2011 australian trust barometer deck australia final
DESCRIPTION
The 2011 Australian Trust Barometer illustrates the changing nature of trust in our institutions, industries, channels and spokespeopleTRANSCRIPT
January 21, 2011
Asia-Pacific (APAC)AUSTRALIA
Edelman Trust Barometer at a glance
30-minute telephone interviews conducted from October 11 – November 28, 2010. Australian sample N=200
For more than a decade, Edelman’s Trust
Barometer™ has been:
• Probing the attitudes of opinion
shapers on the current state of trust
in business, institutions and
industries
• Understanding the expectations of
stakeholders regarding policy impact
on business and government
• Aligning communications strategies
and actions required to build trust
Participants are:
Aged between 25 and
64; college-educated;
top 25% of household
income; significant
consumers of media,
business news and
public policy
The Edelman
Trust Barometer
derives from
more than 5,000
interviews
across 23
countries
State of Trust
Shifting centre of gravity
A7-10. [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 in Australia
Trust in
Australia
rebounds
since 2010
NGOs
65 %
Business
54 %
Government
52 %
Media
32 %+7 +2
+11+14
Trust in institutions (2010-2011)
62%
58%
54%51%
62% 61%64%
61%
55%
44%
40%
27%
65%
54% 52%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NGOs Business Government Media
A7-10. [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)
Australia
most
trusting of
NGOs; least
trusting of
media
Trust in institutions (2011)
Global APAC U.S. Australia
54%
52%
65%
32%
20
25
30
35
40
45
50
55
60
65
70
2009 2010 2011
Business Government NGOs Media
Trust in institutions (2009-2011)Business
and NGOs
most trusted.
Since trust was benchmarked in Australian in
2009, trust in business has steadily increased,
gaining 11%. Despite a small decline in 2010,
trust in NGOs surges to a high of 65%, a 10%
increase since 2009. A7-10. [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 in Australia
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
A9. 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
[BUSINESS] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
Trust in business (2010-2011)
Trusters DistrustersNeutral
+4+3
- 8+7
20112010 20112010
Globally, trust
in business
trends upward
while US drops
11% increase
in trust in
government since
2010.
Despite a tumultuous year in politics, more than half
(52%) of Australian opinion leaders trust government to
do what is right. Trust in government rebounds from
drop in 2010, returning to 2009 levels.
(Question A9, Top 4 Box, Informed Publics aged 25-64 in Australia)
A9. 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
[IGOVERNMENT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
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
Trusters DistrustersNeutral
+5
+5
- 6
Trust in government (2010-2011)Globally,
trust in
government
rises in
2011
+11
20112010 2011201020112010
58%61%
46%
80%
54%
67%
61%
46%
70%
53%
62% 62%
55%
66% 65% 64% 63% 62% 61%
51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Global APAC US Indonesia Australia Singapore China South Korea India Japan
A9. 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
[BUSINESS/NGOs] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
Trust in business and NGOs (2011)
NGObusiness NGObusiness
Trust in NGOs
now on par with
business;
Australia more
trusting of
NGOs.
NGObusiness
45%
54%
38%
75%
63% 63%
49%
58%
36%
30%27%
49%
61%
27%
86%
80%
59%
53%50%
48%
32%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Global APAC US Indonesia China Singapore South Korea India Japan Australia UK
A9. 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
[MEDIA] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
Trust in media (2010-2011)Australians
sceptical of
media, along
with other
developed
countriesTrusters DistrustersNeutral
+4
+7
-11
20112010 20112010
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
South 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
South Korea 53
Australia 51
Japan 51
France 50
Germany 44
US 42
UK 40
Australia
increases
within global
trust
improvement
The Trust Index (2009/2011)
59%
36%
54%
46%
43%
30%
46%
40%
46%
31%38%
27%
63%
45%
63%
55%
20%
30%
40%
50%
60%
70%
80%
2008 2009 2010 2011
Business Government Media NGOs
Worldwide Financial
Crisis
A7-10. 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 in the U.S.
U.S. trust in institutions In U.S., 2011
decline mirrors
2009 drop;
Only country to
see across-the-
board fall
Trust in Business
A closer look
28%
33%
37%
38%
38%
45%
47%
52%
53%
54%
55%
56%
59%
59%
65%
68%
Media
Banks
Financial services
Insurance
Telecommunications
Energy
Consumer packaged goods
Brewing and spirits
OTC personal health care products
Biotech
Automotive
Pharmaceuticals
Entertainment
Retail
Food and beverage
Technology
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 Australia
Trust in industries (2011)
Technology
firmly on top;
Media and
Finance
sector at
bottom
Trust in all
industries
remains
steady over
the past year
28%
33%
37%
38%
38%
45%
47%
52%
53%
54%
55%
56%
59%
59%
65%
68%
Media
Banks
Financial services
Insurance
Telecommunications
Energy
Consumer packaged goods
Brewing and spirits
OTC personal health care products
Biotech
Automotive
Pharmaceuticals
Entertainment
Retail
Food and beverage
Technology
A30-45. Please tell me how much you TRUST businesses in each of the following industries to do what is right. 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 23 countries and Australia
81% 1.
66% 4.
65% 6.
63% 7.
63% 8.
69% 2.
65% 5.
57% 11.
57% 12.
59% 10.
62% 9.
68% 3.
52% 14.
50% 16.
51% 15.
54% 13.
Global ranking
Aussies
LESS
trusting
Aussies
MORE
trusting
In 2011,
Automotive,
Telecommunications
and Biotech less
trusted in Australia
than globally
Trust in industries (2011)
78%
83%
61%
48%
40%
29%
54%
71%
44%46%
26%
90%87%
71%69%
52%
33%
44%
25% 23%
16%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China India Japan Brazil France Australia* Russia US Germany UK Ireland*
2008 2011
* Compares 2009 rather than 2008 data
A30-45. [Banks 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
Trust in banks globally (2008/2011)
+12
+4
+10
+21
+12 -10
-46
-21
-30
-20
Since financial crisis,
trust in banks takes
big hit in the West;
Reverse is true in
China, India,
Japan
Aussies
LESS
trusting
Aussies
MORE
trusting
Company Headquarters
A13-29. 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.
(Top 4 box) Informed Publics ages 25-64 in Australia
National identity for companies (2011)
27% India
26%China
20% Brazil
18%Russia
Australians
distrusting of
companies
headquartered in
BRIC countries
76% Canada
70%Sweden
69% Switzerland
67%Germany
51%US
Reputation attributes (2011)
Has transparent and honest
business practices
Offers high quality products
Is a company I can trust
Treats employees well
Prices its brands fairly and
competitively
B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? 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 2 Box, Very/
Extremely Important) Informed Publics ages 25-64 in Australia.
Communicates frequently and
honestly64%
63%
60%
57%
55%
51%
46%
33%
31%
30%
Is a good corporate citizen
Has highly regarded and top
leadership
Delivers consistent financial
returns to investors
Is an innovator of new products,
services or ideas
Top 2 Box, Very/Extremely Important
30%
31%
33%
46%
51%
55%
57%
60%
63%
64%
Is an innovator of new products,
services or ideas
Delivers consistent financial
returns to investors
Has highly-regarded and widely
admired top leadership
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
Offers high quality products
or services
Has transparent and
honest business practices
Attributes affecting reputation (2011)Globally quality
tops the list of
reputation
attributes; in
Australia
transparency
and honesty
most important
65% 2.
69% 1.
65% 3.
63% 4.
55% 5.
55% 5.
51% 7.
39% 9.
39% 9 .
46% 8.
Global ranking
B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? 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 2 Box, Very/
Extremely Important) Informed Publics ages 25-64 in Australia and global in 23 countries.
Top 2 Box, Very/Extremely Important
LESS
important to
Aussies
MORE
important to
Aussies
Price matters.
17%increase since 2010.
Australians see pricing brands fairly and
competitively as an important attribute for trust
and reputation in 2011.
(Question B72-81, Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia)
Business and Society
Toward shared value
Michael Porter, Mike Kramer, Harvard Business Review”
The purpose of a
corporation must
be redefined
around creating
shared value…
“Companies must
take the lead in
bringing business
and society back
together.
Creating Shared Value
“The social
responsibility of
business is to
increase its
profits.”Milton Friedman
G124. TOTAL 52%. Please tell me if you agree/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 Australia
.
5 out of 10Australians agree
Corporations need to
create shareholder
value in a way that
aligns with society's
interests, even if that
means sacrificing
shareholder value.
G120. TOTAL 79%. 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 Australia
8 out of 10Australians agree
Government needs
to regulate
corporations
activities to ensure
they are behaving
in a responsible
manner.
G123. TOTAL 73%. 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 Australia
7 out of 10Australians agree
42%
44%
48%
49%
50%
53%
56%
61%
61%
62%
67%
69%
70%
73%
74%
82%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Japan
S. Korea
Spain
Germany
France
Brazil
Mexico
US
India
China
Singapore
Russia
Indonesia
Australia
Canada
UK
Ireland
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
Government intervention (2011)
Australians more
likely to call for
government to step
in to ensure
business behaves
responsibly
Roadmap to Trust
Key drivers of reputation
70%
54%
19%
47% 47%
41%
33%
67%
61%
38%
52% 52%
46%
30%
69%67%
50% 49%
44% 44%
31%34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
An academic or
expert
Technical expert
within the company
A financial or
industry analyst
CEO Government official NGO representative Person like yourself Regular employee
2009 2010 2011
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 Australia
Trusted spokespeople (2009-2911)
-9
-15
Top 2 Box, Extremely Credible/Very Important
CEO and
company
spokespeople
more trusted in
better economic
climate
67%trust a
technical expert from
within the company
69%trust an
academic or expert
50%trust a
financial or industry
analyst
Most trusted spokespeople (2011)
Credibility matters
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 Australia
Most trusted spokespeople (2011)
CEOexperiences recovery of credibility
30percentage point
increase since 2009
to 49% in 2011
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
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)
CEO credibility (2010-2011) CEO
credibility
increases
globally
+10
+7
+3
+11
Top 2 Box, Extremely Credible/Very Important
47%
13%
9%
14%
6%
11%
0%
10%
20%
30%
40%
50%
36%
8%
33%
9%
3%
11%
0%
10%
20%
30%
40%
50%
21%
36%
22%
8% 7% 6%
0%
10%
20%
30%
40%
50%
Trusted spokespeople in a crisis (2011)
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. 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? 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 Australia.
Trusted spokesperson
during a company crisis
Preferred spokesperson
during a product recall
Preferred spokesperson when the
local community has been damaged
CEO
must be
vocal
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? (Top Box Trust A Great Deal) Informed Publics ages 25-64 in Australia
Trusted information sources (2011)
9%
21%
6%
6%
8%
9%
17%
27%
20%
23%
23%
27%
Corporate/product advertising
Corporate communications such as press releases
Microblogging sites, such as Twitter
Social networking sites
Content-sharing sites, such as YouTube
Blogs
News/RSS feeds
Online search engines
Television or television news
Radio or radio news
Newspapers
Magazines or business magazines
Tra
dit
ion
al
So
cia
l Me
dia
Co
rpo
rate
Trust a Great Deal (Top Box)
On
lin
e
Mu
ltip
le
so
urc
es
Traditional
media most
trusted;
online
search
engines key
9%
21%
6%
6%
8%
9%
17%
27%
20%
23%
23%
27%
Corporate/product advertising
Corporate communications such as press releases
Microblogging sites, such as Twitter
Social networking sites
Content-sharing sites, such as YouTube
Blogs
News/RSS feeds
Online search engines
Television or television news
Radio or radio news
Newspapers
Magazines or business magazines
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? (Top Box: Trust A Great Deal) Informed Publics ages 25-64 in Australia and Global in 23 Countries
Trust a Great Deal (Top Box)
Trusted information sources (2011)
Global %
Aussies
LESS
trusting
Aussies
MORE
trusting
28%
33%
27%
31%
27%
18%
11%
9%
9%
7%
18%
11%
Tra
dit
ion
al
So
cia
l Me
dia
Co
rpo
rate
On
lin
e
Mu
ltip
le
so
urc
es
Most relied upon information source (2011)
I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in Australia
1. 48%
2. 14%
3. 12%
4. 12%
5. 10%
6. 9%
7. 8%
8. 7%
9. 6%
10. 6%
Most relied on source for company information (unaided)
Strong
media
brands rise
to the top
4%
5%
7%
11%
16%
22%
35%
0% 10% 20% 30% 40% 50%
Social media
Broadcast (radio/TV)
Friends and family
Print (newspapers/magazines)
Company website
Online news sources
Online search engine
Source of information about a company (2011)
I139. When looking for general news or information about a company, which one type of information source would you generally consult first? Informed Publics ages 25-64 in Australia
First Source
People go to online first
when looking for news
and information about a
company – search, online
news sources and
company websites
4%
5%
7%
11%
16%
22%
35%
0% 10% 20% 30% 40% 50%
Social media
Broadcast (radio/TV)
Friends and family
Print (newspapers/magazines)
Company website
Online news sources
Online search engine
Source of information about a company (2011)
(I139. 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? Informed Publics ages 25-64 in Australia
5%
8%
11%
14%
16%
17%
26%
0% 10% 20% 30% 40% 50%
Friends and family
Social media
Print (newspapers/magazines)
Broadcast (radio/TV)
Online search engine
Company website
Online news sources
Second SourceFirst Source
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 Australia
Once (1), 14%
Twice (2), 15%
Three times (3), 27%
Four or Five times (4 - 5), 29%
Six to Nine times (6-9), 9%
Ten or more times (10+), 6%
3-5 times
56%
Exposure to information (2011) Australians
need information
from multiple
sources and voices;
And need to hear it
3-5 times
to believe
The Benefits of TrustThe Benefits of Trust
Why Trust Matters
Trust is a protective agent
and leads to tangible
benefits and sales.
Lack of trust is barrier to
change.
15%
38%
75%
76%
29%
42%
61%
80%
84%
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
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‖) 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 Australia
Through personal action, trust has tangible benefits
When a company is distrusted When a company is trusted
16% 31%
57%will believe
NEGATIVE
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.
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 Australia
will believe positive information after
hearing it 1-2 times
will believe negative
information after
hearing it 1-2 times
49%will believe
POSITIVE
information after hearing
it 1-2 times
Trust protects reputation (2011)
Business must align
profit and purpose for
social benefit.
Control Information
Focus Solely on Profit
Pro
tect
the
Bra
nd
Sta
nd
Alo
ne
Profit With Purpose
Old Trust Framework New Trust Architecture
WHAT
The Transformation of Trust
Current media landscape
plus increased
skepticism requires multiple
voices and channels.
Generational differencesDemand for authority and
accountability set new
expectations for corporate
leadership.
January 21, 2011
Asia-Pacific (APAC)AUSTRALIA