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China Tops Trust Index in 2012 While Skepticism Rises
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China Tops Trust Index in 2012 While Skepticism Rises
1.
2012
EDELMAN TRUST BAROMETER CHINA RESULTS 1 © Edelman, 2012. All rights reserved.
2.
2012 Edelman Trust
Barometer – China Findings METHODOLOGY OVERVIEW GENERAL INFORMED INFORMED PUBLIC PUBLIC PUBLIC Twelfth annual study 25-64 35-64 Online survey in 25 countries Indicates Global Data 30,000+ respondents Indicates Asia Pacific APAC Region Data 1,000 general population respondents per country Ages 18+ Indicates China Data 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 Asia Pacific (APAC) select countries: India, China, Japan, South Korea, Indonesia, Singapore, Australia, Hong Kong** and Malaysia** China Sample: 1,000 general population respondents & an oversample of 500 Informed Publics * This year Informed Publics were surveyed via online methodology instead of telephone ** New country included in this year’s study 2 © Edelman, 2012. All rights reserved.
3.
3
© Edelman, 2012. All rights reserved.
4.
China tops the
‘Trust Index’ in 2012; However, nearly twice as many countries are now skeptics, including South Korea & Japan 2011 2012 GLOBAL 55 GLOBAL 51 Brazil 80 > China 76 UAE 78 UAE 68 Indonesia 74 Singapore 67 China 73 India 65 TRUSTERS Netherlands 73 Indonesia 63 Mexico 69 Mexico 63 Netherlands 61 Singapore 67 Argentina 62 Hong Kong 61 Canada 58 India 56 Malaysia 57 Italy 56 Italy 56 NEUTRAL Canada 55 Argentina 54 South Korea 53 Australia 53 Sweden 52 < Brazil 51 Japan 51 > Sweden 49 Australia 51 U.S. 49 Spain 51 > South Korea 44 France 50 Poland 44 Poland 49 U.K. 41 DISTRUSTERS Ireland 41 Germany 44 France 40 U.S. 42 Germany 39 U.K. 40 < Spain 37 Russia 40 < Japan 34 Ireland 39 Russia 32 Composite score is an average of a country’s 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 25 countries in 2012 4 © Edelman, 2012. All rights reserved.
5.
Globally, NGOs and
business fall to 2009 trust level – government record decline TRUST IN INSTITUTIONS – 18-COUNTRY GLOBAL TOTAL NGOs Media Business Government 80% 70% 59% 60% 57% 53% 54% 54% 52% 53% 53% 52% 49% 50% 51% 47% 46% 49% 47% 48% 46% BUSINESS 44% 46% 44% 45% 40% 43% 40% 38% GOVERNMENT 30% 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) 5 © Edelman, 2012. All rights reserved.
6.
Trust in business,
NGOs & media increases after sharp declines among Chinese older informed publics TRUST IN INSTITUTIONS – CHINA NGOs Media Business Government 90% 80% 81% 78% 79% 80% 77% 79% 73% 72% 75% GOVERNMENT 68% 70% 66% 71% 63% 67% 66% 65% 59% 60% BUSINESS 55% 56% 56% 50% 54% 53% 53% 40% 38% 30% 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 China 6 © Edelman, 2012. All rights reserved.
7.
Majority of countries
now distrust government; trust declines significantly in China TRUST IN GOVERNMENT 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 88% 88% 85% 77% 78% 75% 75% 73% 64% 62% 61% 62% 62% 56% 53% 52% 54% 52% 52% 51% 50% 49% 49% 50% 44% 47% 45% 43% 43% 43% 42% 42% 43% 40% 39% 40% 38% 35% 35% 36% 33% 33% 33% 31% 31% 32% 28% 26% 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 7 © Edelman, 2012. All rights reserved.
8.
Several mature economies
see double-digit drops in business trust; Conversely, China is the only country where trust in business increased TRUST IN BUSINESS 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 80% 81% 81% 78% 77% 78% 74% 71% 70% 69% 67% 67% 66% 65% 65% 64% 63% 63% 61% 62% 56% 56% 57% 57% 54% 54% 53% 53% 53% 52% 52% 50% 50% 50% 46% 48% 46% 46% 46% 44% 47% 47% 44% 43% 41% 41% 38% 34% 32% 31% 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 8 © Edelman, 2012. All rights reserved.
9.
In China, trust
in consumer packaged goods, energy, brewing & spirits and food & beverage increases significantly; Trust in four other industries declines TRUST IN INDUSTRIES – CHINA 2011 2012 Technology 98% Technology 91% - 7 Banks 90% Media 82% Telecommunications 88% Automotive 81% Automotive 82% Banks 78% - 12 Media 81% Telecommunications 78% - 10 Pharmaceuticals 79% Consumer packaged goods 76% + 35 Financial services 74% Energy 76% + 24 Brewing and spirits 55% Financial services 76% Energy 52% Brewing and spirits 70% + 15 Food and beverage 52% Pharmaceuticals 65% - 14 Consumer packaged goods 41% Food and beverage 59% + 7 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 China 9 © Edelman, 2012. All rights reserved.
10.
Media only institution
to see trust rise; though Chinese trust steady TRUST IN MEDIA 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 86% 80% 79% 80% 72% 73% 70% 69% 67% 65% 65% 65% 61% 60% 61% 61% 59% 57% 54% 53% 53% 52% 50% 49% 50% 48% 49% 48% 46% 46% 45% 47% 45% 45% 43% 45% 42% 45% 41% 37% 37% 38% 38% 37% 37% 36% 35% 32% 33% 27% 22% 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 10 © Edelman, 2012. All rights reserved.
11.
Diversification of Media
TRUST IN INFORMATION SOURCES – CHINA 2011 Informed Public 2012 Informed Public - 12 45% 33% + 19 +19 +13 29% 21% 18% 10% 5% 2% TRADITIONAL ONLINE MULTIPLE SOCIAL MEDIA CORPORATE SOURCES 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 China 11 © Edelman, 2012. All rights reserved.
12.
NGOs still most
trusted institution, despite some drops; China is the only country where trust increased TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 85% 79% 80% 78% 75% 74% 72% 72% 72% 70% 70% 70% 67% 67% 65% 68% 65% 64% 64% 66% 66% 66% 63% 62% 61% 61% 60% 60% 58% 58% 58% 59% 55% 56% 55% 54% 53% 53% 55% 53% 53% 51% 51% 51% 50% 48% 49% 42% 41% 30% 28% 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 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 12 © Edelman, 2012. All rights reserved.
13.
13
© Edelman, 2012. All rights reserved.
14.
Business not meeting
public’s expectations in China CHINA Gap Business OFFERS HIGH QUALITY PRODUCTS OR SERVICES 64% - 15 Importance 49% Company Performance HAS ETHICAL BUSINESS PRACTICES 62% - 20 42% LISTENS TO CUSTOMER NEEDS AND FEEDBACK 60% 43% - 17 TREATS EMPLOYEES WELL 59% - 22 37% PLACES CUSTOMERS AHEAD OF PROFITS 58% - 24 34% TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 57% - 19 38% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 56% - 19 37% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 56% - 23 33% ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS 54% - 13 41% COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 53% - 18 BUSINESS 35% DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 47% - 13 34% CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 46% -9 IN WHICH THE COMPANY OPERATES 37% HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 45% - 12 33% PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 42% -9 SOCIETAL ISSUES 33% RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST 42% COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES' 41% -1 IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 42% 42% 0 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 China (excludes ‘Don’t 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 China 14 © Edelman, 2012. All rights reserved.
15.
Similarly, government not
meeting public’s expectations in China GOVERNMENT IMPORTANCE VS. PERFORMANCE – CHINA Government Importance Government Performance Gap 64% -40 HAS TRANSPARENT AND OPEN PRACTICES 24% 63% -38 LISTENS TO CITIZENS' NEEDS AND FEEDBACK 25% 62% -36 COMMUNICATES FREQUENTLY AND HONESTLY 26% 61% -35 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 26% EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 53% -26 COUNTRY 27% PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 50% -25 ADDRESS SOCIETAL ISSUES 25% PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 47% -23 EMPLOYMENT OPPORTUNITIES 24% CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 47% LOCAL COMMUNITIES -22 25% 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 China; 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 China 15 © Edelman, 2012. All rights reserved.
16.
Asia Pacific markets,
including China, are more likely than other regions to trust both business and government 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% 51% 53% 50% 51% 50% 50% 48% 46% 47% 46% 46% 46% 44% 43% 43% 42% 41% 40% 40% 38% 36% 36% 34% 36% 34% 34% 30% 27% 28% 29% 26% 23% 24% 24% 21% 17% 17% 14% 15% 13% 14% 10% 11% 9% 10% 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 16 © Edelman, 2012. All rights reserved.
17.
Despite lack of
trust in government, calls for increased regulations—especially in China % WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH 77% 70% 68% 64% 61% 58% 54% 54% 54% 53% 51% 50% 50% 49% 48% 48% 46% 45% 40% 40% 38% 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 17 © Edelman, 2012. All rights reserved.
18.
Calls for greater
protection and responsible behavior THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS: China Business 31% PROTECT CONSUMERS from irresponsible business practices can address on its own 27% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 13% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 20% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 6% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 3% Government SHOULD NOT PLAY A ROLE in business Perceived drivers of irresponsible behavior: • Poor management (Global - 29%, APAC - 27%, China - 28%) • Unethical business practices (Global - 28%, APAC - 31%, China - 24%) • Shortcuts that lead to poor quality (Global - 21%, APAC - 23%, China - 26%) 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, Asia Pacific region and China; Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in China 18 © Edelman, 2012. All rights reserved.
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© Edelman, 2012. All rights reserved.
20.
BUSINESS
CAN EARN LICENSE TO LEAD 2008-2009 Low trust in business and CEOs Business has flexibility and speed THE DYNAMIC OF TRUST BETWEEN Call for increased regulation BUSINESS & protection from Business leaders GOVERNMENT irresponsible behavior sought more trusted than government leaders business has advantage in 24 out of 25 markets 2011 Government responds Dwindling trust in government policy paralysis 20 © Edelman, 2012. All rights reserved.
21.
Business: from license
to operate to license to lead CHINA CURRENT TRUST BUILDING FUTURE TRUST Attributes that Correlate with Current Trust Most Important Attributes that Build Trust 62% TRUST BUSINESS 1) High quality products or services 1) Innovator of new products SOCIETAL ATTRIBUTES 2) Has ethical business practices MORE IMPORTANT TO 2) Ranks on a global list BUILDING FUTURE 3) Listens to customer needs and feedback TRUST 4) Treats employees well 3) Partners with third parties 5) Places customers ahead of profits CURRENT TRUST 6) Takes actions to address issue or crisis DRIVEN BY OPERATIONAL ATTRIBUTES 7) Has transparent and open business 7) Works to protect/improve environment 9) Addresses society's needs 10) Communicates frequently and honestly 11) Delivers consistent financial returns 12) Positively impacts the local community 13) Highly regarded, top leadership Societal Operational 14) Innovator of new products 14) Ranks on a global list 14) 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 China; 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 China (excludes ‘Don’t Know’ responses)* ‘Current Trust’ results based on regression analysis of the general population 21 © Edelman, 2012. All rights reserved.
22.
A “People like
me” rises from the bottom to the most trusted spokesperson; a regular employee also experienced a dramatic increase CREDIBLE SPOKESPEOPLE – CHINA 2011 2012 Academic or expert 73% A person like yourself 71% + 48 CEO 50% Technical expert in the company 67% + 31 Government official or regulator 47% NGO representative 61% + 19 NGO representative 42% Academic or expert 60% - 13 Financial or industry analyst 39% CEO 53% Technical expert in the company 36% Regular employee 50% + 43 A person like yourself 23% Financial or industry analyst 40% Regular employee 7% Government official or regulator 37% - 10 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 China 22 © Edelman, 2012. All rights reserved.
23.
In China, skepticism
requires repetition MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE NUMBER OF TIMES NEEDED TO HEAR INFORMATION – CHINA Ten or more times (10+), Once (1), 2% 12% Twice (2), 14% Six to Nine times (6-9), 5% Three times (3), 41% Four or Five times (4 - 5), 27% Three to Five times 68% 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 ‘Don’t Know’ responses) Informed publics ages 25-64 in China 23 © Edelman, 2012. All rights reserved.
24.
Earn License to
Lead Exercise principles-based leadership, not rules based performance Recognize that operational factors responsible for current trust won’t 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 24 © Edelman, 2012. All rights reserved.
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© Edelman, 2012. All rights reserved.
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