Richard Edelman · 2018-10-14 · analyst reports Articles in business magazines Brazil Canada...

1

Richard Edelman President & CEO, Edelman

January 2005

2

Methodology

Edelman conducted its sixth annual trust and credibility survey.

Research was carried out among 1500 opinion leaders: 400 in the United States; 450 in Europe – 150 each in the United Kingdom, France and Germany; 200 in China, and 150 each in Brazil, Canada and Japan

College educated

Ages 35 to 64

Above $75K (or equivalent) household income

Reported a significant interest and engagement in the media, economic and policy affairs.

The study was a 25-minute telephone survey conducted in December 2004.

The margin of error is ±4.9% for the U.S. sample, ±4.6% for the European sample, ±6.9% for the China sample (Shanghai, Beijing and Guangzhou only), and ±8.0% for the UK, France, Germany, Canada, Japan and Brazil samples.

3

55%

32%

44%

48%

42%

31%

31%

43%

45%

28%

27%

36%

36%

46%

63%

35%

57%

33%

34%

45%

65%

54%

42%

67%

0% 20% 40% 60% 80% 100%

NGOs

Media

Government

Business

BrazilCanadaChinaEuropeJapanU.S.

Source: Edelman Annual Trust Barometer, Jan 05

Trust in Institutions 2005: Global Tell me how much you TRUST each institution to do what is right…. ?

Trust is high in the U.S.: Highest in Brazil and China

4

U.S. Trust in Institutions ’01 – ’05 Tell me how much you TRUST each institution to do what is right… ?

48%44%

24%

32%

55%

41%

51%

44%48%44%

43%

27%

48%

39%

48%

20%

35%

28%30%

38%41%

36%

47%

49%

0%

20%

40%

60%

Summer

2001

Winter

2002

Summer

2002

Winter

2003

Winter

2004

Winter

2005

Business Government Media NGOs


• Trust improved since Summer 2001

• NGOs: Now the most trusted institution

5

Europe’s Trust in Institutions ’01 – ’05 Tell me how much you TRUST each institution to do what is right… ?

36%

27%28%

51%

42%45%

41%45%41% 43%

35% 40%

32% 31%

26% 25%

26%

36%

28%

33%

20%

32%

23%

48%

0%

20%

40%

60%

Summer

2001

Winter

2002

Summer

2002

Winter

2003

Winter

2004

Winter

2005

Business Government Media NGOs


• Trust is significantly lower than the U.S.

• Trust in government declined

• NGOs remain most trusted institution

6

• U.S. trust in corporations is high; equivalent to China and Brazil

• Significant “trust discount” for major U.S. brands operating in Europe and Canada, but not in Brazil and China

• UK trust in major U.S. companies is the lowest in Europe

• Problem most acute for iconic American brands

• Problem can be repaired

• No “trust discount” for Asian or European brands operating anywhere in the world.

• Technology companies seem to have a halo effect compared to other industry sectors.

Trust in Leading Corporations 2005

7

21%

25%

45%

37%

44%

46%

52%

53%

58%

69%

72%

74%

77%

89%

0% 20% 40% 60% 80% 100%

Burger King

McDonald's

Coca-Cola

Kraft

Procter & Gamble

Johnson &

Johnson

UPS

U.S.

Europe


American Companies Have a Trust Deficit in Europe Tell me how much you TRUST each company or organization to do what is right… ?

8

44%

25%

26%

61%

46%

46%

61%

40%

43%

70%

62%

61%

0% 20% 40% 60% 80% 100%

Microsoft

Nike

Ford Motor

Company

U.S. '05

U.S. '01

Europe '05

Europe '01

U.S. Companies Can Rally in Europe


9

41%

57%

58%

68%

78%

25%

20%

17%

63%

78%

42%

60%

55%

56%

70%

30%

70%

42%

59%

72%

33%

51%

51%

61%

70%

31%

79%

83%

76%

87%

0% 20% 40% 60% 80% 100%

Deutsche Bank

Siemens

Danone

Nissan

Sony

Brazil

Canada

China

Europe

Japan

U.S.

No Cross-Border Deficit for Non-U.S. based Companies


Japanese like their own companies

10

Technology’s Halo Effect


U.S. Europe Canada Japan China Brazil

% % % % % %

Sony 78 70 70 78 72 87

Microsoft 70 61 59 61 72 82

Samsung 65 58 57 27 72 82

IBM 75 62 71 59 76 83

Trust in companies within the technology sector is high

Technology & Electronics

11

State of Trust in NGOs


40%

27%

18%

40%

46%

27%

51%

55%

69%

45%

77%

54%

0% 20% 40% 60% 80% 100%

World Wildlife

Fund

Greenpeace

Amnesty

International

Brazil '05

Canada '05

China '05

Japan '05

63%

65%

75%

46%

40%

36%

59%

62%

69%

53%

53%

55%

0% 20% 40% 60% 80% 100%

World Wildlife

Fund

Greenpeace

Amnesty

International

World Wildlife

Fund

Greenpeace

Amnesty

International

2005

2001

US

EUROPE

NGOs are super brands in the U.S. and EU •Super brands in Brazil and Canada •Low in China and Japan

12

Trust in Companies by Country of Origin 2005 Tell me how much you TRUST global companies headquartered in the following countries to do what is right… ?

U.S. Least Trusted in Europe & Canada

but most trusted in China


U.S. Europe Canada Japan China Brazil

% % % % % %

U.S. 79 46 49 58 64 65

U.K. 80 65 71 60 59 73

France 40 64 60 55 53 72

Germany 67 77 69 66 61 76

Japan 72 68 69 79 41 83

Canada 81 73 78 48 48 69

France Least Trusted in the U.S.

Germany Most Universally Trusted

Japan Least Trusted in China

13

Biggest issue for U.S. is in U.K and France


Less Likely to Purchase Products because of “Current

Government/Administration”

U.S. Canada UK France Germany Japan China Brazil

% % % % % % % %

The Bush administration/ U.S.

24 41 56 61 49 25 31 42

The Chirac administration/ France

47 23 45 24 36 19 32 27

The Schroeder government/ Germany

25 19 33 19 37 13 27 24

The Blair government/ UK

15 19 35 34 39 18 28 31

The Koizumi government/ Japan

18 17 31 24 41 22 48 25

The Martin government/ Canada

17 15 21 18 36 15 31 28

China Less likely to purchase

Japanese products

U.S. & UK Less likely to purchase

French products

14

Less Likely to Purchase Products Based on “Cultural Identity”


UK, France & Germany Less likely to purchase from U.S.


% % % % % % % %

U.S. 9 22 37 30 31 13 16 19

France 39 17 35 5 21 11 19 11

Germany 17 11 23 7 12 11 18 10

UK 9 13 12 13 28 7 18 10

Japan 12 15 17 10 27 6 31 7

Canada 12 9 18 5 20 11 19 9

Brazil 24 30 38 37 43 42 36 11

U.S. Less likely to purchase from France

15

Solving Global Issues: Obesity & Drug Prices How responsible is each institution for solving… ?


% % % % % % % %

Obesity

Business 44 61 55 53 66 37 33 67

Government 37 59 55 53 55 30 25 76

NGOs 38 45 37 27 51 14 24 47

Drug prices

Business 82 71 72 78 73 66 52 83

Government 73 84 73 78 71 75 61 89

NGOs 45 50 46 29 54 19 28 58

Obesity: More responsibility associated with the “individual” than business, government or NGOs Drug prices: Even with European and Canadian nationalized health care systems, respondents still places responsibility in the hands of business

16

Solving Global Issues: Outsourcing of Jobs to Foreign Countries & Environmental Pollution How responsible is each institution for solving… ?


% % % % % % % %

Outsourcing of jobs to foreign countries

Business 77 77 83 75 77 68 39 79

Government 67 81 63 67 76 71 56 77

NGOs 41 49 37 25 50 29 30 61

Environmental pollution

Business 93 92 90 83 87 88 59 91

Government 88 93 90 86 91 88 69 87

NGOs 72 80 67 48 83 40 42 80

Outsourcing of Jobs to Foreign Countries: With the exception of China, respondents want business to take the lead in resolving outsourcing issues. Environmental Pollution: NGOs are equally responsible for solving environmental pollution… suggesting a cooperative strategy with business and government

17

Section II

The Road Map To Earning Trust

Michael Deaver Vice Chairman, International

18

11%

19%

23%

35%

19%

10%

31%

33%

3%

7%

50%

32%

9%

16%

29%

36%

17%

13%

39%

11%

4%

27%

11%

53%

9%

14%

29%

37%

6%

21%

27%

33%

0% 20% 40% 60% 80% 100%

Radio

Internet

Newspapers

Television

Brazil

Canada

China

France

Germany

Japan

UK

U.S.

First Media Turned To What type of media do you turn to first for trustworthy information/news?

Source: Edelman Annual Trust Barometer, Jan 05 Sorted by U.S. data

TV is number one, followed by newspapers in most markets

19

First Media Turned To: INTERNET ’04 vs. ‘05

12%

19%

9%

13%

14%

27%

10%

21%

0% 20% 40%

Internet

Brazil '05

Brazil'04

China '05

China '04

Europe '05

Europe '04

U.S. '05

U.S. '04

The Internet’s popularity as a source to turn to first has increased significantly


20

42%

42%

42%

48%

49%

55%

68%

33%

59%

20%

22%

35%

34%

28%

43%

40%

47%

51%

38%

30%

48%

40%

24%

31%

30%

35%

43%

34%

39%

47%

56%

35%

67%

48%

57%

61%

0% 20% 40% 60% 80% 100%

Articles in newspapers

Colleagues

Friends & family

Articles in

newsweeklies

Stock or industry

analyst reports

Articles in business

magazines

Brazil

Canada

China

Europe

Japan

U.S.

“Most Credible” Information Sources: U.S. How credible do you feel each of the following sources are for information about a company?


•Print outlets more credible than broadcast

•In the U.S. “friends & family” and “colleagues” are now more credible than TV news and radio

21

“Least Credible” Information Sources: U.S. How credible do you feel each of the following sources are for information about a company?

8%

9%

18%

24%

32%

40%

21%

20%

31%

15%

65%

43%

8%

9%

17%

43%

52%

16%

20%

40%

29%

62%

55%

11%

9%

16%

23%

38%

37%

36%

35%

45%

41%

51%

17%

39%

0% 20% 40% 60% 80% 100%

Corporate advertising

Product or service

advertising

Information conveyed

by CEOs/CFOs

Company Web site

TV News Coverage

News Coverage on the

radio



CEO trust discount evident

22

Media is still country- and language-specific, with local newspapers and television stations dominating

Top Sources:

Most Credible Daily Media Sources What are three specific sources you find to be the most credible?


CNN CBC BBC Le

Monde NTV NHK CCTV Globo

FOX Globe &

Mail Times

Radio France Int’l

Der Spiegel Asahi

Shimbun TVB

Revista Veja

MSNBC CNN BBC Radio

Internet in

general ARD Nikkei.net

Internet in

general

Jornal Nacional

New York

Times BBC

Daily Telegraph

TV in general

FAZ Daily

Yomiuri Sina.com Globo TV


23

47%

47%

56%

60%

60%

31%

44%

49%

61%

59%

48%

44%

53%

56%

48%

39%

35%

49%

46%

38%

47%

37%

55%

56%

61%

65%

46%

76%

66%

51%

0% 20% 40% 60% 80% 100%

NGO rep

Accountant

A person like yourself

Doctor or healthcare

specialist

Academic


“Most Credible” Spokespersons When forming an opinion of a company, how credible is the following source of information?


Independent experts are most credible

24

4%

9%

14%

16%

18%

25%

7%

15%

38%

16%

6%

29%

12%

13%

35%

21%

28%

21%

18%

23%

34%

30%

41%

43%

7%

10%

22%

15%

19%

22%

33%

33%

28%

29%

8%

57%

0% 20% 40% 60% 80% 100%

Entertainer/Athlete

Company's PR rep

Lawyer

Union representative

Legislator

/Parliamentarian

CEO of company


“Least Credible” Spokespersons When forming an opinion of a company how credible would the information be from?


CEOs very credible in developing world

25

1%

14%

22%

43%

37%

4%

25%

56%

60%

60%

0% 20% 40% 60% 80% 100%

Entertainer/Athlete

CEO of a company

A person like yourself

Academics

Doctor or healthcare

specialist

U.S.'05

U.S.'03

Credibility of Spokespeople: U.S. Tracking When forming an opinion of a company how credible would the information be from?


Rise of “A person like yourself”

26

Paid Media vs. Earned Media Which statement do you agree with more?

1%

7% 7% 9%

80%

12%

80%

17%

23%

96%93%

5%

93%

88%87%

64%

0%

20%

40%

60%

80%

100%

I believe information that I get from articles

or news stories more…

I believe information that I get from

advertisements more…

Germany U.S. UK France

Canada Japan Brazil China

Rank order by “I believe information that I get from articles…”

93% of opinion leaders in the U.S. and 92% in Europe stated that they believe information from articles or news stories more than advertisements


27

95%

89%86% 86%

83%78%

0%

20%

40%

60%

80%

100%

Brazil U.S. China Canada Japan Europe

Percentage “Strongly Agree”/“Agree”

Credibility of Multiple Sources of Information

Most people agreed that they are more likely to believe something if they see, read or hear about it from many different sources, rather than a single source.


28

Corporate Behaviors Driving Trust Which two behaviors are most likely to increase your level of trust?

• Solutions are local

• In the U.S. and Brazil, “corporate

philanthropy” ranks # 1 but last in Europe

and second to last in China.

• In Europe and Canada, “listening to

stakeholders” ranks #1

• In China, “visible senior management” heads

the list

• In Japan, “positive media coverage” ranks

# 1

29

Corporate Attributes Driving Trust

•Good quality products and services, ethical management and attentiveness to customers are strong drivers of trust

•“Delivering top quality products and services” topped the list in most markets except Germany (good labor and employee relations) and Brazil (attentiveness to customers)

•To rebuild trust after a crisis provide “full disclosure,” which is ranked #1 in all markets, except China and Brazil where “fixing the problem” is #1

Which two attributes are most likely to increase your level of trust?

30

How to Fix Trust Gap in Europe and Canada

• Partnership with NGOs

• Use of local spokespeople – academics and local management

• Activate local employees about strategy so they became “catalysts”

• Speak with local media

31

Overall Approach to Communications

• Leadership

• Credible Media Mix

• CEO Visibility

• “Inside out”

• Peer-to-peer

• Paradox of transparency

• Communicate continuously

Richard Edelman · 2018-10-14 · analyst reports Articles in business magazines Brazil Canada...

Documents

Transcript of Richard Edelman · 2018-10-14 · analyst reports Articles in business magazines Brazil Canada...