16th October 2018 Trust In Institutions -...

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Trust In Institutions16th October 2018

A BritainThinks Breakfast Briefing

2BritainThinks | Private and Confidential

Contents

What’s the issue? Who does this matter most for?

Where might the solution lie?

01 02 03


01 What’s the issue?

Trust in institutions has long been identified as essential to the functioning of modern democracies


What’s the issue?

Making long-term decisions, e.g. investing in a pension plan or going to university,

because we can trust that there will be a return from this

Helping us to make sense of large amounts of information by relying on the

reputation of the source

And on a personal level, trust in institutions is critical for decision-making:

“Democracy and trust have an essential but paradoxical relationship to one another. Democracies depend on trust among citizens, enabling them to depend upon one another.

Trust in governments enables citizens to provide collectively conditions for good lives.”

The Oxford Handbook of Social and Political Trust

But public trust is low across society and in most of our major institutions

5


What’s the issue?

In GovernmentIn businessIn the third sector

trust Government

36%trust business

43%trust NGOs

46%In the media

trust media

32%

Source: Edelman Trust Barometer 2018

Low trust is particularly pronounced in but by no means unique to the UK:

53% +7 52% +9 43% +7 43% +11

Recent news has focused on how this has changed over time, and on a decline in trust


What’s the issue?

But actually, the picture is more complex than this. Public trust has been low for some time


What’s the issue?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2018201720162015201420132012201120102009200820072006200520042003

Government Business Media NGO

Source: Edelman Trust Barometer 2003-2018

The public have not always liked many of these institutions, people and organisations, but at least they were behaving in a way that was consistent with

their expectations

The public has long been calling into question the motivations of institutions in society


What’s the issue?

…Government…Particularly in business… …and media…

“They don’t know anything about real life: their daily shop probably costs what our weekly

shop costs.”

“Nothing will change because most politicians are millionaires. The system is

loaded in their favour.”

“They just follow their own rules. They’re above

the law and can do whatever they like.”

In more recent times, though, the public have also been calling into question the basic competence of their leaders and institutions


What’s the issue?

For the public, motivations of people, organisations and institutions being out of sync with their own is one thing, but now they feel they can’t even trust them to

get the basics right (despite their pay, connections and other privileges)

The interplay between mistrust in motivations and incompetence has seen even some of the most trusted institutions fall from grace


What’s the issue?

Concerns about CEO pay in the charity sector were

justified as needing to attract really talented people to the

sector

But headlines about controversial fundraising

practices called into question the motivations of

organisations in the sector

And the most recent failures on safeguarding spoke both to

incompetence and to poor motivations

This matters now more than ever before


What’s the issue?

Deeply entrenched divisions in society are seeing an increasing

proportion of people feeling left behind, disenfranchised

and under-served by the establishment

Economic conditions are likely to worsen. Those who

voted for Brexit are most likely to be affected by any

negative economic consequences of the UK

leaving the EU

The echo chamber makes it harder than ever for

organisations to own the narrative and get out their

message

70%“I don’t believe that

national government listens

to my concerns”33% Are reading or

listening to the news less


02 Who does this matter most for?

We looked at a range of organisations, people and institutions across society on the two key metrics of competence and motivation


Who does this matter most for?

• Accountancy firms• Advertisers• Airlines• Automotive companies• Charities• Gas and electricity

companies• Government• Healthcare professionals• High street banks• Insurance companies• Investment banks• Journalists• Landlords• Law firms• Pharmaceutical companies

• Politicians• Restaurants and fast food

chains• Royal Mail• Social media• Supermarkets• Technology companies• Telecomms companies• The Church• The NHS• The Police• Trade unions• Train companies• Universities• Water companies• Your local Council

We asked 3 key questions, designed to explore competence:• Q1. Regardless of whether you like them or not, how

good or bad do you think that each of the following are at what they do?

And motivation:• Q2a. How far, if at all, do you trust each of the following

to act in society's best interests?• Q2b. How far, if at all, do you trust each of the following

to act in your own best interests?*

• Fieldwork dates: 3rd – 5th October 2018• Base size: 2086, representative of UK adults• Method: Online• *The average of Q2a and Q2b has been taken to give a

‘motivation score’

There is a clear positive correlation between competence and motivation, though most do better on the former than the latter



Positive competence, negative motivation

Positive competence and motivation

Negative competence and motivation

100%

100%

-100%

-100%

Politicians

Train companies

Government

LandlordsJournalists

Your local Council

Investment banks

Social media

The Church

Trade unions

Insurance companies

Gas & elec. companies

Advertisers

High street banksAccountancy firms

Water companies

TelecommsLaw firms Pharma

Automotive

Airlines

Charities

Universities

The police

Technology companies

Royal Mail

Restaurants and fast food chains

NHS HCPs

Supermarkets

Net m

otivation

Net competency

Net competence = % good at what they do minus % bad at what they doNet motivation = % trust to work in their own/society’s best interests minus % do not trust to work in their own/society’s best interests

Your local CouncilThe Church

Trade unions

High street banksAccountancy firms

Water companies

TelecommsLaw firms Pharma

Automotive

Airlines

Charities

Universities

The police

Technology companies

Royal Mail

Restaurants and fast food chains

NHS HCPs

SupermarketsNet

mot

ivat

ion

Net competency

Many organisations, people and institutions score positively on both competence and motivation



100%

100%0%

NHSHealthcare

professionals

Net

mot

ivat

ion

Net competency

The NHS – and the people who work for it – emerge as the most trusted institution on both competence and motivation



100%

100%0%

“It is one of the best health services in the world, and

we should cherish it.”

• Despite negative headlines about budgets and blunders, the NHS and healthcare professionals remain highly trusted by the public

• Qualitatively, the public describes a perception that:• Its motivations are clearly aligned with the public’s. The

health service is perceived as working hard in the face of budgetary restraints, rather than being motivated by saving (or even making) money

• Their own personal experiences of the NHS are often positive and surpass expectations. This speaks to high levels of competency by NHS frontline staff

• The NHS is unique and exceeds standards in most of the rest of the world

Supermarkets

Ne

t m

otiva

tio

n

Net competency

Supermarkets score among the highest on competence, and perform the best of all profit-making organisations



100%

100%0%

“It’s the whole price promise thing: money back and price cuts and the price comparison.”

• Just a few years on from the ‘horsemeat’ scandal and

accounting irregularities, supermarkets perform the best of all

businesses on the two trust metrics of motivation and

competency

• Qualitatively, supermarkets are held up as an example of a

business where customers can ‘vote with their feet’

• Greater choice and competition in the sector in recent years is

seen as causing major supermarkets to ‘up their game’ and to

focus on the things that matter most to customers: price and

customer service

Charities

Net

mot

ivat

ion

Net competency

Whilst still positively rated overall, charities fall behind supermarkets on both motivation and competence



100%

100%0%

“Obviously it is good that they do all that work, but when you’ve got a scandal in your head there is still that niggle at the back of

your mind. You can’t forget that.”

• Because altruistic motives are core to the identity of the charity sector, the standards for ‘motivation’ are particularly high, meaning that recent scandals are all the more damaging

• The work of the sector can also feel far removed, making it hard for the public to judge competency. At best, the public can question whether the sector is ‘well-meaning but ineffective’

“They feel very separate, they’re worlds apart. What goes on in Africa is not

comparable to what goes on in a charity shop in Hammersmith.”

Politicians

Train companies

Government

Landlords

Net

mot

ivat

ion

Net competency

Four groups receive an actively negative score on both competence and motivation



-100%

-100%

0%

Politicians

Government

Ne

t m

otiva

tio

n

Net competency

Politicians, and to a lesser extent Government, sit at the bottom of the pack on competency and motivation



“It’s just a complete mess. No one knows what’s happening, everyone’s fighting each other. It doesn’t matter how you voted, no

one wanted this. A total shambles.”

-100%

-100%

0%

• Government and politicians have long faced challenges with questions about motivation

• But from the financial crash onwards, the public has increasingly questioned the competence of politicians

• At present, politicians’ handlings of the

Brexit negotiations are particularly front of mind and there is a strong sense that no one’s interests are being served well• With both Remainers and Leavers dissatisfied

with the outcome so far

• And ‘don’t know’ more likely to be selected for

best PM than May or Corbyn

Landlords

Ne

t m

otiva

tio

n

Net competency

But landlords fare little better than politicians and Government on competency and motivation



“Landlords hold all the power. I have a two-month rolling contract and young kids. It keeps me up at night. I’m not happy here, this isn’t a home. I’ve never felt so vulnerable in my life.”

-100%

-100%

0%

• For the public, the housing crisis is one of the most tangible

symbols of a system that isn’t working for them

• In particular, there is perceived to be a power imbalance

between tenants and their landlords; whereby tenants can

keep putting prices up, without delivering on their duty to

provide decent housing

Journalists

Investment banks

Social media

Insurance companies

Gas & elec. companies

Advertisers

Net

mot

ivat

ion

Net competency

Six score positively on competence, but negatively on motivation



Social media

Insurance companies

Gas and electricity companies

Advertisers

Net

mot

ivat

ion

Net competency

A positive score on competence, but a negative score on motivation, also speaks to a perception of a power imbalance



0%100%

-100%

• Organisations with captive audiences have a greater challenge in getting their customers to trust in their motivations, even when they are positively rated on competence

• Qualitatively, the public conveys a sense of powerlessness when they describe their interactions with their energy and insurance providers in particular• There is a perception that providers are all much of a muchness,

who seek to catch them out with loopholes hidden in the Ts & Cs“It’s like the horse has already bolted [with the data you share on social media]. If I knew then what I know

now, I’d never have signed up, but it’s too late to do anything about it.”

“We need them [energy companies] more than they need us. We have to have the gas, we have to have the heating. It’s not a choice for us so they can do whatever they want, try to get out of us as much money as they can.”

“My insurer paid out on time

without any fuss and I felt like I’d won the lottery.”

In some cases, there is a gap in trust between organisations which are traditionally grouped together as one sector or industry



Positive competence, negative motivation

Positive competence and motivation

Negative competence and motivation

100%

100%

-100%

-100%

Investment banks

High street banks

Net

mot

ivat

ion

Net competency

“I know people who work in my local bank branch, they’re normal people. I’ve never met an investment banker

in my life.”

• Trust in financial services is generally documented at sector or industry level

• But these findings suggest that the picture is more nuanced: high street banks (narrowly) receive a positive score on both competence and motivation

• While investment banks score positively on competence, but their motivations are rated more negatively

And those that sit closest to the border on competence and motivation often suffer from a problem of low awareness



37%49% 43%

55% 61%

28%19% 33%

21%18%

34% 32%24% 24% 21%

Investment banks Accountancy firms Trade unions Law firms Automotive companies

Percentage who rate each of the following as good or bad at what they do

Don't know

Bad

Good

Limited understanding may not be a problem per se, but it makes it challenging to actively build trust and means there is little in the bank if things go wrong

“I’m not really sure what a union is and what it’s for. I’m in one because we all signed up when we started,

but I couldn’t tell you anything about what they do.”

“‘Professional services’ sounds like it’s probably quite good, quite professional I guess. But it doesn’t

sound like it’s something that can help me.”

The groups in society least likely to trust these organisations and institutions are more likely to:



‘Distrusters’ = those who, on average across all organisations and institutions, gave low competency scores and low motivation scores‘Trusters’ = those who, on average across all organisations and institutions, gave high competency scores and high motivation scores

Be men:

62% are men, 38% are women

£23,180 average household income,

compared to £29,090 for ‘Trusters’

Have a low income:

Average age of 50.5, compared to 45.7 for

‘Trusters’

Be older: Travel less:

49% have taken a foreign holiday in the

last 3 years, compared to 73% of ‘Trusters’


03 Where might the solution lie?



1. Understand why you’re not trusted, and address that first

‘Tricksy’ pricing (complex bills that make it hard for the customer to get a good deal,

and offers which only favour new customers) make it hard to (re)build trust

Case study: retail sector Case study: insurance sector

“What does my insurance company think about me?... I think they think I’m lazy and a

mug and that they can take advantage.”

Public awareness that a supermarket is laying off staff and rolling out zero hour contracts, means that their attempt to give charitable support for the local

community is dismissed

“How can I believe that they care about the community if at the same time they’re doing this, they’re making people unemployed?”



2. Get ahead of the curve

For EU citizens who feel uncertain about their future in the UK after Brexit,

communicating as much detail of what is confirmed so far is reassuring

For people who live near a shale gas exploration site, explaining how fracking

works (ideally by an engineer) stops them from filling the void with myths and

misconceptions

Case study: public sector

Case study: energy sector

“I still feel angry about Brexit but I feel better about what’s going to happen to me and my family now I know some more about it.”



3. Find mutual interests

CSR initiatives which feel tangential to thecompany’s core purpose are received

sceptically. But a partnership with a major housing charity and old people’s charity is

felt to be more credible and authentic

Investment in fraud prevention and fraud protection campaigns by a major bank

feels logical because banks don’t want to lose money, but can also benefit the

customer and society as a whole

Case study: energy sector Case study: financial services

“It makes me feel good that they are doing that. They can do practical things to help. Not

just donate money for the sake of it.”

“They’re not pretending that they’re doing this from the goodness of their heart. They’re doing it because it’s a win-win situation.”



4. Re-frame the conversation

Emphasising the size and scale of the City of London highlights the ‘us and them’ dynamic. Whereas focusing on

what the sector can enable for individuals, and the size of the sector outside London,

moves on the conversation

Making the case for overseas aid is met with scepticism. But focusing on a specific issue (i.e. Childhood Pneumonia) makes

it harder for a sceptical public to challenge, and garners increased support

for government spending abroad

Case study: financial services Case study: charity sector

“Hearing those big numbers about the City just makes them seem even bigger, and me

feel even smaller and more powerless.”

“When I hear ‘overseas aid’ I think about money going to India, not because they need

it, but because we want a trade deal.”


britainthinks.com

Thank youFor more information:

Ben Shimshon Cordelia Hay Catrin Nichols+44 (0)207 8455880 +44 (0)207 8455880 +44 (0)207 8455880 [email protected] [email protected] [email protected]

BritainThinksSomerset House StrandLondon WC2R 1LA

mailto:[email protected]



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