Actions Leadership in a Divided World The Opportunity For Business In 2016, trust in nongovernmental organizations, business, media and government increased to its highest level since the Great Recession. But the 2016 Edelman Trust Barometer shows we’re only seeing the tip of the trust story. agree employees are creditable spokespeople © 2016 Edelman, Inc. All rights reserved. agree CEOs must communicate their personal values 7/10 Across all audiences, business saw the largest increase in trust. Today, business finds itself in a new position of strength, with the chance to help bridge the trust gap For the mass population— making up 85% of the general public—trust levels have barely budged While trust has risen across all four institutions, it’s a trend driven by the informed public With CEOs at the forefront, business has an opportunity to establish a new model of leadership, while still fulfilling their mandate to create value CEOs must focus more on making a positive long-term impact and addressing social issues, over short-term financial results. Focus on short-term financial results Lobbying Values Personal values are key in building trust and it is up to leaders to be honest, ethical and to share their personal stories. agree that business must play a role in addressing societal issues Too much Not enough Employee Advocacy Employees are credible spokespeople. CEOs must communicate more openly and directly with their employees, and empower them to become company advocates. Engagement Today, search engines are more trusted than traditional media. The rules of engagement have changed so leaders must consider all sources in order to effectively engage. For more information, visit www.edelman.com/trust2016 67% 57% 79% 49% 57% Informed Public General Population 2016 Edelman Trust Barometer Mass Population Informed Public 80% 9% Business saw the biggest rise in trust Search engines Traditional media Online-only media Owned media Social media 63% 58% 53% 46% 44% “Trust in institutions and their license to operate is no longer automatically granted on the basis of hierarchy or title, rather in today’s world, trust must be earned.” Richard Edelman President & CEO NGOs Media Business Government 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 51 Mounting Trust Inequality Increase in trust, 2012-2016 The State of Trust *Must meet four criteria: ages 25-64, college educated, in top 25% of household income per age group in each country, reported significant media consumption & engagement in business news and public policy *All population not including informed public We are seeing firsthand the rise of trust inequality and a simultaneous shift of influence, now resting in the hands of the mass population 85% of population The Inversion of Influence Job Creation Positive long- term impact 19 U.S. 15 Mexico 10 Netherlands 10 Sweden 17 U.K. 16 France 10 Ireland 16 Australia 10 South Korea 10 Singapore 11 China 16 India 10 South Africa 10 Brazil 11 Italy The trust gap is a global phenomenon The Trust Index Trust Index, Informed Public vs. Mass Population, countries with the double-digit trust gaps 43 66 55 49 56 53 62 AUTHORITY & INFLUENCE INFLUENCE AUTHORITY 15% of population Informed Public Mass Population U.S. U.K. France India Australia Mexico Italy China Brazil Ieland Netherlands Sweden S. Africa S. Korea Singapore 64 57 55 78 63 72 58 82 58 49 62 46 54 50 72 45 40 39 62 47 57 47 71 48 39 52 36 44 40 62 Country