Trust Barometer Norway - 2011

© Edelman & Dinamo, 2011. All rights reserved.

2011 Edelman Trust Barometer January 27, 2011

Norwegian findings


Edelman Trust Barometer at a glance

2

Eleventh annual study – first in Norway

5,278 people in 24 countries of which 203 in Norway

Ages 25 to 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

EU Select Countries: UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, Poland (Each country N=200 aged 25-64)

Global tracking: Informed Publics ages 25-64 in 20 countries


The Edelman Trust Barometer in retrospect

3

Rising Influence of NGOs 2001

Fall of the celebrity CEO 2002

Earned media more credible than advertising 2003

U.S. companies in Europe suffer trust discount 2004

Trust shifts from “authorities” to peers 2005

“A person like me” emerges as credible spokesperson 2006

Business more trusted than government and media 2007

Young influencers have more trust in business 2008

Business must partner with government to regain trust 2009

Trust is now an essential line of business 2010


4

Trust is essential to:

•! Maintain a company’s license to operate with customers, investors and regulators

•! Facilitate growth of new products and businesses

•! Enable improved recruitment/retention of top talent

•! Maintain premium brands and price positioning

•! Facilitate relationships and alliances with key partners

•! Create easier access to capital

•! Create greater resiliency in times of crisis

•! Ensure that communications are heard and acted upon

Essential Nature Of Trust


2010 Year in review


State of Trust Shifting center of gravity


Globally, trust increases in all institutions

7

A7-10. [Institutions TRACKING] I am going to read you a list of 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 20 countries (excludes Singapore, UAE and Argentina)

57 % 54 %

47 % 45 %

61 % 56 %

52 % 49 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

NGOs Business Government Media

2010 2011

Trust in Institutions – Global

+4 +5 +4

+2


62 % 58 %

54 % 51 %

59 % 53 %

46 % 44 %

72 %

44 %

74 %

28 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

NGOs Business Government Media

Global E.U. Norway Trust in institutions

Norway has high government and NGO trust, low media trust vs. EU peers

8

A7-A10. I am going to read you a list of 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) Informed Publics ages 25-64 in 23 countries, the EU (excludes Russia), Sweden, and Norway.


74 %

64 %

53 % 52 % 52 % 48 % 46 % 46 % 44 % 44 % 44 %

41 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Norway trust in business in the lower segment of the EU markets

9

A9. [Business in general TRACKING] I am going to read you a list of 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 the US, EU countries, Russia, and Norway

Trust in Business (2011)

Trusters Distrusters (< 50%) Neutral


75 % 74 %

64 %

49 % 45 % 43 % 43 % 42 % 40 % 39 %

33 %

20 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Trust in government higher in Norway than in most other EU markets

10

A7. [Government in general TRACKING] I am going to read you a list of 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) Informed Publics ages 25-64 in the US, EU countries, Russia, and Norway

Trust in Government (2011)

Trusters Distrusters (< 50%)


69 %

53 % 46 % 45 % 45 %

38 % 37 % 37 % 37 %

28 % 27 % 22 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Trust in Media (2011)

Norway trust in media lower than most other EU markets, similar to US

11

A8. [Media in general TRACKING] I am going to read you a list of 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) Informed Publics ages 25-64 in the US, EU countries, Russia and Norway



74 % 72 % 71 %

60 % 59 % 57 % 56 % 55 % 55 % 54 % 52 %

44 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Trust in NGOs (2011)

Norway trust in NGOs above most other EU markets

12

A8. [Media in general TRACKING] I am going to read you a list of 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) Informed Publics ages 25-64 in the US, EU countries, Russia and Norway



Emerging markets’ trust in NGOs caught up to developed markets

13

Trust in NGOs Informed Publics ages 35-64

36 %

53 %

48 %

55 % 52 %

59 %

31 %

53 %

30 %

35 %

40 %

45 %

50 %

55 %

60 %

65 %

70 %

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US UK/FR/GER India China

A10. [Non-governmental organizations TRACKING] I am going to read you a list of 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) Informed Publics ages 35-64 in US, UK/FR/GER, India and China


Trust Index: 2009 – 2011 Norway assumes relatively high score, slightly above Sweden

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

2009 2011

Global 49

Netherlands 69

China 61

Brazil 58

India 58

Poland 47

Sweden 46

Russia 44

Italy 43

UK 42

Germany 42

France 41

Spain 40

Ireland 39

US 36

UAE N/A

Global 55

Brazil 80

UAE 78

Netherlands 73

China 73

Italy 56

India 56

Norway 54

Sweden 52

Spain 51

France 50

Poland 49

Germany 44

US 42

UK 40

Russia 40

Ireland 39


50 %

67 %

51 % 44 %

36 % 30 %

15 %

25 %

16 % 18 % 14 %

76 % 73 %

69 % 69 % 64 % 63 %

50 %

42 % 40 % 39 %

35 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Germany Sweden U.K. Japan U.S. France Italy India Brazil China Russia

Norwegian have trust in neighbouring countries’ national companies but have low trust in BRIC HQ companies.

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Most Trusted National Identity for Companies – Norwegian/Global

A13-29. [TRACKING] Now I would like to focus on global companies headquartered in specific countries. 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 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 20 countries (excludes Singapore, UAE and Argentina)

Distrusted HQ Countries Trusted HQ Countries

Norway

Global


Technology most trusted industry. Pharmaceuticals low in Norway relatively to other industries.

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Trust in Industries – Norway

36 %

36 %

38 %

46 %

48 %

48 %

50 %

50 %

50 %

58 %

60 %

62 %

69 %

Media

Pharmaceuticals

Financial services

Telecommunications

Bank and insurance

Oil and energy

Aquaculture

Food and beverage

Retail

Construction

Transport and logistics

Travel and tourism

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 Norway.

*Energy asked as “Oil and energy”


Technology most trusted industry. Everywhere Norway less trusting than global peers of most industries.

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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 23 countries, the EU (excludes Russia), Sweden, and Norway.

50 %

51 %

52 %

54 %

57 %

57 %

59 %

62 %

63 %

63 %

65 %

65 %

66 %

68 %

69 %

81 %

Financial services Banks

Insurance Media

Brewing and spirits OTC personal health care products

Consumer packaged goods Energy

Pharmaceuticals Entertainment

Retail Biotech

Food and beverage Telecommunications

Automotive Technology

Trust in Industries 78% 74% 69%

64% 61% N/A

61% 54% 46%

63% 50% 50%

63% 56% N/A

63% 59% 50%

62% 45% N/A

57% 62% 36%

56% 49% 48%

54% 49% N/A

52% 39% N/A

57% 54% N/A

48% 32% 36%

41% 43% 48% 33% 41%

36% 35% 38% Significant at 95% confidence level compared to global


78 % 83 %

61 %

48 %

40 %

54 %

71 %

44 % 46 %

26 %

90 % 87 %

71 % 69 %

52 %

44 %

25 % 23 %

16 %

6 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

China India Japan Brazil France Russia US Germany UK Ireland*

2008 2011

Since financial crisis, trust in banks takes big hit in the West Reverse is true in China, India, Japan, Brazil

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Trust in Banks

*Note: Data for 2009/ 2011 displayed

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

+12

- 46

- 30

- 20

+21 +10 - 10

+12 - 21

2010-2011 Drops: -8 -9 -22


54 % 53 % 48 % 45 % 44 % 43 % 42 %

31 % 31 % 26 %

19 % 15 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2011

Norway trust in banks and insurance in upper segment of the “distrusters”

19

*Note: Data for 2009/ 2011 displayed

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 in the US, EU countries, Russia and Norway

Trust in Banks and insurance


Roadmap to Trust A new way forward


Trust, transparency and employee welfare are the most important reputation factors in Norway. Company leaders and financial returns least valued

21

B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important” and nine means it is “extremely important” to overall reputation. 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 23 countries, the EU (excludes Russia), Sweden, and Norway.

39 %

39 %

46 %

51 %

55 %

55 %

65 %

63 %

69 %

65 %

Delivers consistent financial returns to investors

Has highly-regarded and widely admired top leadership

Is an innovator of new products, services or ideas

Is a good corporate citizen

Prices its brands fairly and competitively

Communicates frequently and honestly on the state of its business

Has transparent and honest business practices

Treats employees well

Offers high quality products or services

Is a company I can trust

Reputation Factors

65% 74% 62%

63% 70% 54%

62% 58% 61%

61% 49% 60%

49% 42% 47%

48% 43% 43%

43% 39% 44%

40% 29% 33%

33% 27% 28%

28% 16% 14%

Significant at 95% confidence level compared to global


Norway trust in experts on one hand but have least trust in CEOs and analysts

22

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 1 Box, Credible: Extremely Credible) Informed Publics ages 25-64 in Norway.

50 % 49 %

36 % 36 % 33 %

26 %

21 %

15 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

Technical expert within the company

An academic or expert

Government official

Person like yourself

NGO representative

Regular employee

A financial or industry analyst

CEO

Norway*

Credible Spokespeople – Norway (extremely credible)


19 %

40 %

23 % 29 % 29 %

16 % 23 % 23 %

29 %

19 % 18 %

68 %

58 % 56 %

46 % 45 % 43 % 39 % 38 %

35 % 34 %

24 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 % 2009 2011

In contrast, CEO credibility higher and rising in most EU markets

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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 the US, EU Countries and Russia

Credible Spokespeople – CEO (Extremely credible or very credible)

+18 +33 +49

+17 +16 +16 +15 +15 +27


Internationally, people want to hear from CEO—and technical expert in a product recall

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Who Informed Publics Want to Hear from During a Product Recall

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? Informed Publics ages 25-64 in U.S., EU (excludes Russia and Sweden).

35 %

11 %

32 %

14 %

3 % 4 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

EU

33 %

5 %

35 %

18 %

7 % 2 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

US


When local community damaged, most want to hear from CEO

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Who Informed Publics Want to Hear from When the Local Community Has Been Damaged

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 U.S., EU (excludes Russia and Sweden).

38 %

19 %

10 %

18 %

11 %

3 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

EU

47 %

7 % 10 %

24 %

10 %

2 % 0 %

10 %

20 %

30 %

40 %

50 %

60 %

US


Trust in the Media


Traditional media and online news most trusted for information about a company

27

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? (Trust A Great Deal) Informed Publics ages 25-64 in 23 countries, the EU (excludes Russia) Sweden, and Norway.

11 %

18 %

7 %

9 %

9 %

11 %

18 %

29 %

27 %

28 %

31 %

33 %

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

Radio or radio news

Magazines or business magazines

Television or television news

Newspapers

Traditional Social M

edia C

orporate Trusted Information Sources – Trust a Great Deal

Online

Multiple

sources

Significant at 95% confidence level compared to global

26% 28% 28%

27% 28% 38%

26% 28% 32%

26% 33% 35%

24% 22% 19%

15% 17% 30%

9% 9% 15%

7% 8% 9%

6% 5% 14%

6% 7% 12%

12% 19% 24%

7% 6% 15%


Informed publics need information from multiple sources, multiple voices

28

Norway

Once (1); 7 %

Twice (2); 18 %

Three times (3); 40 %

Four or Five times (4 - 5); 18 %

Six to Nine times (6-9); 2 %

Ten or more times (10+); 4 %

Don’t know/refused (vol); 11 %

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 Norway.

3-5 times 58%

And need to hear it 3-5 times to believe it


The Benefits of Trust


Through personal action, trust has tangible benefits

19%

33%

67%

73%

30 %

44 %

54 %

75 %

85 %

30

Bought shares

Paid more for products/services

Chose to buy products/services Refused to buy products/services

Recommended them to a friend/colleague Criticized 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 – Global

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”) Informed Publics ages 25-64 in 23 countries 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 23 countries


When a company is distrusted

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When a company is trusted

15% 25%

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. Informed publics ages 25-64 in 23 countries 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 23 countries

Trust protects reputation Communications is much easier when you’re trusted

will believe positive information after hearing it 1-2 times

will believe negative information after hearing it 1-2 times

51% will believe

positive information after hearing it 1-2 times


The Transformation of Trust

32

Control Information

Focus Solely on Profit

Pro

tect

the

Bra

nd

Stand A

lone

Profit With Purpose

Old Trust Framework New Trust Architecture

WHAT


Conclusions – International

33

Business must align profit and purpose for social benefit

Trust is a protective agent and leads to tangible benefits; lack of trust is barrier to communications

Current media landscape plus increased skepticism requires multiple voices and channels

Demand for authority and accountability set new expectations for corporate leadership


Conclusions – Norway

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Norway like it’s neighbours Sweden, Netherlands has high trust in government and NGOs, but lower trust in business and media than most other EU countries

Trust, transparency and employee welfare are the most important reputation factors in Norway.

CEOs and financial analysts start out at a trust discount compared to other European markets

Companies would do well to ally with government or NGOs, and include technical experts as spokespeople

Trust Barometer Norway - 2011

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