2010 Edelman Trust Barometer January 22, 2010
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2010 Edelman Trust BarometerJanuary 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 income per age group in each country
Report significant media consumption and engagement in
business news and public policy
2
The Edelman Trust Barometer in retrospect
Rising Influence of NGOs2001
Fall of the celebrity CEO2002
Earned media more credible than advertising2003
U.S. companies in Europe suffer trust discount2004
Trust shifts from “authorities” to peers2005
“A person like me” emerges as credible spokesperson2006
Business more trusted than government and media2007
Young influencers have more trust in business2008
Business must partner with government to regain trust2009
3
Trust up but it’s fragile and different than before
Trust now an essential line of business
• Global rise driven by a few countries; long road to full recovery
• Skepticism about long-term business practices
• Trust, transparency as important to reputation as quality products
• Stakeholder, not a shareholder, world
4
―Although unemployment
remains intolerably high, signs
of recovery abound, and
confidence is returning...‖
Newsweek, ―History Is Still Over,
How capitalism survived the crisis.‖
December 2009
Trust is up
5
Globally, modest trust gains in business, government, NGOs
6
A7-A10. [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.
On 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, how much
do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 in 20 countries
54%50%
43%47%
57%54%
47%45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NGOs Business Government Media
2009 2010
Trust in institutions
But big gains in a few Western countries drive rise
Business largely stable in BRIC
7
A9. [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. On 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, how much do
you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64
36%34%
30%
46%
33%
40%
62%
71%67%
63%
52%54%
40%36%
49%
59%
54%
62%
67%
62%
57%
42%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US Germany France UK Italy Spain China India Brazil Japan Russia
2009 2010
Trust in Business
+18
+26+14
In U.S., trust rebounding; in China, remains strong
In large European economies, trust stays low
8
Trust in BusinessInformed Publics ages 35-64
44% 44%
48%
51%
48%49%
53%
58%
38%
51%
32%
41%
35%
40%36%
38%
34%36% 36%
39%
74%
65%
67%
50%
35%
56%
67%
54%
71%
66%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US UK/France/Germany India China
A9. [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, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, India and China
Enron, the dot-com
bust and September 11 Worldwide
Financial
Crisis
Op
tim
ist
Pra
gm
ati
st
Sk
ep
tic
s
30%34%
36%
72%
35%
42% 41% 40%43%
48%46%
43% 43%
74%
36%
43% 42%38% 39% 38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US France Germany China Italy India Japan UK Brazil Russia
2009 2010
Trust in Government – Top 10 countries by GDP
9
A7. [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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64
+16 - 10+9
Trust in government is largely stable
U.S. and Russia move in opposite directions
In China, trust in government remains high
10
Trust in GovernmentInformed Publics ages 35-64
27%
48%
39%
48%
44%
38% 38% 39%
30%
43%
36%
26% 25%
31%27%
31%22%
32%
37%
38%
67%
63%
83%
78% 79%
80%
77%
20%
30%
40%
50%
60%
70%
80%
90%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US UK/FR/GER China
A7. [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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 35-64 in US, UK/FR/GER, and China
Hig
h T
rus
tL
ow
Tru
st
Across regions, influence of NGOs rises over time
11
Trust in NGOsInformed Publics ages 35-64
36%
58%
48%
53%
31%
56%55%
30%
35%
40%
45%
50%
55%
60%
65%
70%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US UK/FR/GER China India
A10. [Non-government organizations 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. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 35-64 in US, UK/FR/GER, and China
72% 71% 71%68%
64%60%
51%
45%
27%25%
76% 76% 75%71%
69%65%
61%
50%
34%30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010
U.S. surges as trusted site for global headquarters
Sweden, Germany, Canada remain most trusted
12
A13-25. [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 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 ages 25-64 in 20 countries
+10
+7
Most Trusted National Identity for Companies
13
Trust in U.S. Headquartered Companies
71%
60%57%
65%
60%
68%
28%
43% 42%
26%
72% 71%
66%63% 63% 62%
57%54%
48%45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China US Italy Brazil Japan India Russia France UK Germany
2009 2010
A13-25. [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 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 ages 25-64 – Top ten countries by GDP
U.S. headquartered companies trusted most in China and U.S.
Large trust increases in U.S., Russia, Germany
+11
+29
+19
Globally, technology remains most trusted industry
Media, insurance least trusted
14
A26-38. [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 ages 25-64 in 20 countries
42%
44%
48%
55%
56%
56%
60%
61%
61%
61%
63%
63%
79%
40%
43%
47%
51%
54%
53%
57%
56%
56%
55%
58%
65%
76%
Insurance
Media companies
Banks
Entertainment
CPG manufacturers
Pharmaceuticals
Health care industry
Food
Retail
Energy
Automotive
Biotech
Technology
2009 2010
15
Trust in BanksInformed Publics ages 35-64
75%77%
56%58%
45%
68%
29%
43% 41%
34%
85%83%
51% 51%
42%
29%27% 27%
21%17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China India Brazil Japan Russia US Italy France UK Germany
2007 2010
A26-38. [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 ages 35-64 – Top ten countries by GDP
Since 2007, trust in banks declines dramatically in most Western countries
In U.S., trust in banks drops from third to near-last in three years
- 16
- 17
- 20
- 39
―Already, we’ve seen speculation that
our industry will soon be back to
business as usual. Let me say clearly:
there are lessons from this crisis
that we cannot afford to ignore.‖
Josef Ackermann,
Chief Executive Officer, Deutsche Bank
Trust is fragile
16
82%78%
76%74%
67%64%
62%60% 59%
49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
India Germany China France UK Italy Russia Brazil US Japan
Expect return to ―business as usual‖ after the recession
Most expect business and financial companies to return to old habits
17
C81. After the recession is over, do you expect for business and financial companies to return to ―business as usual‖?
Informed Publics ages 25-64 – Top 10 countries by GDP
Top 10 Countries by GDP
87%
81%79%
77% 77% 76%
58%54%
39%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China Brazil Japan India Russia US UK Italy France Germany
Believe government will have influence over banks and financial institutions
Most expect government to influence financial institutions in the future
18
C82. How much influence, if any, do you believe government will have over banks and financial institutions in the future? (Read Scale, Select one)
Informed Publics ages 25-64 – Top 10 countries by GDP
Top 10 Countries by GDP
89%
77% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Fire non-performing management teams
Short-term actions in economic crisis restore trust in business
Now what?
19
B73-75. How effective would the following actions be in restoring trust in a company? Please use a 9-point scale where one means ―NOT AT ALL
EFFECTIVE‖ and nine means ―EXTREMELY EFFECTIVE‖.The first one is [INSERT FIRST]. How effective is this action to restoring trust in a company
on a 9-point scale where one means ―not at all effective‖ and nine means ―extremely effective‖? (Top 4 box) Informed Publics ages 25-64
88%
77%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Repay bailout or loan money to the government
79%
73%70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Reduce gap between senior executive and average worker pay
―…one of the most important
ways to rebuild the system
stronger than before is to rebuild
trust stronger than before—
and you do not have to wait
for a new law to do that.‖
President Barack Obama,
speech to financial community, Federal Hall,
New York. September 2009
Trust is different
20
Corporate reputation now based on trust and transparency
as much as quality
21
B63.-72. How important are 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 2 Box, Very/ Extremely Important) Informed Publics
ages 25-64 in 22 countries
38%
39%
45%
50%
52%
58%
63%
66%
67%
68%
Delivers consistent financial returns to investors
Has highly-regarded and widely admired top leadership
Is an innovator of new products, services or ideas
Is a good corporate citizen
Prices its brands fairly and competitively
Communicates frequently and honestly on the state of its business
Treats employees well
Is a company I can trust
Has transparent and honest business practices
Offers high quality products or services
77%
70%66%
53% 52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
BRIC
Trust and transparency among top; leadership, financial returns at bottom
European economies rate these factors lowest
22
66%63%
59%
24%21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
U.K. / FR / GER
82% 80% 79%
45% 45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
U.S.
B63.-72. How important are 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 2 Box, Very/ Extremely Important) Informed
Publics ages 25-64
Company Reputation Factors
In U.S., financial returns moves to last place in company reputation factors
Employee relations moves up
23
2006 – When you think of companies that you trust, how much, if at all has each of the following attributes contributed to your trust? Please you a 9-point scale where one
means it ―has not contributed at all‖ and 9 means it ―has contributed a great deal.‖ (Top 2 box ) Informed Publics ages 35-64 in the U.S.
B63.-72. How important are 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 2 Box) Informed Publics ages 35-64 in the US
12%
23%
23%
33%
35%
37%
38%
42%
47%
53%
Employee/ CEO blogs
Dialogue w/ stakeholders
Visible CEO
Socially responsible
Good employee relations
A well-known brand
Fair pricing
Strong financial performance
Attentiveness to customer needs
Quality products and services
U.S. – 2006
45%
47%
48%
58%
64%
72%
75%
79%
83%
83%
Financial returns
Top leadership
Innovator
Prices fairly
Good corporate citizen
Treats employees well
Communicates frequently
High quality products or services
Company I can trust
Transparent and honest practices
U.S. – 2010
A stakeholder, not a shareholder, world
24
D83. When a CEO makes business decisions for his or her company, which stakeholder SHOULD BE most important to a CEO’s business
decisions? Informed Publics ages 25-64 in 22 countries
Government3% Employees
7%
Society at Large11%
Customers 13%
Investors/ Shareholders
14%
All stakeholders are equally important
52%
Which stakeholder should be most important to a CEO’s business decisions?
82%
76% 75%73%
71% 70% 70%
66%
59%
51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Italy UK China US Brazil Germany France Russia India Japan
More likely to trust a company that partners with a NGO to battle global issues
Corporate-NGO partnerships build trust
25
C80. Would you be more or less likely to trust a company that partners with NGOs to battle global issues such as climate change, alleviating poverty or
curing diseases, than you would be to trust a company that works alone? (Net More Likely: Much More + A Little More) Informed Publics ages 25-64 –
Top ten countries by GDP
Top 10 Countries by GDP
17%
19%
30%
35%
17%
30%
32%
41%
34%
36%
37%
38%
44%
49%
16%
29%
35%
13%
24%
27%
40%
34%
36%
40%
38%
44%
48%
Blogs
Social networking sites (such as Myspace or Facebook)
Free content sources such as Wikipedia or web portals
Online search engines e.g. Google news, YouTube
Corporate or product advertising
A company's own Web site
Corporate communications such as press releases, reports, and emails
Conversations with company employees
Articles in newspapers
Television news coverage
Conversations with your friends and peers
News coverage on the radio
Articles in business magazines
Stock or industry analyst reports
2009 2010
N/A
Informed publics continue to seek substantial expertise
26
E84-97. [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, very + extremely credible) Informed Publics ages 25-64 in 20 countries
Tra
ditio
na
lC
orp
ora
teD
igita
l
43%
36%
58%
20%
31%
40%
U.S. U.K./Fra/Ger BRIC
47%45%
47%
27%
33%
42%
U.S. U.K./Fra/Ger BRIC
46%
37%
47%
26%24%
30%
U.S. U.K./Fra/Ger BRIC
45%42%
55%
25%28%
43%
U.S. U.K./Fra/Ger BRIC
Traditional news sources and conversations with
friends, peers drop in credibility
E84-97. [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
TV news Radio news Newspapers Friends/peers
2008 2010
- 23
- 18
- 20- 12
- 20 - 13- 17
- 20 - 14
- 12
27
58%
46%
34%
50%
33%30%
51%
0%
10%
20%
30%
40%
50%
60%
70%
BRIC
Academics/experts still most credible spokespeopleCEO credibility relatively high in BRIC
28
F99-F105. 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 ages 35-64
61%
41% 42%40%
24%22%
26%
0%
10%
20%
30%
40%
50%
60%
70%
UK / FR / GER
64%
52%
44%
39%
28% 27%26%
0%
10%
20%
30%
40%
50%
60%
70%
US
―Person like me‖ slips while CEOs, government officials climb
29
F99-105. [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: Very + Extremely Credible) Informed Publics ages 25-64 in 20 countries
31% 29%
41%
49%
62%
32%
47%
40%35%
45%
52%
64%
32%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CEO Government official
NGO representative
A financial or industry analyst
An academic or expert
Regular employee
Person like yourself
2009 2010
Credible Spokespeople
+9+6
- 3
In key markets, CEOs recover trust in a yearTrend up or hold ground over time
30
Credible Spokespersons – CEOInformed Publics ages 35-64
F99-105. [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? (Top 2 Box) Informed Publics ages 35-64
+9
+7
14%20%
25%
28%
22%23%
17%
26%28%
21%
21%
28%
18%
23%
17%
26%
47%
43%
39%
34%
44% 44%
51%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
2003 2004 2005 2006 2007 2008 2009 2010
US UK/France/Germany China
0
200
400
600
800
1000
1200
1400
1600
1800U.S. Trust in business in general
In U.S., business performance and trust continue hand in hand
31
S&P 500 Average vs. U.S. Trust in Business
A9. [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, Trust)
F99-105. [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: Very + Extremely Credible)
Informed Publics ages 35-64 in in the US
Enron, the dot-com bust
and September 11
S&P 500: Dec 2001 – Dec 2009
Conclusions
• Increase in trust in business belies fragility
• Trust now essential line of business to be developed
and delivered
• Corporate reputation based on performance, role in
society, transparency
• Stakeholder, not shareholder, world
We are entering the age of Public Engagement
32
Public Engagement:
Advancing shared interests in a world of interdependence
33
34
Building trust in era of Public Engagement
requires a mosaic approach
7. Embrace complexity
3. Create and co-create content
4. Socialize media relations
5. Champion open advocacy
6. Build active partnerships
1. Listen with new intelligence
2. Participate in conversation
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