Rishi Bhattacharya, managing director energy & industrials, Edelman
Why Trust? Trust is a crucial asset. It is essential to protect, nurture and enhance trust in order to be successful in today’s complex operating environment. It is crucial for all organisations, but especially those operating in the energy sector.
In this session, and based on the findings of the annual Edelman Trust Barometer, we explore the role of trust in moving a business from having a licence to operate, to having a licence to lead. Through a short presentation, panel discussion and Q&A we explore the state of trust, the interaction between business, government, NGOs and the media, how to go about building trust and its importance to the bottom line.
Introduction to Prompt Engineering (Focusing on ChatGPT)
Reputation in Oil, Gas and Mining 2014: Trust as a Business Driver
1. TRUST AS A BUSINESS
DRIVER
EDELMAN TRUST BAROMETER
COMMUNICATE MAGAZINE
REPUTATION IN OIL, GAS & MINING
JUNE 11TH, 2014
@RISHIWISE1 @EDELMANENERGY
#EDELTRUST
2. 2
GLOBAL
ONLINE SURVEY
IN 27 COUNTRIES
• 33,000 respondents
• 6 years in 20+ markets
• 9 years in 10+ markets
GENERAL
POPULATION
• 1000 respondents per
country surveyed
• Ages 18+
• 3 years in 25+ markets
INFORMED
PUBLICS
• 500 respondents in U.S. and
China & 200 in other countries
• Ages 25-64
• College-educated
• In top 25% of household income
per age group in each country
• Report significant media
consumption and engagement
in business news and public
policy
• 14 years of data
EDELMAN’S 14TH ANNUAL SURVEY
3. 2014 BUSINESS TO LEAD THE DEBATE FOR CHANGE
2013 CRISIS OF LEADERSHIP
2012 FALL OF GOVERNMENT
2011 RISE OF AUTHORITY FIGURES
2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS
2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST
2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS
2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA
2006 “A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON
2005 TRUST SHIFTS FROM “AUTHORITIES” TO PEERS
2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT
2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING
2002 FALL OF THE CELEBRITY CEO
2001 RISING INFLUENCE OF NGOS
3
EDELMAN TRUST BAROMETER IN RETROSPECT
5. NGOS BUSINESS
GOVERNMENT
TRUST IN BUSINESS AND NGOS REMAINS STABLE;
TRUST IN GOVERNMENT AND MEDIA DECREASES
5
TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014
TOTAL TRUST
TRUST A GREAT DEAL
MEDIA
63% 64%
22% 23%
2013 2014
#1
57% 52%
17% 16%
2013 2014
#3
58%
58%
17% 16%
2013 2014
#2
48% 44%
16% 15%
2013 2014
#4
6. GLOBAL 54
UAE 79
China 79
Singapore 73
Indonesia 72
India 69
Malaysia 65
Canada 60
Netherlands 60
Mexico 59
Hong Kong 59
Australia 58
Brazil 57
Germany 57
Argentina 53
U.K. 52
Sweden 51
S. Korea 51
S. Africa 50
U.S. 49
France 46
Japan 44
Italy 43
Turkey 41
Spain 39
Ireland 39
Russia 37
Poland 35
GLOBAL 57
China 80
Singapore 76
India 71
Mexico 68
Hong Kong 67
UAE 66
Malaysia 64
Canada 62
Indonesia 62
U.S. 59
Netherlands 59
Brazil 55
Germany 55
France 54
Sweden 54
U.K. 53
Italy 51
Australia 50
Poland 48
S. Korea 47
Ireland 46
Argentina 45
Spain 42
Turkey 42
Japan 41
Russia 36
SLIGHT DECLINE IN TRUST WITH STRONG REGIONAL
VARIATIONS
6
BIG TRUST
INCREASES FROM
2013
UAE +13 pts.
Indonesia +10 pts.
Australia + 8 pts.
Argentina + 8 pts.
2013 2014
BIG TRUST
DECREASES FROM
2013
Poland -13 pts.
U.S. -10 pts.
Mexico -9 pts.
TRUSTERSNEUTRALDISTRUSTERS
7. 2014
TRUSTERSNEUTRALDISTRUSTERS
GLOBAL TRUST
DIFFERENCE OF
9 points
MARKETS WITH
LARGEST PERCEPTION
GAPS:
UAE (15 pts.)
Australia (14 pts.)
Germany (13 pts.)
France (13 pts.)
Sweden (13 pts.)
GLOBAL 47
China 67
UAE 64
Singapore 64
Indonesia 62
India 61
Malaysia 57
Canada 54
Mexico 53
Netherlands 51
Hong Kong 50
Brazil 49
Argentina 49
Australia 44
Germany 44
S. Korea 43
U.K. 42
S. Africa 42
U.S. 42
Italy 41
Japan 40
Turkey 39
Sweden 38
Spain 36
Ireland 35
France 33
Poland 32
Russia 31
LOWER TRUST AMONG GENERAL PUBLIC
7
2014
GLOBAL 56
UAE 79
China 79
Singapore 73
Indonesia 72
India 69
Malaysia 65
Canada 60
Netherlands 60
Mexico 59
Hong Kong 59
Australia 58
Brazil 57
Germany 57
Argentina 53
U.K. 52
Sweden 51
S. Korea 51
S. Africa 50
U.S. 49
France 46
Japan 44
Italy 43
Turkey 41
Spain 39
Ireland 39
Russia 37
Poland 35
8. 50%
TRUST IN BUSINESS VS. GOVERNMENT
GOVERNMENT
8
BUSINESS
GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST
IN BUSINESS AND GOVERNMENT
HIGHER TRUST
IN GOVERNMENT
HIGHER TRUST IN BUSINESS
20+ PT. HIGHER TRUST IN BUSINESS
58%
63%
73%
70%
58%
82%
45%
79%
45%
58%
38%
41%
45%
72%
56%
62%
43%
53%
57%
49%
59%
77%
43%
71%
54%
39%
82%
51%
44%
17%
28%
34%
23%
53%
19%
53%
24%
37%
18%
21%
27%
54%
42%
51%
32%
45%
49%
45%
56%
76%
43%
75%
60%
45%
88%
63%
12. TECHNOLOGY CONTINUES TO LEAD, ENERGY IMPROVES,
BANKS AND FINANCIAL SERVICES TRAIL
12
TRUST IN INDUSTRIES, 2009 VS. 2014
20142009 2009 VS. 2014
79%
75%
70%
66%
65%
65%
64%
63%
60%
59%
59%
55%
51%
51%
50%
Technology
Consumer electronics
manufacturing
Automotive
Food and beverage
Consumer packaged goods
Entertainment
Brewing and spirits
Telecommunications
Consumer health companies
Energy
Pharmaceuticals
Chemicals
Media
Banks
Financial services
+3
NA
+12
+10
+11
+14
NA
NA
NA
+4
+6
NA
+8
+4
NA
76%
NA
58%
56%
54%
51%
NA
NA
NA
55%
53%
NA
43%
47%
NA
Technology
Consumer electronics
manufacturing
Automotive
Food and beverage
Consumer packaged goods
Entertainment
Brewing and spirits
Telecommunications
Consumer health companies
Energy
Pharmaceuticals
Chemicals
Media
Banks
Financial services
14. IN 20 OUT OF 27 MARKETS, ENERGY MORE TRUSTED
THAN BUSINESS IN GENERAL
14
2014 TRUST IN ENERGY INDUSTRY VS. BUSINESS IN GENERAL
57%
81%
78%
76%
74%
71%
69% 69% 68% 67%
62%
56% 55% 55%
54%
54% 53% 52%
50% 48% 48% 47%
44%
41% 41%
36% 36%
31%
49%
63% 64%
62%
68%
60%
65%
62%
41%
57%
32%
48%
54%
33%
55%
49%
55% 56%
38%
45%
26%
33%
41%
49%
34%
43%
41%
45%
Energy Industry
Business
15. 57%
68%
58%
53%
49%
56%
70%
58%
54%
50% 50%
Energy Industry Renewables Natural Gas Utilities Oil Mining
N/A
RENEWABLES ARE TRUSTED MORE THAN THE OVERALL
ENERGY INDUSTRY; OIL AND MINING LEAST TRUSTED
15
TRUST IN ENERGY INDUSTRY SECTORS - GLOBAL
2013
2014
22. COMPANIES HEADQUARTERED IN BRIC NATIONS SUFFER A
TRUST DEFICIT
22
TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES
M O S T T R U S T E D
80% 79% 79% 78% 75% 74% 71% 68% 67%
55% 54% 53%
42%
38% 36% 35% 34%
Germany
Sweden
Switzerland
Canada
U.K.
Japan
TheNetherlands
U.S.
France
Italy
SouthKorea
Spain
Brazil
Russia
China
India
Mexico
24. 56%
81%
78%
76%
74%
71%
69% 69% 68% 67%
62%
56% 55% 55% 54% 54% 53% 52%
50%
48% 48% 47%
44% 41%
41%
36% 36%
31%
24%
6%
9% 10% 9% 9%
16%
9%
12%
18%
16%
24% 24% 23%
29% 28% 28%
26%
30%
27%
22%
32%
37%
41%
38%
43%
38%
54%
UK HAS HIGHEST PROPORTION OF DISTRUSTERS IN ENERGY
OF ANY MARKET SURVEYED
24
TRUST IN ENERGY INDUSTRY VS. DISTRUST IN ENERGY INDUSTRY
TRUSTERS IN ENERGY INDUSTRY
DISTRUSTERS IN ENERGY INDUSTRY
25. ENERGY SUFFERS FROM A SIGNIFICANT TRUST DEFICIT
WHEN COMPARED TO LEVELS OF TRUST IN BUSINESS
25
TRUST IN ENERGY INDUSTRY VS. TRUST IN BUSINESS - UK
56%
TRUST IN
BUSINESS
32%
TRUST IN THE
ENERGY INDUSTRY
TRUST IN BUSINESS
TRUST IN ENERGY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
32%
56%
26. 54%
41%
39%
20%
12%
8%
6%
16% 16%
29%
36%
57%
Norway USA EU Qatar Ukraine Russia
NORWAY AND THE USA ARE THE MOST TRUSTED ENERGY TRADING
PARTNERS; <10% VIEW RUSSIA AS TRUSTWORTHY
26
TRUSTWORTHINESS OF COUNTRIES AS ENERGY TRADING PARTNERS
NET TRUSTWORTHY
NET NOT TRUSTWORTHY
27. ENERGY INDUSTRY SINKS TO THE LEAST TRUSTED IN THE
UK, ALONGSIDE BANKS
27
TRUST IN INDUSTRIES, 2013 VS. 2014 - U.K.
79%
77%
71%
70%
69%
69%
64%
64%
62%
59%
49%
44%
43%
32%
32%
TECHNOLOGY
CONSUMER ELECTRONICS MANUFACTURING
BREWING AND SPIRITS
FOOD AND BEVERAGE
CONSUMER PACKAGED GOODS
ENTERTAINMENT
AUTOMOTIVE
CONSUMER HEALTH COMPANIES
TELECOMMUNICATIONS
PHARMACEUTICALS
CHEMICALS
FINANCIAL SERVICES
MEDIA
BANKS
ENERGY29%
34%
36%
38%
47%
55%
56%
56%
57%
60%
62%
65%
66%
66%
72%
BANKS
FINANCIAL SERVICES
MEDIA
ENERGY
CHEMICALS
TELECOMMUNICATIONS
PHARMACEUTICALS
CONSUMER HEALTH COMPANIES
CONSUMER PACKAGED GOODS
ENTERTAINMENT
BREWING AND SPIRITS
AUTOMOTIVE
FOOD AND BEVERAGE
CONSUMER ELECTRONICS MANUFACTURING
TECHNOLOGY
20142013
28. NEARLY SIX IN TEN REPORT TRUSTING THE ENERGY
INDUSTRY LESS THIS YEAR
28
THE CHANGE IN TRUST IN THE UK ENERGY SECTOR
Decrease
in trust
because…
36%
38%
42%
69%
82%
Low reliability of service
Limited range of tariffs
Poor customer service
Levels of profit in the industry
Increasing price of bills
29. 59%
WHILE THE LEAST TRUSTED INDUSTRY, NEARLY SIX IN TEN EITHER
TRUST OR ARE NEUTRAL TOWARDS THE SHALE GAS INDUSTRY
29
TRUST IN SECTORS WITHIN THE ENERGY INDUSTRY TO DO WHAT IS RIGHT
TRUST
NEUTRAL
61%
57%
48%
43%
33%
21% 21%
27%
23%
26%
18%
22%
26%
33%
41%
Solar energy industry Wind-generated energy industry Natural gas industry Nuclear industry Shale gas industry
DISTRUST
30. OVER HALF REPORT THEY WOULD TRUST THE ENERGY INDUSTRY
MORE IF IT WAS UNDER STATE CONTROL
30
WOULD YOU TRUST THE ENERGY INDUSTRY MORE IF IT WAS UNDER…
56%
18%
26%
State control Private control Don't know
32. FAMILY-OWNED AND SMALL- AND MEDIUM-SIZED
BUSINESSES HAVE A TRUST ADVANTAGE EXCEPT IN ASIA
32
TRUST IN DIFFERENT TYPES OF BUSINESS – BY REGION
33. 43%
54%
44%
63%
39%
53%
55%
49%
54%
65%
66%
70%
67%
60%
58%
46%
63%
38%
52%
52%
45%
50%
61%
60%
62%
58%
HAVE TOO MUCH POLITICAL INFLUENCE
DELIVER CONSISTENT FINANCIAL RETURNS
ARE TRANSPARENT IN THEIR BUSINESS PRACTICES
THINK LONG-TERM
ARE PHILANTHROPIC
TOP LEADERSHIP
ACT RESPONSIBLY
RESPONSIVE TO EMPLOYEES' NEEDS
RESPONSIVE TO SOCIETY'S NEEDS
OFFER HIGH QUALITY PRODUCTS OR SERVICES
ARE INNOVATIVE
ARE ENTREPRENEURIAL
RESPONSIVE TO CUSTOMERS' NEEDS
PUBLICLY-TRADED PRIVATELY-HELD
DIFFERENCES EXIST IN PERCEPTIONS OF COMPANY TYPES: POLITICAL
INFLUENCE, CUSTOMER NEEDS AND ENTREPRENEURSHIP HAVE LARGEST GAPS
33
PHRASES ASSOCIATED WITH PUBLICLY-TRADED & PRIVATELY-HELD BUSINESSES
+9
+8
+6
+4
+4
+4
+3
+1
+1
-2
-4
-17
35. 82% 81% 80% 79%
69%
53%
Communicates
clearly and
transparently
Tells the truth,
regardless of how
complex or
unpopular it is
Engages with
employees regularly
to discuss the state
of the business
Is front and center
during challenging
times (product
recalls, lawsuits,
etc.)
Is personally involved
in supporting local
charities and good
causes
Has an active media
presence
WHAT CEOS SHOULD DO TO BUILD TRUST
35
ACTIONS A CEO CAN TAKE TO BUILD TRUST IN THEMSELVES AND THEIR COMPANY
36. 2014
36%
43%
52%
52%
53%
62%
66%
67%
GOVERNMENT OFFICIAL OR
REGULATOR
CEO
REGULAR EMPLOYEE
NGO REPRESENTATIVE
FINANCIAL OR INDUSTRY
ANALYST
A PERSON LIKE YOURSELF
TECHNICAL EXPERT
ACADEMIC OR EXPERT
2009 VS. 2014
CEOS & SPOKESPEOPLE CAN INCREASE TRUST BY
LEVERAGING THEIR EXPERTISE
36
CREDIBILITY OF SPOKESPEOPLE
2009
29%
31%
32%
41%
49%
47%
62%
GOVERNMENT OFFICIAL OR
REGULATOR
CEO
REGULAR EMPLOYEE
NGO REPRESENTATIVE
FINANCIAL OR INDUSTRY
ANALYST
A PERSON LIKE YOURSELF
TECHNICAL EXPERT*
ACADEMIC OR EXPERT
* Not tested in 2009
+5
+15
+4
+9
+20
+12
+7
NA
38. WHY DOES TRUST MATTER?
38
THE EFFECTS THAT BEING TRUSTED OR DISTRUSTED WILL HAVE ON A
COMPANY’S BOTTOM LINE
10%
32%
36%
51%
63%
CHOSE TO BUY PRODUCTS/SERVICES
RECOMMENDED THEM TO A FRIEND/COLLEAGUE
PAID MORE FOR PRODUCTS/SERVICES
SHARED POSITIVE OPINIONS ONLINE
BOUGHT SHARES
REFUSED TO BUY PRODUCTS/SERVICES
CRITICIZED THEM TO A FRIEND/COLLEAGUE
SHARED NEGATIVE OPINIONS ONLINE
SOLD SHARES
DISTRUSTED COMPANIES TRUSTED COMPANIES
53%
56%
30%
6%
39. ENGAGEMENT AND INTEGRITY ARE KEY TO
BUILDING TRUST
39
19%
15%
16%
16%
22%
18%
17%
19%
19%
19%
25%
21%
21%
24%
22%
25%
27%
29%
29%
30%
33%
40%
40%
43%
50%
52%
54%
55%
56%
58%
59%
61%
CONSISTENT FINANCIAL RETURNS
PARTNERS WITH THIRD PARTIES
TOP GLOBAL COMPANY
ADMIRED TOP LEADERSHIP
INNOVATOR
ADDRESSES SOCIETY'S NEEDS
POSITIVELY IMPACTS COMMUNITY
PROTECTS ENVIRONMENT
COMMUNICATES OFTEN
IS ETHICAL
HIGH QUALITY PRODUCTS
ACTS RESPONSIBLY IN CRISIS
TRANSPARENT & OPEN
LOOKS AFTER EMPLOYEES
CUSTOMERS BEFORE PROFITS
LISTENS TO CUSTOMERS
BUSINESS IMPORTANCE VS.
BUSINESS PERFORMANCE ON
16 TRUST DRIVERS (UK).
INTEGRITY
PURPOSE
OPERATIONS
PRODUCTS & SERVICES
ENGAGEMENT
41. OVER HALF SEE GOVERNMENT’S ROLE AS
PROTECTING CONSUMERS FROM BUSINESSES
41
MOST IMPORTANT ROLE FOR GOVERNMENT IN BUSINESS
51%
28%
23%
21%
18%
5% 4%
1%
PROTECT
CONSUMERS FROM
IRRESPONSIBLE
BUSINESSES
REGULATE
BUSINESS
BUILD BUSINESS
INFRASTRUCTURE
ENSURE FREE
MARKET ACCESS
GOVERNMENT
SHOULD NOT PLAY
A ROLE IN
BUSINESS
FINANCIALLY HELP
BUSINESS DURING
CRISES
DON'T KNOW
42. CONSUMERS BELIEVE BUSINESSES SHOULD BE ACTIVE
PARTICIPANTS IN THE DEBATES THEIR INDUSTRY IS ENGAGED IN
42
PERCENTAGE AGREEING WITH EACH OF THE FOLLOWING STATEMENTS - U.K.
The financial services industry should be a more active participant in the broader
debate over the future of the UK banking system
When policymakers are developing new regulations on businesses and industries,
they should consult with multiple stakeholders (i.e. NGOs, academics, the affected
businesses/industries, etc.) before making final decisions
The energy industry should be a more active participant in the broader debate over
UK energy policy
The food and beverage industry should be a more active participant in the broader
debate in UK over solutions to food and nutrition policy issues
63%
82%
70%
65%
43. TRUST-BUILDING OPPORTUNITY QUADRANT
ENGAGEMENT AND INTEGRITY: PRIORITY AREAS
43
STATEDIMPORTANCE
STATED PERFORMANCE
ENGAGEMENT
INTEGRITY
OPERATIONSPURPOSE
PRODUCTS & SERVICES
HIGH-PERFORMING ON HIGH PRIORITIESUNDER-PERFORMING ON HIGH PRIORITIES
UNDER-PERFORMING ON LOWER EXPECTATIONS HIGH-PERFORMING ON LOWER PRIORITIES
Now tablestakes, in 2008
Operations were much higher
in importance for building trust.
44. A NEW TRUST ENVIRONMENT
44
86% believe a company can take specific
actions that both increase profits and
improve the economic
and social conditions in the
communities where it operates.
Operations and CSR programs are now
tablestakes (compared to 2008). Business must
focus on Engagement and
Integrityto build trust.
CEO must become Chief Engagement Officer
There has been a significant change in
the trust environment since 2009.
Business must now lead the debate for
change.
People trust business to innovate, unite
and deliver across borders in a way that
government can’t. This trust comes with
the expectation and responsibility to
maintain it. Doing this is less risky than not
doing it at all.
45. Rishi Bhattacharya, Managing Director
rishi.bhattacharya@edelman.com
+44 (0)20 3047 2361
Follow us on Twitter – @RishiWise1 / @EdelmanEnergy
Q & A