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