Trust Barometer 08 FINAL

8/3/2019 Trust Barometer 08 FINAL

1/24

EdelmanTrust

Barometer

2008


2/24

On the cover, rom let: Line o customers waiting to withdraw money rom embattled Britishbank Northern Rock, September 2007; ormer Citigroup Chairman and CEO Charles Prince,who resigned in November 2007; Dora the Explorer, one o millions o Chinese-made toysrecalled by Mattel in August 2007; Floyd Landis, 2006 Tour de France winner, orced to giveup his title ater losing a doping appeal in September 2007; Shinzo Abe, ormer prime minister

o Japan, who stepped down in September 2007 ater just one year in power.

About the Annual Edelman Trust Barometer

The 2008 Edelman Trust Barometer is the companys ninth survey on trust and credibility.With this years survey, we include or the rst time the opinions o 25-to-34-year-oldsin 12 countries. This younger cohort was sampled concurrently with the 35-to-64-year-oldgroup in 18 countries.

The people interviewed in the 2008 survey:

are college-educated

report a household income in the top quartile o their country

report a signicant interest in and engagement with the media, business news, andpolicy aairs.

The 35-to-64-year-olds were surveyed as ollows: 400 in the United States; 300 in China;150 each in the United Kingdom, Germany, France, Italy, Spain, the Netherlands, Sweden,Poland, Russia, Ireland, Mexico, Brazil, Canada, Japan, South Korea and India. The 30-minute

interviews were conducted in October-November 2007.

The 25-to-34-year-olds were surveyed as ollows: 100 in the United States; 75 in China; 50each in the United Kingdom, Germany, France, Russia, Mexico, Brazil, Japan, South Korea,Canada and India. The 30-minute interviews were conducted in October-November 2007.

Margin o Error

For the 35-64 age group, margin o error is 1.7% globally; 5.0% or the U.S. sample;

5.7% or the China sample; and 8.1% or other countries in the study.

For the 25-34 age group, margin o error is 3.8% globally; 10.0% or the U.S. sample;11.5% or the China sample; and 14.1% or other countries in the study.

Disclosure

At the time the 2008 Trust Barometer was compiled, Edelman had a client relationship withthe ollowing companies or brands mentioned in this brochure: the Consumer HealthcareProducts Association (CHPA), Dove, Scotts Miracle-Gro, and Starbucks.

2008 Edelman Trust Barometer research was conducted by


3/24

The TrustDilemma

Government needs to join business and NGOs in helpingsolve major societal problems.

page 2

Meet theInfo-entials

Twenty-ve to 34-year-old opinion elites are more trustingof business, less xenophobic, and open to more voices

than older elites.

page 4

Spokespeople:

Trust Is in the Mix

Across the globe, all age groups rely on a mix o specialized

experts and peers or inormation they trust.

page 6

Media: Change ata Measured Pace

Social media is growing but mainstream media is still

most widely used and believed for information about

companies.

page 8

Reputation: FromManagement to

Leadership

The new reputation makers can be either advocates forcompanies they trust or naysayers against those they

distrust.

page 10

United States:

Business on Top

The gap between trust in U.S. business and government is

at its widest in Trust Barometer history.

page 14

Europe: A Regionof Countries

NGOs have a trust advantage in most European countries,with dierences seen in Eastern Europe.

page 16

Asian Markets:The ChinaSyndrome

Chinas economic infuence on the world and the regionis enormous, but trust in Chinese companies is at an all-time low.

page 18

Canada: Trusted

Latin America:Trusting

These two regions levels o trust in business are amongthe highest in the world.

page 20


4/24

The Trust Dilemma

This years Edelman Trust Barometer points ever more

sharply to a central public policy dilemma: In most coun-tries surveyed around the world, inuentials trust businessand non-governmental organizations (NGOs) more thangovernments, while the act remains that government isthe only place with sufcient power and authority to solveor manage the major problems acing societies.

The trust trend away rom governments and towardbusiness and NGOs has been a key fnding o the Edel-man study or several years. Its now the case in 13 o the18 nations polled. Strikingly, in the United States at least,the only age cohort going in the opposite direction is the

youngest, ages 25 to 34, whom Edelman surveyed orthe frst time. Fity-three percent o these young elites,compared to 39% o the baby boomers (35-64), placedgood trust in government.

It cant be that baby boomers around the world ailto recognize that business and NGOs do not have thepolitical reach, legal vehicles, and the money to solvethe problems the boomers want solved global warm-ing, poverty, energy dependence on the Middle East,health care, and human rights. At this point, however,the older age groups have experienced decades opoor perormance rom their political leaders. It is nowonder that deep cynicism has crept into their viewsabout government and that they have started looking atalternatives.

But while businesses and NGOs can certainly helpdeal with the major issues by taking action on their own(being more uel efcient or pressuring their governments,

or example) thats not nearly enough to get the job done.No inormation server such as Yahoo can or will fghtBeijings requests or data on individual subscribers;only oreign governments might have a chance to budgeChinese leaders on this.

Those advocating salvation through business andNGOs also should remember one killer operational road

block: businesses dont take the same position on is-

sues like trade. Nor do NGOs, where in any given feldyou have groups avoring and opposing virtually everysingle issue. Private organizations dont pull in the samedirection; they take widely conicting paths, much aspoliticians do.

What the Edelman Trust Barometer reveals, then, ismuch more the justifable rustration o the elites aroundthe world in the shortcomings and ailures o their politicalclasses than considered views on how to solve majorproblems.

Its interesting to see, however, that the elites takingpart in the Edelman survey watch events careully, makeimportant distinctions, and adapt their views shrewdly.

The countries where governments were given good trustmarks included the Netherlands, China, and Sweden, allcountries where governmental perormance has beenreasonably good in promoting internal economic growth,notably China. Respondents in Germany, France, andBritain show increased trust in their governments, rom22% to 32%, ollowing arguably more eective politicalleadership in old Europe this last year.

Trust is the key ingredient in politics, and the TrustBarometer has been quite reliable in telling us which waythe wind is blowing. The message to political leaders isto start solving problems.

Leslie H. Gelb

is president emeritus

o the Council on Foreign

Relations and a ormer

New York Times columnist.

2


5/24

Government Trails Business in Most AreasHow much do you trust each institution to do what is right?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

39

37

58

36

57

4

3

57

68

Government

Business

Latin AmericaAsiaEUNorth America

Opinion elites ages 35-64 in 18 countries

Responses 6-9 only on 1-9 scale; 9 = highest

Global Trust in Institutions:NGOs and Business Tied as Trust Leaders;Business Holds Same Trust Levels as 2007How much do you trust each institution to do what is right?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

53

51

48*

43*

52

52

44

40

2008

2007

GovernmentMediaBusinessNGOs

Opinion elites ages 35-64 in 18 countries; global total


* Statistically higher than comparable age group at the 95% confdence level

2008 Trust Baromet


6/24

Meet the Info-entialsFor years, the younger generation has set the tone in

major segments o the consumer marketathletic shoes,clothing, and music, to name a ew. Now Edelmans 2008

Trust Barometer, which studied young opinion elites (ages

25-34) or the frst time, reveals that many younger people,historically cynical about business, tend to trust it morethan their older counterparts in many regions o the globe.

This constitutes a tremendous opportunity or businessto tell its story.

For these new ino-entials, sharing inormation is an ev-eryday activity. They use and trust more inormation sourcesthan their older peers. They are more likely to spread theiropinions about and experiences with companiesgoodand badon the Web. They respond to a companysactions in an entirely new way: with inormation.

Ino-entials gather inormation in a prooundly dier-ent manner than their older peers. As a bee pausingto gather pollen at several owers, ino-entials rely on

multiple sources o inormation, not a single one. Theyassimilate news throughout the day by engaging onmessage boards or orums, blogs, Wikipedia, and socialnetworks, as well as by checking more traditional ormso media, including newspapers (mostly consumed on-line), television, and business magazines. Their viewsare shaped by continuous participation, reection, andsharing. In act, in the United States, a ree-contentencyclopedia (such as Wikipedia) is the second-mostcredible source o inormation about a company aterbusiness magazines.

The ino-ential generation appears more globally open,showing more trust in companies rom the BRIC (Brazil,Russia, India, China) nations as well as South Korea andMexico, and to brands such as Gazprom, Lenovo, and

Tata. In the United States, a company headquarteredin China is trusted by 38% o the 25-to-34-year-oldssurveyed, compared to 15% o the 35-to-64-year-olds.

The political relationship between the country in which acompany is headquartered and the respondents own,is much less important to the younger set in the UnitedStates and the three major European economies.

We also see a more positive eeling toward all industriessurveyed among the young opinion eliteseither signif-cant (biotech, pharmaceutical, entertainment, and media)or directional (technology, automotive, health care, energy,consumer packaged goods, and insurance).

When asked what makes them trust a company, young-er opinion elites give top spots to actors that defne brands(quality o products/services, customer service, value) andto corporate reputation. They place more importance ona companys social and environmental track record thanon its fnancial perormance, and say its much more im-portant or a company seeking to build local reputationsin their area to practice sound environmental policies thanit is to simply make charitable contributions.

Here are some recommendations or how companiescan reach, engage and convince young opinion elites,based on our 2008 fndings and my observations overthe past year:

1. Inorm the spontaneous discussion that is

always under way on the peer-to-peer (horizontal)axis of communication.

Younger Elites ShowHigher Trust in Businessin Nine o 12 Countries Surveyed

How much do you trust business to do what is right?

0% 20% 40% 60% 80% 100%

84

76

62

60

59

56

52

52

50

61

49

35

75

74

61

58

54

45

30

43

42

56

44

32

25-34 Opinion Elites 35-64 Opinion Elites

Germany

Canada

Brazil

Russia

South Korea

* France

UK

China

US

Japan

India

Mexico


* Statistically higher than comparable age group at the 95% con-fdence level

Younger Opinion ElitesMore Likely to Talk Online AboutTrusted and Distrusted CompaniesThan Older ElitesHow likely are you to share your opinion and experiences on theWeb about companies you trust/distrust?

0% 10% 20% 30% 40% 50% 60% 70% 80%

63*

61*

56

54

25-34 Opinion Elites 35-64 Opinion Elites

Distrusted

Trusted


4


7/24

Share your content with your employees, passionate con-sumers, and bloggers, allowing them to co-create, repurpose,and improve their knowledge through dialogue. Change yourtone rom one that pronounces to one that invites participa-tion, ceding some control in return or credibility.

Because this generation seeks its own inormation, itpreers frst-person testimonials to statements by tradi-

tional business or government authority fgures. Youngopinion elites tend to trust people like themselves as wellas academics, doctors, and fnancial analystsin other

words, specialized experts with proessional credentials.In France, younger opinion elites are nearly twice as likelyto consider a regular employee credible (56%) as theyare a CEO (30%) or government ofcial (32%). But theydont jettison top-down inormation either: They are moreinclined to believe what companies say about themselvesin press releases, annual reports, newsletters, and ontheir Web sites.

In many nations, they share their high regard or busi-ness with one other institution, most oten NGOs, implying

that trust is highest when author-ity is dispersed and checked bya countervailing orce. So relyingon top-down messages rom theCEO is, at best, insufcient andprobably ineective.

2. Take on broader soci-etal challenges as part of thecorporate remit, acknowledg- ing these not only as proft-making opportunities but also

as opportunities to engagewith stakeholders in dier-

ent ways.

Brand and corporate reputationare increasingly indistinguishable;every action is visible and everycompany accountable. Greatcompanies recognize the poten-tial or programs with a purpose,

whether the environment, humanrights, or emale sel-image (theDove Campaign or Real Beauty).

These eorts have a positive inu-ence on all stakeholders, includingyounger opinion elites who expectcompanies to take a positive so-cial role.

3. Recognize the Info-entialGeneration as a distinct inter-est group, positively inclinedbut constantly reviewing the

scene, demanding immediacyand transparency.

As the most connected genera-tion, it ollows that the 25-to-34-

year-olds are more likely to sharetheir opinions and experiences onthe Web to support a company

they trust. I a company violatestrust, this group is more likely toreact by spreading the bad newson the Web while their older peersare more likely to support legisla-tion against them or reuse to buyshares in the oending company.

Richard Edelmanis president and

chie executiveofcer o Edelman.

Younger Opinion Elites More Trustingo Nearly Every Source o Inormation

About Companies Than Older ElitesHow credible do you feel each of the following sources is for information about a company?

0% 10% 20% 30% 40% 50% 60% 70%

62

57

53

52

51

47

44

42

40

35

31

28

26

25

25

55

55

49

46

48

1

39

37

31

30

27

23

19

20

19

25-34 Opinion Elites

35-64 Opinion Elites* Web-based

video sharing sites(such as YouTube)

* Social networkingsites (such as

MySpace or Facebook)

* Blogs

* Corporateor productadvertising

* Televisiontalk shows

* Online messageboards, forumsor newsgroups

* A companysown Web site

* Communicationsissued by

companies

* Free contentencyclopedia,

such as Wikipedia

Newscoverage

on the radio

Conversationswith your friends

and peers

* Articles innewspapers

Televisionnews coverage

Stock or

industry analystreports

* Articles inbusiness

magazines

46

Opinion elites ages 25-64 in 12 countries* Statistically higher than comparable age group at the 95% confdence level

2008 Trust Baromet


8/24

Spokespeople:

TrustIsintheMixAcross countries and age groups, opinion elites are

continuing to rely on their peers as well as on experts likeacademics, industry analysts, and doctors or credibleinormation about companies.

As a result, companies need to be sure theyre engag-ing audiences in both directions horizontally, along what

we reer to as the peer-to-peer axis o communications,and up and down on the vertical axis to capture the sup-port o the specialists who hold sway in their area o busi-ness. That could be, as the graph on page 5 shows, anindustry analyst, an academic, a doctor, or another fgure

with the right credentials.

To underscore the power o peer-to-peer, were seeinghigh numbers or the credibility o word o mouth, not justas a means to convey inormation, but a potent way toshare perceptions and emotions about that inormation:the acts plus the enthusiasm or skepticism. Its the biasthat primes people to believe, or not believe, what theyhear or read elsewhere later on. Word o mouth is not justa dierent kind o messenger; its a undamental changein the traditional value system o inormation.

Consider the fve moms who got together to stem the

abuse o cough medicine among teens or client CHPA(the Consumer Healthcare Products Association), and injust three months through Tell-a-Friend e-mails, reached100,000 other mothers. Each o the fve moms waspassionate about spreading the word among schools,churches, governments, and riends and amily. Theirmessages were strengthened by the participation o na-tional organizations like the Community Anti-Drug Co-alitions o America, D.A.R.E America, and the nationalParent-Teachers Association.

Geography is ading in importance when it comes todefning a person like me. While local actors play a rolein other parts o our survey (trust in a company goes upi a company creates jobs in the community), being rom

the same place doesnt matter so much when it comesto describing a person like you. Sharing interests andpolitical belies does.

Pam Talbotis president andchie executive ofcero Edelman in theUnited States.

Whom do you trust?In Brazil, Canada, Germany, the Netherlands, Spain,Sweden, and the United States, a person like

me is considered the most credible source o

inormation about a company.

In France, India, Ireland, Mexico, Poland, South Korea,

and the United Kingdom, a fnancial or industry expertcomes in frst on the list o credible spokespeople.

In Italy, Japan, Russia, and Spain, academics are

ranked most credible.

Doctors or health care specialists are either the

second- or third-most credible source o inorma-

tion about a company according to opinion elites

in Brazil, Canada, France, Germany, Ireland, Italy,Japan, Mexico, the Netherlands, Russia, South

Korea, and the United Kingdom.

Non-proft or NGO representatives take second

or third place in the credible spokesperson rank-

ing in France, Italy, the Netherlands, Ireland, andSouth Korea.

With whom do you talk?In North America, 82% o opinion elites requently

share inormation about companies with amily,

and 79% share it with riends. At 57% each, peo-ple in their proessional network, and co-workers

are next on the list.In Latin America, the top three spots are more even-

ly distributed, with 77% saying they share opinions

about companies with people in their proessional

network, 72% with amily, and 71% with riends.

In the European Union, the top three audiences receiv-

ing opinion elites thoughts about companies are their

riends (75%), amily (68%), and co-workers (63%).

In Asia, riends come in frst (73%), ollowed by

co-workers (69%), and members o a persons

proessional network (66%).

All Ages Trust Word o MouthYou are much more likely to believe what you see, read, or hear

about a company if someone you know has already mentionedit to you. Do you agree or disagree?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

83

78

25-34 Opinion Elites* 35-64 Opinion Elites

% of

respondents

who

somewhat /strongly

agree


6


9/24

Who is a person like me?Shares my interests and holds similar political belies continue to be the top two defning actors o a

person like me in most countries, with a slight drop in the U.K., France, and Germany orshares my interests

(67% to 61%).

In China, the importance o sharing interests went up to 65% rom 53%, but in Brazil it dropped to 65% rom

a survey-high o 79%.

Being rom the same local community dropped in importance over the past year, in some countries quite

signifcantly: Ireland to 29% rom 51%; Russia to 28% rom 47%; Sweden to 9% rom 27%; the U.K. to 18%

rom 44%; and the United States to 24% rom 44%.

Since last years survey, being in the same proession dropped in importance: China to 36% rom 46%; India

to 36% rom 63%; Japan to 32% rom 46%; Russia to 31% rom 51%; South Korea to 27% rom 46%; the

U.K. to 31% rom 46%; and the United States to 23% rom 35%.

Communications Today RequiresTopDown and PeertoPeer SpokespeopleIf you heard information about a company from each of these sources, how credible would it be?

0% (Least trusted)

(Most trusted) 100%

100% (Most trusted)

0% (Least trusted)

50%

Blogger

(14%)

Entertainer /Athlete (15%)

Regular employee

of a company (39%)

Non-profit/NGOrepresentative (49%)

A person like

me (58%)

Government official

or regulator (32%)

CEO of a

company (36%)

Doctor or healthcare

specialist (55%)

Academic

(56%)

Financial or industry

analyst (57%)

TOP

DOWN

PEER-TO-PEER


2008 Trust Baromet


10/24

Media:

Change at a Measured Pace

Garrick Utleyis president o the Levin GraduateInstitute o International Relations andCommerce o The State University o New Yorkand a ormer broadcast journalist orNBC News, ABC News, and CNN.

Trust in media as an institution is at a high point inmany countries, making marked increases over past

year standings in all regions o the world. This could bedue to the broader spectrum o ways media brands arecovering their stories and making their content available,including investigative and scandal-related pieces.

The media world may well be undergoing a dramatictransition, but among elites surveyed, change is occur-ring at a measured pace. Mainstream media newspa-pers, television news, and business magazines are themost widely used sources o inormation about compa-nies. Business magazines are the most trusted with 10o 18 countries saying theyre the most credible, andon a global basis, they are in the top spot or credibility.But as the Trust Barometer bears out, social media isgaining ground.

People depend on reliable brands regardless o thedelivery system, mainstream media believe. In the TrustBarometer, CNN, BBC, and Google are cited in themajority o countries surveyed as inormation sources

people rely on or inormation about companies. Usageand belie patterns among inormed, news-seeking audi-ences suggest that proessionally generated content willcontinue to edge out user-generated online content.

We should keep an eye on the social media inorma-tion sources and content generators in the chart on theacing page to see how much they grow rom the lowerlet quadrant to higher usage and credibility levels. Howmuch urther will Wikipedia, in existence since 2001, en-croach on the proessionally generated content o the En-cyclopedia Britannica? There will always be a solid marketor quality inormation content delivered by proessionalsand trusted brands. Wikipedia is growing in popularity.

The Encyclopdia Britannica is still in business.

Getting and

Trusting the News

Globally, CNN, BBC, and Google are the most

relied-on news sources or inormation about a

company (25%, 17%, and 9%, respectively).

Thirty-fve-to-64-year-olds are more likely to read

a newspaper in print ormat (44%) than in elec-

tronic ormat (21%), while their younger coun-terparts are shiting more toward online newsconsumption (35% print vs. 30% electronic).

Use o social media or company inormation is

generally highest in BRIC countries (Brazil, Russia,

India, China) and among younger opinion elites.

Reading news tops the activities people do online

(86%), ollowed by shopping (72%) and conduct-

ing research (70%).

Business Magazines

No. 1 Most Credible Sourcein 10 of 18 CountriesHow credible are articles in business magazines for informationabout a company?

Spain 77%

Brazil 71%

India 69%**

Ireland 67%

Russia 65%

South Korea 64%

Italy 63%

Germany 63%

United States 60%

Canada 49%**


Very / extremely credible responses only

** Tied or frst with stock or industry analyst reports

8


11/24

Most Used Sources Are Generally the Most CredibleFrom which of the following sources do you regularly get information about companies? How credible do you feel each is?

Credibility

Articles inbusiness

magazines

Articles in

newspapers

A companysown Web site

Blogs

Communicationsissued by companies

such as press releases,annual reports, and newsletters

Conversations withyour friends and peers

Corporate orproductadvertising

Free content encyclopedia such as Wikipedia

News coverageon the radio

Online message boards,

forums or newsgroups

Social networking sites such as MySpace or Facebook

Stock or industryanalyst reports

Televisionnews coverage

Television talk shows

Web-based video sharing sites such as YouTube

Traditional Corporate Social

Usage


Trust in Media at Survey High in Many CountriesHow much do you trust media to do what is right?

0%

10%

20%

30%

40%

50%

60%

70%

80%

38

38

4 3 4

54

8

53

60

64

65

19

29

33

43

34

41

44

62

55

22

33

31

30

45

41

49

53

200820072006

India*BrazilSouth KoreaJapanCanadaUSItalyGermanyUK



* Tracking data available or 2007 only

2008 Trust Baromet


12/24

Drivers o Trust in BusinessHow important are each of the following factors to building your trust in a company?

Customers

Reputation

Leader

ship

Local

Familiarity

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

94

92

87

90

83

81

76

71

67

63

59

58Headquarters nationality

Someone you trustworks for the company

The companyspresence in your area

Industry sector

RespectedCEO or leader

Financial performance

Reputation asa place to work

Social and environmentaltrack record

Companysoverall reputation

Value for money ofproducts and services

Customer service

Quality of productsand services


Responses 6-9 only on 1-9 scale; 9 highest

A January 2008 Wall Street Journalheadline warned:As Economy Slows, Reputation Takes On Added Mean-ing. This years Edelman Trust Barometer confrms thatstakeholder trust, the underpinning o reputation, is a-ected by everything a company does. Trust is created oreroded every day a company is open or business.

Our study shows that the most powerul drivers o trustare quality o products or services, customer service, anda companys overall reputation. In the global marketplace,product quality and company trust and identity are increas-ingly inseparableStarbucks and Mattel are positive andnegative examples o this trend. Ater direct experience with

a companys product, the most important trust issues orstakeholders are its overall reputation, its social and envi-ronmental track record, and how it treats its employees.

To witness these drivers in action, we can turn to thetechnology sector, which earns the highest levels o trustaround the world. Tech companies turn out high-qualityproducts that make lie easier and speed inormationreliably. Tech is also at the oreront o fnding solutionsthat advance environmental sustainability. Taken together,these actors boost the industrys reputation.

Trust is built or spent situation by situation. As i t can bevery difcult to earn stakeholders trust once they have

ormed negative perceptions, companies should work toput trust in the bank to spend when difcult situations arise,like a fnancial challenge or a product saety crisis. Thetrust stakeholders have in a company determines whetherthey will pay or reuse to pay a premium or productsor services; will or wont speak or write in support o acompanys actions; will or wont block its plans to opena actory in a community.

Companies would be wise to pay more attention toostering trust in advance and gaining an understandingo its depth among its audiences. Both will provide somesecurity during a time o uncertainty and changeespe-

cially when the economy takes a downturn. By protectinga companys license to operate, trust can serve as acatalyst or a companys growth. Without it, a companyloses that license.

Neal Fliegeris general manager o Edelman

in Washington D.C.

A Companys Actions Speak Loudest

Reputation:

From Management to Leadership

10


13/24

Opinion Elites Act Positively and Negatively Toward CompaniesHow likely are you to take each of the following actions?

Companies That I Trust

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

88

84

64

61

52

37

Write a letter ore-mail of support

to the media,a politician or an

official third-party

Pay a premiumfor their products

or services

Choose toinvest in them

Support plansfor them to

locate in yourlocal community

Recommend themto people I know

Choose to buytheir products

or services

Companies That I Distrust

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

85

83

78

65

56

44

Write a letter ore-mail complaining

to the media,a politician or an

official third-party

Oppose plansfor them to

locate in mycommunity

Support legislationcontrolling orlimiting their

activities

Share a negativecompany opinion

with others

Refuse toinvest in them

Refuse to buytheir products

or services


Somewhat/very likely to take action responses only

Most and Least Trusted Industry Sectors

How much do you trust businesses in each of the following industries to do what is right?

North America Latin America EU Asia Global Total

Most Trusted Industry Sectors

Technology(79%)

Technology(89%)

Technology(73%)

Technology(80%)

Technology(77%)

Biotech / lie sciences(71%)

Automotive(84%)


Automotive(73%)


Banks(67%)

Consumer packagedgoods manuacturers

(77%)

Health care industry(62%)

Banks(71%)

Automotive(62%)

Least Trusted Industry Sectors

Insurance(48%)

Insurance(61%)

Media companies(40%)

Entertainment(55%)



Banks(57%)

Insurance(35%)


Insurance(45%)


2008 Trust Baromet


14/24

Matthew Harringtonis president o EdelmansU.S. Eastern region andchair o the frms corporate practice.

The fndings o this years Edelman Trust Barometer tellus that stakeholders can either be advocates or compa-nies they trust or naysayers against those they distrust.

That means companies must evolve reputation manage-ment into reputation leadership, working proactively tobuild stakeholder trust in other words, playing oenseinstead o deense.

Actively shaping reputation requires a two-part strategy:a ocus on the top drivers o trust in a company deliver-ing the best products and services as well as authenticengagement in social issues that matter to stakeholders.

Meaningul social leadership is now expected by em-ployees and understood by investors, especially on is-sues that are directly tied to a companys business. Forexample, Scotts Miracle-Gro, the lawn care company (andan Edelman client), has made a healthy environment theocus o its social responsibility. Our study also showsthat at the local level, sound environmental practices aresecond only to job creation as the most important actorsin building reputation.

The CEO has a crucial role to play. The general down-

turn in trust o a CEO as credible company spokesperson,as indicated over the last several years by the Barometer,was a response to the all o the rock star CEO o theEnron era. CEOs then went underground, believing theyneeded to speak only to Wall Street. But the CEO stillfgures greatly in how a company is perceived. As we sawlast year with the sudden departures o Stan ONeal atMerrill Lynch and Charles Prince at Citigroup, boards nowrecognize that taking swit action to change leadershipcommunicates the companys commitment to account-ability and the preservation o trust with its stakeholders.

Social leadership presents CEOs with the opportunityto partner with NGOs and other third parties, to welcomeother voices to the conversation, and to personally par-

ticipate in a companys cause. By serving as booster,networker, and role model in short, by engaging authen-tically a CEO can once again be a powerul ambassadoror trust in a company.

Building Local Reputation:Creating Jobs and EnvironmentalResponsibility Trump Giving MoneyWhich of the following actions are most important for a global

company seeking to build its local reputation in your area?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

71

57

49

32

25

24

24Makes charitable

contributionsin your community

Marketsits productsin your area

Takes aleadership role

in issues relevantto your community

Doesnt push outthe local

competition

Respects localcustoms

and traditions

Practices soundenvironmental policies

Creates jobsin your area


Top three responses

Credibility o a CEO in 6 MarketsIf you received information from a CEO about a company, howcredible would it be?

0%

10%

20%

30%

40%

50%

60%

70%

80%

US UK/France/Germany China

Brazil Canada Japan

200820072006200520042003


Extremely credible and very credible responses only

Authenticity Builds Trust

12


15/24

Trust Is in the Eye of the Beholder

Not all opinion elites or consumers care about com-

pany reputation. But we have identifed distinct audiences,called TrustHolders, who act (or inuence others to act)based on their trust in a company and its behaviors. Thesenew reputation mavens require companies to changetheir thinking about corporate reputation as somethingthey possess to a license granted them by their mostimportant audiences.

Companies need to recognize the value o direct conversations with Social Networkers and Social Activists,the two most inuential, activated TrustHolder audiences,encompassing two-thirds o global opinion elites.

Social Networkers are inormed conversationalistswho are the most likely o all segments to share their

opinions about companies with a wide gossip circle:immediate riends, proessional colleagues, or peoplethey know through community, school, or educationalorganizations. They want to talk about your marketingpractices, employer reputation, and environmentalrecord. A company might target Social Networkersi they were looking to restore consumer confdencein its products, attract talent as a good employer, oreducate patients about the saety o a medicine.

Social Activists are sel-appointed citizen broad-

casters who requently speak out in person, sharingtheir opinions on business and taking public actioni needed to support or oppose companies andtheir products. They are also active online, sharingtheir experiences through e-mails to media or ofcialthird parties, and by opining in orums and on socialnetworking sites. Social Activists are watching youractions on labor, community relations, and the envi-ronment. A company that wants to rebuild its greenimage ater an environmental accident or is openinga new actory or store in a community would work toengage Social Activists.

How do you reach and engage your relevant TrustHold-ers? First, take a look at your pressing issues and pub-

lic actions, such as product quality, saety, environment,employee relations, new markets, and overall reputation.Identiy the triggers to action or each TrustHolder segment.

Then, target the media sources they rely on. (See chartbelow.) Through ocused research, a company can identiya unique mix o TrustHolders or any market or situation andcreate a communications strategy that will engage them.

Laurence Evansis president o StrategyOne.

TrustHolder Proles

Social Networkers Social Activists Solo Actors Uninvolved

Global % o Elites 39% 26% 11% 24%

Trust in business 61% 57% 45% 48%

Triggers to Action

Marketing practices

Financial perormance

Health inuence

Saety track record

Environmental record

Behavior as employer

Community impact

Corporatephilanthropy

Labor relations

Environmental record

Product / servicequality

Customer service

Pricing

Not defned byactions / attitudes inrelation to trusted ordistrusted companies

Sources o Inormation

Traditional media +

Peer conversations,radio, advertising,companycommunications, talkshows

Traditional media +

Online boards ororums, video, blogs,social networking sites

Traditional media +

TV news, analystreports, Wikipedia

Traditional media +

Advertising

Who they infuence

Friends / amily;proessional network +

Community / schoolgroups; online groups;volunteer groups

Friends / amily;proessional network +

Schools, onlinegroups, politicalgroups

Friends / amily;proessional network

Themselves

Segmented by actions and communications styles; percentages are global

2008 Trust Baromet


16/24

United States: Business on Top

Nancy Ruscheinskiis president o EdelmansU.S. Midwest region.

Trust in business to do what is right jumped to 58%in this year s Trust Barometer, creating the widest dividein the surveys nine-year history between opinion elitestrust in business and in government, which has dippedbelow 40%. Krat and Starbucks are among the com-panies that enjoyed increases in trust among opinionelites in this country.

Why the gap? The war in Iraq, the economy, and lowpopularity ratings or the current president are undoubt-

edly ueling public dissatisaction with the government.At the same time, Americans are giving higher marks tobusiness, as more and more companies are steppingin and stepping up to tackle tough societal issueslike the environment, education, and health, historicallythe role o government. This reservoir o trust in businessamong opinion elites as well as a growing interestin doing well while doing good by American corpo-rations should serve business well in an economicdownturn.

In the United States, trust in virtually all types ospokespeople rose over last years fgures. Sixty percent(60%) now believe what a person like me says about acompany (up rom 51% in 2007). Credentialed experts

like analysts, academics, and doctors also enjoyed anuptick in credibility (42% to 56%; 48% to 54%; and 49%to 53%, respectively).

And fnally, a act that will likely give pause to market-ers and corporate communicators alike: Wikipedia isnow considered the second-most trusted source oinormation about a company by young adults in theUnited States. Fity-fve percent say its either a very orextremely credible source o inormation about a com-pany (compared to 41% or the older group). Least cred-ible? Product and corporate advertising.

CNN (54%), MSNBC (26%), Fox News (25%), CNBC

(22%), and The Wall Street Journal(19%) are the top-

most relied-on sources or news about companies inthe United States.

Fewer Americans under 35 (50%) are getting inorma-

tion about companies rom newspapers than in any

other country surveyed.

When asked which gender president they were more

likely to trust, the majority o U.S. opinion elites say itdoesnt make a dierence (69%), but a statistically

higher group say they would preer a male leader over

a emale (16% vs. 7%).

Wikipedia: SecondMost Credible Source

for Young AmericansHow credible is each source for information about a company?

Business magazines 62%

Wikipedia 55%

Radio news 53%

Analyst reports 51%

Friends, peers 51%

Newspaper articles 48%

TV news 46%

TV talk shows 45%

Company communications 43%

Online message boards,orums, newsgroups 38%

Companys Web site 37%

Blogs 29%

YouTube 28%

MySpace, Facebook 23%

Corporate or product advertising 22%

Opinion elites ages 25-34 in United States

Extremely credible and very credible responses only

14


17/24

Gap Between U.S. Trust in Business and Government at AllTime High

How much do you trust each institution to do what is right?

61%

58%

45%

39%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media

NGOs

Government

Business

20082007200620052004200320022001


Trust in Spokespeople, United States (20032008)

If you heard information about a company from each of these sources, how credible would it be?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60

56

54

53

50

43

23

12

51

42

48 4

9

43

36

22

9

68

53

57 5

9

53

45

28

13

56

46

60

60

47

30

25

51

37

47

54

41

29

202

2

43

37

36

26

14

BloggerCEOof company

Regular employeeof a company

Non-Profit/NGOrepresentative

Doctor/Health carespecialist

AcademicFinancial/Industryanalyst

A personlike yourself

2003

2004

2005

2006

2007

2008

2004

2005

2006

2007

2008

2003

2004

2005

2006

2007

2008

2003

2004

2005

2006

2007

2008

2003

2004

2005

2006

2007

2008

2003

2004

2005

2006

2007

2008

2003

2004

2005

2006

2007

2008

2006

2007

2008



2008 Trust Baromet


18/24

Europe:

A Region of Countries

Developing a communications strategy or Europe islike buying a custom-made suit rather than one o therack. The reason is simple: There is still no country calledEurope. We have a collection o cultures, belies, and cus-toms that drive attitudes and behaviors. While mostly na-tionally distinct, this years Trust Barometer reveals someover-arching trends and nuances. In the three largesteconomies, U.K., France, and Germany, trust in media,government, business, and NGOs has risenwith the frsttwo sectors experiencing the largest gains. France, U.K.,and Russia scored large increases in trust in government,which likely reects general support o new or popularleaders (at least at the time our survey was conducted),

namely Mssrs. Sarkozy, Brown, and Putin. On the otherhand, religious institutions did not are as well, decreasingin seven out o 10 countries surveyed. Trust in NGOs dipsdown in the emerging economies o Russia and Poland,where business is considered a more positive orce.

The politicization o trust is apparent in other parts o thesurvey as well. A person like me continues to be the frstor second choice or a reliable spokesperson in all Euro-pean countries, along with academics and doctors. Yetthis years responses solidiy the importance o a personlike me having similar political belies (the second-mostimportant actor behind shared common interests).

We also see the increasing impact o corruption onbusiness. When asked which actors are the most im-portant in building trust in a company headquartered ina oreign country, the No. 1 choice is the respondentsperception o how corrupt or air business practices are inthat country. Thats more inuential than the countrys hu-man rights record, the political relationship o the country

with theirs, or the countrys environmental record.

When it comes to accessing Web-based sources oinormation like blogs, social networks, and video shar-ing portals, were also witnessing a line o demarcation:Spain and Italy show higher trust in these outlets then theircounterparts in central and northern Europeand theUnited States, or that matter. Traditional media sources,

particularly articles in newspapers, television reports, andbusiness magazines, are the most credible sources o in-ormation; this year, all three outlets experience increasesthroughout Europe. But when people go online, the No. 1reason they do so is to read the news, demonstrating thecontinued usion o online and traditional media.

David Brainis president andchie executive ofcero Edelman Europe.

Europe: A Case for

Local CampaignsFrance

Young French opinion elites trust business much

more than older opinion elites do: 52% vs. 30%.

Among the older population, business and media

are less trusted than in any country surveyed.

Germany

German opinion elites have the highest use oonline message boards (46%) and ree-content

encyclopedias like Wikipedia (39%) than in any

country surveyed.

Ireland

Irish opinion elites report the highest use o

newspapers articles (90%) and radio news

(76%) or inormation about companies than inany country surveyed.

Italy

Credibility rises or eight o 10 types o spokes-

people over last year.

NetherlandsThe Netherlands joins Sweden and China as

the only three countries where government is

trusted most.

Poland

With only 11% saying they trust government to

do what is right, Polish opinion elites have the

least trust in government than in any country

surveyed.

Russia

Only 26% globally say they trust companies

headquartered in Russia, making it the least

trusted country or a company to be based.Spain

Spanish opinion elites give business maga-

zines and newspaper articles higher credibil-

ity ratings than do opinion elites in any othercountry surveyed.

Sweden

Global companies headquartered in Sweden,

Germany (and Canada) are the most trusted,

according to opinion elites around the world.

16


19/24

NGOsHaveaStrongTr

ustAdvantageinMostEurop

eanCountries

Howmuchdoyoutrusteachinstitutionto

dowhatsright?

53

45

38

34

28

Un

ite

dKing

dom

Re

lig

ious

Governmen

t

Me

dia

Bus

iness

NGOs

59

47

43

37

35

Ire

lan

d

Governmen

t

Re

lig

ious

Me

dia

Bus

iness

NGOs

51

49

46

37

36

Spa

in

Re

lig

ious

Governmen

t

Me

dia

Bus

iness

NGOs

63

39

36

30

18

Swe

den

Re

l.

NGOs

Me

dia

Bus

iness

Governmen

t

64

5

9

5

9

55

40

Ne

therlan

ds

Re

lig

ious

Bus

iness

Me

dia

NGOs

Governmen

t

57

35

30

26

22

France

Re

lig

ious

Me

dia

Bus

iness

Governmen

t

NGOs

47

38

35

27

27

Germany

Governmen

t

Re

lig

ious

Bus

iness

Me

dia

NGOs

63

49

43

41

29

Ita

ly

Gov.

Bus

iness

Me

dia

Re

lig

ious

NGOs

Ea

sternEuropeDiffers

42

38

29

28

28

Russ

ia

M

edia

R

elig

ious

N

GOs

G

overnmen

t

B

us

iness

45

38

37

32

11

Po

lan

d

G

ov.

R

elig

ious

M

edia

N

GOs

B

us

iness

Opinionelitesages35-64(Europeancou

ntries)

Responses6-9onlyon1-9scale;9=highest

2008 Trust Baromet


20/24

Asian Markets:

The China Syndrome

Trust in ChineseHeadquarteredCompanies Declinesto AllTime Low Even in AsiaHow much do you trust global companies headquartered in Chinato do what is right?

0%

10%

20%

30%

40%

50%

IndiaSouth KoreaJapan

CanadaEurope*USA

200820072006


* Europe = U.K., France, Germany

Alan VanderMolenis president o Edelmanin Asia-Pacifc.

Nearly one hal (45%) o Chinese opinion elitessay they requently share opinions about com-

panies with people in online orums.

In Japan, a person like me is less credibleas a source o inormation about companies

than in most other countries, dropping rom

50% to 37%.

CEOs are more credible in India (66%) than they

are in any other country surveyed.

In South Korea, the top three trusted news sourc-

es or inormation about companies are local:KBS, Chosun Ilbo, and JoonAng Ilbo.

China looms large this year in Edelmans study o trustin Asian markets, which also surveyed South Korea,Japan, and India. As an increasingly powerul engine oglobal commerce, China is top o mind in every marketin the region. But there are positive and negative sides toits enormous inuence call it the China Syndrome.

On the upside is the wealth o economic opportunitythat China provides the other countries in the region. Ahuge importer, China buys proessional services and ironore rom India, and electronics rom Korea and Japanto keep its engine stoked. But at the same time, trust

issues (product recalls and ood saety) that plaguedChina in 2007 have made an impact on her neighborsdomestic markets.

For example, in Taiwan, the Japanese beer Kirin thatis brewed in Japan commands a higher price than thebrands exact same brew made in China, which is per-ceived to be o lower quality. Its no surprise that trust inChinese-headquartered companies declined signifcantlythis year in the other Asian countries surveyed, as it hasin the West.

The big development on the communications ront isthat new media is no longer new it has become main-stream media across Asia. In the developed economies

o Japan and South Korea, deep penetration o broad-band Internet access has helped bring about this sea-change. Social media has been embraced especially inChina because it provides a orum or sel-expressionand social commentary that is new to the country.

Traditional media sources remain both highly credibleand well-used across the region, but as opinion elitesare increasingly gathering and sharing inormation aboutcompanies on the Web, an ideal media strategy in the

Asian markets would include a healthy mix o online andoine channels.

18


21/24

Trust Varies Widely Across Asia, Except in Traditional Media Sources

CHINA INDIA JAPAN SOUTH KOREA

Trust in Institutions

Government 79%

Media 63%

NGOs 55%

Business 54%

Business 74%

Media 65%

NGOs 61%

Government 49%

Business 61%

Media 53%

NGOs 47%

Government 45%

Media 60%

NGOs 59%

Business 43%

Government 40%

Most Credible Media Sources*

TV news 68%

Conversationswith peers 52%


Analyst reports 69%

Newspapers 48%

Analyst reports 47%


Newspapers 58%

Most Used Media Sources*

TV news 82%

Newspapers 75%

TV news 87%

Newspapers 85%

Newspapers 69%

TV news 66%

Newspapers 78%

TV news 62%

Most Credible Spokespeople

Government ofcial 54%Academic 52%

Financial analyst 75%

Person likeme /CEO (tie) 66%

Academic 44%Physician 40%

Financial analyst 61%Academic 57%

Opinion elites ages 35-64 (Asian markets)

Very / extremely credible responses only

* For inormation about a company

Credibility o Social Media as Source o Company InormationIs Higher in Asian CountriesHow credible do you feel each of the following sources is for information about a company?

0%

10%

20%

30%

40%

50%

42

28

2

0

28

26

13

12

15

39

25

24

22

25

23

25

25

25

9

7

9

41

15

17

14

U.S.U.K.South KoreaIndiaJapanChina

Social networking sitesBlogsVideo sharing sitesWikipedia/Encyclopedias


Regularly used media sources or inormation about companies

2008 Trust Baromet


22/24

Canada: TrustedLatin America: Trusting

CanadaCanadian opinion elites trust in business is on par

with their trust in NGOs (both at 49%), the frst time since2005 that this has occurred. But with many Canadiansuneasy about a continuing business trend the takeovero local companies by global concerns business hasnot yet achieved the halo long enjoyed by NGOs. Theunease may come in part rom opinion elites pride inCanadas position as a sophisticated business partner,rather than dominator.

Trust in media is at its highest level (48%) since theTrust Barometer began tracking it in 2005, and trust intraditional media sources and expert spokespeople in-creased signifcantly since last year. While the Internet

and social media are highly used by the general popu-lation, their credibility and usage among opinion elitesis relatively low compared to other countries. Youngeropinion elites are more interested than their older coun-terparts in outlets like Wikipedia or reliable inormationabout companies. But companies may want to look totraditional outlets frst when trying to reach Canadasopinion elites.

Brazil and MexicoIn Brazil and Mexico, the principal economic engines o

Latin America, business is trusted or its tangible positiveimpact on lie: its products, the local economic opportuni-ties it provides through jobs, and the active role it plays inpeoples daily lives. In some areas, its a larger role thanthat o the government, which is the least trusted institu-tion in Mexico (49%) and Brazil (22%).

Companies headquartered in Mexico and Brazil arenot widely trusted around the world. But in both coun-tries, most non-national brands and companies enjoy highlevels o trust. This provides global companies with theopportunity to establish themselves in two countries thatare widely receptive to business.

Culturally, Brazil and Mexico share a more trusting na-ture, with overall higher trust scores than in the othercountries surveyed. Given the two countries emphasison the importance o amily and personal relationships, aperson like me retains high credibility as a source o in-ormation about companies, as Latin Americans give thehighest ranking to conversations with riends and peerso all regions surveyed.

Sweden, Germany, and Canada Remain Most Trusted HQ Countries;China, Mexico, Brazil, and Russia the LeastHow much you trust global companies headquartered in the following countries to do what is right?

0%

10%

20%

30%

40%

50%

60%

70%

80%

76

74

74

71

68

68

62

60

59

54

53

41

36

34

33

28

27

26

74

72 7

4

70

67

67

59

60

59

54

54

43

3

7

34

33

33

30

27

2008

2007

Russia

MexicoChi

naBrazilIndi

aPola

nd

SouthK

oreaItalySpa

in

United

States

Ireland

FranceJap

an

TheNetherlan

ds

United

Kingdom

Canada

Germany

Sweden

Opinion elites ages 35-64 in 18 countries; global total

Responses 6-9 only on 1-9 scale; 9 highest

Nancy Turettis global president

o health at Edelmanand chair o Edelman in

Canada and Latin America.

20


23/24

About Edelman

Edelman is the worlds largest independent public relations rm, with 3,000 employees in51 oces worldwide. Edelman was named a top-10 rm inAdvertising Ages2007 AgencyA-List, the rst and only PR rm to receive this recognition. CEO Richard Edelman wascited as 2007 Agency Executive o the Year by bothAdvertising Ageand PRWeek. In 2006,PRWeeknamed Edelman Large Agency o the Year and awarded the frm its Editors Choice

distinction. For more inormation, go to www.edelman.com.


24/24

Top Findings of Edelman Surveys on Trust

2001 Rising infuence o NGOs and increased need or corporate social responsibility

linked to business goals2002 NGOs approach parity in credibility with business and government; era o celebrity

CEO is over as trust in business wanes

2003 Stories in editorial media more credible than advertising by 8-1 margin

2004 Trust in business and government stronger; U.S. companies in Europe suffer

trust discount

2005 Trust in established institutions and gures o authority shiting to peers

2006 A person like me most credible spokesperson or companies; trust in employees

signicantly higher than in CEOs2007 Business more trusted than media and government in every region o the globe

surveyed

2008 Young opinion elites show higher levels o trust in business than older elites; relyon multiple sources o inormation to orm opinions about companies

Documents

Trust Barometer 08 FINAL