Presented by Alan Vandermolen in Hong Kong January 29, 2013. Last year’s Trust barometer showed trust in business in Hong Kong was significantly lower than in most Asia-Pacific countries, but in line with global results. However, this year’s findings show a significant 13-point increase in the trust of businesses in Hong Kong, while global trust in business rose five percentage points, all among informed publics. This shift may indicate a stronger association of Hong Kong to Asia and that it is a steadily becoming more trusting market.
2. EDELMAN'S 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST
INFORMED
ONLINE SURVEY
PUBLICS
IN 26 COUNTRIES
• 31,000+ respondents • 500 respondents in U.S. and
China & 200 in other countries
• 5 years in 20+ markets
• Ages 25-64
• 8 years in 10+ markets
• College-educated
GENERAL • In top 25% of household
POPULATION income per age group in each
country
• 1000 respondents per
country surveyed • Report significant media
consumption and engagement
• Ages 18+ in business news and public
policy
• 2 years of data
• 13 years of data
MARKET COMPARISONS
Developed: US, UK, France, Germany and Japan
Indicates Global Data
Emerged: Brazil, Mexico, Russia, India and China
Indicates Hong Kong Data
APAC SELECT COUNTRIES:
China, Japan, India, Malaysia, Singapore, South
2 Korea, Indonesia, Australia, Hong Kong
3. TRUST 2013
THE STATE OF TRUST
CRISIS OF LEADERSHIP
THE PATH FORWARD
3
5. EDELMAN’S TRUST INDEX: AFTER A YEAR HIGH OF DISTRUST IN 2012,
SHIFT BACK TO NEUTRAL IN 2013
2011 2012 2013 Big Changes
from 2008
GLOBAL 55 GLOBAL 51 GLOBAL 57
Brazil 80 China 76 China 80 Germany +19
UAE 68 Singapore 76
UAE 78 China +18
Singapore 67 India 71 Canada +14
TRUSTERS
Indonesia 74
India 65 Mexico 68 India +11
China 73
Indonesia 63 Hong Kong 67
Netherlands 73 UAE 66
Mexico 63
Mexico 69 Netherlands 61 Malaysia 64
Singapore 67 Hong Kong 61 Canada 62
Argentina 62 Canada 58 Indonesia 62 Big Changes
India 56 Malaysia 57 U.S. 59 from 2012
Italy 56 Italy 56 Netherlands 59
Argentina 54 Brazil 55 Germany +16
Canada 55
Germany 55
NEUTRAL
South Korea 53 Australia 53 France +14
Brazil 51 France 54 UK +12
Sweden 52 Sweden 54
Sweden 49 US +10
Japan 51 UK 53
U.S. 49
Australia 51 Italy 51
South Korea 44
Spain 51 Australia 50
Poland 44
France 50 Poland 48
U.K. 41
S. Korea 47
DISTRUSTERS
Poland 49 Ireland 41 Ireland 46
Germany 44 France 40 Argentina 45
U.S. 42 Germany 39 Spain 42
U.K. 40 Spain 37 Turkey 42
Russia 40 Japan 34 Japan 41
Ireland 39 Russia 32 Russia 36
5
Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total
6. LOWER TRUST AMONG GENERAL POPULATION THAN INFORMED PUBLICS
2013
GENERAL PUBLIC
2013
INFORMED PUBLIC
GLOBAL 48 GLOBAL 57
China 70 China 80
India 64
General Population is Singapore 76
TRUSTERS
9 points lower than India 71
UAE 63
Informed Publics
Singapore 63 Mexico 68
Indonesia 61 Hong Kong 67
Malaysia 61 UAE 66
Mexico 59 Malaysia 64
Largest Differences between
Hong Kong 54 Canada 62
NEUTRAL
Gen Pop & Informed Publics
Canada 52 Indonesia 62
Brazil 51 U.S. 59
Poland, US, Sweden: - 14 points
Netherlands 50 Netherlands 59
Argentina 48 Singapore, Ireland, Hong Kong, Brazil 55
U.S. 45 France: - 13 points Germany 55
Germany 44 France 54
UK 43 Sweden 54
S. Korea 43 UK 53
Italy 51
DISTRUSTERS
Turkey 43
France 41 Australia 50
Italy 40 Poland 48
Sweden 40 S. Korea 47
Australia 39 Ireland 46
Spain 37 Argentina 45
Japan 35 Spain 42
Poland 34 Turkey 42
Ireland 33 Japan 41
Russia 30 Russia 36
6
Composite score is an average of a country’s trust in all four institutions. General population and Informed Publics ages 25-64 in 26 country global total and across 26 countries
7. TRUST ON THE RISE ACROSS INSTITUTIONS, BUT WEAK INTENSITY PERSISTS
TRUST IN INSTITUTIONS - GLOBAL
TRUST A GREAT DEAL
Trust Total: 58%
Trust Total: 53%
Trust Total: 48%
Trust Total: 43%
GOVERNMENT 12% 16% 14% 17% BUSINESS
2012 2013 2012 2013
Trust Total: 63%
Trust Total: 57% Trust Total: 58%
Trust Total: 52%
19% 22%
17%
MEDIA 15%
NGOS
2012 2013 2012 2013
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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”. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-64
7 in 20-country global total
8. TRUST IN INSTITUTIONS – HONG KONG
TRUST A GREAT DEAL
Trust Total: 63% Trust Total: 60%
Trust Total: 62%
Total Trust: 53% Trust Total: 47%
Trust Total: 43%
GOVERNMENT 23% 20% BUSINESS
14% 9%
2012 2013 2013 Gen Pop 2012 2013 2013 Gen Pop
Trust Total: 68% Trust Total: 76%
Trust Total: 65% Trust Total: 70%
Total Trust: 55% Total Trust: 63%
MEDIA NGOS
24% 25%
18% 14%
2012 2013 2013 Gen Pop 2012 2013 2013 Gen Pop
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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”. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-64
8
9. MAIN REASONS FOR DECREASED BUSINESS AND GOVERNMENT TRUST – HONG KONG
(AMONG THOSE WHO REPORTED TRUSTING BUSINESS OR GOVERNMENT LESS OVER THE PAST YEAR)
REASONS FOR TRUSTING REASONS FOR TRUSTING
BUSINESS LESS GOVERNMENT LESS
CORRUPTION OR FRAUD 21% CORRUPTION OR FRAUD 22%
32% 35%
WRONG INCENTIVES DRIVING BUSINESS
DECISIONS
11% WRONG INCENTIVES DRIVING POLICIES 13%
LACK OF REGULATION OR CONTROL 33% LACK OF REGULATION OR CONTROL 10%
TRANSPARENCY ISSUES 20% TRANSPARENCY ISSUES 10%
POOR PERFORMANCE/ INCOMPETENCE 15% POOR PERFORMANCE/ INCOMPETENCE 45%
Q22. [ASK IF TRUST GOVERNMENT LESS IN Q18] Which of the following is the main reason why your trust in government decreased over the last year?; Q24. [ASK IF TRUST BUSINESS
9 LESS IN Q20] Which of the following is the main reason why your trust in business decreased over the last year? General Population
10. NGOS REMAIN MOST TRUSTED INSTITUTION;
FOUR OUT OF FIVE MARKETS WITH HIGHEST TRUST IN APAC REGION
TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
2008 67% of markets surveyed
have a trust score above 50% 2012
2008 China:
48% 2013 88% of markets surveyed 2013
83% 81%
have a trust score above 50%
78% 79%
76% 76%
75% 73% 75% 74%
70% 70% 69% 69% 67%
68% 66% 66% 67% 66% 66%
67% 65%
64%
63% 64% 64% 63% 63% 62% 61%
60% 59%
58% 58% 59%
55% 57% 56% 55%
53% 54%
51% 53%
48% 49% 51%
50% 46%
41% 40%
37%
30%
28%
N/A
Q11-14. [NGOs TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina,
Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries
10
11. STEADY GROWTH IN TRUST IN MEDIA OVER TIME;
RESULT OF DIVERSIFICATION OF OPTIONS AND STRONG COVERAGE OF SCANDALS
TRUST IN MEDIA
2008 50% of markets surveyed have a 2012
trust score 50% or above
2013
2013 62% of markets surveyed have a
81% trust score 50% or above
79% 79% 80%
77%
70%
70%
65% 68% 66%
65% 65% 66%
61% 61% 61% 60% 61%
61%
57% 59% 57% 57%
54% 54%
52%
51% 50% 49% 49%
50% 47%
50% 47% 48%
47% 47%
45% 46% 45% 45% 45% 43% 43%
42% 41% 42%
37% 38% 38%
35% 36%
33%
26%
N/A
Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes
Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries
11
12. TRUST IN TYPES OF MEDIA SOURCES FOR GENERAL NEWS AND INFORMATION
Global Developed Emerging APAC Hong Kong
67% 71%
65% 63%
64% 60%
58% 58% 56% 56% 58%
51% 52% 49% 47% 52%
47% 47% 45%
43% 41% 40%
32% 30%
26%
TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA
GLOBAL AGE BREAKDOWN
18-29 30-44 45-64 65+
61% 61% 60%
59% 56% 56%
54%
49% 49% 48% 47% 45% 44% 43%
40% 37%
37%
29% 31%
29%
TRADITIONAL MEDIA ONLINE SEARCH HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA
ENGINES
Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one
12 means that you "do not trust it at all" and nine means that you "trust it a great deal". General Population in 26-country global total, Developed (US, UK, France, Germany and Japan) vs.
Emerging Markets (Brazil, Mexico, Russia, India and China); Age breakdown for general population in 26-country global total, Hong Kong and Apac
14. TRUSTED SOURCES ARE EXPERTS AND PEERS
CREDIBLE SPOKESPEOPLE – GLOBAL
2012 2013
Academic or expert 68% Academic or expert 69%
Technical expert in the
Technical expert in the company 66% 67%
company
A person like yourself 65% A person like yourself 61%
Financial or industry
Regular employee 50% 51%
analyst
NGO representative 50% NGO representative 51%
Financial or industry analyst 46% Regular employee 50%
CEO 38% CEO 43%
Government official or
Government official or regulator 29% 36%
regulator
Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how
credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics
14 ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) (only spokespeople tracked from 2012 to 2013 included)
15. TRUSTED SPOKESPEOPLE SOLIDIFYING RANK ORDER
CREDIBILITY OF SPOKESPEOPLE – INFORMED PUBLICS AGES 35-64 - GLOBAL
An academic or expert on company issues CEO
A person like yourself Government official/regulator
Regular employee
80%
69% 68%
70% 67%
63% 65%
58% 59%
60% 60%
49% 50%
50% 49%
47% 44% 43%
40% 39% 38%
42% 40%
36% 32%
30%
32% 35% 33%
30% 29% 33%
31%
27% 26%
20%
10%
2008 2009 2010 2011 2012 2013
Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible
would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics ages 35-64 in 18 -
15 country global total
16. LEADERSHIP TRUST GAP
GAP IN TRUST IN INSTITUTION VS. TRUST IN LEADERSHIP
Trust in Business
Trust in Government
Trust Business Leaders to tell the Truth
Trust Government Leaders to tell the truth
50%
Global
18% -32
41%
Global
13%
-28
67%
China
32%
-35 71%
China -47
24%
68%
India
34% 55%
-34 India
20% -35
50%
US
15% 38%
-35 US
10% -28
42%
Germany 38%
13% Germany
-29 6% -32
37%
France 33%
10% -27 France -25
8%
43% 53%
Hong Kong Hong Kong
20% -23 17% -36
Q11 -14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust
16 them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust); Q144A-147A. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust
business leaders to do the following? Q144B-147B. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust government leaders to do the following?
(Top Box, Trust A great Deal) General Population
17. CRISIS IN LEADERSHIP – TRUST IN ETHICS AND MORALITY VERY LOW
GLOBAL TRUST BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING:
BUSINESS LEADERS
21%
25% 21% 20%
SOLVE SOCIAL OR SOCIETAL CORRECT ISSUES WITHIN MAKE ETHICAL AND MORAL TELL YOU THE TRUTH,
ISSUES INDUSTRIES THAT ARE DECISIONS REGARDLESS OF HOW COMPLEX
EXPERIENCING PROBLEMS OR UNPOPULAR IT IS
GOVERNMENT LEADERS
26% 21% 21% 17%
SOLVE SOCIAL OR SOCIETAL CORRECT ISSUES WITHIN MAKE ETHICAL AND MORAL TELL YOU THE TRUTH,
ISSUES INDUSTRIES THAT ARE DECISIONS REGARDLESS OF HOW COMPLEX
EXPERIENCING PROBLEMS OR UNPOPULAR IT IS
Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- Trust A great Deal) General
17
Population across 26-country global total
19. 16 ATTRIBUTES TO BUILDING TRUST
ENGAGEMENT
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
PLACES CUSTOMERS AHEAD OF PROFITS
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS
Edelman Trust Barometer INTEGRITY
research reveals 16 SPECIFIC HAS ETHICAL BUSINESS PRACTICES
ATTRIBUTES which build trust. TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
These can be grouped into PRODUCTS & SERVICES
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
FIVE PERFORMANCE CLUSTERS
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
listed here in rank order of
importance. PURPOSE
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY
PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS
OPERATIONS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
RANKS ON A GLOBAL LIST OF TOP COMPANIES
19 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
20. HOW WE HAVE EVOLVED…NOW THE ATTRIBUTES CAN BE GROUPED
INTO 5 DISTINCT CLUSTERS
Edelman Trust Barometer’s Edelman Trust Barometer’s
2008 TRUST DRIVERS* 2013 TRUST PERFORMANCE CLUSTERS
ENGAGEMENT (59%)
Reputation as a place to work (81%)
INTEGRITY (58%)
OPERATIONS
Financial performance (76%)
(76%) PRODUCTS & SERVICES (54%)
Respected CEO or leader (71%)
PURPOSE (47%)
OPERATIONS (39%)
20
*Data used includes Informed Publics ages 35-64 only in 18-country global total
21. TRUST BUILDING ATTRIBUTES – LARGE GAP IN EXPECTATION VS. PERFORMANCE
BUSINESS IMPORTANCE VS. COMPANY PERFORMANCE – HONG KONG
Gap
Importance 39% -15
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
Performance 24%
39% -22
HAS ETHICAL BUSINESS PRACTICES
17%
TREATS EMPLOYEES WELL 38% -24
14%
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 36% -23
13%
LISTENS TO CUSTOMER NEEDS AND FEEDBACK 36% -19
17%
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 35% -21
14%
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS 35% -21
14%
PLACES CUSTOMERS AHEAD OF PROFITS 34% -21
13%
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 32% -17
15%
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS 29% -13
16%
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETAL 27% -16
ISSUES 11%
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 26% -12
14%
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICH 25% -11
THE COMPANY OPERATES 14%
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 24% -6
18%
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 21% -9
12%
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TO 20%
WORK FOR OR MOST ADMIRED COMPANIES 13% -7
Q80-Q96. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all
important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in
21 Hong Kong (excludes ‘Don’t Know’ responses Q114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a
nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well)
General Population in Hong Kong
22. GLOBAL INFLUENCER MESSAGE MAPPING
Who is Trusted MOST to provide you with Passionate or
Company’s Company’s Media
Activist Academic
credible and honest information about: CEO Employee Spokesperson
Consumer
A company’s employee programs, benefits & working
conditions
21% 63% 16% 13% 11%
ENGAGEMENT
How a company serves its customers and prioritizes
customer needs ahead of company profits
19% 30% 44% 16% 15%
INTEGRITY A company’s situation in a time of crisis 30% 35% 18% 22% 23%
PRODUCTS A company’s innovation efforts and new product
development
31% 31% 27% 25% 13%
How a company uses its resources and influence to
support the environment
21% 26% 34% 27% 13%
PURPOSE How a company supports programs that positively
impact the local community
22% 27% 35% 20% 23%
Partnerships with NGO’s and effort to address societal
issues
25% 20% 25% 23% 15%
A company’s financial earnings & operational
performance
34% 27% 23% 23% 12%
OPERATIONS A company’s business practices, both positive & negative 23% 36% 29% 21% 15%
Accomplishments about a company’s senior leadership 35% 34% 17% 19% 19%
22 Q197-201(Global Summary). We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select which
person you trust MOST to provide you with credible and honest information about a company. General Population in the 26-country global total
23. THE WAY WE WERE
PYRAMID OF CEO
INFLUENCE
GOVERNMENT “As the circle of those who decide is narrowed,
OFFICIALS as the means of decision are centralized and the
consequences of decision become enormous,
BOARD OF DIRECTORS
the course of great events often rests upon the
ACADEMICS decisions of determinable circles.”
TECHNICAL EXPERTS - C. Wright Mills, 1956
ELITE MEDIA
G E N E R A L P O P U L AT I O N
VERTICAL FLOW &
CONTROLLED INFORMATION
23
24. THE NEW DYNAMIC: THE DIAMOND OF INFLUENCE
CEO
FROM 2000 TO 2013
PYRAMID OF GOVERNMENT
OFFICIALS
AUTHORITY
FEW MANY
(Vertical) BOARD OF DIRECTORS
DICTATE CO-CREATE
ACADEMICS
FIXED FLEXIBLE
TECHNICAL EXPERTS
MONOLOGUE DIALOGUE
ELITE MEDIA
CONTROL EMPOWERMENT
G E N E R A L P O P U L AT I O N
EMPLOYEES
ACTION CONSUMERS
SOCIAL
ACTIVISTS
PYRAMID OF
COMMUNITY
(Horizontal)
24
25. INCLUSIVE MANAGEMENT BASED ON GROUNDED LEADERSHIP ACROSS THE
MEDIA CLOVERLEAF
PYRAMID OF
AUTHORITY CEO
(Vertical) GOVERNMENT
OFFICIALS NAVIGATING THE DIAMOND OF
INFLUENCE VIA MEDIA CLOVERLEAF
BOARD OF DIRECTORS
ACADEMICS
TECHNICAL EXPERTS
Traditional Hybrid
ELITE MEDIA
G E N E R A L P O P U L AT I O N Search &
Content
EMPLOYEES
ACTION CONSUMERS Owned Social
SOCIAL
ACTIVISTS
PYRAMID OF
COMMUNITY
(Horizontal)
26. LESSONS FOR LEADERS
Observe re-ordering of authority
Old values are not sufficient
Clear opportunity for business
Trust is fragile and perceived behaviors are an anchor
26
27. On the cover credits: HSBC: REUTERS/ Bobby Yip; UBS: REUTERS/Luke MacGregor; Bob Diamond: REUTERS/ Luke MacGregor; Bo Xilai: REUTERS/ Cheryl Ravelo ; Lance
Armstrong: by Sebastian David Tingkær; Angela Merkel: REUTERS/ Sebastien Pirlet; Rajat Gupta: REUTERS/ Brendan McDermid; George Entwistle: Associated Press/ Rex Featu