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2011 Edelman Trust Barometer
Edelman Trust Barometer at a glance
Eleventh annual study
5,075 people in 23 countries of which 200 in South Korea
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
2
APAC Select Countries: India, China, Japan, South Korea,
Indonesia, Singapore, Australia (China N=375 aged 25-64; All others N=200
aged 25-64)
State of Trust
Shifting center of gravity
62%58%
54%51%
62% 61%64%
61%62%
46%50%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NGOs Business Government Media
Global Asia Pacific S. Korea
Trust in Institutions
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, Asia Pacific and S. Korea.
4
South Korea most trusting of NGOs; least trusting of business
5
Trust in NGOsInformed Publics ages 35-64
36%
53%
48%
55%
39%
63%
31%
53%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
US UK/FR/GER S Korea 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, S Korea and China
South Korea has highest levels of Trust in NGOs
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
6
South Korea only APAC country where business is not trusted by a majority
Trust in Business (2010 – 2011)
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 (Global excludes Singapore, UAE and Argentina)
Trusters Distrusters
2010 2011
+16
- 8
Neutral
+2
58%61%
46%
80%
70%67%
61%
54% 53%
46%
62% 62%
55%
66%
61%64% 63%
65%
51%
62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Global APAC US Indonesia India Singapore China Australia Japan South Korea
Business NGOs
Trust in Business and NGOs
7
A7-10. [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 23 countries
South Korea more trusting of NGOs than business, in contrast to most other
APAC countries
45%
54%
38%
75%
63% 63%
49%
58%
36%
30%
49%
61%
27%
86%
80%
59%
53%50%
48%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Global APAC US Indonesia China Singapore South Korea
India Japan Australia
8
Just over half in South Korea trust media; trust stable since 2010
Trust in Media (2010 – 2011)
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 (Global excludes Singapore, UAE and Argentina)
Trusters
Distrusters
2010 2011
+7
+11
- 11
+17
+12
Neutral
+4
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
9
Half in South Korea trust government; trust unchanged from 2010
Trust in Government (2010 – 2011)
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 (Global excludes Singapore, UAE and Argentina)
Trusters Distrusters
2010 2011
+5
Neutral
+5
+14
+11- 6
75% 76% 76%71%
69% 69%
61%65%
50%
39%36% 34%
30%
76% 75%73% 73%
69% 69% 68%64%
63%
50%
44%42% 40% 39%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
10
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)
Most Trusted National Identity for Companies – Global
Along with companies in BRIC, companies headquartered in South Korea are
least trusted
N/A N/A
+ 4+ 5+ 5
+ 3
+ 3
Distrusted HQ CountriesTrusted HQ Countries2010 2011
46%
83%80%
66%62%
60% 59%57%
55%51%
46%
41% 41% 41%38% 37% 37% 36% 36%
34%30%
28%24%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
11
A13-29. (South Korea) 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, Trust) Informed publics ages 25-64 in 23 Countries
Emerging markets, Singapore and South Korea the only countries to trust
companies headquartered in South Korea
Trust in Companies Headquartered in S. Korea
DistrustedTrusted
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
12
Technology most trusted industry globally and in South Korea; Energy one
of top trusted industries in South Korea in contrast to global results
Trust in Industries
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 in 23 countries, APAC and S. Korea.
87% 83% #1
77% 73% #3
78% 71% #4
66% 56%
67% 68% #5
71% 58%
67% 58%
72% 64%
68% 74% #2
59% 56%
61% 53%
54% 56%
64% 58%
65% 51%
75% 64%
66% 64%
Significant at 95%
confidence level
Asia
Pacific
13
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
S. 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
S. Korea 53
Australia 51
Japan 51
France 50
Germany 44
US 42
UK 40
Trust Index 2009 – 2011: South Korea’s trust composite score increases and
it edges up in the Trust Index ranking
Business and Society
Toward shared value
84%
72%70% 70%
64%60%
57% 57% 56% 55%52%
50% 49% 48%44% 44% 43% 43%
39%37% 35%
33%30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
15
G124. Please tell me if you strongly agree, somewhat agree, neither agree nor disagree, somewhat disagree or strongly 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 23 countries
% who agree
Seven out of 10 in South Korea agree with Milton Friedman’s assertion that
―the social responsibility of business is to increase its profits‖
Milton Friedman: “The social responsibility of business is to increase its profits”
91% 89% 89% 89%85% 85% 85%
82% 81% 81% 80% 79% 78% 78%74% 73% 72% 71% 71%
67%63% 62%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Believe corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value
16
G120. 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 23 countries
But nearly seven out of 10 also believe business must align with society’s
interests in creating shareholder value
82% 82%
74% 73%70% 69%
67% 66%63% 63% 62% 61% 61%
58% 57% 56%53% 53%
50% 49% 48%44%
42%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Believe that government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner
17
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
Less than a majority in South Korea agree government needs to step in to
ensure business behaves responsibly
74% 74%70%
67%
61%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Customers Employees Society Local Communities Government
Expectation for companies to consult multiple stakeholders
Importance of Stakeholders to a CEO’s business decisions – S Korea
E112-117. [TRACKING] Now I would like to read you a list of business stakeholders. When a CEO makes business decisions for his or her company, please tell me how important you believe the interests of each of the following stakeholders should be to that CEO’s business decisions using a scale of 1 to 9 where 1 means that stakeholder’s interests should not be important at all to the CEO’s business decisions and 9 means that stakeholder’s interests should be extremely important to the CEO’s business decisions. Let’s start with [INSERT FIRST]. How important should [INSERT FIRST]’s interests be to CEO’s decisions? (Top 4 Box, Important) Informed Publics ages 25-64 in South Korea
18
93% 85%
90% 77%
89% 85%
91% 82%
91% 83%
90% 85%
88% 77%
85% 82%
84% 74%
73% 72%
19
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 4 Box, Important)
Informed Publics ages 25-64 in 23 countries, Asia Pacific and S. Korea
78%
79%
87%
88%
89%
90%
92%
92%
92%
94%
Has highly-regarded and widely admired top leadership
Delivers consistent financial returns to investors
Is an innovator of new products, services or ideas
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
Has transparent and honest business practices
Offers high quality products or services
Reputation Factors
Significant at 95%
confidence level
compared to global
High quality, trust, and frequent communication
most important to corporate reputation in South Korea
Asia
Pacific
#1
#2
#1
#1
A CEO Renaissance
21
74%
63%67%
50%
45%
37%
42%
81%
76%
71%68%
63%59% 59%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Technical expert within the company
An academic or expert
A financial or industry analyst
NGO representative
CEO Regular employee
Person like yourself
Government official
2010 2011
Credible Spokespeople – S. Korea
Spokesperson credibility increases for CEO, regular employee
and ―person like yourself‖
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 S. Korea.
+13+14 +22
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
22
CEO credibility gaining in many APAC countries, including South Korea
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 (Global excludes Singapore, UAE and Argentina)
Credible Spokespeople – CEO
APAC
+7
+10
+14
+11
+20
+13
54%
12%9% 9% 9%
6%
0%
10%
20%
30%
40%
50%
60%
23
43%
7%
27%
11%
6% 5%
0%
10%
20%
30%
40%
50%
60%
27%
21%24%
9%
15%
4%
0%
10%
20%
30%
40%
50%
60%
Depending on the crises situation, various voices required
Though CEO must lead the charge
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. Informed Publics ages 25-64 in S. Korea.
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 S. Korea.
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 S. Korea
Trusted spokesperson
during a company crisis
Preferred spokesperson
during a product recall
Preferred spokesperson when the
local community has been damaged
S. Korea
24
5%
6%
11%
13%
15%
17%
32%
0% 10% 20% 30% 40% 50%
Company website
Friends and family
Print (newspapers/magazines)
Online search engine
Broadcast (radio/TV)
Social media
Online news sources
1%
1%
8%
9%
16%
26%
39%
0% 10% 20% 30% 40% 50%
Friends and family
Company website
Broadcast (radio/TV)
Social media
Print (newspapers/magazines)
Online news sources
Online search engine
Where Informed Publics go for company news and information – S. Korea
(NETS) I139. There are a number of sources one could use to find general news or information about a company. 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? II141. Now, thinking about a business crisis, are [INSERT I139 AND I140 RESPONSE] the same types of sources you consult first for information
about a business crisis? Informed Publics ages 25-64 in S. Korea
First Source Second Source
Are these the same types of sources
you consult first for information
about a business crisis?
No, 16%
Yes, 83%
People go to online search engines first for news and information
about a company
11%
24%
7%
8%
10%
10%
18%
25%
23%
28%
40%
41%
Corporate/product advertising
Corporate communications such as press releases
Microblogging sites, such as Twitter
Blogs
Social networking sites
Content-sharing sites, such as YouTube
News/RSS feeds
Online search engines
Magazines or business magazines
Radio or radio news
Newspapers
Television or television news25%
31%
23%
9%
17%
20%
14%
19%
8%
15%
21%
12%
25
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 APAC and S. Korea.
Tra
ditio
nal
So
cia
l Me
dia
Co
rpo
rate
Trusted Information Sources – Trust a Great Deal
On
line
Mu
ltiple
so
urc
es
South Korea most trusting of newspapers, TV and radio as sources of
information about a company
#1
#2
#3
Significant at 95%
confidence level
APAC
Informed publics need information from multiple sources, multiple voices
26
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 S. Korea.
Once (1), 6%
Twice (2), 21%
Three times (3), 41%
Four or Five times (4 -5), 25%
Six to Nine times (6-9), 5%
Ten or more times (10+), 2%
3-5 times
66%
And need to hear it 3-5 times to believe it
S. Korea
The Benefits of Trust
When a company is distrusted When a company is trusted
18% 32%
51% will believenegative 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 S. Korea.
-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 S. Korea.
Trust protects reputation
28
will believe positive information after hearing it 1-2 times
will believe negative information after hearing it 1-2 times
38%will believe
positive information after hearing it 1-2 times
S. Korea
44%
60%
79%
85%
47%
72%
56%
83%
89%
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 – S. Korea
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 S. Korea.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 S. Korea.
29
Through personal action, trust has tangible benefits
Conclusions
Business must collaborate with other institutions
Trust is a protective agent
Transparency and consultation increasing as
reputation drivers
30
Current media landscape plus increased
skepticism requires multiple voices and channels
The Transformation of Trust
31
Control Information
Focus Solely on Profit
Pro
tect th
e B
ran
d
Sta
nd
Alo
ne
Profit With Purpose
Old Trust Framework New Trust Architecture
WHAT