2011 Australian Trust Barometer Deck Australia Final

January 21, 2011

Asia-Pacific (APAC)AUSTRALIA

Edelman Trust Barometer at a glance

30-minute telephone interviews conducted from October 11 – November 28, 2010. Australian sample N=200

For more than a decade, Edelman’s Trust

Barometer™ has been:

• Probing the attitudes of opinion

shapers on the current state of trust

in business, institutions and

industries

• Understanding the expectations of

stakeholders regarding policy impact

on business and government

• Aligning communications strategies

and actions required to build trust

Participants are:

Aged between 25 and

64; college-educated;

top 25% of household

income; significant

consumers of media,

business news and

public policy

The Edelman

Trust Barometer

derives from

more than 5,000

interviews

across 23

countries

State of Trust

Shifting centre of gravity

A7-10. [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, Trust) Informed Publics ages 25-64 in Australia

Trust in

Australia

rebounds

since 2010

NGOs

65 %

Business

54 %

Government

52 %

Media

32 %+7 +2

+11+14

Trust in institutions (2010-2011)

62%

58%

54%51%

62% 61%64%

61%

55%

44%

40%

27%

65%

54% 52%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NGOs Business Government Media

A7-10. [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, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Australia

most

trusting of

NGOs; least

trusting of

media

Trust in institutions (2011)

Global APAC U.S. Australia

54%

52%

65%

32%

20

25

30

35

40

45

50

55

60

65

70

2009 2010 2011

Business Government NGOs Media

Trust in institutions (2009-2011)Business

and NGOs

most trusted.

Since trust was benchmarked in Australian in

2009, trust in business has steadily increased,

gaining 11%. Despite a small decline in 2010,

trust in NGOs surges to a high of 65%, a 10%

increase since 2009. A7-10. [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, Trust) Informed Publics ages 25-64 in Australia

54%

58%

54%

64%67%

63% 62%

47%

57%

45%

56%

61%

46%

80%

70%67%

61%

54% 53%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global APAC US Indonesia India Singapore China Australia Japan South Korea

A9. 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

[BUSINESS] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Trust in business (2010-2011)

Trusters DistrustersNeutral

+4+3

- 8+7

20112010 20112010

Globally, trust

in business

trends upward

while US drops

11% increase

in trust in

government since

2010.

Despite a tumultuous year in politics, more than half

(52%) of Australian opinion leaders trust government to

do what is right. Trust in government rebounds from

drop in 2010, returning to 2009 levels.

(Question A9, Top 4 Box, Informed Publics aged 25-64 in Australia)


[IGOVERNMENT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

47%

59%

46%

74%

84%

62%

41% 42%

50%

43%

52%

64%

40%

88%

77%

62%

52% 51% 50%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global APAC US China Singapore Indonesia Australia Japan South Korea India

Trusters DistrustersNeutral

+5

+5

- 6

Trust in government (2010-2011)Globally,

trust in

government

rises in

2011

+11

20112010 2011201020112010

58%61%

46%

80%

54%

67%

61%

46%

70%

53%

62% 62%

55%

66% 65% 64% 63% 62% 61%

51%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global APAC US Indonesia Australia Singapore China South Korea India Japan


[BUSINESS/NGOs] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Trust in business and NGOs (2011)

NGObusiness NGObusiness

Trust in NGOs

now on par with

business;

Australia more

trusting of

NGOs.

NGObusiness

45%

54%

38%

75%

63% 63%

49%

58%

36%

30%27%

49%

61%

27%

86%

80%

59%

53%50%

48%

32%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global APAC US Indonesia China Singapore South Korea India Japan Australia UK


[MEDIA] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Trust in media (2010-2011)Australians

sceptical of

media, along

with other

developed

countriesTrusters DistrustersNeutral

+4

+7

-11

20112010 20112010

2009 2011

Composite score is an average of a country’s trust in all four institutions Ages 25-64 (Global excludes Singapore, UAE and Argentina)

China 61

Brazil 58

India 58

Indonesia 58

Global 49

Japan 49

Australia 47

South Korea 45

UK 42

Germany 42

France 41

US 36

Singapore N/A

Brazil 80

Indonesia 74

China 73

Singapore 67

India 56

Global 55

South Korea 53

Australia 51

Japan 51

France 50

Germany 44

US 42

UK 40

Australia

increases

within global

trust

improvement

The Trust Index (2009/2011)

59%

36%

54%

46%

43%

30%

46%

40%

46%

31%38%

27%

63%

45%

63%

55%

20%

30%

40%

50%

60%

70%

80%

2008 2009 2010 2011

Business Government Media NGOs

Worldwide Financial

Crisis

A7-10. 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, Trust) Informed Publics ages 25-64 in the U.S.

U.S. trust in institutions In U.S., 2011

decline mirrors

2009 drop;

Only country to

see across-the-

board fall

Trust in Business

A closer look

28%

33%

37%

38%

38%

45%

47%

52%

53%

54%

55%

56%

59%

59%

65%

68%

Media

Banks

Financial services

Insurance

Telecommunications

Energy

Consumer packaged goods

Brewing and spirits

OTC personal health care products

Biotech

Automotive

Pharmaceuticals

Entertainment

Retail

Food and beverage

Technology

A30-45. [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 Australia

Trust in industries (2011)

Technology

firmly on top;

Media and

Finance

sector at

bottom

Trust in all

industries

remains

steady over

the past year

28%

33%

37%

38%

38%

45%

47%

52%

53%

54%

55%

56%

59%

59%

65%

68%

Media

Banks

Financial services

Insurance

Telecommunications

Energy

Consumer packaged goods

Brewing and spirits

OTC personal health care products

Biotech

Automotive

Pharmaceuticals

Entertainment

Retail

Food and beverage

Technology

A30-45. Please tell me how much you TRUST businesses in each of the following industries to do what is right. 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 23 countries and Australia

81% 1.

66% 4.

65% 6.

63% 7.

63% 8.

69% 2.

65% 5.

57% 11.

57% 12.

59% 10.

62% 9.

68% 3.

52% 14.

50% 16.

51% 15.

54% 13.

Global ranking

Aussies

LESS

trusting

Aussies

MORE

trusting

In 2011,

Automotive,

Telecommunications

and Biotech less

trusted in Australia

than globally

Trust in industries (2011)

78%

83%

61%

48%

40%

29%

54%

71%

44%46%

26%

90%87%

71%69%

52%

33%

44%

25% 23%

16%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China India Japan Brazil France Australia* Russia US Germany UK Ireland*

2008 2011

* Compares 2009 rather than 2008 data

A30-45. [Banks 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

Trust in banks globally (2008/2011)

+12

+4

+10

+21

+12 -10

-46

-21

-30

-20

Since financial crisis,

trust in banks takes

big hit in the West;

Reverse is true in

China, India,

Japan

Aussies

LESS

trusting

Aussies

MORE

trusting

Company Headquarters

A13-29. 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.

(Top 4 box) Informed Publics ages 25-64 in Australia

National identity for companies (2011)

27% India

26%China

20% Brazil

18%Russia

Australians

distrusting of

companies

headquartered in

BRIC countries

76% Canada

70%Sweden

69% Switzerland

67%Germany

51%US

Reputation attributes (2011)

Has transparent and honest

business practices

Offers high quality products

Is a company I can trust

Treats employees well

Prices its brands fairly and

competitively

B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. How

important is this factor to overall reputation on a 9-point scale where one means ―not at all important‖ and nine means ―extremely important‖? (Top 2 Box, Very/

Extremely Important) Informed Publics ages 25-64 in Australia.

Communicates frequently and

honestly64%

63%

60%

57%

55%

51%

46%

33%

31%

30%

Is a good corporate citizen

Has highly regarded and top

leadership

Delivers consistent financial

returns to investors

Is an innovator of new products,

services or ideas

Top 2 Box, Very/Extremely Important

30%

31%

33%

46%

51%

55%

57%

60%

63%

64%

Is an innovator of new products,

services or ideas

Delivers consistent financial

returns to investors

Has highly-regarded and widely

admired top leadership

Is a good corporate citizen

Communicates frequently and honestly

on the state of its business

Prices its brands fairly and

competitively

Treats employees well

Is a company I can trust

Offers high quality products

or services

Has transparent and

honest business practices

Attributes affecting reputation (2011)Globally quality

tops the list of

reputation

attributes; in

Australia

transparency

and honesty

most important

65% 2.

69% 1.

65% 3.

63% 4.

55% 5.

55% 5.

51% 7.

39% 9.

39% 9 .

46% 8.

Global ranking

B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. How

important is this factor to overall reputation on a 9-point scale where one means ―not at all important‖ and nine means ―extremely important‖? (Top 2 Box, Very/

Extremely Important) Informed Publics ages 25-64 in Australia and global in 23 countries.

Top 2 Box, Very/Extremely Important

LESS

important to

Aussies

MORE

important to

Aussies

Price matters.

17%increase since 2010.

Australians see pricing brands fairly and

competitively as an important attribute for trust

and reputation in 2011.

(Question B72-81, Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia)

Business and Society

Toward shared value

Michael Porter, Mike Kramer, Harvard Business Review”

The purpose of a

corporation must

be redefined

around creating

shared value…

“Companies must

take the lead in

bringing business

and society back

together.

Creating Shared Value

“The social

responsibility of

business is to

increase its

profits.”Milton Friedman

G124. TOTAL 52%. Please tell me if you agree/disagree with the following quote from Milton

Friedman: ―The social responsibility of business is to increase its profits‖? (Net: Strongly agree +

somewhat agree) Informed Publics ages 25-64 in Australia

.

5 out of 10Australians agree

Corporations need to

create shareholder

value in a way that

aligns with society's

interests, even if that

means sacrificing

shareholder value.

G120. TOTAL 79%. Which of the following two positions comes closest to your view? A corporation

should focus only on creating shareholder value, even if the way in which they create shareholder

value conflicts with societal interests OR corporations need to create shareholder value in a way that

aligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics

ages 25-64 in Australia


Government needs

to regulate

corporations

activities to ensure

they are behaving

in a responsible

manner.

G123. TOTAL 73%. And which of the following statements is closest to your view? I trust corporations

to act on their own to behave in a responsible manner OR I think government needs to regulate

corporations’ activities to ensure that they are behaving in a responsible manner.

Informed Publics ages 25-64 in Australia


42%

44%

48%

49%

50%

53%

56%

61%

61%

62%

67%

69%

70%

73%

74%

82%

82%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Japan

S. Korea

Spain

Germany

France

Brazil

Mexico

US

India

China

Singapore

Russia

Indonesia

Australia

Canada

UK

Ireland

G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs to

regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in 23 countries

Government intervention (2011)

Australians more

likely to call for

government to step

in to ensure

business behaves

responsibly

Roadmap to Trust

Key drivers of reputation

70%

54%

19%

47% 47%

41%

33%

67%

61%

38%

52% 52%

46%

30%

69%67%

50% 49%

44% 44%

31%34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

An academic or

expert

Technical expert

within the company

A financial or

industry analyst

CEO Government official NGO representative Person like yourself Regular employee

2009 2010 2011

N/A

D104-111. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Australia

Trusted spokespeople (2009-2911)

-9

-15

Top 2 Box, Extremely Credible/Very Important

CEO and

company

spokespeople

more trusted in

better economic

climate

67%trust a

technical expert from

within the company

69%trust an

academic or expert

50%trust a

financial or industry

analyst

Most trusted spokespeople (2011)

Credibility matters



(Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in Australia

Most trusted spokespeople (2011)

CEOexperiences recovery of credibility

30percentage point

increase since 2009

to 49% in 2011

40%

51%

31%

58%

53%50%

66%

45%

53%

38%

50%

58%

34%

78%

67%63%

58%

50% 50% 49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Global APAC US India Japan South Korea Singapore China Indonesia Australia

2010 2011



(Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

CEO credibility (2010-2011) CEO

credibility

increases

globally

+10

+7

+3

+11

Top 2 Box, Extremely Credible/Very Important

47%

13%

9%

14%

6%

11%

0%

10%

20%

30%

40%

50%

36%

8%

33%

9%

3%

11%

0%

10%

20%

30%

40%

50%

21%

36%

22%

8% 7% 6%

0%

10%

20%

30%

40%

50%

Trusted spokespeople in a crisis (2011)

D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about that crisis. D101.

Keeping the same list of people in mind, when a company issues a product recall, which one person do you want to hear information from about that recall? D102. Keeping the same list of people in mind, when

a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about that damage? Informed Publics ages 25-64 in Australia.

Trusted spokesperson

during a company crisis

Preferred spokesperson

during a product recall

Preferred spokesperson when the

local community has been damaged

CEO

must be

vocal

H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me 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 Australia

Trusted information sources (2011)

9%

21%

6%

6%

8%

9%

17%

27%

20%

23%

23%

27%

Corporate/product advertising

Corporate communications such as press releases

Microblogging sites, such as Twitter

Social networking sites

Content-sharing sites, such as YouTube

Blogs

News/RSS feeds

Online search engines

Television or television news

Radio or radio news

Newspapers

Magazines or business magazines

Tra

dit

ion

al

So

cia

l Me

dia

Co

rpo

rate

Trust a Great Deal (Top Box)

On

lin

e

Mu

ltip

le

so

urc

es

Traditional

media most

trusted;

online

search

engines key

9%

21%

6%

6%

8%

9%

17%

27%

20%

23%

23%

27%

Corporate/product advertising

Corporate communications such as press releases

Microblogging sites, such as Twitter

Social networking sites

Content-sharing sites, such as YouTube

Blogs

News/RSS feeds

Online search engines

Television or television news

Radio or radio news

Newspapers

Magazines or business magazines

H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me 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 Australia and Global in 23 Countries

Trust a Great Deal (Top Box)

Trusted information sources (2011)

Global %

Aussies

LESS

trusting

Aussies

MORE

trusting

28%

33%

27%

31%

27%

18%

11%

9%

9%

7%

18%

11%

Tra

dit

ion

al

So

cia

l Me

dia

Co

rpo

rate

On

lin

e

Mu

ltip

le

so

urc

es

Most relied upon information source (2011)

I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in Australia

1. 48%

2. 14%

3. 12%

4. 12%

5. 10%

6. 9%

7. 8%

8. 7%

9. 6%

10. 6%

Most relied on source for company information (unaided)

Strong

media

brands rise

to the top

4%

5%

7%

11%

16%

22%

35%

0% 10% 20% 30% 40% 50%

Social media

Broadcast (radio/TV)

Friends and family

Print (newspapers/magazines)

Company website

Online news sources

Online search engine

Source of information about a company (2011)

I139. When looking for general news or information about a company, which one type of information source would you generally consult first? Informed Publics ages 25-64 in Australia

First Source

People go to online first

when looking for news

and information about a

company – search, online

news sources and

company websites

4%

5%

7%

11%

16%

22%

35%

0% 10% 20% 30% 40% 50%

Social media


Friends and family


Company website

Online news sources


Source of information about a company (2011)

(I139. When looking for general news or information about a company, which one type of information source would you generally consult first? I140. And

after [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking for general news or information

about a company? Informed Publics ages 25-64 in Australia

5%

8%

11%

14%

16%

17%

26%

0% 10% 20% 30% 40% 50%

Friends and family

Social media




Company website

Online news sources

Second SourceFirst Source

H137. 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 give me a number. Informed publics ages 25-64 in Australia

Once (1), 14%

Twice (2), 15%

Three times (3), 27%

Four or Five times (4 - 5), 29%

Six to Nine times (6-9), 9%

Ten or more times (10+), 6%

3-5 times

56%

Exposure to information (2011) Australians

need information

from multiple

sources and voices;

And need to hear it

3-5 times

to believe

The Benefits of TrustThe Benefits of Trust

Why Trust Matters

http://photo.net/photodb/photo?photo_id=2718544&size=lg

Trust is a protective agent

and leads to tangible

benefits and sales.

Lack of trust is barrier to

change.

15%

38%

75%

76%

29%

42%

61%

80%

84%

Bought shares

Paid more for products/services

Chose to buy products/servicesRefused to buy products/services

Recommended them to a friend/colleagueCriticized them to a friend/colleague

Shared negative opinions online

Sold shares

Shared positive opinions online

+_Distrusted Companies Trusted Companies

Actions Taken Over Past 12 Months

F118. [TRACKING] 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. (Percent ―Yes‖) F119. [TRACKING] 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. (Percent ―Yes‖) Informed Publics ages 25-64 in Australia

Through personal action, trust has tangible benefits

When a company is distrusted When a company is trusted

16% 31%

57%will believe

NEGATIVE

information after

hearing it 1-2 times

Think about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information)

about that company to believe the information is likely to be true? Please give me a number.

Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) about

that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia

will believe positive information after


will believe negative

information after


49%will believe

POSITIVE

information after hearing

it 1-2 times

Trust protects reputation (2011)

Business must align

profit and purpose for

social benefit.

Control Information

Focus Solely on Profit

Pro

tect

the

Bra

nd

Sta

nd

Alo

ne

Profit With Purpose

Old Trust Framework New Trust Architecture

WHAT

The Transformation of Trust

Current media landscape

plus increased

skepticism requires multiple

voices and channels.

Generational differencesDemand for authority and

accountability set new

expectations for corporate

leadership.

January 21, 2011

Asia-Pacific (APAC)AUSTRALIA

2011 Australian Trust Barometer Deck Australia Final

Documents

Transcript of 2011 Australian Trust Barometer Deck Australia Final