This document provides methodology details and key findings from the 2016 Edelman Trust Barometer survey conducted in 28 countries. It includes information on:
- The methodology including sample sizes, margins of error, and dates of fieldwork.
- Overview of the different population segments surveyed: General Population, Informed Public, and Mass Population.
- Trends in trust levels for different institutions (government, business, media, NGOs) from 2015 to 2016 globally and for South Korea specifically.
- A comparison of trust levels between the Informed Public and Mass Population, noting a growing trust gap.
- Other findings related to trusted companies and credibility of different spokesperson types.
2. Methodology
28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000). Country-
specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500),
Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).
‣ 16 years of data
‣ 33,000+ respondents total
‣ All fieldwork was conducted between
October 13th and November 16th, 2015
2
General Population
‣ Ages 18+
‣ 1,150 respondents
per country
Informed Public
‣ 8 years in 20+ markets
‣ Represents 15% of total
global population
‣ 200 respondents
Must meet 4 criteria:
‣ Ages 25-64
‣ College educated
‣ In top 25% of
household
income/age group
‣ Report significant
media consumption/
engagement in
business news
Mass Population
‣ All population not
including Informed Public
‣ Represents 85% of total
global population
+ =
Online Survey in 28 Countries
4. 63
57
51
48
67 63
57
51
51
48
45
41
55 53
47
42
Trust Rising
Source: 2016 Edelman Trust Barometer 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 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, Trust) Informed Public
and General Population, 27-country global total.
5
Percent trust in the four institutions of
government, business, media and NGOs, 2015 vs. 2016
Upward trend for all institutions globally
NGOs Business Media Government
+4 +6 +6 +3
Informed
Public
General
Population
2015 2016
+4 +5 +2 +1
5. 52
30
41
30
58
33
43
35
68
36
50
33
72
37
52
38
Trust Rising
Source: 2016 Edelman Trust Barometer 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 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, Trust) Informed Public
and General Population, South Korea.
6
Percent trust in the four institutions of
government, business, media and NGOs, 2015 vs. 2016
Recovering trust for all institutions in Korea, especially government and NGO
Informed
Public
General
Population
NGOs Business Media Government
+4 +1 +2 +5
2015 2016
+6 +3 +2 +5
6. 67 66
70
68
72
54 54
58
52
58
33
44 45
33
38
31
36
39
30
35
2012 2013 2014 2015 2016
31
31
39
36
37
30
35
32 30
33
2012 2013 2014 2015 2016
Source: 2016 Edelman Trust Barometer 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 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, Trust) Informed Public
and General Population, South Korea.
8
Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016
45
49 48 50
52
42
47
44
41
43
NGO’s
Government
Media
Business
Post-Recession Highs
Informed
Public
General
Population
7. Source: 2016 Edelman Trust Barometer 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 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, Trust) General
Population, 27-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
Global Increase in Business Trust
9
Percent trust in business, 2015 vs. 2016
Korea has the lowest trust in business across all countries surveyed
2015 2016
General
Population
48 47
64
70
58
68
65
59 56 57
48
51
43
46
51
36
44
30
46
36
40
32
42
38 36 37
30
60
57
53
50
76
71 70 69 67
64
60 60
57 56
53
52 51
48 46 46 46
43 43 42 42
39 38 38
33
58 56
Global27
GDP5
Mexico
Indonesia
China
India
UAE
Brazil
S.Africa
Singapore
Italy
Canada
Argentina
Australia
U.S.
Spain
U.K.
France
Sweden
Ireland
Japan
Turkey
Germany
HongKong
Poland
Russia
S.Korea
Malaysia
Netherlands
50%
Increased or equal trust in business in 25 countries
+12 +12 +10 +12 +16 +10
8. Trusted Companies by Nationality
Percent Most Trusted National Identities for Companies by Koreans 2015 vs. 2016
Koreans rank Korean companies 12th (37%) out of 17 countries
Source : Q. Now we would like to focus on global companies headquartered in specific countries. Please indicate 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”.
10
General
Population
67%
65% 63%
71%
60%
0
58%
53%
57%
37%
41% 40%
31%
22% 24% 26%
21%
72% 72% 70%
69% 68%
62% 60% 59%
56%
44% 44%
37% 34%
28%
26% 24% 23%
Switzerland
Sweden
Canada
Germany
Netherlands
Australia
UK
US
France
Spain
Italy
SouthKorea
Japan
China
India
Brazil
Mexico
50%
2015 2016
9. 58 58
60
52
47
45
43
44
43
47
42
43
42
45
40
53
52
56
58
56
31
32
33
35
32
2012 2013 2014 2015 2016
Transformed Media Landscape
Source: 2016 Edelman Trust Barometer 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 nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box,
Trust) General Population and Millennials, South Korea, question asked of half the sample.
Trust in each source for general news and information
Deteriorating trust in traditional and social media
*From 2012-2015, we included Online Search Engines as a media type. In 2016, we changed to Search Engines.
**From 2012-2015, we included Hybrid as a media type. In 2016, we changed this over to Online-Only.
11
General
Population
Source
Search Engines
Traditional Media
Online-only Media
Social media
Owned media
11. A Significant Divide
Source: 2016 Edelman Trust Barometer 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 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, Trust) Informed Public
and Mass Population, South Korea.
13
Percent trust in the four institutions of
government, business, media and NGOs, 2012 to 2016
Trust gap between Informed Public and Mass Population has increased
since 2012
Informed
Public
Mass
Population
10pt
Gap
6pt
Gap
44
47
51
47
50
38
42
41
35
40
2012 2013 2014 2015 2016
12pt
Gap
for
Global
12. Trust Index 2012 – 2016, percentage point change in the size of the trust gap
between Informed Public and Mass Population
Most of the countries have seen growing gaps
An Accelerating Disparity
Source: 2016 Edelman Trust Barometer 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 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, Trust) Informed Public
and Mass Population, 25-country global total, 2012 vs 2016.
GDP 5 = U.S., China, Japan, Germany, U.K.
14
Increased Gap Decreased Gap
Gap has increased in 16 of 25 countries
Global25
GDP5
France
U.K.
U.S.
Spain
Mexico
Singapore
S.Korea
Malaysia
India
China
Brazil
Germany
Australia
Ireland
Russia
Poland
Canada
Japan
Indonesia
Italy
Argentina
UAE
HongKong
Netherlands
2012 Gap 9 7 4 7 11 1 8 6 6 4 13 8 7 6 14 8 2 7 8 3 10 13 6 13 10 14 15
2016 Gap 12 12 16 17 19 9 15 10 10 8 16 11 10 9 16 10 3 8 8 3 8 11 3 9 6 10 10
Sweden
3
5
12
10
8 8
7
4 4 4
3 3 3 3
2 2
1 1
0 0
-2 -2
-3
-4 -4 -4
-5
13. A Global Phenomenon
Source: 2016 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs,
28-country global total.
15
Trust Index, Informed Public vs. Mass Population,
15 countries with double-digit trust gaps in 2016
Country
Informed
Public
Mass
Population Gap
U.S. 64 45 19
U.K. 57 40 17
France 55 39 16
India 78 62 16
Australia 63 47 16
Mexico 72 57 15
Italy 58 47 11
China 82 71 11
Brazil 58 48 10
Ireland 49 39 10
Netherlands 62 52 10
Sweden 46 36 10
S. Africa 54 44 10
S. Korea 50 40 10
Singapore 72 62 10
15. 55 Global 60 Global
82 China
78 India
74 UAE
72 Mexico
72 Singapore
70 Indonesia
64 U.S.
63 Australia
63 Canada
62 Netherlands
61 Colombia
84 UAE
79 India
78 Indonesia
75 China
65 Singapore
64 Netherlands
49 Ireland
47 Turkey
46 Sweden
42 Poland
42 Russia
41 Japan
48 Italy
48 S. Africa
47 Hong Kong
47 S. Korea
46 U.K.
45 Argentina
45 Poland
45 Russia
45 Spain
45 Sweden
40 Turkey
37 Ireland
37 Japan
58 Brazil
58 Italy
58 Malaysia
57 U.K.
55 France
54 S. Africa
53 Argentina
53 Spain
52 Hong Kong
51 Germany
50 S. Korea
59 Brazil
59 Mexico
56 Malaysia
53 Canada
52 Australia
52 France
52 U.S.
50 Germany
Trust Index:
Informed Public
Drives Rebound
Average trust in institutions,
Informed Public, 2015 vs. 2016
2015 2016
Informed Public
trust up 5 points
Trusters from 22% in
2015 to 39% in 2016
Distrusters from 48%
in 2015 to 21% in 2016
Trusters
Neutrals
Distrusters
17
The Trust Index is an average of a country’s trust in the
institutions of government, business, media and NGOs.
27-country global total.
16. 49 Australia
49 Italy
49 U.S.
47 Hong Kong
46 Spain
45 S. Africa
42 Germany
42 S. Korea
42 U.K.
41 France
41 Ireland
41 Turkey
39 Russia
38 Japan
37 Sweden
35 Poland
73 China
66 UAE
65 India
64 Singapore
62 Indonesia
60 Mexico
57 Mexico
55 Canada
55 Colombia
52 Netherlands
50 Argentina
50 Malaysia
48 Brazil
47 Australia
47 Italy
46 Hong Kong
45 U.S.
44 S. Africa
44 Spain
42 Germany
40 S. Korea
40 U.K.
39 France
39 Ireland
39 Russia
39 Turkey
38 Japan
36 Sweden
34 Poland
71 China
65 UAE
62 India
62 Indonesia
62 Singapore
56 Canada
55 Colombia
52 Netherlands
51 Argentina
51 Malaysia
50 Brazil
Trust Index:
General Population
Lags
Average trust in institutions,
Informed Public vs.
General Population, 2016
General
Population
Mass
Population
50 Global48 Global
49 Ireland
47 Turkey
46 Sweden
42 Poland
42 Russia
41 Japan
82 China
78 India
74 UAE
72 Mexico
72 Singapore
70 Indonesia
64 U.S.
63 Australia
63 Canada
62 Netherlands
61 Colombia
58 Brazil
58 Italy
58 Malaysia
57 U.K.
55 France
54 S. Africa
53 Argentina
53 Spain
52 Hong Kong
51 Germany
50 S. Korea
Informed
Public
60 Global
Trusters
Neutrals
Distrusters
The Trust Index is an average of a country’s trust in the
institutions of government, business, media and NGOs.
27-country global total.
Nearly 6 in 10
countries are
distrusters among the
General Population
18
17. The Inversion of Influence
Source: 2016 Edelman Trust Barometer 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 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, Trust) Informed Public
and Mass Population, South Korea.
Authority
& Influence
Influence
Authority
19
Mass
Population
82%
of
population
40 Trust Index
18%
of
population
50 Trust Index
Informed
Public
Mass
Population
85%
of
population
48 Trust Index
15%
of
population
60 Trust Index
Informed
Public
18. 56
42
45
42
37
30
27
21
23
62
51
48
45 45
37
35
27 26
Peers, Employees More Credible than Leaders
Source: 2016 Edelman. Trust Barometer Q130-587. 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) General Population, South Korea, question asked of half the sample.
Percent who rate each spokesperson as extremely/very credible
2015 2016
+8
Technical
Expert
Academic
Expert
A person
like
yourself
Financial
Industry
Analyst
Employee CEONGO
representative
Board of
Directors
Government
official/regul
ator
A person like
yourself credibility
increased the most
+9 +8
General
Population
21
20. 72
37
52
38
62 59 59
41
58
33
43
35
56 58 57
39
NGOs Business Media Government
Business Most Trusted to Keep Pace
Source: 2016 Edelman Trust Barometer 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 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, Trust), Informed Public and General Population, 27-country global total. Q441-444 Below is a list of
institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with
change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, South Korea 24
Percent trust, and percent who trust each institution to keep up with the changing times, 2016
However, business is expected to solve problems in changing times
Informed
Public
General
Population
Trust Trusted to
keep pace
21. 30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Sector Trends:
Innovative Industries Rebound
Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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) General Population, South Korea.
*From 2012-2014, Pharma included as subsector(Q61f-65f).
**From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector.
Trust in each industry sector, 2012–2016
2012 2013 2014 2015 2016
Industry 2012 2013 2014 2015 2016
5 yr.
Trend
Technology 75% 72% 75% 67% 69% 6
Energy 56% 61% 62% 58% 59% 3
Pharmaceutical 44% 52% 55% 50% 57% 13
Financial Service 44% 53% 57% 45% 52% 8
Automotive 63% 64% 64% 53% 51% 12
Consumer Packaged Goods 39% 52% 54% 46% 51% 12
Food & Beverage 47% 49% 52% 45% 48% 1
Telecommunications 47% 50% 54% 44% 48% 1
25
General
Population
22. 54
37
36
29
23
18
40
14
34
23
38
13
Trust Matters
Source: 2016 Edelman Trust Barometer Q371-589. 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. General Population, South Korea, question asked of half the sample. Q377-380. 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. General Population,
South Korea, question asked of half the sample.
Percent who engage in each behavior based on trust
Behaviors for Distrusted Companies Behaviors for Trusted Companies
Refused to buy products/services
Criticized companies
Shared negative opinions
Disagreed with others
Paid More than
wanted
Sold shares
Chose to buy products/services
Recommended them to a friend/colleague
Shared positive opinions online
Defended company
Paid more
Bought shares
most trusted
content creators:#1
Friends and
Family
most trusted
media source:#1
Search Engines
General
Population
26
26. CEO Focus Misplaced
30
Percent who agree with each statement about CEOs
CEOs should focus less on lobbying/profit and more on providing positive impact to society
Lobbying
Too Much
Focus on short-term
financial results68%
75%
Not Enough
Job creation60%
Positive
long-term impact52%
Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs do too much lobbying,’ ‘Given that the
average tenure of CEOs is just 4 years, CEOs aren’t in their role long enough to make a positive impact,’ (Top 4 Box, Agree) ‘CEOs are too focused on short-term financial results,’ ‘CEOs can
be trust to create jobs’ ] (Bot 5 Box, Do not agree) General Population, South Korea.
General
Population
vs. 57% Global Avg.
27. Purpose and Profits Matter
Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please
use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, South Korea
question asked of half the sample.
31
Percent who agree that CEOs should be personally visible in discussing…
79%
Societal
Issues
‣ Income inequality
‣ Public policy discussions
‣ Personal views on
societal issues
63%
Financial
Results
General
Population
28. Purpose Impacts Trust
Percent who cite each as a reason for why their trust in business has increased or decreased
Greater distrust arises from failing to contribute to the greater good
Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which
of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, South Korea.
Reasons Trust in
Business Has Increased
Reasons Trust in
Business Has Decreased
Produces
economic growth
Has good leadership
Contributes to the
greater good
Fails to contribute
to the greater good
Lacks economic growth
Provides few services
47%
36%
35%
67%
46%
41%
32
General
Population
30. Integrity 10% 34% 24%
Exhibits highly ethical behaviors 9% 31% 22%
Takes responsible actions to address an issue or crisis 13% 38% 25%
Behaves in a way that is transparent and open 10% 31% 21%
Engagement 9% 30% 21%
Treats employees well 9% 29% 20%
Listens to customer needs and feedback 9% 33% 24%
Places customer ahead of profits 10% 31% 21%
Communicates frequently and honestly on the state of their company 7% 26% 19%
Products 18% 32% 14%
Places a premium on offering high quality products or services 19% 36% 17%
Is focused on driving innovation and introducing new products/services/ideas 17% 28% 11%
Purpose 10% 24% 14%
Is dedicated to protecting and improving the environment 9% 22% 13%
Ensures that the company creates programs that positively impact the local community in which it operates 11% 25% 14%
Ensures that the company addresses society's needs in its everyday business 10% 25% 15%
Ensures that the company partners with NGOs, government and third parties to address societal issues 10% 23% 13%
Operations 13% 23% 10%
Attracts and retains a highly-regarded and widely admired top leadership team 10% 23% 13%
Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 13% 18% 5%
Manages the company in a way that delivers consistent financial returns 16% 27% 11%
Leaders Seen As Underperforming
Source: 2016 Edelman Trust
Barometer. Q462-478 How important
is each of the following attributes to
building your trust in CEOs? (Top 2
Box, Important) Q479-495 Please rate
CEOs on how well you think they are
performing on each of the following
attributes. Use a 9-point scale where
one means they are “performing
extremely poorly” and nine means
they are “performing extremely well.”
CEO questions use the same scales
as the business questions. (Top 2
Box, Performance) General
Population, South Korea.
Importance vs. performance of 16 trust-building leadership attributes
Gap
34
General
Population
CEO
Importance
(Expected)
CEO
Performance
(Perceived)
31. 52%
62%
72%
82%
Their education and
how it shaped them
Their personal
success story
The obstacles
they have overcome
Their personal values
Personal Values and History Matter
Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please
use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. [Media Engagement net = Q507 ‘Interviews with the
media,’ and ‘Q512 ‘Sharing their views on a blog or on social media.’ Direct Engagement net = Q508 ‘Communications with employees,’ and ‘Participation in industry conferences.’] Q516-524. For you to trust a CEO,
how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a 9-point scale where one means that attribute is “not at all important to
building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Important) General Population, South Korea, question asked of half the sample.
Percent who agree that each type of information is important in building trust in a CEO
CEO’s personal values matter most
35
General
Population
33. 50%
65
60
40
48 48 50
54 55 56
57 58 59 60 62 62 63 64 64 64
72 73 76 76 77 77 78 79
83 85
89
Global
GDP5
Japan
Russia
France
Sweden
Australia
S.Korea
Poland
U.K.
Italy
HongKong
Ireland
Germany
Netherlands
Spain
Turkey
Canada
U.S.
S.Africa
Singapore
Malaysia
UAE
Indonesia
Brazil
Argentina
China
India
Colombia
Mexico
Significant Employee Lack of Trust
Source: 2016 Edelman Trust Barometer Q525-526. Thinking about your own company and other companies in your industry, please indicate how much you trust
each to do what is right using 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,
Trust) General Population, 28-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
37
Percent who trust the company for which they work
Almost half of Korean employees do not trust the company they work for
TrustedNot Trusted
General
Population
34. Activist Consumers and Employees Are Essential Advocates
Source: 2016 Edelman Trust Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments?
Q611 A company’s business practices and handling of a crisis: Who do you trust MOST to provide you with credible and honest information about a company’s business practices, both positive and negative, and its
handling of a crisis? Q612 Who do you trust MOST to provide you with credible and honest information about a company’s employee programs, benefits and working conditions, and how a company serves its customers and
prioritizes customer needs ahead of company profits? Q613 Who do you trust MOST to provide you with credible and honest information about a company’s partnerships with NGOs and effort to address societal issues,
including those to positively impact the local community? Q614 Who do you trust MOST to provide you with credible and honest information about a company’s innovation efforts and new product development? Q615 Who
do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, South Korea, question asked of half the sample.
39
Most trusted spokesperson to communicate each topic
Innovation effortsFinancial earnings &
operational
performance
Business practices/
crisis handling
Treatment of
employees/customer
Partnerships/
Programs to address
societal issues
Views on
industry issues
15
12 12
15
22
19
10
14
12 12
16
20
29
25
31
14
34
29
42
47
50
40
33
29
20 19
14
25
16
22
20
23 22
27
17
22
Company CEO
Senior executive
Employee
Activist consumer
Academic
Media spokesperson
General
Population
35. Company NOT
engaged in
societal issues
Company
engaged in
societal issues
Employee Advocacy Increases
With Societal Issue Engagement
40
47
51
54
57
55
61
72
Recommend company as an employer
Confidence in the future of the company
Stay working for the company
Recommend products and services to
others
Motivated to perform
Committed to achieving our strategy
Do the best possible job for the customer
Impact of
Company
Engagement
11
20
25
21
18
20
22
83
81
80
78
72
71
69
Source: 2016 Edelman Trust Barometer Q527-529. Does your company and your company’s CEO get involved in addressing broader societal issues beyond the
core business, through programs or relationships with other companies? Q530-536. Thinking about your current company, please indicate how much you agree
with each of the following statements using a 9-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box,
Agree) General Population, South Korea, question asked of half the sample.
General
Population
37. Integrity 12% 44% 32%
Has Ethical Business Practices 12% 40% 28%
Takes Responsible Actions To Address An Issue Or A Crisis 13% 45% 32%
Has Transparent And Open Business Practices 11% 45% 34%
Engagement 13% 43% 30%
Treats Employees Well 14% 49% 35%
Listens To Customer Needs And Feedback 14% 46% 32%
Places Customers Ahead Of Profits 13% 40% 27%
Communicates Frequently And Honestly On The State Of Its Business 13% 38% 25%
Products 16% 37% 21%
Offers High Quality Products Or Services 16% 43% 27%
Is An Innovator Of New Products, Services Or Ideas 17% 30% 13%
Purpose 11% 31% 20%
Works To Protect And Improve The Environment 11% 36% 25%
Creates Programs That Positively Impact The Local Community 13% 30% 17%
Addresses Society's Needs In Its Everyday Business 9% 30% 21%
Partners With NGOs, Government And Third Parties To Address Societal Issues 10% 27% 17%
Operations 12% 29% 17%
Has Highly-Regarded And Widely Admired Top Leadership 11% 25% 14%
Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 12% 33% 21%
Delivers Consistent Financial Returns To Investors 13% 30% 17%
Trust Building
Source: 2016 Edelman Trust
Barometer Q80-95 How important is
each of the following attributes to
building your TRUST in a
company? Use a 9-point scale
where one means that attribute 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, Importance) Q114-129 Please
rate businesses in general on how
well you think they are performing
on each of the following attributes.
Use a 9-point scale where one
means they are "performing
extremely poorly" and nine means
they are "performing extremely
well". (Top 2 Box, Performance)
South Korea.
Company Importance vs. Business Performance
Gap
42
Company
Importance
(Expected)
Business
Performance
(Perceived) General
Population
38. 66
59
48 46
35 34
38
35
29
22
73
57
53
45 43 43 42 42
36
24
My friends
and family
An academic
expert
Companies
that I use
A journalist Employees of
a company
A company
CEO
A well-known
online
personality
Celebrities Elected
officials
Companies
[brands] I
don’t use
Every Voice Matters
Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following
authors or content creators? (Top 4 Box, Trust) General Population, South Korea, question asked of half the sample.
* Asked as “Brands I don’t use” in 2015. 43
+8 +9
50%
2015 2016
General
Population
40. Influence
The Inversion of
Influence
Influence
& Authority
Authority
Old Model
‣ Elites have access
to more/better
information
‣ Elites’ interests
interconnected with
those of mass
‣ Becoming an “elite”
open to all
New Reality
‣ Peer-to-peer influence
more powerful than top-
down
‣ Increasing distrust
among mass population
‣ Mass movements based
on dissatisfaction and
urgency
The Divide
‣ Democratization of
information and more
information
‣ High-profile revelations
of greed and
misbehavior
‣ Income inequality
44
42. Embracing the New Reality
of Influence to
Address Trust Inequality
46
‣ Create societal impact in addition to profits through
purposeful action
‣ Express your values through honest, ethical
engagement in which you share your story
‣ Ignite your most powerful advocate, your employees
‣ Engage cross channel to meet stakeholders, where
they are, about what most interests/concerns them
Actions
Values
Employee
Advocacy
Engagement
Influence
AuthorityLeadership
TRUST
This year’s overarching theme is the “Growing Inequality of Trust : Inversion of Influence”
Introducing the concept of inequality of trust in Korean context
Income and class inequality a very live issue in Korea, too.
Eg.: Many young adults describe life in Korea as a "Hell Korea." They have "given up," and their lives have nothing special. Korean phrases such as "sampo," "opo" and "chilpo" describe doubts about jobs, marriages and children.
There is a general upward trend for all institutions globally
Overall slightly upward trend
Government
Bouncing back from last year’s sentiment impacted by Sewol Ferry disaster, this year’s been relatively better , but still low
NGO’s
Higher compared to other institutions
Similar trend to Global – slight recovery
So you might think things are going well
Not quite so, if you look at Korean results in comparison with other countries
Trust in business is the lowest in Korea among all countries in the survey
Slight change in the question, we asked Koreans which nationality of global companies would they trust more.
In this question, as well, Korean businesses ranked low – 12th out of 17 countries.
Looking at trust in sources of news and information, as well, trust level decreased in major sources such as Search, Traditional AND social media.
Search Engines : Inaccurate issue buzzing for social problems that were not accurate (e.g. MERS, NK issues)
As I said in the beginning of the presentation, the divide of opinions and view points between IP and MP was the key finding of this year’s Trust results.
This chart shows the growing gap
We are seeing growing gaps in more countries
Note: Please spend time a little bit to explain how to read this graph, as it was not intuitive for many
And this is a global phenomenon. More than half of our countries today have a double-digit trust gap. As you can see from the map, this is not a developed vs developing country issue. Not an east vs. west issue.
It’s truly a global phenomenon. Its an everywhere problem, that exists across a mix of economies.
Note: Please explain that index is like a score. The higher, the better.
In case of Korea, too, one might think that Korea is doing much better if you look at only IP. However, not so much, if you take MP into consideration.
In the eyes of General Population, Korea is still one of the distrusters.
Global trend very relevant for Korea
And when it comes to forming opinions about companies, who do people listen to? It still is experts, both technical and academic.
But here in 2016, a person like yourself has risen to the same level as experts. This year, we also see an 8 point rise in CEOs credibility. This is a huge opportunity for leaders.
In Korea, too, the influence of peers has grown significantly.
So, we know trust in business is low in Korea.
However, there is still a huge opportunity….(show next slide)
This is why.
Even though the trust in business is low, it is still seen as an important institution to “solve problems of changing times”, and the score has grown quite a lot this year.
And we confirmed this opportunity when we looked at trust in business by sectors.
In Korea, as you can imagine, Tech has traditionally scored high in comparison to other sectors. (Samsung)
This year, we also saw other innovation-intensive sectors such as Pharma (Green) along with Tech leading the way. (Hanmi Pharma, Samsung BioLogics)
However, it is still too early to say that we are seeing a clear upward trend, because the increase is still too small. This is why we think that now is the critical moment for Korean businesses to really gain back the trust and make this slight increase into a lasting and powerful trend moving forward.
We have seen year over year that those who trust, are most likely to ‘buy products,’ ‘pay more,’ ‘recommend to friends and colleagues,’ ‘share positive opinions online’
Trust actually makes a bottom-line difference for business
In this year’s results, Integrity was the attribute where we saw the biggest Performance-Importance gap, when the respondents thought about CEOs
The unique Korean context of Chaebol-driven economy might have been a factor.
- Inheritance issues in most large conglomerates (Samsung, Lotte, Doosan, CJ, SK, Hanwha)
… linked to: complex shareholding structure and relatively vulnerable governance issues
Like the global result, ‘Personal value’ is the most important in building trust in CEO
Two recent big movie hits (Insiders” and “Veterans”) both depicting business owners as extremely corrupted and immoral characters probably show the sentiment
When outsiders like myself talk about Korea, we often point out how highly educated and highly skilled Korean workforce is.
What we found out in this survey – probably not so obvious -- was that they are also highly skeptic.
It is quite stunning that almost half of the employees actually do not trust the companies they work for.
This probably represents the internal sentiment in many businesses where the possibility of large scale job reduction and early retirement has become a routine.
So, employees are not very trusting and they will always be the toughest to convince, because they will not be bought into a company’s PR message. They know and are part of the real decisions company makes every day.
Yet, they are the most important sources of information to those who are outside of the company.
Let’s say you read an article about how company A is an awesome place to work in the paper. You might be influenced by the article, but you will always trust more, what a real person who has worked for that company has to say about the experience.
In Korea, too, we see employees are essential part of the picture.
We also see that activist consumers play a very important role in Korean context. (Note: “Activist” might be interpreted slightly differently for Koreans. More as “vocal consumers” such as power bloggers)
Following Integrity, we saw the largest importance-performance gap in Engagement in Korean businesses.