2009 Edelman Trust Barometer

2009 Edelman Trust Barometer
Edelman Trust Barometer at a glance
Tenth edition
4,475 people in 20 countries on 5 continents
Ages 25 to 64
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
A decade of insights from the Edelman Trust Barometer
2001
Rising Influence of NGOs
2002
Fall of the celebrity CEO
2003
Earned media more credible than advertising
2004
U.S. companies in Europe suffer trust discount
2005
Trust shifts from “authorities” to peers
2006
“A person like me” is most credible spokesperson
2007
Business more trusted than government and media
2008
Young influencers have more trust in business
3
What a difference a year-and-a-half makes
May 14, 2007
January 19, 2009
2008: A year unlike any other
Dow Jones Industrial Average: Jan 1, 2008 – Dec 15, 2008
1
The State of Trust
―Every financial system depends on
trust...We are in a full-blown crisis
because investors and financial
managers—the people who run banks,
investment banks, hedge funds, insurance
companies—have lost that trust.‖
– Robert J. Samuelson, Newsweek
Richard S. Fuld Jr., former CEO, Lehman Brothers
Trust in business is country-specific
% who trust business to do what is right
2008
2009
100%
Trust Down
90%
80%
75%
50%
40%
30%
74%
65%
65%
63%
61%
58%
71%
49%
38%
41%
27%
40%
47%
41%
49%
45%
47%
45% 45% 45%
45% 45%
43% 42%
54%
51%
39%
35%
33% 30%
29%
20%
10%
0%
A10. [Business in general 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. Please use 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) Informed publics 35-64 (global 18 countries, excluding Australia, Indonesia)
7
68%
62% 61%
55%
51%
49%
New
additions
in 2009
Trust Up
69%
70%
60%
Trust Steady
39%
The Trust Divide
Trust in business <50% among 25-to-64-year-olds
Trust in business >50% among 25-to-64-year-olds
Globally, younger and older informed publics now trust business equally
Big drops among younger cohort in US, France, South Korea
% who trust business to do what is right
25-34
100%
90%
78%
80%
70%
78%
2008
60%
2008
52%
71%
69%
65%
64%63%
65%
58%
51%
50%
45% 46%
27%
64%
62%
60%
47%
51%
45%
59%
56%
54%
48%
46%45%
40%
40%
39% 36%
40%
30%
2008
52%
70%
60%
50%
35-64
32%
33%
29%
56%
45%
38%
32%
41%
34%
20%
10%
0%
A10. [Business in general 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. Please use 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) Informed publics 35-64 (global 18 countries, excluding Australia, Indonesia)
9
68%
32%
Companies less trusted now than year ago
% who trust companies less
100%
90%
83%
79%
80%
77%
74% 73%
69%
70%
67% 67% 67% 66%
62%
62% 61%
60%
56% 55%
54%
50% 49% 49%
50%
40%
32%
30%
21%
20%
10%
0%
A60 Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less,
a little less, the same, a little more, or a lot more than you did at the same time last year? (Bottom 2 Box: Trust less) 25-64 Informed publics
in 20 countries
10
In U.S., trust in business at lowest level, including post-Enron
60%
58%
US
20
point
drop
UK/France/Germany
55%
53%
51%
49%
50%
Enron, the dot-com bust
and September 11
45%
44%
48%
48%
44%
41%
40%
40%
38%
38%
36%
35%
36%
36%
34%
35%
U.S. is the new Europe
32%
30%
2001
2002
2003
2004
2005
2006
2007
A10. [Business in general 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. Please use 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) Informed publics 35-64 in the United States and UK/France/Germany
11
2008
2009
Trust in government did not rise to offset lower trust in business
% who trust government to do what is right
2008
100%
Trust Down
90%
2009
Trust Steady
New
additions
in 2009
Trust Up
79% 80%
80%
74%
70%
64%
63%
60%
50%
40%
30%
44%
43%
49%
39% 39%
30%
41%
51%
49%
43%
45% 45%
40%
38% 35%35%
37%
34%
35%36%
43%
38%
32%
29%
41%
34%
35%
51%
39%
33%
27%
22%
20%
11%
10%
0%
A8. [Government in general 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. Please use 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) Informed publics 35-64 (global 18 countries, excluding Australia, Indonesia)
12
52%
53%
Business still more trusted than government in 13 of 20 countries
Business in general
Government in general
100%
Business more trusted
90%
Government more trusted
80%
80%
70%
65%
69%
65%
71%
68%
63%
74%
62%
60%
50%
51%
50%
45%
41%
43%
45%
52%
51%
47%
33%
30%
45%
39% 38%
40%
53%
51%
40%
38%
45% 45%
43%
41%
41%
35%
34% 35%
33%
32%
27%
30%
45%
36%
29%
20%
10%
0%
A 8,10. [Government in general, business in general 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. Please use 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) Informed publics 35-64 (global 20 countries, including
Australia, Indonesia)
13
39%
NGOs most trusted institution in every region
except Asia Pacific
% who trust each institution
100%
NGOs
Business
Media
Government
90%
80%
68% 67%
70%
60%
50%
54%
58%
50%
61% 61%
57%
52%
47% 45%
46%
45%
39%
40%
56%
42% 40% 40%
32% 32%
30%
20%
10%
0%
Global Total
North America
Latin America
EU
A8-11. [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. Please use 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.” The higher the number, the
more
.
you TRUST them to do what is right. (Top 4 Box) Informed publics 35-64 (global 20 countries)
14
Asia Pacific
Technology remains most trusted industry sector globally
2009
2008
76%
77%
Technology
66%
65%
Biotech/life sciences
Health care industry
57%
Automotive
57%
61%
62%
55%
55%
55%
57%
55%
59%
55%
CPG manufacturers
Energy
Retail
Food
N/A
53%
56%
50%
53%
Pharmaceuticals
Entertainment
45%
Banks
56%
42%
Media companies
46%
40%
Insurance
45%
A25-37. [TRACKING] 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 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) Informed publics 35-64 in 18 countries 2008-2009
15
In U.S., trust in every industry declined
100%
-33
Banks and automotive led the way
-27
90%
2008
80%
2009
80%
73%
70%
64%
60%
54%
49%
50%
30%
62% 63%
58%
60%
40%
73%
69%
50%
44%
36%
33%
42%
31%
54%
49%
40%
42%
33%
25%
20%
10%
0%
A25-37. [TRACKING] 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 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) Informed publics 35-64 in the United States
16
54%
In the U.K., France, and Germany, trust in automotive,
energy, banks, and media companies fell
100%
2008
2009
39%
41%
90%
80%
70%
60%
50%
52%
49%
44%
40%
35%
28%
27%
30%
20%
10%
0%
Automotive
Energy
Banks
Media companies
U.K./France/Germany
A25-37. [TRACKING] 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 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) Informed publics 35-64
17
In emerging economies, industries that suffer in West remain trusted
2008
100%
90%
72%
72%
90%
80%
72%
67%
70%
55%
60%
2008
100%
84%
83%
80%
80%
2009
2008
2009
90%
83% 81%
79% 81%
80%
72% 71%
65%
70%
55%
60%
70%
60%
50%
50%
50%
40%
40%
40%
30%
30%
30%
20%
20%
20%
10%
10%
10%
0%
0%
0%
Automotive Energy
Banks
Media
companies
Automotive Energy
China
Banks
Media
companies
India
A25-37. [TRACKING] 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 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) Informed publics 35-64
18
2009
100%
59%
52%
Banks
Brazil
Companies headquartered in Sweden, Germany, and Canada remain most
trusted; companies in China and Russia trusted the least
2008
2009
100%
90%
80%
70%
76%
73% 74% 72% 74% 71% 71%
68% 68%
65%
62% 60% 60%
60%
59%
53%
50%
52% 54% 50% 53%
43%
36%
40%
32%
30%
20%
10%
0%
A12-24. [TRACKING] Now I would like to focus on global companies headquartered in specific countries. Please tell me 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) Informed publics 35-64 in 18 countries
19
28%
24% 26% 24%
2
Lack of Trust Triggers Call for Government Intervention
―...our problem is not just
a deficit of dollars. It’s a deficit of
accountability...a deficit of trust.‖
– Barack Obama
By a 3:1 margin, informed publics agree government should impose stricter
regulations and greater control over business across all industries
Agree, 65%
Disagree, 22%
Don't know, 1%
Neither agree nor
disagree, 12%
F146. The recent credit crisis and government bail-outs have led to debates on how much governments should intervene to regulate industry or
nationalize companies to restore public trust. Please tell me how strongly you agree or disagree that your government should in the future impose
stricter regulations and greater control over business across all industry sectors.(Informed publics 25-64 in 20 countries)
21
Four Global Issues:
Who Is Responsible for Causing and Solving?
Energy
Costs
Financial
Credit Crisis
Global
Warming
Access to
Affordable
Healthcare
Government and business share responsibility for causing global issues
Government and regulators
Businesses
100%
90%
80%
80%
79%
81%
84%
81%
77%
70%
80%
63%
60%
50%
40%
30%
20%
10%
0%
Energy Costs
Financial Credit Crisis
Global Warming
E. 119-120, E124-125, 129-130, 134-135. Now thinking about (energy costs, financial credit crisis, global
warming, affordable healthcare), please tell me how responsible you think each of the following entities are for
contributing
to (global issue)? TOP 4 BOX 25-64 informed publics in 20 countries
.
23
Affordable Healthcare
Government held most responsible for solving these issues
Despite being most trusted institution globally,
NGOs not considered most responsible for solutions
Government and regulators
Businesses
NGOs
100%
90%
80%
70%
70%
60%
50%
53%
47%
41%
40%
30%
24%
21%
17%
20%
10%
4%
2%
6%
9%
3%
0%
Energy Costs
Financial Credit Crisis
Global Warming
E138. And which ONE entity do you think should be MOST responsible for (solving each global issue)?
Informed
publics 25-64 in 20 countries
.
24
Affordable Healthcare
Business has lost ability to lead unilaterally
Must partner with others to solve global issues
Partner with governments and third parties
Do what it can alone
Play no role
100%
90%
83%
80%
70%
66%
65%
69%
65%
57%
60%
50%
40%
39%
31%
33%
30%
29%
30%
15%
20%
10%
3%
4%
2%
2%
2%
1%
0%
Global
North America
EU
Asia-Pacific
Latin America
E139. Thinking about the role that business should play in helping to solve global issues such as energy costs, the financial credit crisis,
global warming, or access to affordable healthcare, which of these following three statements is closest to your view? Business has to
partner with governments and advocacy groups to solve these global issues, it cannot do it alone; OR Business should focus on what they
themselves can do on these global issues, whether or not governments or others partner with them ; OR Business should not play a part in
helping to solve these global issues (Informed publics 25-64 in 20 countries)
25
BRIC
3
Who Can We Trust?
Trust in Information Sources and Spokespeople Declines Across the Board
―Under the circumstances,
I am tendering my resignation….I am
now prepared to subject myself to the
laws of the land and face the
consequences thereof.‖
– Ramalinga Raju, former chairman,
Satyam Computers
Trust wanes for traditional information sources
Ranking stays consistent
2008
2009
100%
90%
80%
70%
60%
50%
57%
56%
47%
49%
49%
49%
47%
44%
40%
40%
38%
36%
34%
30%
20%
10%
0%
Stock or industry
analyst reports
Articles in
business
magazines
Conversations News coverage Television news
with your friends
on the radio
coverage
and peers
C95-98,103. [TRACKING] Now I’m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries
27
Articles in
newspapers
Trust in digital channels down but still important
Internet search engines most trusted
2008
2009
100%
2009
90%
80%
70%
60%
50%
40%
38%
35%
27%
30%
20%
19%
20%
16%
15%
10%
0%
Internet search Business Blogs Personal or Non
engines e.g.
Business Blogs
Google news,
or bulletin
Yahoo news
boards
Free content sources,
such as wikipedia or
webportals*
Social networking sites
(such as MySpace or
Facebook)
*asked as “Free content encyclopedia
(such as Wikipedia)” in 2008
C95-110. [TRACKING] Now I’m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries
28
Trust in corporate channels also down
Employees most trusted source
2008
2009
100%
2009
90%
80%
70%
60%
50%
40%
38%
40%
31%
30%
27%
26%
24%
20%
20%
13%
10%
0%
Conversations
Live
with company communication
employees
such as a CEO
speech
Corporate
communications such
as press releases,
reports and emails
A company’s own
website
Corporate or product
advertising
C99-101,109,110. [TRACKING] Now I’m going to read you a list of places where you might get information about a company. Please tell
me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible,
somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries
29
Experts, peers, and employees top 2009 list of credible sources
Stock or industry analyst reports
48%
Articles in business magazines
44%
Conversations with company employees
40%
Conversations with friends/peers
40%
News coverage on the radio
38%
Television news coverage
36%
Internet search engines
35%
Articles in newspapers
34%
Live communication such as a CEO
29%
Wikipedia or web portals
29%
Corporate communications
27%
A company's own Web site
24%
Business Blogs
20%
Personal or non-business blogs
17%
Social networking sites
Corporate or product advertising
16%
13%
C95-98,103. [TRACKING] Now I’m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 25-64 in 20 countries
30
CEO credibility hits new low globally
Driven by drops in North America and Europe
2008
2009
100%
90%
80%
70%
61%
60%
50%
40%
30%
46%
CEO credibility at
6-year low in US
43%
37%
36%
29%
31%
29%
20%
20%
29%
29%
21%
19%
15%
27%
21%
20%
25%
23%
17%
13%
10%
0%
D112-118. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard
information about a company from that person, how credible would the information be--extremely credible, very credible, somewhat credible,
or not credible at all? (Top 2 Box) Informed Publics 35-64 in 18 countries
31
19%
22%
19%
Trust in nearly every spokesperson down
Academics, industry experts most credible
2008
100%
2009
90%
80%
70%
60%
56%
59%
58%
57%
47%
50%
47%
49%
38%
40%
39%
36%
30%
30%
29%
32%
27%
20%
10%
0%
An academic or
Financial or
expert on that
industry analyst
company's
industry or issues*
A person like
yourself
Non-profit
organization or
NGO
representative
Regular employee CEO of company
Government
of a company
official or regulator
*asked as “an
academic” in 2008
D112-118. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard
information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box) Informed publics 35-64 in 18 countries
32
Informed publics need information from multiple sources, multiple voices
And need to hear it 3-5 times to believe it
Don’t know/refused
(vol) 7%
Ten or more times
(10+) 5%
Once
(1) 6%
Twice
(2) 16%
Six to nine times
(6-9) 6%
3-5 times
60%
Four or five times
(4-5) 25%
Three times
(3) 35%
C111. Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do
you need to hear something about a specific company to believe that the information is likely to be true? Please give me a number.
25-64 Informed publics
33
4
The Business Case for Trust
Reputation, Sales, and License to Operate Driven by Trust and Transparency
―Trust is the cornerstone for the
survival of an enterprise and a society.‖
– China Daily
Communication and trust as important to reputation as value for money
Offers high quality products or services
94%
Is a company that treats its employees well
93%
Communicates frequently and honestly on its business
91%
Is a company I trust
91%
Gives value for money
91%
Stays within the spirit and the letter of the law in [country]
90%
Has a strong financial future
90%
Has senior leadership that can be trusted
89%
Has a strong commitment to protect the environment
87%
Is an innovator of new products, services or ideas
87%
Creates and keeps jobs in your area
Commits time, money and resources to the greater public good
86%
85%
B62-73. When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the
company? Please use a nine-point scale where one means that factor is ―not at all important‖ and nine means it is ―extremely important‖ to
overall reputation. (Top 4 Box) 25-64 Informed publics in 20 countries
35
Through personal action, trust has tangible benefits
–
Personal actions taken with trusted and distrusted companies
77%
+
91%
Refused to buy their products/services
Chose to buy their products/services
72%
76%
Criticized them to a friend or colleague
Recommended them to a friend or colleague
55%
Paid a premium for their products/services
34%
42%
Shared negative company opinions/experiences online
Shared positive company opinions/experiences online
17%
26%
Sold shares
Bought shares
B74-78 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.
B79-82. 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. Informed publics 25-64 in 20 countries
36
5
Rebuilding Trust
The Power of Public Engagement
"I understand your disappointment,
your anger. This situation is
perfectly unacceptable.‖
– Daniel Bouton,
former CEO of Société Générale
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A study in chickens and eggs
Which will drive recovery?
70%
50%
40%
30%
20%
Trust in US business in general
1800
1600
60%
Enron, the dot-com bust
and September 11
1400
1200
1000
S&P 500: Sep 2001 – Dec 2008
―… an economy is a society of trust and faith. A recession is a
mental event, and every recession has its own unique spirit. This
recession was caused by deep imbalances and is propelled by a
cascade of fundamental insecurities.‖
10%
A10. Business in General [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. 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". (Top 4 Box) Informed Publics 35-64 in the US
38
800
600
400
200
––David Brooks, New York Times
0
What We Have Learned
Diminished
trust impedes
business license
to operate
Regulation ≠
abdication
______
______
A public
company serves
shareholders
and society
Partnership is
the solution
______
______
Public Engagement: A Strategy for Changing
Policy and Communication
Private Sector
Diplomacy
Mutual Social
Responsibility
Shared
Sacrifice
Continuous
Conversation
Private Sector Diplomacy
Shape policy on world’s most pressing
problems, including ones that don’t concern
company’s industry
Partner with government, NGOs to drive
decision-making and set strategy on major
societal issues
― …Come together—government, NGOs and
business—in new approach to solving big
problems facing our country. … This can work.‖
– H. Lee Scott, Jr.,
President and CEO, Wal-Mart
Private Sector
Diplomacy
Mutual Social
Responsibility
Shared Sacrifice
Continuous
Conversation
Mutual Social Responsibility
Benefit society and the bottom line
Integrate approaches to societal
problems into products and services
Involve employees and customers in
decisions and actions about company’s
social responsibility
Starbucks invites customers to
partner as a force for good
Private Sector
Diplomacy
Mutual Social
Responsibility
Shared Sacrifice
Continuous
Conversation
Shared Sacrifice
Set collaborative tone for company:
we’re all in this together
Private Sector
Diplomacy
Mutual Social
Responsibility
Shared Sacrifice
Continuous
Conversation
Equitable compensation (executive pay cuts, bonus
forfeiting) sends powerful message
Communicate with employees, welcome their voices
―Heavy equipment maker Caterpillar
Inc announced in late December it
would cut executive pay in half, and
many salaried employees would see
cuts of as much as 15 percent.‖
– Wall Street Journal
Continuous Conversation
Be agile and “of the moment”
Inform, don’t control the
conversation
Say... then do as you say
Johnson & Johnson among first
companies to join public
conversation on health
Private Sector
Diplomacy
Mutual Social
Responsibility
Shared Sacrifice
Continuous
Conversation
A Ten Year Overview of Trust
The 2009 Edelman Trust Barometer is the firm’s 10th trust and credibility survey.
The survey was produced by research firm StrategyOne. The survey consisted of
30-minute telephone interviews conducted in November – December 2008. For the first
time, the survey sampled two different age groups concurrently (25-34 and 35-64).
For more information on the Edelman Trust Barometer and
to view past results, please visit www.edelman.com/trust.
Methodology
10th Edelman Trust Barometer
Global Reach
20 countries on five continents
Sample Size
N=4475 Total
N=3400 age 35-64 (20 countries)
N=1075 age 25-34 (20 countries)
Audience Profile
Informed Publics (same as 2008)
• 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
Field Dates
Nov 5 -Dec 14, 2008
(post-U.S. election)
46
2009 Edelman Trust Barometer