on the state of their company Products Places a premium on offering high-quality products or services Is focused on driving innovation and introducing new products/services/ideas Purpose Is dedicated to protecting and improving the environment Ensures that the company creates programs that positively impact the local community in which it operates Ensures that the company addresses society's needs in its everyday business Ensures that the company partners with NGOs, government and third parties to address societal issues Operations Attracts and retains a highly regarded and widely admired top leadership team Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" Manages the company in a way that delivers consistent financial returns Source: 2016 Edelman Trust Barometer. Q How important is each of the following attributes to building your trust in CEOs? (Top 2 Box, Important) Q Please rate CEOs 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. CEO questions use the same scales as the business questions. (Top 2 Box, Performance) General, 28- country global total. 37

38 Desired Leadership Qualities Characteristics that make a CEO trustworthy, percent who selected each as one of the top five in each region 60% of global respondents cannot name any CEOs* General North America Latin America Europe APAC Honest 59% Ethical 47% Honest 53% Honest 39% Ethical 48% Honest 44% Competent 43% Visionary 35% Competent 26% Competent 36% Experienced 28% Decisive 31% Transparent 26% Visionary 34% Ethical 27% Ethical 31% Sincere 24% Innovative 33% Transparent 27% 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, 28-country global total, question asked of half the sample. * Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about company CEOs in general, how many CEOs could you name in full? General, 10-country global total. 38

39 Personal Values and History Matter Percent who agree that each type of information is important in building trust in a CEO General CEOs must engage both directly (86%) and via media (75%) 79% 70% 65% 62% Their personal values The obstac les they have overc ome Their personal success story Their educ ation and how it shaped them Source: 2016 Edelman Trust Barometer Q 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 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. [Media Engagement net = Q507 Interviews with the media, and Q512 Sharing their views on a blog or on social media. Direct Engagement net = Q508 Communications with employees, and Participation in industry conferences. ] Q 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, 28-country global total, question asked of half the sample. 39

40 Leadership in a Divided World: Employee Advocacy

41 Employees are Essential Advocates Most trusted spokesperson to communicate each topic Employees Most Trusted 48 General Company CEO Senior executive Employee Activist consumer Academic Media spokesperson Financial earnings & operational performance Business practices/ crisis handling Treatment of employees/customer Partnerships/ Programs to address societal issues Innovation efforts Views on industry issues Source: 2016 Edelman Trust Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership s accomplishments? Q611 a company s business practices, both positive and negative, and its handling of a crisis? Q612 a company s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613 a company s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 a company s innovation efforts and new product development? Q615 Who do you trust MOST to provide you with credible and honest information about a company s stand on issues related to the industry in which it operates? General, 28-country global total. 41

42 G lobal G DP 5 J apan Russia Franc e S weden Australia S. Korea Poland U.K. Italy Hong Kong Ireland G ermany Netherlands S pain Turkey C anada U.S. S. Africa S ingapore Malaysia UAE Indonesia Brazil Argentina C hina India C olombia Mexico Significant Employee Lack of Trust Percent who trust the company for which they work General Not Trusted Trusted 50% Source: 2016 Edelman Trust Barometer Q 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, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 42

43 Employee Advocacy Increases With Societal Issue Engagement Percent who agree with each statement, comparing those who work at companies involved in addressing broader societal issues vs. those who do not Employees of companies NOT engaged in societal issues Employees of companies engaged in societal issues General Level of Employee Advocacy/Commitment Impact of Company Engagement Do the best possible job for the customer Recommend products and services to others Committed to achieving our strategy Motivated to perform Confidence in the future of the company Stay working for the company Recommend company as an employer Source: 2016 Edelman Trust Barometer Q Does your company get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Q 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, 28-country global total, question was asked of half the sample. 43

44 Leadership in a Divided World: Engagement

45 Transformed Media Landscape Percent trust in each source for general news and information General Search engines* Traditional media Online-only media** Owned media Social media Millennials Gap Millennials even more trusting of digital media than general population Source: 2016 Edelman Trust Barometer Q 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 and Millennials, 25-country global total. *From , Online Search Engines were included as a media type. In 2016, this was changed to Search Engines. **From , Hybrid Media was included as a media type. In 2016, this was changed to Online-Only media. 45

46 Every Voice Matters Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs General % My friends and family An academic expert C ompanies that I use Employees of a company A company C EO A journalist A well-known online personality Elec ted offic ials C elebrities Companies I don t use* Source: 2016 Edelman Trust Barometer Q Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General, 27-country global total, question asked of half the sample. * Asked as Brands I don t use in

47 Peers Influence Purchase The impact of online and offline conversations about brands with friends and other people like me Build Inspiration % They give me a sense of community 16 They get me 17 Push Consideration % They push me to try new things 25 They suggest products/services 27 They make me trust the brand more 29 Moment of Truth % They help me overcome concerns 37 They help me make decisions 44 They warn me about the risks 45 75% peers influence purchase decisions at the moment of truth Source: 2015 Earned Brand Study of Global Consumers 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? 47

48 The Inversion of Influence Old Model Elites have access to more/better information Elites interests interconnected with those of mass Becoming an elite open to all Influence & Authority New Reality Peer-to-peer influence more powerful than topdown 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 Influence Authority 48

49 Addressing Trust Inequality Influence TRUST Authority 49

50 Embracing the New Reality of Influence to Address Trust Inequality Influence Create societal impact in addition to profits through purposeful action Express your values through honest, ethical engagement in which you share your story Actions TRUST Engagement Ignite your most powerful advocate, your employees Engage cross channel to meet stakeholders, where they are, about what most interests/concerns them Values Leadership Employee Advocacy 50

51 Thank You

52 Appendix 1: CEO Awareness

53 G lobal 28 G DP 5 Netherlands U.K. Australia Argentina Italy S weden C anada Franc e Poland G ermany J apan U.S. Ireland Russia S pain C olombia Brazil Turkey S. Africa S ingapore Mexico Malaysia Hong Kong Indonesia C hina UAE India S. Korea Half Admit They Cannot Name a Single CEO Percent who say that they cannot name any CEOs: General Lower Awareness Higher Awareness Majority acknowledge inability to name a CEO % Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General and Informed Publics, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 53

54 2016 Trust Barometer CEO Supplement: How Many Can They Actually Name? General Online Online Survey in 10 Countries 10,0000+ respondents total All fieldwork was conducted between 4 th - 14 th December, Markets: Germany Australia U.K. Brazil Japan France U.S. Mexico China India 1,000 respondents per country Ages 18+ Informed Public 500 respondents in U.S. and China; 200 in all other countries Represents 19% of total population at a global level Must meet 4 criteria: Ages College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy Margin of error for the global sample is +/-1.0% (N=10,000), and +/- 2.0% (N=2,600) for Informed Public. 54

55 Less Than Half Can Actually Name a CEO Percent who say they cannot name a CEO vs percent who cannot actually name a CEO Acknowledge inability to name a CEO Cannot name a CEO General 50% G lobal 10 G ermany Australia U.K. Brazil J apan Franc e U.S. Mexic o C hina India Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General and Informed Public, 10-country total, and 2016 Edelman Trust Barometer CEO Supplementary Study Q1. Thinking about company CEOs in general, how many CEOs could you name in full? General, 10-country total. 55

56 Global Top 10 Percent who mention each CEO name, across all 10 markets Only one CEO achieved double-digit recall 10% Mark Zuckerberg 8% Bill Gates 4% Steve Jobs 4% Tim Cook 3% Carlos Slim 3% Jack Ma 3% Satya Nadella 2% Sundar Pichai 2% Carlos Ghosn 2% Richard Branson Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about CEOs of companies in general, how many can you name? Please be specific and use their full names in the boxes below. General, [Open ended question, coded for industry sector] 10-country global total. 56

57 Appendix 2: 2016 Trust Barometer Additional Data

58 Trust Index: General Relatively Steady in Most Countries Average trust in institutions, General 2015 vs Trusters Neutrals Distrusters The Trust Index is an average of a country s trust in the institutions of government, business, media and NGOs. 27-country global total G lobal 49 G lobal 68 India 68 UAE 67 Indonesia 63 China 60 Singapore 53 Malaysia 52 Canada 52 Netherlands 51 Mexico 50 Brazil 47 Hong Kong 44 U.S. 43 Argentina 42 Australia 42 Germany 42 Italy 42 S. Africa 40 Russia 39 U.K. 38 France 38 S. Korea 37 Sweden 36 Poland 36 Spain 35 Turkey 34 Japan 32 Ireland 73 China 66 UAE 65 India 64 Singapore 62 Indonesia 60 Mexico 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil 49 Australia 49 Italy 49 U.S. 47 Hong Kong 46 Spain 45 S. Africa 42 Germany 42 S. Korea 42 U.K. 41 France 41 Ireland 41 Turkey 39 Russia 38 Japan 37 Sweden 35 Poland Trusters from 19% in 2015 to 21% in 2016 Distrusters from 63% in 2015 to 57% in

59 G lobal 27 G DP 5 Mexico C hina Argentina Brazil S ingapore C anada Malaysia S pain Italy S outh Africa S outh Korea Hong Kong U.S. Australia Franc e Turkey U.K. Poland Ireland Netherlands G ermany J apan S weden C olombia India UAE Indonesia Russia NGO Trust Increases Percent trust in NGOs, General, 2015 vs General Increased or equal trust in NG Os in 23 countries % n/a Source: 2016 Edelman Trust Barometer Q [NGOs 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 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, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 59

60 G lobal 27 G DP 5 Mexico C hina India S ingapore Argentina Franc e S. Korea Australia U.S. Italy Malaysia S. Africa S pain Hong Kong Netherlands G ermany U.K. Ireland Poland Turkey S weden J apan C olombia C anada UAE Indonesia Brazil Russia NGO Trust Increases Percent trust in NGOS, Informed Public, 2015 vs Informed Public Increased or equal trust in 22 countries 50% n/a Source: 2016 Edelman Trust Barometer Q [TRACKING] [NGOs 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 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 Publics, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 60

61 G lobal 27 G DP5 Mexico Indonesia C hina India UAE Brazil S. Africa S ingapore Italy C anada Argentina Australia U.S. S pain U.K. Franc e S weden Ireland J apan Turkey G ermany Hong Kong Poland Russia S. Korea C olombia Malaysia Netherlands Global Increase in Business Trust Percent trust in business, 2015 vs General Increased or equal trust in business in 25 countries 50% n/a Source: 2016 Edelman Trust Barometer Q 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, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 61

62 G lobal 27 G DP 5 India Mexico C hina Brazil S. Africa U.S. S ingapore Italy Australia U.K. C anada Franc e S pain Argentina Poland Turkey Ireland G ermany Russia Hong Kong S. Korea C olombia Indonesia UAE Malaysia Netherlands S weden J apan Global Increase in Business Trust Percent trust in business, Informed Public, 2015 vs Informed Public Increased or equal trust in 22 C ountries 50% n/a Source: 2016 Edelman Trust Barometer Q [TRACKING] [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 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 Publics, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 62

63 G lobal 27 G DP 5 C hina S ingapore Mexico C anada Netherlands Brazil Argentina Italy S pain U.S. S outh Africa S outh Korea Australia Ireland J apan U.K. S weden Turkey C olombia India Indonesia UAE Hong Kong Malaysia G ermany Franc e Russia Poland Media Increases Percent trust in media, General, 2015 vs General Increased trust in 18 countries 50% n/a Source: 2016 Edelman Trust Barometer Q [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 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, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 63

64 G lobal 27 G DP 5 C hina Mexico Brazil S ingapore C anada Malaysia U.S. S. Africa Argentina Italy Australia S pain Hong Kong S. Korea U.K. G ermany Ireland J apan S weden Turkey C olombia India Indonesia UAE Netherlands Franc e Russia Poland Global Increase in Media Trust Percent trust in media, Informed Public, 2015 vs Informed Public Increased trust in 20 C ountries 50% n/a Source: 2016 Edelman Trust Barometer Q [TRACKING] [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 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 Publics, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 64

65 G lobal 27 G DP 5 C hina S ingapore C anada Russia Australia Hong Kong Turkey U.S. J apan U.K. S outh Korea Mexico Ireland Italy Argentina S pain S outh Africa C olombia UAE India Indonesia Netherlands S weden G ermany Malaysia Franc e Brazil Poland Government Increases Slightly Percent trust in government, General, 2015 vs General Increased/equal trust in 17 countries % n/a Source: 2016 Edelman Trust Barometer Q [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 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, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 65

66 G lobal 27 G DP 5 C hina S ingapore C anada Australia U.K. U.S. Hong Kong Turkey Mexico Ireland J apan S. Korea Italy S pain Argentina C olombia UAE India Indonesia Netherlands S weden Russia G ermany Franc e Malaysia Brazil Poland S. Africa Government Trust Increases in Some Countries Percent trust in government, Informed Public, 2015 vs Informed Public Increased trust in 15 C ountries 50% n/a Source: 2016 Edelman Trust Barometer Q [TRACKING] [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 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 Publics, 27-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 66

67 Family Business Most Trusted Trust in different types of business General Public Companies 80% 76% Family-owned State-owned 52% 47% 57% 40% 66% 52% 46% North America 72% Latin America 59% 54% 52% 41% 41% Global Europe Asia Pacific Source: 2016 Edelman Trust Barometer 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 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, 28-country global total. 67

68 C anada S weden S witzerland G ermany Australia U.K. J apan Netherlands U.S. Franc e Italy S pain S outh Korea C hina Brazil India Mexico Developed Markets More Trusted Trust in companies headquartered in each country, and percentage point change, 2013 vs General Year Trend n/a Source: 2016 Edelman Trust Barometer Q26-Q422. 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 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, 25-country global total. 68

69 Trust-Building Attributes Company Importance vs. Performance % Importance % Performance Gap General Integrity Has Ethical Business Practices Takes Responsible Actions To Address An Issue Or A Crisis Has Transparent And Open Business Practices Engagement Treats Employees Well Listens To Customer Needs And Feedback Places Customers Ahead Of Profits Communicates Frequently And Honestly On The State Of Its Business Products Offers High Quality Products Or Services Is An Innovator Of New Products, Services Or Ideas Purpose Works To Protect And Improve The Environment Creates Programs That Positively Impact The Local Community Addresses Society's Needs In Its Everyday Business Partners With NGOs, Government And Third Parties To Address Societal Issues Operations Has Highly-Regarded And Widely Admired Top Leadership Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired Delivers Consistent Financial Returns To Investors Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? 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 in a company. (Top 2 Box, Importance) Q 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, Performance) General, 28- country global total. 69