2018 Edelman Trust Barometer

Transcription

1 2018 Edelman Trust Barometer Australia #TrustBarometer

2 2018 Edelman Trust Barometer Methodology Online Survey in 28 Countries 18 years of data 33,000+ respondents total All fieldwork was conducted late November 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+), half-sample global general online population +/- 0.8 (N=16,100). 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). General Online Population 7 years in 25+ countries Ages 18+ 1,150 respondents per country All slides show general online population data unless otherwise noted Informed Public 10 years in 20+ countries Represents 15% of total global population 500 respondents in U.S. and China; 200 in all other countries Must meet 4 criteria: Ages University educated In top 25% of household income per age group in each country Significant media consumption and engagement in business news Mass Population All population not including informed public Represents 85% of total global population 2

3 Trust matters Total population Percent who engage in each behavior based on trust Behaviors for distrusted companies Behaviors for trusted companies 44 Refused to buy products/services Chose to buy products/services Criticised companies Recommended them to a friend/colleague Paid more than wanted Paid more for products/services Shared negative opinions Shared positive opinions online Disagreed with others Defended company 29 8 Sold shares Bought shares 14 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 Population, 28-country global total, question 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 Population, Australia, question asked of half the sample. 3

4 1. Fear Reigns Supreme

5 Flashback to 2017: Concerns Have Become Fears Percent of respondents who are concerned or fearful regarding each issue Corruption Globalisation Eroding Social Values Immigration Pace of Innovation 54% Concerned 23% Fearful 71% Concerned 35% Fearful 62% Concerned 28% Fearful 60% Concerned 34% Fearful 53% Concerned 23% Fearful 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 favour their home country 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 Most countries cannot be trusted to engage in fair trade practices Source: 2017 Edelman Trust Barometer. Corruption Q , Globalisation Q , Eroding social values Q676 and Q758, Immigration Q685, Pace of innovation Q677. Australia. For details on how the societal fears were measured, please refer to the Technical Appendix. 5

6 2. The World is Pulling Apart

7 Trust Index A World of Distrust Average trust in institutions, general population, 2017 vs Global Trust Index remains at distruster level 20 of 28 countries are distrusters, up 1 from 2017 Source: 2018 Edelman Trust Barometer. The Trust Index is an average of a country's trust in the institutions of government, business, media and NGOs. General population, 28-country global total General Population 47 Global 72 India 69 Indonesia 67 China 60 Singapore 60 UAE 53 The Netherlands 52 Mexico 52 U.S. 50 Colombia 49 Canada 48 Brazil 48 Italy 48 Malaysia 45 Argentina 44 Hong Kong 44 Spain 43 Turkey 42 Australia 42 S. Africa 41 Germany 40 France 40 U.K. 38 S. Korea 37 Sweden 36 Ireland 35 Japan 35 Poland 34 Russia 2018 General Population 48 Global 74 China 71 Indonesia 68 India 66 UAE 58 Singapore 54 Mexico 54 The Netherlands 53 Malaysia 49 Canada 47 Argentina 47 Colombia 47 Spain 46 Turkey 45 Hong Kong 44 Brazil 44 S. Korea 43 Italy 43 U.S. 41 Germany 41 Sweden 40 Australia 40 France 39 Poland 39 U.K. 38 Ireland 38 S. Africa 37 Japan 36 Russia Biggest changes in U.S. -9 China +7 S. Korea +6 UAE +6 Italy -5 Trust (60-100) Neutral (50-59) Distrust (1-49) Trust decline in the U.S. is the steepest ever measured 7

8 3. No-One Trusts You

9 Trust Declines Among General Population Percent trust in each institution, and change from 2017 to 2018, in Australia Y-to-Y Change General Population NGOs Business Government Media Informed Public NGOs Business Government Media Source: 2018 Edelman Trust Barometer. TRU_INS. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) Informed Public and General Population, Australia. 9

10 Government Most Broken in Australia Which institution is the most broken? Government Path to Better Future in Australia Which institution is most likely to lead to a better future? Global Global Government 30% Government % Business 23% NGOs Business 20% 21% 22% 42% Government 56% Government % % Source: 2018 Edelman Trust Barometer. ATT_STE. Please indicate which institution Government, Media, Business or NGO s is best described by each of the following statements? General population, 28-country global total and Australia. 10

11 4. The Return of Expertise

12 Academic expert Technical expert A person like yourself Financial industry analyst Employee NGO representative CEO Successful entrepreneur Board of directors Government official/regulator Journalist Voices of Authority Regain Credibility Percent who rate each spokesperson as very/extremely credible, and change from 2017 to 2018, in Australia 0 + Y-to-Y Change Source: 2018 Edelman Trust Barometer. CRE_PPL. 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), question asked of half of the sample. General population, Australia. 12

13 5. The Value of Values 13

14 CEO Leadership Expectations Percent who agree and percent who say each is one of the most important expectations they have for a CEO, in Australia Percent who say that CEOs should take the lead on change rather than waiting for government to impose it For CEOs, building trust is a top priority Decisions reflect values of company 73 65% 63% Ensure company is trusted High ethical standards A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates. High quality products and services 71 Source: 2018 Edelman Trust Barometer. CEO_AGR. Thinking about CEOs, how strongly do you agree or disagree with the following statements? (Top 4 Box, Agree), question asked of half of the sample. CEO_EXP. Below is a list of potential expectations that you might have for a company CEO. Thinking about CEOs in general, whether they are global CEOs or a CEO who oversees a particular country, how would you characterize each using the following three-point scale? (Most important responsibility, code 3), question asked of half of the sample. General population, Australia. 14

15 6. Trust in Family Business

16 Global Australia Germany U.K. Canada Italy U.S. France Brazil Mexico Indonesia India China People Trust Family Business Percent trust in family business vs. business in general Family business Business in general - + Family business trust advantage Family business has a double-digit trust advantage in 9 of 12 countries Source: 2017 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) Q15-17G. Thinking about different types of businesses, please indicate how much you trust each type of business 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), question asked of half the sample. General Population, 11-country global total. 16

17 Family Business Highest Trusted Form of Business in Australia 80% 75% 75% 74% 70% 69% 65% 60% 60% 55% 54% 54% 54% 50% 48% 45% 42% 40% 35% 34% 30% BIG BUSINESSES OR COMPANIES SMALL- AND MEDIUM-SIZED BUSINESSES OR COMPANIES FAMILY-OWNED BUSINESSES OR COMPANIES PRIVATELY-HELD BUSINESSES OR COMPANIES PUBLICLY-TRADED BUSINESSES OR COMPANIES STATE-OWNED BUSINESSES OR COMPANIES EMPLOYEE-OWNED BUSINESSES SHARING ECONOMY BUSINESSES FOREIGN COMPANIES COMPANIES HEADQUARTERED IN MY COUNTRY Source: 2017 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) Q15-17G. Thinking about different types of businesses, please indicate how much you trust each type of business 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), question asked of half the sample. General Population, Australia. 17

18 If They Know You, They Will Pay More Percent who will pay more for products or services offered by family business, comparing those who know which companies they buy from are family businesses vs. those who do not Willing to pay more for products or services offered by a family business 66 Knows which is family business Does not know which is family business pts more likely to pay more if they know which company is a family business Source: 2017 Edelman Trust Barometer Family Business Supplement. Q37. Indicate how much you agree or disagree with the following statements using a 9-point scale where one means that you strongly disagree and nine means that you strongly agree. (Top 4 Box, Agree) General Population, 12-country global total, cut by those who know which companies they buy from are family businesses (Q37r1 Top 4 Box) vs. those that do not (Q37r1 Bottom 4 Box). 18

19 Family Business Not Getting Credit for Job Creation Perception Reality Fewer than 1 in 3 see family business as a job creator Family business creates 50 80% of jobs Source: Family Firm Institute, Global Data Points Source: 2017 Edelman Trust Barometer Family Business Supplement. Q48. Please rate Family-owned or Family-Controlled businesses or companies 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 extremely well; excludes DKs) General Population, 12-country global total. Source of third-party research: Family Firm Institute. 19

20 Family Business Perceived as Behind on Innovation, Long-Term Thinking and Financial Success Percent who believe each is more likely to be true of family business vs. nonfamily business Perception Reality Family business Nonfamily business 43 For every dollar invested in R&D, family businesses drive more innovative outputs measured by number of patents, number of new products, or revenues generated with new products than nonfamily firms Source: Academy of Management Journal, Doing More with Less: Innovation Input and Output in Family Firms Long-term thinking Innovation Financial success Source: 2017 Edelman Trust Barometer Family Business Supplement. Q35. Think about family businesses versus businesses that are not controlled by a family. For each of the characteristics below, please indicate how likely it is that each one would describe a family versus a non-family owned business. Rate each trait on the following scale where 1=This is much more likely to be true of family businesses, 5=This is equally likely to be true of family-owned and non-family-owned businesses, and 9=This is much more likely to be true of non-family-owned businesses. (Top 4 box, Non-family businesses; Bottom 4 Box, Family businesses) General Population, 12-country global total. Source of third-party research: Academy of Management Journal, Doing More with Less: Innovation Input and Output in Family Firms. 20

21 Family Business Perceived as Behind on Societal Contributions Percent who believe each is more likely to be true of family business vs. nonfamily business Perception Reality Family business Nonfamily business 81% of the world s largest family businesses practice philanthropy 56% of all family business owners personally oversee the progress and effectiveness of their philanthropic projects Leads on societal challenges Philanthropy / Foundations Source: E&Y and Kennesaw State University. Staying power: How do family businesses create lasting success? Source: 2017 Edelman Trust Barometer Family Business Supplement. Q35. Think about family businesses versus businesses that are not controlled by a family. For each of the characteristics below, please indicate how likely it is that each one would describe a family versus a non-family owned business. Rate each trait on the following scale where 1=This is much more likely to be true of family businesses, 5=This is equally likely to be true of family-owned and non-family-owned businesses, and 9=This is much more likely to be true of non-family-owned businesses. (Top 4 box, Non-family businesses; Bottom 4 Box, Family businesses) General Population, 12-country global total. Source of third-party research: E&Y and Kennesaw State University. Staying power: How do family businesses create lasting success? 21

22 Next-Generation Leaders Seen as Less Capable Percent who agree with each of the following statements about next-generation leaders 63% will mismanage the company 53% less impressive and talented 56% less committed and passionate about the company Source: 2017 Edelman Trust Barometer Family Business Supplement. Q29. Please indicate how much you agree or disagree with each of the following statements using a 9-point scale where one means that you strongly disagree and nine means that you strongly agree. (Top 4 Box, Agree) Q44. Thinking about your current company, please indicate how much you agree or disagree with each of the following statements using a 9-point scale where one means that you strongly disagree and nine means that you strongly agree. (Top 4 Box, Agree), question only asked of family business employees. General Population, 12-country global total. 22

23 Next Generation Must Overcome Wealth Stigma Percent who associate each of the following with individuals who earned vs. inherited their wealth Earned Inherited Deserve what they have People I admire and respect Good role models Source: 2017 Edelman Trust Barometer Family Business Supplement. Q21. Thinking about wealthy individuals who inherited their wealth, please indicate how much you associate each statement below with these individuals. Please use a 9-point scale, where one means you do not associate that statement at all with wealthy individuals who inherited their wealth and nine means you strongly associate that statement with wealthy individuals who inherited their wealth. (Top 4 Box, Associate), question asked of half the sample. Q22. Thinking about wealthy individuals who earned their wealth, please indicate how much you associate each statement below with these individuals. Please use a 9-point scale, where one means you do not associate that statement at all with wealthy individuals who earned their wealth and nine means you strongly associate that statement with wealthy individuals who earned their wealth. (Top 4 Box, Associate), question asked of half the sample. General Population, 12-country global total. 23

24 Tell Them Where You Came From Percent who say the following would increase their trust in a family business 73% Knowing the company s history and founding story builds my trust Source: 2017 Edelman Trust Barometer Family Business Supplement. Q34. How much would each of the following increase your trust in a family business? Using a nine-point scale where one means would not increase my trust at all and nine means would increase my trust a lot rate each item below. (Top 4 Box, Increase trust) General Population, 12-country global total. 24

25 Tell Them Who You Are as a Family and Business Percent who say the following would increase their trust in a family business Information about their supply chain 75 Transparency regarding how its business decisions are made 74 Information on the family s role in the business Information about the backgrounds, experience and personalities of the family A public presence for family members involved in the business 68 Family not afraid to take a stand on controversial issues 67 Source: 2017 Edelman Trust Barometer Family Business Supplement. Q34. How much would each of the following increase your trust in a family business? Using a nine-point scale where one means would not increase my trust at all and nine means would increase my trust a lot rate each item below. (Top 4 Box, Increase trust) General Population, 12-country global total. 25

26 Historically, families in business have made huge contributions to society both through their business and the family's community activities. They ve also done a terrible job of letting the public know what they ve been doing, mostly because they are publicity-shy. In this age of concern about concentrated wealth, families need to communicate much better about what they are doing to improve society. DR. JOHN A. DAVIS Chairman, Cambridge Institute for Family Enterprise and Chair, Families in Business Program, Harvard Business School 26

27 Thank you #TrustBarometer