2016 Edelman Trust Barometer - Trust and the CEO
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As part of this year’s Edelman Trust Barometer, we conducted a special piece of supplementary research on trust in the CEO. The findings included in this presentation reveal a critical trust challenge for CEOs but also a rich opportunity for leadership. We believe a new model of CEO leadership is emerging and there are clear actions a CEO can take to rebuild trust and credibility.
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2016 Edelman Trust Barometer - Trust and the CEO
- 1. Trust and the CEO: A Global Perspective Presented by Edelman’s Global Executive Positioning Team 2016 Edelman Trust Barometer
- 2. Table of Contents 1 The Opportunity for Business to Lead 3 The New Model of Leadership A Plan of Action 4 The Leadership Trust Challenge 2 Appendix 5
- 3. Informed Public ‣ 8 years in 20+ markets ‣ Represents 15% of total global population ‣ 500 respondents in U.S. and China;200 in all other countries Must meet 4 criteria: ‣ Ages 25-64 ‣ College educated ‣ In top 25% of household income per age group in each country ‣ Reportsignificantmedia consumption and engagementin business news General Online Population ‣ 5 years in 25+ markets ‣ Ages 18+ ‣ 1,150 respondents per country 2016 Trust Barometer 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 Online Survey in 28 Countries 3 ‣ 10,0000+ respondents total;1,000+ general population per market ‣ Fieldwork conducted 4th - 14th December,2015 ‣ 10 Markets: CEO Supplement in 10 Countries U.K. U.S. Mexico Brazil Australia Japan China India France Germany
- 4. The Opportunity for Business to Lead
- 5. Business Operating From a Position of Strength 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 globaltotal. 5 Percent trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016 51 48 45 41 55 53 47 42 63 57 51 48 67 63 57 51 NGOs Business Media Government +4 +6 +6 +3 +4 +5 +2 +1 Informed Public General Population 2015 2016 Business closing NGO’s long-held lead in trust
- 6. 67 63 57 51 63 69 62 47 55 53 48 42 55 61 56 41 NGOs Business Media Government Business Most Trusted to Keep Pace 6 Percent trust in 2016, and percent who trust each institution to keep up with the changing times Informed Public General Population Trust 2016 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 globaltotal. 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 thatyou “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, 28-country globaltotal. Business Most Trusted to Keep Pace with Changing Times
- 7. Business Has the License to Lead Source: 2016 Edelman Trust Barometer Q249. Please indicatehow much you agree or disagree withthe following statement? (Top 4 Box, Agree). General Population, 27-country global total, question asked of half the sample. . 80% agree “A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.” up from 74% in 2015 General Population 7
- 8. 63 64 57 50 48 41 50 39 33 67 64 63 53 52 49 48 44 35 CEO Credibility Rising 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 theinformation be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 27-country globaltotal. 8 Percent who rate each spokesperson as extremely/very credible 2015 2016 +8 Technical expert Academic expert A person like yourself Financial industry analyst Employee CEO NGO representative Board of Directors Government official/regulator Peers,employees still far more credible than leaders General Population +6
- 10. More Than Half Do Not Trust CEOs Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population, 28-country global total. 10 Percent who trust CEOs to do what is right General Population 47 46 30 30 31 34 35 35 35 35 36 36 39 39 40 40 43 43 45 46 49 57 57 58 61 65 68 69 79 80 Global GDP5 France Sweden Spain Japan Ireland Poland Netherlands U.K. Germany Russia Australia Canada Italy S.Korea Turkey U.S. HongKong Argentina S.Africa Colombia Singapore Brazil Malaysia Mexico UAE Indonesia India China In 19 of the 28 countries, the general population do not trust CEOs to do what is right 50%
- 11. CEOs Not Getting High Marks Source: 2016 Edelman Trust Barometer Q451-461 Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs are fairly paid relative to rest of workforce,’ ‘CEOs can relate to people like me,’ (Bottom 5 Box, Do Not Agree), ‘CEOs are too focused on short-term financial results (Top 4 Box, Agree), General Population, 28-country global total. 11 Percent who agree with each statement about CEOs Not fairly paid relative to everyone else Overpaid 54% Cannot relate to people like me Unrelatable 50% General Population Misplaced Focus Too focused on short-term67%
- 12. CEOs Underperforming On Most Important Attributes Importance vs. performance of 16 trust-building leadership attributes % Performance % Importance Gap General Population 12 2016 Edelman Trust Barometer. Q462-478 How important is each of the following attributes to building your trust in CEOs? Q479-495 Please rate CEOs on how well you think they are performing on each. (Top 2 Box) General Population, 28-country global total. Integrity 51 27 24 Exhibits highly ethical behaviors 50 24 26 Takes responsible actions to address an issue or crisis 53 33 20 Behaves in a way that is transparent and open 50 24 26 Engagement 49 24 25 Treats employees well 52 25 27 Listens to customer needs and feedback 50 25 25 Places customer ahead of profits 47 23 24 Communicates frequently and honestly on the state of their company 46 23 23 Products 45 33 12 Places a premium on offering high-quality products or services 48 34 14 Is focused on driving innovation and introducing new products/services/ideas 42 32 10 Purpose 40 25 15 Is dedicated to protecting and improving the environment 41 22 19 Ensures that the company creates programs that positively impact the local community in which it operates 42 28 14 Ensures that the company addresses society's needs in its everyday business 43 26 17 Ensures that the company partners with NGOs, government and third parties to address societal issues 33 24 9 Operations 37 28 9 Attracts and retains a highly regarded and widely admired top leadership team 40 29 11 Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 29 25 4 Manages the company in a way that delivers consistent financial returns 41 29 12 #1 importance #2 importance Table stakes
- 13. 50% 47 52 71 68 64 63 59 58 58 58 57 57 56 54 52 48 48 46 46 45 40 40 36 35 34 30 24 22 18 12 Global28 GDP5 Netherlands U.K. Australia Argentina Italy Sweden Canada France Poland Germany Japan U.S. Ireland Russia Spain Colombia Brazil Turkey S.Africa Singapore Mexico Malaysia HongKong Indonesia China UAE India S.Korea CEOs Are Not Well Known 13 Percent who say that they cannot name any CEOs Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 28- country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Lower Awareness Higher Awareness Majority acknowledge inability to name a CEO General Population
- 14. 47 46 30 30 34 35 35 35 36 36 39 39 43 57 68 79 46 40 26 25 29 29 30 27 28 33 30 29 34 53 67 78 Global GDP5 France Sweden Japan Ireland Netherlands U.K. Germany Russia Australia Canada U.S. Singapore UAE India Foreign CEOs Less Trusted in Key Markets Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population, 28-country global total. Q448-449. Now thinking aboutdifferent types of CEOs, please indicate how much you trust each type of CEO 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) General Population, 28-country globaltotal. GDP 5 = U.S., China, Japan, Germany, U.K. 14 Percent who trust CEOs in general, vs. CEOs of large companies based outside of their country General Population 50% Trust in CEOs Trust in Foreign CEOs In 14 countries, foreign CEOs face additional trust challenges -5 -5 -6 -5 -8 -8 -9 -10 -9
- 15. Trust Challenges Facing CEOs Today Broad lack of trust in CEOs Company experts and employees more credible spokespeople 1. Lack of awareness of CEOs 3. New expectations for business to lead 4. 2.
- 16. 16 The New Model of Leadership
- 17. The Age of Engaged Leadership 17 The Celebrity CEO The Invisible CEO The Engaged CEO 1980’s and 90’s The Recession Years Today
- 18. Jeffrey A. Sonnenfeld Senior Associate Dean for Leadership Programs & Lester Crown Professor in the Practice of Management, Yale University 18 “A corporation’s public purpose is conveyed through its leaders. Despite the pulse of 24/7 multimedia inquiries and the endless critiques of global stakeholders, many CEOs remain insulated and protected. CEOs can only look to rebuild trust by stepping out and embracing their critical role of direct public engagement with a genuine two-way exchange with key constituents. “
- 19. 47 46 30 30 31 34 35 35 35 35 36 36 39 39 40 40 43 43 45 46 49 57 57 58 61 65 68 69 79 80 64 63 48 46 45 53 51 50 59 58 50 52 63 57 59 43 58 64 55 65 59 73 68 76 72 77 75 82 84 89 Global GDP5 France Sweden Spain Japan Ireland Poland Netherlands U.K. Germany Russia Australia Canada Italy S.Korea Turkey U.S. HongKong Argentina S.Africa Colombia Singapore Brazil Malaysia Mexico UAE Indonesia India China Trust in CEOs Rises When They Know CEOs Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 28-country global total. Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population, 28-country global total. 19 Percent trust in CEOs vs. percent trust in CEOs among respondents who can name 2 or more CEOs General Population Trust among respondents who can name 2+ CEOs Average Trust in CEOs
- 20. A Universal Desire for Honest, Ethical, Competent Leadership Characteristics that make a CEO trustworthy: percent who selected each as one of the top five in each region 20 North America Honest 59% Ethical 48% Competent 26% Transparent 26% Sincere 24% Latin America Ethical 47% Honest 44% Competent 36% Visionary 34% Innovative 33% Europe Honest 53% Competent 43% Experienced 28% Ethical 27% Transparent 27% APAC Honest 39% Visionary 35% Decisive 31% Ethical 31% Competent 26% General Population Source: 2016 Edelman Trust Barometer Q515. Which of the following personal characteristics make a CEO trustworthy? Please select thefive most important characteristics that make a CEO trustworthy. General Population, 28-country global total, question asked of half the sample.
- 21. A CEO’s Personal Values and History Are Important Source: 2016 Edelman Trust Barometer 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 nine-point scale whereone means that attributeis “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, 28-country globaltotal, questionasked of half the sample. 21 Percent who agree that each type of information is important in building trust in a CEO General Population 62% 65% 70% 79% Their education and how it shaped them Their personal success story The obstacles they have overcome Their personal values
- 22. 60% 63% 68% 69% 74% 71% 71% 72% 72% 72% 73% 76% Personal views on societal issues Public policy discussions Income inequality Economic trends Future of the industry Company benefits to society Developing products and services Crisis Financial results Company culture Launching new products/services Purpose and vision What the CEO Stands For Matters 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, 28-country global total, question asked of half the sample. 22 Percent who agree that CEOs should be personally visible in each of these business situations General Population Industry issues Societal issues Company issues
- 23. Employees of companies with CEOs NOT engaged in societal issues Employees of companies with CEOs engaged in societal issues CEO Engagement Increases Employee Advocacy Source: 2016 Edelman Trust Barometer Q527-529 Does 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 nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample. 23 58 63 61 63 70 68 78 Recommend company as an employer Stay working for the company Confidence in the future of the company Motivated to perform Committed to achieving our strategy Recommend products and services to others Do the best possible job for the customer Percent who agree with each statement, comparing those who work for companies with CEOs involved in addressing broader societal issues vs. those who do not Impact of CEO Engagement 13 21 19 24 25 23 27 91 89 89 87 86 86 85 General Population Employee Advocacy/Commitment
- 24. 57% 68% 68% 68% 74% 74% 75% 81% Sharing their view on social media Interviews with the media Meetings with NGOs and community organizations Discussions with government Participation in industry conferences Issuing communications through their company, such as press releases, newsletters, website updates and annual reports Meetings with investors and analysts Communications with employees High Expectations for CEO Engagement Across Stakeholders and Channels 24 Percent who agrees that each of the following activities is important in building trust in a CEO 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 thatattributeis “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of half the sample. General Population Your most important audience Employees
- 25. In his early career, Mark Zuckerberg battled negative perceptions driven by coverage portraying him as a ruthless, Silicon Valley executive driven by greed and power. But when the CEO made a conscious decision to tell his own story, particularly on Facebook,perceptions began to shift. Zuckerberg now engages in an authentic and relatable way with his target audiences: 25 Mark Zuckerberg: A Case Study in Engaged Leadership 47% percent say that they cannotname any CEOs Only one CEO achieved double-digit recall globally General Population 10% Mark Zuckerberg Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about CEOs of companies in general, how many can you name? Please be specificand use their full names in the boxes below. General Population, [Open ended question, coded for industry sector] 10-country global total. • Shares a mix of contentand commentary across personal,company and industry interests • Advocates for key issues,such as parental leave and taking a strong stand around issues that matter, such as the hatred many Muslims faced following the Paris terror attacks • Uses Facebook to shows a human side by offering a glimpse into personal interests and life outside of work such as a Chinese New Year greeting with wife Priscilla and baby Max • Revealed the personal struggles he and Priscilla overcame (miscarriages) on their path to pregnancy • Takes on an annual challenge to advance his personal developmentand builds engaged communities around them using Facebook • Provides behind-the-scenes access to events or offering a Q&A to share additional context around a major announcementusing owned channels • Hosts regular Town Hall meetings for employees • Speaks openly to media and participates in industry conferences and events
- 26. A Plan of Action
- 27. Tru s t Ch a l l e n g e s F o r CEO s Pl a n o f Ac t i o n Recommendations for Building Engaged Leadership Broad lack of trust in CEOs BE VISIBLE, OPEN AND AUTHENTIC1. BROADEN THE VOICES Company experts and employees more credible than CEOs 3. ENGAGE ACROSS CHANNELSLack of awareness of CEOs4. TAKE ON ISSUES THAT MATTERNew expectations for business to lead2.
- 28. Thank You
- 29. Appendix 1: Addressing CEO Trust Challenges
- 30. Tru s t Ch a l l e n g e s F o r CEO s There is a broad lack of trust in CEOs O b j e c t i v e The CEO must be visible and accessible,and all CEO communications mustbe authentic,personal,relatable, purpose-driven. The CEO must express their values and purpose through direct engagementwith stakeholders and by utilizing multiple online and off line platforms to tell a consistent, relevantstory that is easily discovered. Pl a n o f Ac t i o n BE VISIBLE, OPEN AND AUTHENTIC Company experts and employees are more credible spokespeople than CEOs The CEO must engage the most credible voices—experts and employees— directly and frequently to inspire and mobilize them as ambassadors for the CEOs story around the organization’s vision,purpose and performance. BROADEN THE VOICES TO TELL YOUR STORY BE ACCESSIBLE BY ENGAGING DIRECTLY AND ACROSS CHANNELS Recommendations for Building Engaged Leadership 1. There is a lack of awareness of CEOs, despite an explosion in communication channels 3. The CEO should have a pointof view on how the organization and industry contributes to society in positive ways. TAKE ON ISSUES THAT MATTER TO YOUR INDUSTRY OR SOCIETY There are new expectations for business and leaders 4. 2.
- 31. Plan of Action to Build Engaged Leadership: Be Visible, Open and Authentic IMPER ATIVES TO B U ILD EN GA GED LEA D ER SH IP A D D R ESSIN G TH E C H A LLEN GE C EO TR U ST C H A LLEN GE There is a broad lack of trust in CEOs. 47 percent do not trust CEOs to do what is right. Only 49 percent believe a CEO is a credible company spokesperson, compared to a technical expert within a company (67percent) or a regular employee (52 percent). This is in part because 50 percent of respondents think CEOs are not relatable and 79 percent want to understand the CEOs personal values. The CEO must be visible and accessible, and all CEO communications must be authentic, personal, relatable and articulate a clear benefit and purpose. 1. The CEO must share their personal story including their personal career journey, successes and the obstacles you have overcome. 2. CEOs must communicate clearly, authentically, and transparently, avoiding robotic and corporate speech. A C TION S TO TA K E 1. Develop a differentiating, authentic narrative platform that offers a distinct, personal and contextual point of view. 2. Conduct individualized speakers training – not to rehash corporate messaging – but to ensure the CEO communicates the corporate narrative and vision in a real and relevant manner and in way that connects to diverse audience groups from employees to industry partners. 1.
- 32. IMPER ATIVES TO B U ILD EN GA GED LEA D ER SHIP A D D R ESSIN G TH E C H A LLEN GE C EO TR U ST C H A LLEN GE A C TION S TO TA K E There are new expectations for business and leaders. While 72 percent agree CEOs must be sharing financial results and performance, 74 percent expect them to have a point of view on the future of their industry and 80 percent want CEOs to be personally visible in addressing societal issues such as income inequality. Your stakeholders fully expect to hear from CEOs frequently and openly about their dual mandate of earning profits and providing societal benefits. The CEO should have a clear point of view on how the organization and industry contributes to society in positive ways. 1. Speak beyond spreadsheets and address relevant topics including industry trends and social purpose. 2. Engage directly with your staff on these issues. Employees of companies with CEOs who are engaged in societal issues are more productive, confident, and likely to recommend the organization as an employer of choice. 1. Identify an industry issue or social cause that matters to the CEO, employees and your stakeholder community and advocate for this issue through multiple channels – from employees to media to industry events. Plan of Action to Build Engaged Leadership: Take on Issues That Matter to Your Industry or Society 2.
- 33. IMPER ATIVES TO B U ILD EN GA GED LEA D ER SH IP A D D R ESSIN G TH E C H A LLEN GE C EO TR U ST C H A LLEN GE A C TION S TO TA K E Company experts and employees are more credible spokespeople than CEOs. Only 49 percent believe a CEO is a credible company spokesperson, compared to a technical expert within a company (67percent) or a regular employee (52 percent). The CEO must engage your most credible voices—experts and employees— directly and frequently to inspire and mobilize them as ambassadors who can bolster and echo the CEOs story around the organization’s vision, purpose and performance. 1. Foster understanding among employees of the company’s vision and strategy and their role in fulfilling it. 2. Engage and empower multiple leaders including the C-Suite, experts within the company, and employees to help tell and humanize the company’s story. 1. Deploy your C-Suite and company experts as spokespeople. Devise engagement plans consisting of speaking, media and stakeholder outreach that align with each leader’s experience and responsibilities within the company. 2. Create compelling, customized content that brings to life the voice of each leader/expert. 3. Arm employees with the right messages and tools needed to easily share content with their personal networks. Plan of Action to Build Engaged Leadership: Broaden the Voices to Tell Your Story 3.
- 34. IMPER ATIVES TO B U ILD EN GA GED LEA D ER SHIP A D D R ESSIN G TH E C H A LLEN GE C EO TR U ST C H A LLEN GE A C TION S TO TA K E There is a lack of awareness of CEOs, despite an explosion in communication channels. CEOs are now expected to be engaging frequently and directly with employees (81%), investors (75%), NGOs and government (68%) as well as communicating through owned media (78%), conferences (78%) and media (68%). The CEO must express their values and purpose through direct engagement with stakeholders—particularly employees—and utilizing multiple online and off line platforms to tell a consistent, relevant story that is easily discovered. 1. Make the CEO accessible to engage with key stakeholders—namely employees—directly and frequently. 2. With a clear narrative and point of view established, share the CEO’s story through multiple channels to engage all audiences. 1. Convene multi-stakeholder dialogue on topics that matter. This could be done through employee town halls meetings, salons, media roundtables or 1:1 meetings with influencers. 2. Raise positive profile on search engines by creating and sharing relevant content across digital, social, traditional and corporate owned channels. Plan of Action to Build Engaged Leadership: Be Accessible by Engaging Directly Across Channels 4.
- 35. Appendix 2: CEO Awareness, Supplementary Study
- 36. 50% 48 57 64 68 46 56 58 54 36 24 18 60 80 74 68 65 64 63 53 50 47 38 Global 10 Germany Australia U.K. Brazil Japan France U.S. Mexico China India Percent who say they cannot name a CEO vs percent who cannot actually name a CEO Less Than Half Can Actually Name a CEO Source: 2016 Edelman Trust Barometer Q446. Thinking about company CEOs in general, how many CEOs could you name in full? General Population and Informed Public, 10-country total, and 2016 Edelman Trust Barometer CEO Supplementary Study Q1. Thinking about company CEOs in general, how many CEOs could you name in full? General Population, 10-country total. 36 General Population Acknowledge inability to name a CEO Cannot name a CEO
- 37. Global Top 10 Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about CEOs of companies in general, how many can you name? Please be specificand use their full names in the boxes below. General Population, [Open ended question, coded for industry sector] 10-country global total. 37 Percent who mention each CEO name, across all 10 markets 10% Mark Zuckerberg 8% Bill Gates 4% Steve Jobs 4% Tim Cook 3% Carlos Slim 3% Jack Ma 3% Satya Nadella 2% Sundar Pichai 2% Carlos Ghosn 2% Richard Branson Only one CEO achieved double-digit recall General Population
- 38. Most Recalled CEOs: Tech Sector Leads Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about CEOs of companies in general, how many can you name? Please be specificand use their full names in the boxes below. General Population, [Open ended question, coded for industry sector] 10-country global total. 38 Sector associated with the main business of spontaneously mentioned CEOs 49 14 8 7 5 17 Technology Conglomerate Telecommunications Retail Automotive Other General Population
- 39. Tech CEO Awareness Highest in Most Markets Source: 2016 Edelman Trust Barometer CEO Supplement Q1. Thinking about CEOs of companies in general, how many can you name? Please be specificand use their full names in the boxes below. General Population, [Open ended question, coded for industry sector] 10-country global total. 39 Sector associated with the main business of mentioned CEOs Technology Conglomerate Telecommunications Retail Automotive Other 73 12 22 32 45 12 3 7 32 51 7 27 16 22 10 15 113 39 Australia Brazil China France 50 1 1 37 10 Germany 62 10 28 49 31 3 1 16 58 22 1 4 16 India Japan Mexico United Kingdom 49 14 8 7 5 17 United States 22 1 67 General Population
- 40. Appendix 3: CEO Trust, Sector Data
- 41. 61% 54% 51% 48% 46% Tech CEOs Most Trusted Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the health industry to do what is right. Please use the 9-point scalewhere 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. 41 Percent who trust CEOs to do what is right in each industry sector Technology Food & Beverage Healthcare Financial Services Energy General Population
- 42. 61% 54% 51% 48% 46% 75% 63% 61% 52% 57% Trust in CEOs Lags Trust in Their Industry Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the [INSERT INDUSTRY] industry to do what is right. Please use the 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). Q45-429. Please indicatehow 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 thatyou “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. 42 Trust in the sector vs. trust in CEOs in the sector Sector TrustTrust in CEOs in this Sector Technology Food & Beverage Healthcare Financial Services Energy General Population
- 43. 61% 54% 51% 48% 46% 57% 52% 46% 47% 48% 76% 66% 57% 61% 50%49% 46% 37% 32% 37% 67% 58% 64% 58% 56% CEO Sector Trust Varies Regionally Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the [INSERT INDUSTRY] industry to do what is right. Please use the 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, 28-country global total. 43 Percent who trust CEOs in each industry Financial ServicesHealth EnergyTechnology Food & Beverage Global North America Latin America European Union APAC General Population
- 44. 46 46 28 29 30 31 33 34 34 35 36 38 40 41 41 42 42 43 45 46 49 53 53 55 56 60 68 76 79 83 Global28 GDP5 Russia Sweden Germany Spain Japan Ireland S.Africa Canada U.K. Australia Argentina France Italy Poland S.Korea Turkey Netherlands Brazil U.S. HongKong Malaysia Colombia Singapore Mexico Indonesia UAE India China More Than Half Do Not Trust Energy CEOs Percent who trust CEOs to do what is right, energy sector Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the energy industry to do what is right. Please use the 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, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 44 General Population 50% In 23 of the 28 countries, the general population do not trust energy CEOs to do what is right
- 45. More Than Half Do Not Trust Financial Services CEOs Percent who trust CEOs to do what is right, financial services sector Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the financial services industry to do what is right. Please use the 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, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 45 General Population 50% 48 45 26 27 29 30 31 31 32 33 39 40 40 40 41 42 44 47 50 51 53 56 64 65 68 69 71 71 76 76 Global28 GDP5 Ireland Sweden France Spain U.K. Russia Germany Netherlands Italy Poland Japan Australia S.Korea Canada Argentina U.S. S.Africa Turkey HongKong Singapore Colombia Brazil UAE Malaysia Mexico Indonesia India China In 20 of the 28 countries, the general population do not trust CEOs in the financial services industry to do what is right
- 46. 54 52 35 35 38 39 43 44 45 45 46 46 48 48 50 50 51 53 55 58 62 63 64 64 69 70 72 72 73 73 Global28 GDP5 France Russia Japan Sweden S.Korea Ireland Australia Germany Netherlands Turkey HongKong Spain Poland U.K. Canada U.S. Italy Argentina Malaysia Colombia Singapore S.Africa Mexico UAE Brazil China India Indonesia More Than Half Do Not Trust CEOs in Food & Beverage Percent who trust CEOs to do what is right, food & beverage sector 46 General Population 50% In 18 of the 28 countries, the general population do not trust food and beverage CEOs to do what is right Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the food and beverage industry to do what is right. Please use the 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, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K.
- 47. More Than Half Do Not Trust Tech CEOs Percent who trust CEOs to do what is right, technology sector 47 General Population 50% Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the technology industry to do what is right. Please use the 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, 28-country globaltotal. GDP 5 = U.S., China, Japan, Germany, U.K. 61 58 34 44 45 45 46 48 49 49 50 53 53 54 57 57 58 59 61 65 68 69 71 75 78 78 79 83 87 93 Global28 GDP5 Sweden Russia Japan Netherlands France U.K. Germany Spain Australia Canada Poland S.Korea Ireland U.S. Italy Turkey HongKong S.Africa Argentina Malaysia Singapore Colombia Brazil UAE Indonesia Mexico India China In 16 of 28 countries, the general population do not trust technology CEOs to do what is right
- 48. 51 51 27 30 31 31 37 39 39 40 44 44 45 45 46 46 48 48 52 55 56 56 61 62 69 71 73 74 78 81 Global28 GDP5 Poland Sweden Ireland Russia Italy Germany Netherlands France S.Africa Japan U.K. Colombia U.S. Turkey Canada Spain Argentina S.Korea Australia HongKong Brazil Singapore Mexico Indonesia UAE Malaysia India China More Than Half of Countries Do Not Trust Healthcare CEOs Source: 2016 Edelman Trust Barometer Q450. Please indicatehow much you trust CEOs in the health industry to do what is right. Please use the 9-point scalewhere 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. 48 Percent who trust CEOs to do what is right, healthcare sector General Population 50% In 20 of the 28 countries, the general population do not trust healthcare CEOs to do what is right
- 49. 61% 52% 51% 62% 60% 53% 40% 41% 52% 52% A Missed Opportunity for CEOs to Lead on Societal Issues 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? (Yes summary) General Population, 28-country globaltotal, questionwas asked of half the sample. 49 Respondents who say their company and their CEO are engaged in societal issues, by industry sector CEO engaged Company engaged Technology Food & Beverage Healthcare Financial Services Energy General Population
- 50. Appendix 4: Additional Data, Trust and CEO Trust
- 51. Leading With Purpose Impacts Trust 51 Percent who cite each as a reason for why their trust in business has increased or decreased 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 whichof the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, 28-country globaltotal. Reasons Trust in Business Has Increased Reasons Trust in Business Has Decreased Produces economic growth Contributes to the greater good Allows me to be a productive member of society Fails to contribute to the greater good Lacks economic growth No public services 59% 45% 40% 50% 39% 36% General Population
- 52. 47 46 30 30 34 35 35 35 36 36 39 39 43 57 68 79 31 35 40 40 43 45 46 49 61 57 58 69 65 80 46 40 26 25 29 29 30 27 28 33 30 29 34 53 67 78 35 35 43 49 50 48 51 52 61 66 68 69 73 81 Global GDP5 France Sweden Japan Ireland Netherlands U.K. Germany Russia Australia Canada U.S. Singapore UAE India Spain Poland Italy S.Korea Turkey HongKong Argentina S.Africa Malaysia Colombia Brazil Indonesia Mexico China The Global CEO Foreign CEOs Less Trusted in Half the Markets Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population, 28-country global total. Q448-449. Now thinking aboutdifferent types of CEOs, please indicate how much you trust each type of CEO 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) General Population, 28-country globaltotal. GDP 5 = U.S., China, Japan, Germany, U.K. 52 Percent who trust CEOs in general, vs. percent who trust CEOs of large companies based outside of their country General Population 50% Trust in CEOs Trust in Foreign CEOs In 14 countries, foreign CEOs are less trusted -5 -5 -6 -5 -8 -8 -9 -10 -9 9 7 5 9 10 8 In 11 markets, foreign CEOs have a trust advantage
- 53. 48 52 59 66 60 62 64 66 81 58 63 63 64 68 70 77 81 86 40 39 47 48 52 54 56 63 76 56 56 62 67 65 63 69 75 79 Hobbies outside of work Their family/spouse/children How they choose to spend their money Their personal philanthropic activities Their lifestyle choices Where they were educated and how it shaped them Their personal success story The obstacles they overcame to become successful Their personal values Getting Personal – How Much to Share 53Source: 2016 Edelman Trust Barometer 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, Importance) General Population, 28-country global total. General Population APAC Europe Latin America North America Percent who agree the following aspects of the CEO’s personal life outside of their business is important
- 54. 47 46 30 30 31 34 35 35 35 35 36 36 39 39 40 40 43 43 45 46 49 57 57 58 61 65 68 69 79 80 57 56 36 42 37 40 36 42 47 51 38 45 46 53 41 50 56 60 49 58 52 63 72 72 61 77 67 78 92 86 Global GDP5 Sweden France Spain Japan Ireland Poland U.K. Netherlands Russia Germany Canada Australia S.Korea Italy Turkey U.S. HongKong Argentina S.Africa Singapore Colombia Brazil Malaysia Mexico UAE Indonesia India China In 19 of 28 countries, the general population do not trust CEOs to do what is right Informed Public More Trusting of CEOs 54Source: 2016 Edelman Trust Barometer Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population and Informed Public, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. Informed Public General Population Percent who trust CEOs, in general, to do what is right 50% +10 +12 +12 +16 +14 +10 +13 +17 +12 +12 +12
- 55. 50% 53 50 76 71 70 64 60 60 57 56 56 53 52 51 48 46 46 46 43 43 42 42 38 38 70 69 67 58 39 33 47 46 65 69 57 58 57 49 40 39 35 46 39 43 31 35 30 30 35 34 43 36 36 35 80 79 68 61 45 40 Global28 Country GDP5 Mexico Indonesia Colombia Brazil Singapore S.Africa Italy Canada Netherlands Argentina Australia U.S. Spain U.K. France Sweden Ireland Japan Turkey Germany Russia Poland China India UAE Malaysia HongKong S.Korea CEOs Trusted Less Than Business Source: 2016 Edelman Trust Barometer Q11-14. [TRACKING] [BUSINESS IN GENERAL] 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.“ Q447. Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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) General Population, 28-country global total. 55 Percent Trust, Business vs. CEOs 11 13 11 17 17 21 13 17 11 16 16 Business CEOs Business is more trusted in 22 of 28 countries General Population
- 56. North America Latin America EU APAC Communications with employees 1 1 1 1 Meetings with investors/analysts 4 2 2 2 Participation in industry conferences 3 3 4 3 Issuing communications through their companies 2 4 3 4 Interviews with the media 6 6 7 6 Discussions with government 7 8 6 5 Meetings with NGOs/community organizations 5 5 5 7 Sharing their views on blogs/social media 8 7 8 8 Your Communications Strategy May Need to Change For Each Market Rank order of activities it is important for a CEO to engage in 56 General Population Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of groups and individuals, how important areeach 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”. (Top 4 Box, Important) General Population, across regions, question asked of half the sample.
- 57. 66 66 66 64 62 62 60 59 56 54 47 45 42 33 31 30 29 Canada Sweden Switzerland Germany Australia U.K. Japan Netherlands U.S. France Italy Spain SouthKorea China Brazil India Mexico Companies Headquartered in Developed Markets More Trusted Source: 2016 Edelman Trust Barometer Q26-Q422. Now we would like to focus on global companies headquartered in specificcountries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same 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, 25-country global total. 57 Trust in companies headquartered in each country, and percentage point change, 2013 vs. 2016 +6 -2 +6 +8 -2+1+1n/a+1+4+5+3 +2 +2 +1 0 +3 4 Year Trend General Population
- 58. 25 27 19 25 28 33 27 28 24 28 37 3132 30 48 24 25 26 21 21 22 23 20 16 19 19 14 19 18 18 8 9 8 13 10 11 Employees and Other Executives Seen As More Credible Spokespeople 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 operationalperformance, and top leadership’s accomplishments? Q611 a company’s business practices, both positive and negative, and its handling of a crisis? Q612 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 a company’s partnerships with NGOs and effort to address societal issues, including those to positively impactthe local community? Q614 a company’s innovationefforts 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? GeneralPopulation, 28-country global total. 58 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 Employees Most Trusted General Population Company CEO Senior executive Employee Activist consumer Academic Media spokesperson
- 59. 58 53 44 63 46 2012 2013 2014 2015 2016 A 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, 25-country global total. *From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.” **From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.” Percent trust in each source for general news and information Millennials even more trusting of digital media than general population 2012 2013 2014 2015 2016 Search engines* 61 58 61 62 63 Traditional media 62 59 61 57 58 Online-only media** 46 44 47 45 53 Owned media 41 40 43 43 46 Social media 44 41 44 45 44 General Population 59 Millennials Gap 66 3 58 0 58 5 51 5 51 7
- 60. Employees of companies NOT engaged in societal issues Employees of companies engaged in societal issues Employee Advocacy Increases With Societal Issue Engagement Source: 2016 Edelman Trust Barometer Q527-529 Does your company 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 nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample. 60 Percent who agree with each statement, comparing those who work at companies involved in addressing broader societal issues vs. those who do not 57 61 60 62 68 66 78 Recommend company as an employer Stay working for the company Confidence in the future of the company Motivated to perform Committed to achieving our strategy Recommend products and services to others Do the best possible job for the customer Impact of Company Engagement 12 21 19 22 24 22 25 90 87 87 84 84 83 82 General Population Level of Employee Advocacy/Commitment