2012

EDELMAN TRUST BAROMETER

GLOBAL RESULTS

2012 Edelman Trust Barometer

METHODOLOGY OVERVIEW
GENERAL PUBLIC INFORMED PUBLIC 25-64 INFORMED PUBLIC 35-64

Twelfth annual study Online survey in 25 countries

30,000+ respondents

1,000 general population respondents per country

Ages 18+

Oversample of informed publics*

500 respondents in U.S. and China & 200 in all other countries Ages 25-64 (Trending data among Ages 35-64) 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

* This year Informed Publics were surveyed via online methodology instead of telephone

Edelman, 2012. All rights reserved.

Edelman Trust Barometer in retrospect

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Rise of authority figures Trust is now an essential line of business Business must partner with government to regain trust Young influencers have more trust in business Business more trusted than government and media A person like me emerges as credible spokesperson Trust shifts from authorities to peers U.S. companies in Europe suffer trust discount Earned media more credible than advertising Fall of the celebrity CEO Rising Influence of NGOs

Edelman, 2012. All rights reserved.

Edelman, 2012. All rights reserved.

Distrust is growing; nearly twice as many countries are now skeptics Fewer countries now in neutral zone

2011
GLOBAL
Brazil UAE Indonesia China Netherlands Mexico Singapore Argentina India Italy Canada South Korea Sweden Japan Australia Spain France Poland Germany U.S. U.K. Russia Ireland

2012
GLOBAL
>

55
80 78 74 73 73 69 67 62 56 56 55 53 52 51 51 51 50 49 44 42 40 40 39

51
76 68 67 65 63 63 61 58 56 54 53 51 49 49 44 44 41 41 40 39 37 34 32

< > >

<

<

China UAE Singapore India Indonesia Mexico Netherlands Canada Italy Argentina Australia Brazil Sweden U.S. South Korea Poland U.K. Ireland France Germany Spain Japan Russia

TRUSTERS

NEUTRAL

DISTRUSTERS

Composite score is an average of a countrys trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 23 countries

Edelman, 2012. All rights reserved.

The Fragility of Trust: Focus on Japan

2011 Informed Public 2012 Informed Public

TRUST IN INSTITUTIONS INFORMED PUBLICS AGES 25-64 TRUST IN INDUSTRIES Business Media NGOs Government
75%

- 12
53% 47% 48% 36% 51%

- 21
30% 51%

- 26
25%

Energy 29%

-46
54%

Media 33%

-21
55%

Financial services 38%

-17
71%

Banks 51%

-20

CREDIBLE SPOKESPEOPLE
-23 65% -38 70% -43 67% -30 42% 32% 24% 22% -17 39% 48% 40% -55 -26 63%

-43

59%

TRUST IN INFORMATION SOURCES

-16

-26

-13

-13

18%

16%

14%

8%

Newspaper

TV

Radio

Magazines

Technical Academic or Expert Expert

CEO

A Person Like Yourself

NGO Regular Financial/ Government Official Represent. Employee Industry Analyst

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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); Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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, Trust); Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from ea ch person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible); Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in Japan

Edelman, 2012. All rights reserved.

Trust in three of four institutions declines; only media rises

TRUST IN INSTITUTIONS
2011 Informed Public 2012 Informed Public 2012 General Public

52% 43% 38%

56%

53% 47%

Government

Business

61% 49% 52% 46%

58% 50%

Media

NGOs

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) AND General Population in 25 country global total

Edelman, 2012. All rights reserved.

Record decline in government -- NGOs and business fall to 2009 trust level
TRUST IN INSTITUTIONS 18-COUNTRY GLOBAL TOTAL
NGOs Media Business Government

80%

70%

60%
52% 50% 52% 51% 44% 40% 40% 30% 48% 43% 53% 54%

57%

59% 53% 49% 46% 38%

GOVERNMENT

54%

53% 49%
46% 46% 44% 45%

47%
47%
BUSINESS

20%

2007

2008

2009

2010

2011

2012

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 35-64 in 18 country global total (excludes Argentina, Australia, Hong Kong, Indonesia, Malaysia, Singapore and UAE)

Edelman, 2012. All rights reserved.

Several mature markets see double-digit drops in business trust

TRUST IN BUSINESS
2011 Informed Public 2012 Informed Public

Trust

Trust Steady
80% 81% 78% 77% 78% 74% 65% 57% 53% 67%

Trust
81%

71% 61% 56% 53% 56% 50% 50% 46% 46% 44% 57% 54% 54% 52%

70% 69%

67% 66%

64% 62%

63%

63% 53% 48%

65%

52% 47% 46%

50%

46%
41% 41%

43%

44% 38%

47%

31%

34%

32%

28%

N/A

N/A

Q11-14. [Business in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries

Edelman, 2012. All rights reserved.

Technology remains on top in all markets, finance sector still at bottom

TRUST IN INDUSTRIES GLOBAL

2011
Technology Telecommunications

2012
80% 67% 67%
Technology Automotive Food and beverage Consumer packaged goods Telecommunications Brewing and spirits Pharmaceuticals Energy Media

79% 66% 64% 62% 60% 59% 56%

2009: 58%

Automotive

Food and beverage Pharmaceuticals Energy Consumer packaged goods Brewing and spirits Media

64%
61% 60% 57% 57% 52% 50% 48%

53%
51% 47% 45%

Banks
Financial services

Banks
Financial services

2008 Trust in Banks: 56%

2012 Trust in Banks: 40% -16

Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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, Trust) Informed publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) & Informed Publics ages 35-64 in 18 country global total
10 Edelman, 2012. All rights reserved.

Dramatic fall for banks in Japan and S. Korea; now at low levels seen in West
TRUST IN BANKS
U.S. UK/France/Germany China India S. Korea Japan

100%
90% 80% 70% 60% 50% 40% 39% 41% 77% 75% 68% 64% 58% 72% 69% 67% 55% 59% 52% 51% 36% 29% 27% 22% 29% 35% 24% 51% 38% 49% 81% 84% 85% 83% 76% 88% 87% 90% 82%

83%

68%

30%
20% 10% 0%

21%

2007

2008

2009

2010

2011

2012

Q16-26. [Banks TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea

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Edelman, 2012. All rights reserved.

Trust in technology remains high in all markets

TRUST IN TECHNOLOGY
U.S. UK/France/Germany China India S. Korea Japan

100% 91% 90% 80% 87% 78% 76% 75% 66% 80% 78% 76% 77% 67% 93% 90% 86% 89% 88% 78% 73% 66% 76% 83% 80%

95% 93% 83% 79% 74% 93% 93% 81% 78% 73% 67%

78%

70%
60% 50% 40% 30% 20% 10% 0%

2007

2008

2009

2010

2011

2012

Q16-26. [Technology TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea

12

Edelman, 2012. All rights reserved.

Majority of countries now distrust government

TRUST IN GOVERNMENT
2011 Informed Public 2012 Informed Public

Trust

Trust Steady
88% 78% 73% 64% 56% 53% 52% 75% 88%

Trust
85% 75%

77%

62% 52%

61% 54% 50% 42% 39% 35% 26% 31% 33% 45% 49%

62%

62%

52%

50%
43% 35% 44% 43% 40% 33% 33% 43% 38% 47% 42%

51% 43%

49%

40% 36% 31%

28%

32% 25% 20%

20%

N/A

N/A

Q11-14. [Government in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries

13

Edelman, 2012. All rights reserved.

Media only institution to see trust increase

TRUST IN MEDIA
2011 Informed Public 2012 Informed Public

Trust

Trust Steady
86% 80% 79% 80%

Trust

70% 65% 57% 59% 54% 46% 46% 38% 37% 38% 53% 67% 65%

72% 69%

73% 65%

61% 53%

60%

61%

61%

50%

52% 49% 50% 45% 37% 32% 27% 22% 45%

48%
43% 45% 42% 37% 45% 41% 37% 35% 33% 45%

49%

48% 47% 36%

N/A

N/A

Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries

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Edelman, 2012. All rights reserved.

Skepticism requires repetition

MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE

13%
TEN OR MORE TIMES (10+)

5% ONCE (1) 14% TWICE (2)

6%
SIX TO NINE TIMES (6-9)

35% THREE TIMES (3)

28%
FOUR OR FIVE TIMES (4-5)

63%

THREE TO FIVE TIMES

Q148. [TRACKING] 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 be exposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes Dont Know responses) Informed publics ages 25-64 in 25 country global total

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Edelman, 2012. All rights reserved.

Diversification of Media
TRUST IN INFORMATION SOURCES
2011 Informed Public 2012 Informed Public

+
29%

10%

32%

+
22%

18%
26%

+ 75
14% 8%
SOCIAL MEDIA

%
13%

23%

16%

TRADITIONAL

ONLINE MULTIPLE SOURCES

CORPORATE

Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE)

16

Edelman, 2012. All rights reserved.

NGOs still most trusted institution, despite some declines

TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
2011 Informed Public 2012 Informed Public

Trust

Trust Steady
85%

Trust

79% 75% 70% 67% 61% 63% 58% 61% 67% 62% 74% 70% 72% 65% 65% 64% 64% 60% 58% 58% 56% 55% 54% 53% 53% 55% 51% 72% 66% 66%

78% 72% 66% 60% 55% 53% 51% 53% 59% 51% 42%

80% 70%

68%

50%

48%
41%

49%

28%

30%

N/A

N/A

Q11-14. [Non-governmental organizations (NGOs) TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9point 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 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries

17

Edelman, 2012. All rights reserved.

NGOs surge in China and India

TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
U.S. UK/France/Germany China India

80% 75% 79%

70%
68% 65% 60% 55% 52% 50% 45% 40% 35% 30% 36% 48% 48% 54%

31%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Q11-14. [Non-governmental organizations (NGOs) TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 35-64 in U.S., UK/France/Germany, India and China

18

Edelman, 2012. All rights reserved.

19

Edelman, 2012. All rights reserved.

Trust in business and government move in sync since 2008 in Western Economies
TRUST IN BUSINESS AND GOVERNMENT
Business Government

U.S.
80%
58%
44% 48% 44% 39% 48% 51% 48% 48% 49% 53% 51% 45% 38% 45%

60%

40%
27%

44%
38% 38%

39% 30%

43% 37%

36%

20%

0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

80%

UK/France/Germany

60%
41% 46% 35% 40% 36% 38% 34% 31% 31% 22% 36% 32% 37% 36% 39% 38% 43% 31% 30%

40%

36% 32%

20%

26%

25%

27%

0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Q11-14. [Business in General and Government in general TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) Informed Publics ages 35-64 in the U.S. and UK/France/Germany 20 Edelman, 2012. All rights reserved.

Credibility of CEOs and government officials plummet Peers and regular employees see dramatic rise
CREDIBLE SPOKESPEOPLE

2011
Academic or expert

2012
70% 64%
Academic or expert

68% 66%

Technical expert in the company

Technical expert in the company

Greatest increase since 2004

Financial or industry analyst

53% 50% 47% 43% 43% 34%

A person like yourself

65% + 22 50% + 16

CEO CEO
NGO representative

Regular employee

NGO representative

50%
46% 38% - 12 29% - 14

A person like yourself

Financial or industry analyst

Govt official or regulator Government official or regulator

Regular employee

CEO CEO Government official or regulator Govt official or regulator

Q119-126. [TRACKING] 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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE)

Biggest declines in Barometer history

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Edelman, 2012. All rights reserved.

CEO credibility returns to low of 2009

CEO CREDIBILITY
U.S. UK/France/Germany China India S. Korea Japan

100% 90% 80% 70% 60% 66% 60% 59% 53% 44% 37% 37% 34% 22% 41% 32% 23% 23% 18% 17% 46% 44% 33% 26% 49% 51% 56% 68% 63% 83%

60%
50%

46% 45%
35% 34% 28% 27% 22% 21%

40%
30% 20% 10% 0%

26%

17%

2007

2008

2009

2010

2011

2012

Q119-126. [A CEO of a company TRACKING] 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, Credible: Very + Extremely Credible) Informed Publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea

22

Edelman, 2012. All rights reserved.

Government leaders less trusted than business leaders to tell the truth
Business Leaders Government Leaders

% WHO DO NOT TRUST THEM AT ALL TO TELL THE TRUTH

73% 69% 69% 66% 66% 65%

60%

50%
46%

51% 48% 44% 42%

50%

53%

51%

50% 47% 46% 46% 46% 43% 43%

40% 36% 27%

41%

38%

40% 36% 34% 28% 30% 29% 24% 17% 17% 15% 14% 11% 9%

34%

36%

34%

23%
21% 13% 10% 10% 14%

26%

24%

5%

Q126A. [SPLIT SAMPLE] How much do you trust business leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries; Q126B. [SPLIT SAMPLE] How much do you trust government leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries
23 Edelman, 2012. All rights reserved.

Business not meeting publics expectations

Business Importance Company Performance

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

36% 48% 27% 26% 28% 32% 27% 26% 29% 30% 26% 41% 29% 23%

-31

67% 67%

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

TREATS EMPLOYEES WELL PLACES CUSTOMERS AHEAD OF PROFITS

-19
-37

64%

62%

-36
-34 -29 -33 -31 -26 -20 -23 -5
50% 62% 61% 60%

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS

HAS ETHICAL BUSINESS PRACTICES HAS TRANSPARENT AND OPEN BUSINESS PRACTICES COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICH THE COMPANY OPERATES IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES' PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETAL ISSUES

57%

55%

49%

46%

-12 -16

41%

39% 38%

Closing the gap on expectations

31% -7 19%

-17

36%

Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is not at all important to building your trust and nine means it is extremely important to building your trust in a company. (Top 2 Box, Very/ Extremely Important) General Population in 25 country global total (excludes Dont Know responses); Q103-118. Please rate [INSERT COMPANY] 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 Very/ Extremely Well) General Population in 25 country global total
24 Edelman, 2012. All rights reserved.

Government not meeting publics expectations

Government Importance Government Performance

LISTENS TO CITIZENS' NEEDS AND FEEDBACK

67% 17%

-50
66%

HAS TRANSPARENT AND OPEN PRACTICES

16%

-50
65%

EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE COUNTRY

19%

-46
65%

COMMUNICATES FREQUENTLY AND HONESTLY

16% 56% 18%

-49 -38
54%

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE EMPLOYMENT OPPORTUNITIES CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT LOCAL COMMUNITIES PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO ADDRESS SOCIETAL ISSUES

18%

-36
52%

16% 41% 14%

-36 -27

Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. (Top 2 Box, Very/Extremely Important) General Population in 25 country global total; Q140-147. Please rate your government on how well you think they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well". (Top 2 Box, Performing Very/Extremely Well) General Population in 25 country global total
25 Edelman, 2012. All rights reserved.

Despite lack of trust in government, calls for increased regulations

% WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH

77% 70%

68% 64% 61% 58% 54% 54% 54% 53% 51% 50% 48% 48% 46% 45% 40% 40% 38%

50% 49%

36% 35% 34% 30% 30% 25%

Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (% who selected not enough) Informed Publics ages 25-64 in 25 country global total and across 25 countries

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Edelman, 2012. All rights reserved.

Calls for greater protection and responsible behavior

THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS:

31%

PROTECT CONSUMERS from irresponsible business practices

Business can address on its own

25%

REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly BUILD INFRASTRUCTURE that promotes and facilitates business opportunities Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis Government SHOULD NOT PLAY A ROLE in business

19% 16% 4% 4%

Perceived drivers of irresponsible behavior:

Poor management (29%) Unethical business practices (28%) Shortcuts that lead to poor quality (21%)

Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total; Q127. Which of the following items do you think makes people in a company most likely to engage in risky and irresponsible behavior that could damage a company? Informed Publics ages 25-64 in 25-country global total

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Edelman, 2012. All rights reserved.

BUSINESS CAN EARN LICENSE TO LEAD

Business has flexibility and speed

2008-2009

Low trust in business and CEOs

Business leaders more trusted than government leaders

THE DYNAMIC OF TRUST BETWEEN BUSINESS & GOVERNMENT

Call for increased regulation

protection from irresponsible behavior sought

business has advantage in 24 out of 25 markets

2011

Dwindling trust in government

policy paralysis

Government responds

29

Edelman, 2012. All rights reserved.

Business: from license to operate to license to lead

CURRENT TRUST Attributes that Correlate with Current Trust BUILDING FUTURE TRUST Most Important Attributes that Build Trust
1 Listens to customer needs and feedback

47% TRUST BUSINESS

1 Delivers consistent financial returns 2 Innovator of new products

SOCIETAL ATTRIBUTES
MORE IMPORTANT TO

1 High quality products or services

BUILDING FUTURE TRUST

3 Treats employees well

4 Places customers ahead of profits 4 Takes actions to address issue or crisis 6 Has ethical business practices 7 Has transparent and open business

3 Highly regarded, top leadership

3 Ranks on a global list 5 Partners with third parties

CURRENT TRUST DRIVEN BY OPERATIONAL

ATTRIBUTES

8 Communicates frequently and honestly 9 Works to protect/ improve environment

10 Addresses society's needs

11 Positively impacts the local community 12 Innovator of new products 13 Highly regarded, top leadership 14 Delivers consistent financial returns
Societal Operational

15 Ranks on a global list 16 Partners with third parties

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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) General Population in 25 country global total; Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is not at all important to building your trust and nine means it is extremely important to building your trust in a company. (Top 2 Box, Very/ Extremely Important) General Population in 25 country global total (excludes Dont Know responses) * Current Trust results based on regression analysis of general population in 25 country global total
30 Edelman, 2012. All rights reserved.

Earn License to Lead

Exercise principles-based leadership, not rules based performance Recognize that operational factors responsible for current trust wont build future trust, societal and engagement behaviors will Practice radical transparency: speak first to employees; report on goals Shape the public discourse on issues of importance to business

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