The Evolving Trust Landscape: What It Means for Business and Stakeholder Relationships

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1 The Evolving Trust Landscape: What It Means for Business and Stakeholder Relationships Insights from the 2008 Edelman Trust Barometer Mark Shadle April 24, Trust Barometer 1

2 Trust Matters We all see dramatic changes around us: economic, social, political, technological, environmental Our expectations are changing too for business, for government, for each other We re all more skeptical, guarded, wary because the stakes are higher Our firm sought to learn: Who do you trust to do the right thing? What impacts your level of trust? Does trust differ by nation, by industry or age? How do you act upon that trust (or lack of it)? What can organizations do about it? 2008 Trust Barometer 2

3 The Trust Barometer Methodology Edelman s Ninth Trust Barometer Conducted by research firm StrategyOne Thirty-minute telephone survey conducted in October - November 2007 Opinion elites meeting the following screening criteria: College educated In top 25% of household income per age group in each country Reported significant media consumption and engagement in business news and public policy Tracking trust from Sampled two age groups concurrently (25-34 and 35-64) Opinion elites aged (N = 3,100): Surveyed in 18 countries: 400 in the US; 300 in China; 150 each in United Kingdom, Germany, France, Italy, Spain, the Netherlands, Sweden, Poland, Russia, Ireland, Mexico, Brazil, Canada, Japan, South Korea, and India Consistent with previous Edelman Trust Barometers Opinion elites aged (N = 675): Surveyed in 12 countries: 100 in the US; 75 in China; 50 each in United Kingdom, Germany, France, Russia, Mexico, Brazil, Japan, South Korea, Canada, and India This was a new audience to the survey this year 2008 Trust Barometer 3

4 State of Trust 08 An Opportunity for Business Business Paired with NGOs as Global Trust Leaders NGOs Strongest in Europe (18 Country Data 35-64) 2008 Trust Barometer 4

5 Key Global Themes on Trust Business has a historic opportunity to lead Tied with NGOs as the trust leaders globally Leads government in 14 out of 18 countries surveyed Youthful optimism elites are more trusting of business; use multiple sources of information Mainstream news sources continue to be most used and credible Social media strongest among younger opinion elites and in BRIC countries A person like yourself and experts (doctors, academics and industry analysts) continue as the most credible spokespeople; not CEOs Elites will act positively based on trust or negatively based on distrust in companies 2008 Trust Barometer 5

6 Global Trust in Institutions NGOs and Business Tied as the Trust Leaders Business Holds the Same Strong Trust Levels as % 40% 52% 53% 52% 51% 44% 48% 40% 43% 20% 0% NGOs Business Media Government Statistically higher than comparable age group at the 95% confidence level. A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use 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". The higher the number the more you TRUST them to do what is right Opinion Elites (18 Countries); Global Total Business trust flat in Europe, except down in Sweden 2008 Trust Barometer 6

NGOs Have a Strong Trust Advantage Over Business in Most European Countries Poland/Russia Differs UK Sweden Russia NGOs 53% BUSINESS 45% MEDIA GOVERNMENT 38% 34% RELIGIOUS 28% +8 GOVERNMENT BUSINESS

7 NGOs Have a Strong Trust Advantage Over Business in Most European Countries Poland/Russia Differs UK Sweden Russia NGOs 53% BUSINESS 45% MEDIA GOVERNMENT 38% 34% RELIGIOUS 28% +8 GOVERNMENT BUSINESS MEDIA NGOs REL 18% 30% 39% 36% 63% -9 BUSINESS 42% GOVERNMENT 38% NGOs MEDIA 29% 28% RELIGIOUS 28% -13 Ireland Netherlands Germany Poland NGOs BUSINESS MEDIA RELIGIOUS GOV 59% 47% 43% 37% 35% +12 GOVERNMENT MEDIA NGOs BUSINESS RELIGIOUS 40% 64% 59% 59% 55% +4 NGOs MEDIA BUSINESS GOV RELIGIOUS 47% 38% 35% 27% 27% +12 BUSINESS NGOs MEDIA RELIGIOUS GOV 11% 45% 38% 37% 32% -7 NGOs Spain BUSINESS MEDIA GOVERNMENT RELIGIOUS 51% 49% 46% 37% 36% +2 France NGOs GOVERNMENT 35% BUSINESS 30% MEDIA 26% REL 22% 57% +27 Italy NGOs 63% RELIGIOUS 49% MEDIA 43% BUSINESS 41% GOV 29% +22 A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use 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". The higher the number the more you TRUST them to do what is right Opinion Elites (European Countries) 2008 Trust Barometer 7

8 NGOs Trust Rising in Some Important Countries Outside Europe 65% 60% 55% 50% 45% 40% % 30% 25% % Winter 2001 Winter 2002 Winter 2003 Winter 2004 Winter 2005 Winter 2006 Winter 2007 Europe (UK/ France/Germany) USA China Japan South Korea A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use 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". The higher the number the more you TRUST them to do what is right Opinion Elites - (UK) 2008 Trust Barometer 8

9 Business Leads Government in Nearly Every Market Canada Ireland Russia Business Government 49% % 47% % 42% +4 38% USA 58% % UK 45% % Poland 11% 45% +34 Sweden 39% 63% -24 Netherlands Mexico 75% 49% +26 Germany 35% +8 27% Italy 41% % 55% 64% -9 France Brazil Spain South Korea 30% -5 35% 22% 61% % % 43% +3 40% A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right Opinion Elites (18 Countries) India 74% 49% +25 Japan 61% % China 54% 79% Trust Barometer 9

10 Trust in Government Rebounds in UK & France, While Business Flat in UK, France, Germany Trust in Government Up Trust in Business Flat 60% 60% 53% 40% 20% 33% 32% 26% 27% 24% 16% 35% 34% 27% 40% 20% 44% 33% 31% 28% 28% 45% 35% 30% 0% Winter 2006 Winter 2007 Winter % Winter 2006 Winter 2007 Winter 2008 UK France Germany UK France Germany A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use 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". The higher the number the more you TRUST them to do what is right Opinion Elites (UK, France, Germany) 2008 Trust Barometer 10

11 Rebound in UK trust in Government, Media and NGOs to 2006 Levels 100% 80% 60% 40% 20% 0% 43% 41% 25% 17% 46% 43% 32% 44% 37% 27% 56% 33% 24% 21% 22% 53% 44% 41% 19% 16% 53% 45% 38% 34% Winter 2003 Winter 2004 Winter 2005 Winter 2006 Winter 2007 Winter 2008 Business Government NGOs Media A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use 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". The higher the number the more you TRUST them to do what is right Opinion Elites - (UK) 2008 Trust Barometer 11

12 Trust in The Media at a High Point In Many Countries The Voice of Media Is Back Media is more trusted than governments in 13 of 18 countries 60% 60% 64% 62% 65% 40% 20% 38% 22% 19% 29% 38% 33% 43% 33% 45% 30% 48% 45% 34% 53% 41% 41% 49% 44% 53% 55% % UK Germany Italy US Canada Japan South Korea A1-A5. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use 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". The higher the number the more you TRUST them to do what is right Opinion Elites (18 Countries) Brazil India No significant change in media trust in France, China, Spain, Ireland, Sweden, Netherlands, Russia, Mexico Drop in Poland 2008 Trust Barometer 12

13 Key European Trust Themes Europe encompasses a multiplicity of Trust viewpoints Trust in business across Europe on par with last year except for a decline in Sweden NGOs are most trusted institutions in UK, Germany, France, Italy, Spain, Ireland Business leads trust in Russia and Poland; Government in Sweden and Netherlands Government trust rebounded from a 2007 low in UK and France with regime change Europe includes the most (Sweden, Germany) and least (Russia) trusted headquarter countries Italians and Spanish show increases in trust and credibility across multiple categories and spokespeople Higher use of social media in Russia, Poland and Germany than other European countries Ireland shows high usage and credibility increases for traditional news sources Trust in religious institutions dropped in most European countries except Ireland where it rose 8 points to 37% 2008 Trust Barometer 13

14 Seven of Top Ten Most Trusted Headquarters Countries are European Top Ten A Please tell me how much you trust global companies headquartered in the following countries to do what is right on a scale opinion elites in 18 countries global total Trust Barometer 14

15 Continuing Trust Discount for US Companies in Europe US Trust in American Companies European Trust in American Companies % 67% 63% % % 35% 29% 26% Citicorp Coca-Cola McDonald's ExxonMobil Citicorp Coca-Cola McDonald's ExxonMobil European Tracking = UK/France/Germany A51/52/54/59. I am going to read you a list of organizations and companies. For each one, please tell me how much you TRUST that company or organization to do what is right. This time, please use 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. The higher the number the more you TRUST them to do what is right. If you have not heard of the organization or company, tell me and we will move to the next one Opinion Elites 2008 Trust Barometer 15

16 European Companies Do Not Face a Trust Discount in the US US Trust in European Companies European Trust in European Companies 70% 70% 60% 59% 60% 50% 52% 50% 47% 40% 40% 41% 30% 30% 20% 20% 10% 10% 0% 0% Unilever Shell Unilever Shell European Tracking = UK/France/Germany A51/52/54/59. I am going to read you a list of organizations and companies. For each one, please tell me how much you TRUST that company or organization to do what is right. This time, please use 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. The higher the number the more you TRUST them to do what is right. If you have not heard of the organization or company, tell me and we will move to the next one Opinion Elites 2008 Trust Barometer 16

17 Key UK Trust Themes Trust in the institutions of government, media and NGOs all rose significantly over the last year back up to 2006 levels while trust in business remained flat Significant increases in trust: energy and media industry sectors Television news coverage the most used sources of information about companies; analyst reports and radio news coverage the most credible Credibility of newspapers, articles in business magazines, radio news coverage rebounded to 06 levels UK (along with French) opinion elites consider communications issued by companies less credible than do opinion elites in any other country Person like yourself as well as experts (particularly financial/industry analysts and doctors) are the most credible spokespeople Significant increases in credibility of a person like yourself, academics, financial analysts, CEOs Younger UK opinion elites consider several sources of information and spokespeople more credible than their older counterparts: Sources of information: TV news coverage, TV talk shows, Blogs, Social networking sites, Videosharing sites; Spokespeople: Entertainers/athletes, bloggers 2008 Trust Barometer 17

18 UK Trust in Companies Headquartered Overseas Driven More by Pragmatism than Ideology Your perceptions of how corrupt or fair business practices are in that country 78% 67 Your experience with products or services from that country What you have seen, heard or read in the news about the country Your experience with other companies from that country 68% 64% 71% Country's human rights track record 60% Country's environmental track record 51% Political relationship between that country and yours 51% Your personal experience with people from that country 49% The cultural differences between that country and yours 33% Other factors 3% 3 3 None of these 1% 1 1 0% 10% 20% 30% 40% 50% 60% 70% 80% A 36. Which, if any, of the following factors are important to you in deciding whether to place your trust in a company headquartered in an overseas country? Opinion Elites 2008 Trust Barometer 18

19 Technology Remains the Most Trusted Sector Among UK Opinion Elites Technology 67% Health Care Industry 59% Biotech/Life Sciences 52% Pharmaceuticals 50% Retail Entertainment Automotive 49% 49% 48% Significant increases in trust of energy and media companies in the UK Banks 47% Energy 45% Consumer Packaged Goods Manufacturers 41% Media Companies 34% Insurance 31% % 10% 20% 30% 40% 50% 60% 70% 80% A6-A17. Please tell me how much you TRUST businesses in each of the following industries to do what is right Opinion Elites 2008 Trust Barometer 19

20 Younger Opinion Elites Are the New Opportunity for Business (12 Country Data 25-64) 2008 Trust Barometer 20

21 Younger Elites Show Higher Trust in Business in Nine of the Twelve Countries Trust in Business By Respondent Country/Age Group Respondent Country Mexico % 84% India Japan US China UK France South Korea 30% 45% 43% 54% 58% 52% 52% 61% 56% 60% 59% 62% 74% 76% Russia 42% 50% Brazil Canada 44% % 61% 49% Global Year Elites Year Elites Germany 32% 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Statistically higher than comparable age group at the 95% confidence level. A1-A5. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right Opinion Elites (12 Countries) 2008 Trust Barometer 21

22 Younger European Elites Are More Trusting of Several Industries Technology % 75% Biotech/life sciences 58% 63% Entertainment 47% 58% Automotive Pharmaceuticals Energy 45% 44% 52% 53% 50% 49% UK/France/Germany Year Elites Year Elites Consumer packaged goods manufacturers Banks 40% 41% 48% 48% Media companies 35% 36% Insurance 28% 31% Health care industry 59% 60% Statistically higher than comparable age group at the 95% confidence level. Retail 50% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% A6-A17. Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a 9-point scale where one means that you DO NOT TRUST THEM AT ALL and nine means that you TRUST THEM A GREAT DEAL. The higher the number the more you TRUST them to do what is right. If you have not heard of the industry, tell me and we will move to the next one. Let s start with Opinion Elites (UK-France/Germany) 2008 Trust Barometer 22

23 Trust and Information Sources: Top-Down Vertical Sources Lead; Peer-to-Peer Horizontal Media Making Inroads (18 Country Data 35-64) 2008 Trust Barometer 23

24 Media Usage: Mainstream Media Still the Most Frequently Used for Business Information Regular Usage UK % FRA % GER % RUS % Television news coverage EU % US % Most Used Source of Information Globally Articles in newspapers Articles in business magazines Conversations with your friends and peers News coverage on the radio A company s own Web site Articles in newspapers Television news coverage Articles in business magazines 11 of 18 Countries 5 of 18 Countries 2 of 18 Countries Stock or industry analyst reports Communications issued by companies such as press releases, annual reports, and newsletters Corporate or product advertising Blogs Great variety among countries use of social media Wikipedia Social Networking Sites C1. From which of the following sources do you get information about companies on a regular basis? Opinion Elites (18 Countries) 2008 Trust Barometer 24

25 Three Global News Sources CNN, BBC, Google Are Referenced in Nearly Every European Country Global UK Germany France Italy Spain Netherlands Sweden Ireland Russia Poland US CNN (25%) BBC (83%) Der Spiegel (39%) Le Monde (40%) RAI (54%) El Pais (33%) De Telegraaf (40%) SVT (63%) RTE (69%) RTR (25%) Gazeta Wyborcza (22%) CNN (54%) BBC (17%) CNN (25%) FAZ (Frankfurter Allgemeine Zeitung) (26%) LCI (La Chaine de l'information) (33%) Il Sole 24 Ore (41%) Antena 3 (32%) De Volkskrant (37%) Dagens Nyheter (53%) Irish Times (47%) CNN (25%) Rzeczpos-polita (16%) MSNBC 26%) Google (9%) SKY News (20%) NTV (23%) Les Echos (28%) Corriere della Sera (33%) El Mundo (27%) RTL (33%) Dagens Industri (37%) Irish Independent (37%) NTV (24%) TVP (15%) Fox News (25%) Top 10 specified media sources across all channels CCTV CNBC CBC Financial Times (13%) Google (10%) Time Magazine (8%) ARD (19%) CNN (17%) Die Welt (12%) Le Nouvel Observateur (19%) Le Figaro (15%) RTL (15%) La Repubblica (23%) CNN (8%) Affari Italiani (7%) CNN (21%) TVE1 (20%) Telecinco (16%) CNN (25%) Google (17%) BBC (12%) BBC (15%) CNN (11%) Affars Varlden (5%) BBC (33%) SKY News (22%) Google (12%) BBC (23%) Argumenty i Fakty (22%) Izvestia (17%) Polsat (15%) TVN/TVN24/TVN Business (14%) Google (11%) CNBC (22%) WSJ (19%) NYT (13%) Top 10 specified media sources across all channels MSNBC The Sunday Times (8%) RTL (11%) CNN (11%) BBC (7%) Expansion Directo (11%) Vrij Nederland (7%) Financial Times (4%) CNN (10%) Itogi (13%) Polish Television Channel One/Two (9%) ABC (11%) Fox News Bloomberg (7%) Financial Times (10%) La Tribune (8%) Google (7%) BBC (10%) Beleggers Belangen (7%) Google (3%) Financial Times (4%) Google (9%) ONET.PL (5%) BBC (10%) Bloomberg The Telegraph (7%) Google (9%) BBC (7%) La Stampa (5%) Cinco Dias (7%) Financial Times (5%) Bloomberg (3%) Bloomberg (3%) Forbes (5%) RMF (5%) Bloomberg (8%) RTE The Guardian (6%) BBC (9%) Google (6%) MEDIASET (3%) The Economist (7%) Business Today (5%) SR (Sveriges Radio) (3%) The Economist (3%) Business Week (5%) Polish Radio Station Programme One/Two/ Three (4%) Google (7%) Note: The Financial Times is clearly a regional not global brand OE8a. Thinking about these sources as well as other newspapers, business magazines, TV news, Web sites and radio stations that you have access to, which specific news sources do you rely on the MOST for information about companies? Please select up to three Opinion Elites 2008 Trust Barometer 25

26 Credibility of Sources: Mainstream Media, Especially Business Magazines Most Credible Canada Sweden Russia 1) Business magazines 1) Analyst reports 3) Friends/peers 1) Radio 1) Analyst reports 2) Business magazines 1) Business magazines 1) Analyst reports 3) Friend/peers USA Ireland Poland Japan 1) Business magazines 2) Analyst reports 3) Radio news coverage 1) Business magazines 2) Analyst reports 2) Radio news coverage 1) Analyst reports 2) Business Magazines 2) Company communications 1) Newspapers 2) Analyst reports 3) TV news coverage Mexico 1) Analyst reports 2) Free content encyclopedia 3) Business magazines Brazil UK 1) Analyst reports 2) Radio news coverage 3) Business magazines Netherlands 1) TV news coverage 2) Radio new coverage 3) Analyst reports China 1) TV news coverage 2) Friend/peers 3) Radio news coverage 1) Business magazines 2) Friend/peers 3) Newspapers C2-C16. In general, how credible do you feel each of the following sources is for information about a company? If you have not heard of the source, just say so. Is information about a company that you get from (INSERT FIRST) extremely credible, very credible, somewhat credible, or not credible at all? (18 Countries) France 1) Analyst reports 2) Business magazines 3=) Conversations with friend/peers 3=) TV talk shows Spain 1) Business magazines 1) Analyst reports 3) Newspapers Germany 1) Business magazines 2) TV news coverage 3) Analyst reports 3) Radio news coverage Italy 1) Business magazines 2) Analyst reports 2) Friends/peers India 1) Business magazines 1) Analyst reports 3) TV news coverage South Korea 1) Business magazines 2) Newspapers 3) Analyst reports 2008 Trust Barometer 26

27 Media Credibility: Analyst Reports and Radio Coverage are Particularly Strong in the UK Stock or Industry Analyst Reports 66% News Coverage on the Radio 53% Articles in Business Magazines Conversations with Friends and Peers Television News Coverage Newspaper Articles Free Content Encyclopedia Communications Issued by Companies Online Forums 29% 25% 21% 17% 37% 47% 46% The credibility of Conversations with friends and peers, analyst reports and radio significantly increased in the UK in 2008 A Company's Own Website 15% Television Talk Shows 15% Social Networking Sites 9% Web-Based Video Sharing Sites 9% Weblogs or Blogs 7% Corporate or Product Advertising 7% % 10% 20% 30% 40% 50% 60% 70% Statistically significant change since C2-C16. In general, how credible do you feel each of the following sources is for information about a company? If you have not heard of the source, just say so. Is information about a company that you get from (INSERT FIRST) extremely credible, very credible, somewhat credible, or not credible at all? Opinion Elites 2008 Trust Barometer 27

28 Younger European Elites Consider Every Source of Information More Credible Credibility of Sources for Information on Companies Articles in Business Magazines Stock or Industry Analyst Reports Conversations with Your Friends and Peers Articles in Newspapers News Coverage on the Radio Television News Coverage Free Content Encyclopedias Online Forums Communications Issued by Companies Television Talk Shows A Company s Own Web Site Corporate or Product Advertising Social Networking Sites Blogs Web-based Video Sharing Sites Statistically higher than comparable age group at the 95% confidence level. 9% 12% 10% 8% 13% 19% 25% 25% 17% 16% 29% 20% 20% 37% 36% 25% 42% 45% 33% 31% 29% % 53% 41% 49% 47% 46% 59% 57% 66% Legend Year Elites Year Elites % 10% 20% 30% 40% 50% 60% 70% 80% 90%100% C2-C16. In general, how credible do you feel each of the following sources is for information about a company? If you have not heard of the source, just say so. Is information about a company that you get from (INSERT FIRST) extremely credible, very credible, somewhat credible, or not credible at all? Opinion Elites (UK/France/Germany) 2008 Trust Barometer 28

29 Spokespeople: Person Like Yourself and Experts Continue as Most Credible Spokespeople (18 Country Data 35-64) 2008 Trust Barometer 29

30 Person Like Yourself & Experts Continue to be Most Credible Financial or Industry Analyst 53% 55 Person Like Yourself 51% Doctor or Healthcare Specialist 51% NGO Representative 48% Academic 47% Regular Employee of a Company 37% Government Official or Regulator 31% CEO of a Company 27% Entertainer/Athlete 8% Blogger 5% % 10% 20% 30% 40% 50% 60% C18-C27. In general, when forming an opinion of a company, if you heard information about a company from [INSERT PERSON], how credible would the information be? If you have not heard of this kind of person, just say so. Would the person be extremely credible, very credible, somewhat credible, or not credible at all? Opinion Elites Statistically significant change since Statistically significant change since Trust Barometer 30

31 Younger European Elites Listen to a Wider Range of Spokespeople A Person Like Yourself % 59% Financial or Industry Analyst 45% 57% Doctor or Healthcare Specialist 45% 54% Academic 41% 52% Non-Profit Organization or NGO 42% 48% Regular Employee of a Company 30% 46% CEO of a Company 23% 30% Government Official or Regulator Blogger Entertainer/Athlete 10% 7% 21% 19% 17% 29% UK/France/Germany Year Elites Year Elites % 10% 20% 30% 40% 50% 60% 70% 80% Statistically higher than comparable age group at the 95% confidence level. C18-C27. In general, when forming an opinion of a company, if you heard information about a company from [INSERT PERSON], how credible would the information be? If you have not heard of this kind of person, just say so. Would the person be extremely credible, very credible, somewhat credible, or not credible at all? Opinion Elites (UK/France/Germany) 2008 Trust Barometer 31

32 A Person Like Me Defined More By Common Interests Than By Shared Demographics or Religion Ranking of Characteristics Increasing Trust in Someone Sharing Information About a Company Shares common interests with you 59% Holds similar political beliefs to you 45% Is the same profession as you 31% Is the same nationality as you 23% Is from you local community 18% Is the same age as you 17% Is the same gender as you 6% 5 7 Is the same religion as you 4% % 10% 20% 30% 40% 50% 60% Political Beliefs: ITA, GER, FRA; ESP Profession: UK, GER, ITA, RUS, NLD C29. All other things being equal, which THREE of the following characteristics are most likely to increase your trust in someone sharing information about a company? Are you MOST likely to trust the person if he/she Opinion Elites (EU Countries) 2008 Trust Barometer 32

33 Why Trust Matters: Elites Will Act Positively Based On Trust Or Negatively Based on Distrust In Companies (18 Country Data 35-64) 2008 Trust Barometer 33

34 Both Trust and Distrust Drive Actions - Positive or Negative Negative Distrust Company Positive Trust Company 81% 77% Buy/Do not buy their products or services Share your opinions with others 89% 86% 80% 58% Support/Oppose plans to locate in your community Choose/Refuse to invest in them 54% 51% 33% Share your experiences online 29% 36% 18% Write a letter or to media, politician or official third party Actively demonstrate against them N/A 25% 100% -80% -60% -40% -20% 0% 0% 20% 40% 60% 80% 100% Positive action employed as frequently as negative D1/D6. When you think of companies that you (trust vs. do not trust), how likely are you to take each of the following actions in relation to those companies? Opinion Elites (UK) 2008 Trust Barometer 34

35 Information is Shared Most With Friends and Families; Influence Extends to Professional Peers and Co-Workers With Whom Do You Frequently Share Information About Companies? Friends 77% Family 75% People in Your Professional Network Coworkers 65% 61% People in Your Community 43% People You Know Through Schools 33% People You Know Through Volunteer Work People You Know Through Political People You Know Through Online Forums 22% 17% 15% People You Know Through Religious 9% 7 20 Anyone Else No One 1% 1% % 10% 20% 30% 40% 50% 60% 70% 80% C30. With whom do you frequently share opinions about companies? Opinion Elites 2008 Trust Barometer 35

36 Trusted Companies Younger European Opinion Elites Are More Likely To Talk Online About Companies They Do and Do Not Trust Share your opinion and experiences on the web 30% 51% 0% Distrusted Companies UK/France/Germany Year Elites Year Elites Share your opinion and experiences on the web 32% 43% Statistically higher than comparable age group at the 95% confidence level. 0% D6/11. When you think of companies that you trust/do not trust, how likely are you to take each of the following actions in relation to those companies? Would you say that you are very unlikely, somewhat unlikely, somewhat likely or very likely to do each of the following? Opinion Elites (UK/France/Germany) 2008 Trust Barometer 36

37 Four Drivers of Trust Globally Customer, Corporate Reputation, Leadership, Local Familiarity (18 Country Data 35-64) 2008 Trust Barometer 37

38 The Four Drivers of Business Trust Social/environmental track record and reputation as a place to work are more influential than financial performance or the CEO Customers Corporate Reputation Leadership Local Familiarity Quality of products and services Customer service Value for money of products and services Company s overall reputation Social and environmental track record Reputation as a place to work Financial performance Industry sector Respected CEO or leader Someone you trust works for the company The company s presence in your area Financial performance matters less in the EU than in other regions Headquarters nationality 94% 91% 82% 89% 79% 67% 71% 63% 59% 57% 49% 41% % 20% 40% 60% 80% 100% B1. When you think of individual companies that you trust, how important are each of the following factors to building your trust in that company? Please use a nine-point scale where one means "it is not at all important" and nine means "it is extremely important Opinion Elites (UK) 2008 Trust Barometer 38

39 Job Creation is the Most Important Driver of Local Reputation Important Factors for Building Local Reputation Creates jobs in your area 72% Respects local customs and traditions 55% Practices sound environmental policies 48% Doesn t push out the local competition 41% Makes charitable contributions in your community 25% Takes a leadership role in issues relevant to your community 24% Markets its products in your area 17% Every region rates job creation first. 0% 10% 20% 30% 40% 50% 60% 70% 80% B2. Which of the following actions do you believe are most important for a global company seeking to build its local reputation in your area? Please select THREE of the following. The company Opinion Elites 2008 Trust Barometer 39

40 The Evolving Trust Landscape - Implications Business has a historic opportunity for trust leadership Take on broader social challenges as part of the corporate remit Business is moving closer to the center of trust, as making money and doing good become compatible trust imperatives In conjunction with NGOs Recognize Info-ential Generation of Young Opinion Elites Positively inclined towards business Listening to more voices Constantly reviewing the scene, demanding immediacy and transparency 2008 Trust Barometer 40

41 The Evolving Trust Landscape - Implications Use both top down mainstream information sources, along with peer-to-peer communications to engage with opinion elites Media attitudes and behaviors remain local, not global continue to respect differences across markets Reach younger elites are by communicating across multiple platforms, including more social media and inviting participation Use different types of spokespeople -- a person like yourself, employees AND expert individuals (doctors, academics and industry analysts) Engage influential TrustHolders in conversation to motivate positive actions, and minimize negative responses Recognize that two-thirds of opinion elites represent your most influential and activated trust audiences Social Networkers and Social Activists Encourage conversation, rather than just playing defense on crisis management 2008 Trust Barometer 41

42 Questions? 2008 Trust Barometer 42

2010 Edelman Trust Barometer January 22, 2010

2010 Edelman Trust Barometer January 22, 2010 Edelman Trust Barometer at a glance Tenth annual study 4,875 people in 22 countries on five continents Ages 25 to 64 College-educated In top 25% of household