2016 Edelman Trust Barometer Hong Kong
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Business leaders are seen as important catalysts for building trust but there are gaps between what is important and how leaders are performing. While integrity, engagement, and products are seen as highly important for building trust, leaders are viewed as underperforming in these areas. There is an opportunity for leaders to focus more on ethical practices, transparency, social responsibility and listening to stakeholders to help close the trust gaps. Leadership's actions and values are key factors in building or eroding trust.
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2016 Edelman Trust Barometer Hong Kong
- 1. 1 PLACEHOLDER FOR VIDEO Hong Kong 2016 Edelman Trust Barometer
- 2. Introducing our panelists Keith Thomas CEO, Asia Pacific Zurich Insurance Group Bob Grove CEO, North Asia Edelman Fern Ngai CEO Community Business Pamela Ambler Producer & Presenter Reuters TV
- 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 ‣ Report significant media consumption and engagement in business news General Online Population ‣ 5 years in 25+ markets ‣ Ages 18+ ‣ 1,150 respondents per country 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 Mass Population ‣ All population not including Informed Public ‣ Represents 85% of total global population 3
- 4. 49 Ireland 47 Turkey 46 Sweden 42 Poland 42 Russia 41 Japan 49 Australia 49 Italy 49 U.S. 47 Hong Kong 46 Spain 45 S. Africa 42 Germany 42 S. Korea 42 U.K. 41 France 41 Ireland 41 Turkey 39 Russia 38 Japan 37 Sweden 35 Poland 73 China 66 UAE 65 India 64 Singapore 62 Indonesia 60 Mexico 82 China 78 India 74 UAE 72 Mexico 72 Singapore 70 Indonesia 64 U.S. 63 Australia 63 Canada 62 Netherlands 61 Colombia 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil58 Brazil 58 Italy 58 Malaysia 57 U.K. 55 France 54 S. Africa 53 Argentina 53 Spain 52 Hong Kong 51 Germany 50 S. Korea Average Trust in institutions, Informed Public vs. General Population, 2016 Nearly 6 in 10 countries are distrusters among the General Population The Trust Index is an average of a country’s Trust in the institutions of government, business, media and NGOs. 28-country global total. Informed Public General Population 60 Global 50 Global 4 Trusters Neutrals Distrusters Trust Index
- 5. 51 48 45 41 55 53 47 42 63 57 51 48 67 63 57 51 Globally, trust rising Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you Trust that institution to do what is right using a nine-point scale, where one means that you “do not Trust them at all” and nine means that you “Trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, 27-country global total. 5 Percent Trust in the four institutions of government, business, media and NGOs, 2015 vs. 2016 NGOs Business Media Government +4 +6 +6 +3 Informed Public General Population 2015 2016 +4 +5 +2 +1
- 6. Institutions NGOs Media Government Business 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, Hong Kong. 6 Percent Trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016 Trust in Hong Kong fails to recover 61 63 64 57 57 54 55 55 50 47 42 43 41 38 39 55 53 42 44 45 2012 2013 2014 2015 2016 General Population
- 7. Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you Trust that institution to do what is right using a nine-point scale, where one means that you “do not Trust them at all” and nine means that you “Trust them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, Hong Kong, Singapore and UAE. 7 Percent Trust in business, 2012 vs. 2016 Business trust in Hong Kong falling behind General Population 55 53 42 44 45 59 60 60 57 60 54 63 62 65 67 2012 2013 2014 2015 2016 Business Hong Kong Singapore United Arab Emirates
- 8. 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, Hong Kong, Singapore and UAE. 8 Percent trust in government, 2012 vs. 2016 And trust in government also behind General Population 55 53 42 44 45 71 72 73 68 74 69 75 78 83 80 2012 2013 2014 2015 2016 Government Hong Kong Singapore United Arab Emirates
- 9. 9 Skepticism across the generations 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) Age breakdown (18-34, 35-54, 55+), General Population, Hong Kong. Percent trust per age group in the four institutions of government, business, media and NGOs Business MediaNGOs Government 60% 35% 45% 35% 55% 39% 49% 44% 58% 45% 47% 59% General Population 35 - 54 18 - 34 55 +
- 10. 50% 55 46 19 21 28 48 41 45 42 47 44 57 46 50 46 63 52 49 58 55 55 51 69 62 64 73 73 79 81 87 47 37 15 20 24 31 31 33 33 34 34 36 36 37 39 45 46 47 49 49 49 57 64 64 65 69 70 74 81 83 Global GDP5 Japan France Germany U.K. Australia Italy S.Korea Netherlands Sweden Poland HongKong Canada Russia U.S. Singapore Turkey Ireland S.Africa Spain Malaysia Mexico Argentina Brazil China UAE Indonesia Colombia India In 19 of 28 countries, less than half of Mass Population think they will be better off in five years Mass population less optimistic Source: 2016 Edelman Trust Barometer Q445. Thinking about the economic prospects for yourself and your family, how do you think you and your family will be doing in five years' time? (Top 2 Box, ‘Much better off than today,’ and ‘Somewhat better off than today.’) Informed Public and Mass Population, 28-country global total. GDP 5 = U.S., China, Japan, Germany, U.K. 10 Percent of the Informed Public vs. Mass Population who believe they and their families will be better off in five years’ time Informed Public Mass Population 17 10 12 13 10 21 10 13 18 6 3
- 11. 1 Trust in business • Industry sector • Enterprise type • Country of origin • Leadership
- 12. 12 50% 55% 60% 65% 70% 75% 80% Trust declines in all sectors Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you Trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not Trust them at all” and nine means that you “Trust them a great deal”. (Top 4 Box, Trust) General Population, Hong Kong. *From 2012-2014, Pharma included as subsector(Q61f-65f). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector. Trust in each industry sector, 2012 - 2016 2012 2013 2014 2015 2016 Industry 2012 2013 2014 2015 2016 5 yr. Trend Technology 78% 76% 79% 75% 69% 9 Food & Beverage 68% 69% 70% 64% 59% 9 Energy 68% 69% 68% 62% 59% 9 Automotive 66% 70% 74% 69% 58% 8 Telecommunications 64% 69% 69% 64% 58% 6 Consumer Packaged Goods 65% 68% 68% 62% 56% 9 Pharmaceutical 67% 69% 69% 66% 55% 12 Financial Services 57% 59% 62% 61% 54% 3 General Population
- 13. 13 50% 55% 60% 65% 70% 75% 80% 85% 90% Trust compared Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you Trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not Trust them at all” and nine means that you “Trust them a great deal”. (Top 4 Box, Trust) Technology and Financial Services sector only, General Population, Hong Kong, Singapore and UAE. Trust in technology and financial services sectors, 2012 - 2016 2012 2013 2014 2015 2016 General Population Technology Financial Services 50% 55% 60% 65% 70% 75% 80% 85% 90% 2012 2013 2014 2015 2016 UAE Singapore Hong Kong
- 14. 14 Business must lead to solve problems Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, Hong Kong, question asked of half the sample. 62% agree “A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.” General Population
- 15. 15 Access to education/training Address income inequality Access to healthcare Protecting/improving the environment Reducing poverty Supporting human & civil rights Modern infrastructure E E P H Source: 2016 Edelman Trust Barometer Q561-573 Thinking about businesses in your country, how important is it that they play a role in solving each of the following societal issues? Please use a nine-point scale where one means that it is “not at all important” and nine means that it is “extremely important”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of one quarter the sample. Societal expectations vary Most important issue for business to address in each country Canada Brazil Germany France China U.S. Poland Argentina Sweden Mexico U.K. Ireland Netherlands Turkey Singapore Hong Kong Malaysia Colombia Japan Australia Russia S. Korea Italy Spain Indonesia UAE S. Africa India General Population R I I E E R H E E E E E P P E H P E H H H E E E E E P I H E I E
- 17. 17 Importance Performance Gap Integrity 37% 18% 19 Engagement 36% 18% 18 Products 32% 18% 14 Purpose 27% 16% 11 Operations 22% 15% 7 Trust-building attributes for business Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where one means that attribute is “not at all important to building your Trust” and nine means it is “extremely important to building your Trust” in a company. (Top 2 Box, Importance) Q114-129 Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9- point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performance) General Population, Hong Kong. Company importance vs. business performance General Population Has Ethical Business Practices 39% 18% 21 Takes Responsible Actions To Address An Issue Or A Crisis 37% 18% 19 Has Transparent And Open Business Practices 36% 17% 19 Treats Employees Well 39% 19% 20 Listens To Customer Needs And Feedback 36% 18% 18 Places Customers Ahead Of Profits 36% 17% 19 Communicates Frequently And Honestly On The State Of Its Business 34% 18% 16 Offers High Quality Products Or Services 42% 20% 22 Is An Innovator Of New Products, Services Or Ideas 23% 17% 6 Works To Protect And Improve The Environment 31% 17% 14 Creates Programs That Positively Impact The Local Community 24% 16% 8 Addresses Society's Needs In Its Everyday Business 28% 18% 10 Partners With NGOs, Government And Third Parties To Address Societal Issues 26% 15% 11 Has Highly-Regarded And Widely Admired Top Leadership 20% 14% 6 Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 21% 14% 7 Delivers Consistent Financial Returns To Investors 24% 17% 7
- 18. 18 Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? Use a 9- point scale where one means that attribute is “not at all important to building your Trust” and nine means it is “extremely important to building your Trust” in a company. (Top 2 Box, Importance) Q114-129 Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9- point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performance) General Population, Asia Pacific. APAC trust priorities aligning Most important attributes for business to build Trust in Asia Pacific countries General Population 17
- 19. 2 Leadership as a catalyst for change
- 20. 20 Addressing trust in leadership Actions Values Employee Advocacy Engagement TRUST
- 21. 21 Actions Leadership as a catalyst for change
- 22. 22 Leader focus misplaced Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs do too much lobbying,’ ‘Given that the average tenure of CEOs is just 4 years, CEOs aren’t in their role long enough to make a positive impact,’ (Top 4 Box, Agree) ‘CEOs are too focused on short-term financial results,’ ‘CEOs can be Trust to create jobs’ ] (Bot 5 Box, Do not agree) General Population, Hong Kong. Percent who agree with each statement about CEOs General Population Focus on short-term financial results Lobbying Too Much 59% 48% Positive long-term impact Job creation Not Enough 50% 54%
- 23. 23 Purpose and profits matter Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, Hong Kong, question asked of half the sample. Percent who agree that CEOs should be personally visible in discussing… 56% Societal Issues ‣ Income inequality ‣ Public policy discussions ‣ Personal views on societal issues 54% Financial Results General Population
- 24. 24 Lack of purpose impacts trust Percent who cite each as a reason for why their trust in business has 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 which of the following reasons, if any, has your Trust in each institution listed below decreased over the past year? General Population, Hong Kong. Reasons trust in business has decreased General Population 40% 43% 62%Fails to contribute to the greater good Provides few public services Does not help me and my family live a fulfilling life
- 25. 25 Values Leadership as a catalyst for change
- 26. 26 Desired leadership qualities Characteristics that make a CEO trustworthy, percent who selected each as one of the top 5, Hong Kong vs. APAC General Population Source: 2016 Edelman Trust Barometer Q515. Which of the following personal characteristics make a CEO Trustworthy? Please select the 5 most important characteristics that make a CEO Trustworthy. General Population, Hong Kong and Asia Pacific. 25% 17% 31% 26% 35% 28% 31% 36% 44% 46% Visionary Competent Decisive Authentic Experienced Asia Pacific Hong Kong
- 27. 27 60% 68% 72%75% Their education and how it shaped them Their personal success story The obstacles they have overcome Their personal values Personal values and history matter Source: 2016 Edelman Trust Barometer Q507-514. Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your Trust” and nine means it is “extremely important to building your Trust”. (Top 4 Box, Important) General Population, 28-country global total, question asked of half the sample. [Media Engagement net = Q507 ‘Interviews with the media,’ and ‘Q512 ‘Sharing their views on a blog or on social media.’ Direct Engagement net = Q508 ‘Communications with employees,’ and ‘Participation in industry conferences.’] Q516-524. For you to Trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a 9-point scale where one means that attribute is “not at all important to building your Trust” and nine means it is “extremely important to building your Trust. (Top 4 Box, Important) General Population, Hong Kong, question asked of half the sample. Percent who agree that each type of information is important in building Trust in a CEO General Population
- 28. 28 Employee Advocacy Leadership as a catalyst for change
- 29. 29 50% 65 60 40 48 48 50 54 55 56 57 58 59 60 62 62 63 64 64 64 72 73 76 76 77 77 78 79 83 85 89 Global GDP5 Japan Russia France Sweden Australia S.Korea Poland UK Italy HongKong Ireland Germany Netherlands Spain Turkey Canada U.S. S.Africa Singapore Malaysia UAE Indonesia Brazil Argentina China India Colombia Mexico Significant employee lack of trust Source: 2016 Edelman Trust Barometer Q525-526. Thinking about your own company and other companies in your industry, please indicate how much you Trust each to do what is right using a 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. Percent who trust the company for which they work TrustedDistrusted 7 in 10 Agree employees are credible spokespeople General Population
- 30. 30 Company NOT engaged in societal issues Company engaged in societal issues Companies with CEOs addressing societal issues do better 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? Thinking about your current company, please indicate how much you agree with each of the following statements using a 9-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, Hong Kong, question asked of half the sample. General Population Impact of Company Engagement 19 30 21 20 34 26 2276 79 79 79 81 81 89Do the best possible job for the customer Recommend products and services to others Committed to achieving our strategy Motivated to perform Confidence in the future of the company Stay working for the company Recommend company as an employer 54 53 45 59 60 51 70
- 31. 31 Engagement Leadership as a catalyst for change
- 32. 32 76 67 71 56 55 59 60 60 60 53 59 56 57 51 43 47 47 50 51 41 46 45 47 44 35 2012 2013 2014 2015 2016 Transformed media landscape Source: 2016 Edelman Trust Barometer Q178-182. When looking for general news and information, how much would you Trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not Trust it at all” and nine means that you “Trust it a great deal.” (Top 4 Box, Trust) General Population, Hong Kong, question asked of half the sample. Trust in each source for general news and information *From 2012-2015, we included Online Search Engines as a media type. In 2016, we changed to Search Engines. **From 2012-2015, we included Hybrid as a media type. In 2016, we changed this over to Online-Only. Owned media Globally, owned media is 46% and rising (+3 points) year on year for 2 years, surpassing social media. General Population Media type Traditional Media Search Engines* Online-only Media** Social media Owned media
- 33. 55 60 60 57 45 43 42 40 44 64 60 58 58 49 46 41 40 38 Peers, experts more credible than leaders Source: 2016 Edelman. Trust Barometer Q130-587. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, Hong Kong, question asked of half the sample. 33 Percent who rate each spokesperson as extremely/very credible 2015 2016 +3+9 Technical Expert Academic Expert A person like yourself Financial Industry Analyst CEONGO representative Board of Directors Government official/regul ator A person like yourself credibility increased the most General Population Employee most trusted content creators:#1 Friends and Family
- 35. 35 Influence The inversion of influence Influence & Authority Authority Old Model ‣ Informed public have access to more/better information ‣ Top-down influence through a set number of channels New Reality ‣ Peer-to-peer influence more powerful than top- down ‣ Increasing lack of trust among population, characterized by significantly lower optimism about the future The Gap ‣ Democratization of information access ‣ Discrepancy in communications leaders who haven’t adapted to this new reality
- 36. 36 Embracing the new reality of influence to address the trust gap ‣ Create societal impact in addition to profits through purposeful action ‣ Express your values through ethical engagement in which you share your story ‣ Ignite your most powerful advocate, your employees ‣ Engage cross channel to meet stakeholders, where they are, about what most interests/concerns them Actions Values Employee Advocacy Engagement Influence AuthorityLeadership TRUST
- 37. 37 60 41 39 32 30 20 51 47 18 22 24 27 Trust matters Source: 2016 Edelman Trust Barometer Q371-589. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you Trust? Please answer yes or no to each action. General Population, Hong Kong, question asked of half the sample. Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not Trust? Please answer yes or no to each action. General Population, Hong Kong, question asked of half the sample. Percent who engage in each behavior based on trust Behaviors for Distrusted Companies Behaviors for Trusted Companies Refused to buy products/services Criticized Companies Shared Negative Opinions Disagreed with others Paid More than wanted Sold Shares Chose to buy products/services Recommended them to a friend/colleague Shared Positive Opinions Online Defended Company Paid More Bought Shares most trusted content creators:#1 Friends and Family General Population
- 38. 38
- 39. Panel discussion
- 40. 40 Introducing our panelists Keith Thomas CEO, Asia Pacific Zurich Insurance Group Bob Grove CEO, North Asia Edelman Fern Ngai CEO Community Business Pamela Ambler Producer & Presenter Reuters TV
- 41. Questions?
- 42. 42 Thank You
Hinweis der Redaktion
- VIDEO
- This is our largest study ever. In total, we surveyed more than 33,000 respondents around the world This year, we added Colombia to the survey, going from 27 to 28 countries We survey 1,000 general online population respondents per market who are representative of the online population in each market As in previous years, we oversample for Informed Publics, which must meet 4 criteria: age, college-educated or higher, top income earners, and they over-index on media consumption New this year: For the first time we analyzed the differences between the Informed Public, which make up 15% of the total sample, and the remaining 85% of the general population, which we call Mass Population in the report.
- Overall in Asia, we have a certain number of countries up in the Truster category, for example China, India, Singapore, Indonesia. However, we see an the number of markets in the Distruster zone increase among General Populat
- When we look at the overall global numbers, among informed publics and general population, we see Trust is rising across all four institutions. This is the highest level of Trust we’ve seen since the 2008 global financial crisis. Event business I back on the heals of NGO, suggesting maybe that NGOs are not alone anymore in their ability to solve the world’s problems.
- But it’s not all good news, in Hong Kong, we have got a flat lining Trust situation. Over the last 3 years, we have seen Trust decline in turn in government, business than media. This hasn’t changed this year. The general sentiment for HK still is that there is a failure to recover and uncertainty about the future, though we do notice a smidge of optimism in the more informed public because they overall feel better looked after.
- This sentiment echoes itself again when you look at it split by generations. In business and government, the younger you are, the more skeptical you are. But this isn’t necessarily true along all institutions, since NGOs and media are on part of this trend.
- In fact, if you look at it again through another perspective of mass population vs informed public, there is a big gap in between how optimistic informed public feels about the future. This says that the rich are getting richer, and they feel ok while the rest of the population doesn’t, and we see those same traits appear in 70% of markets that we surveyed. HK is amongst the top 10 countries globally with the highest gap, and shows the highest disparity in Asia. When we look at emerging markets in the world (India, Indonesia, UAE, Brazil), gaps are smaller because there is general optimism about the future.
- We’ve looked at the big picture of Trust globally, now let’s narrow into business, where Trust is influenced by 4 factors: Industry sector Type of business Country of origin Leadership I’ll touch on 3 of them that cannot be altered , and then Adrian will provide you a deep dive into leadership.
- First of all, let’s look at industry sectors. While Trust in business has flat lined, Trust in all core sectors have declined. If we look at the biggest drops year on year: Automotive (-11): fairly obvious with emissions scandal very prominent worldwide last September Technology (-6): remains the most Trusted industry but gap has decreased with several recent news, such as data security breach, NFC credit card issues locally last October, and the world publicized Ashley Madison data security hack last July. Pharmaceutical (-11): sees the biggest drop, which has been significant over the last 2 years. Globally, the Trust is steady, China has even increased One explanation of this drop could be the widely publicized 5,000% increase of price AIDS and cancer drug by Turing Pharma in the US. Locally, we have seen a higher profiling in media of medical blunders.
- First of all, let’s look at industry sectors. While Trust in business has flat lined, Trust in all core sectors have declined. If we look at the biggest drops year on year: Automotive (-11): fairly obvious with emissions scandal very prominent worldwide last September Technology (-6): remains the most Trusted industry but gap has decreased with several recent news, such as data security breach, NFC credit card issues locally last October, and the world publicized Ashley Madison data security hack last July. Pharmaceutical (-11): sees the biggest drop, which has been significant over the last 2 years. Globally, the Trust is steady, China has even increased One explanation of this drop could be the widely publicized 5,000% increase of price AIDS and cancer drug by Turing Pharma in the US. Locally, we have seen a higher profiling in media of medical blunders.
- We’ve looked what Trust in Business consists of. Now let’s look at what’s expected of businesses in today’s world. In HK, a pure focus on profit is not enough, 64% of respondents agree that improving economic and social conditions in the community where it operates is essential.
- Today, business is expected to play a role in solving a broad range of societal issues. Here we show the top most important issue in which business is expected to play a role in each country. In Hong Kong, the most business should be focusing on is access to education and training as well as healthcare. Hong Kong shares several countries concerns for education, but globally, the other countries in the region and abroad, Environment is key.
- Now we’re going to look at a list Trust-Building Attributes for Business which are separated into 5 categories: Integrity Engagement Products Purpose Operations
- As you can see, we survey the importance of the attribute, as well as how people feel a company is performing in each attribute. The gap between the two is the one companies must fill to catch-up, and the biggest one is integrity, engagement and product quality. These indicators always come higher in China/HK then rest of the world.
- As usual, it’s not a one size fits all solution – and the answer vary per market across the region. Although what we are seeing is that ethics and treatment of employees as well as listening to customers are the 3 most prevalent of Trust across most of the region.
- I’ve just shown you the drivers of Trust and expectations in business, and what can be done about that. The other determinant is leadership. Considering the 3 (industry, type, country of origin) invariables, let’s look at the only one you can change, leadership. What are the things a leader can address in order to close that gap between performance and expectations we’ve just seen.
- The research shows that, while share holders may evaluate you based on your balance sheet, your broader stakeholders and the population at large shape their opinions and decide whether they Trust you through four lenses: your actions, your perceived values, how you treat your employees—and what they say about you, and how you engage with the community. All four are essential to informing Trust, and we will look at each in turn.
- First: actions speak louder than words, and how you behave is far more important than your press release.
- But when we asked people to tell us their views on business leaders today, they are not necessarily seeing the actions they want to see. They believe that CEOs are too focused on short-term results, not enough on driving long-term impact. Too much lobbying; not enough job creation.
- But their expectations are not unrealistic. Of course they expect CEOs to be talking about finances. And I’m sure 100% of you have a client CEO out there on financial results. But how many of you have a client CEO front and center on making sure purpose is a part of the company’s strategy? People want to hear what CEOs have to say about societal issues; to take a stand on issues such as income inequality, public policy and their personal views on societal issues.
- And purpose matters because it has a direct impact on Trust. When asked for their most important reasons why Trust in business has decreased, a failure to contribute to greater good is at the top of the list at 62%.
- A big part of that is about the visible actions you take but also demonstrating why that’s important to you as a leader. As important as what you do is WHY you do it. What are your values?
- Who you are, how you lead and what you stand for -- for leaders. What are the personal characteristics that make a CEO Trustworthy? In Hong Kong, we are a very practical market, where visionary and competent rank first. The characteristics ranked lowest are: From a good background (3%) Self-sacrificing (6%) Charismatic (7%)
- And they want to know about the personal values and obstacles overcome of those in authority: how did they earn the opportunity to lead? What were the obstacles they overcame, their personal success story and how did it shape them? Personal values and history matter to people. In HK and globally, we see a very high importance in the need to hear about leader’s history and background.
- Third, in a world where peer influence is paramount, your employees are the gateway to connecting authentically and earning the Trust of the broader population.
- Why does it matter? Employees are more Trusted spokespeople for their companies than the CEOs are. When you don’t convince the people that work for you to Trust your company you are wasting one of your largest and best assets. Either you can turn your employees into brand advocates or you can ignore this data and leave them as a liability for your business.
- We’ve looked at companies who were not engaged in societal issues and how much engagement / advocacy their employees have for the company on several criteria. For each of these, the figure jumps tremendously by 20 to 30 points if the company is engaged in societal issues. Hence the data reveals a very important finding: employees of companies which are engaged in societal issues are markedly more committed to their company on many levels. The connection between purpose, employee loyalty and advocacy is clear – and will drive far broader engagement across the broader population.
- And engagement is the fourth element to bridging the Trust divide. For engagement, let’s look at the type of channels to use, and how to embody them in the best way we can.
- The media landscape is changing dramatically and appearing more fractured. Trust is declining in media generally, though is up for social media among millenials. Today, it is no longer enough to rely on traditional media for your message to be heard: you have to be everywhere. Hong Kong figures are generally low compared to the rest of world, but of particular note, we see a significant divide in owned media which is globally 11 points higher and rising, while HK is declining (-9). HK company websites have not been keeping with the rest of the world in terms of owned content and it shows.
- Now if we look at the most credible spokesperson, we see that a person like yourself continues to increase dramatically, which goes in par with additional data showing us that the #1 most Trusted content creator for online / social media channels, is a friend or family. CEOs still have ground to make up. Trust in them went up 3 points, but they still fall into the distrusted category.
- What does all of this mean for companies?
- Because as we have seen, the old world no longer works. We are now operating in a new reality characterized by peer-to peer influence, a reality where there is a divide between influence and authority divide. In the old model, those with authority had better access to information. There was a general sense that the interest of the elites were aligned with those of the masses, and that the opportunity to gain authority and influence was open to all who were willing to work hard. Today, however, that reality has changed. Peer influence is more powerful than top-down influence, and there is an increasing distrust among the mass population characterized by a lock of optimism in the future. This has led to a significant divide between authority and influence, and in which the traditional forms of “talk at” marketing no longer work.
- This year’s Trust Barometer introduces a new model of influence, one that is designed to build Trust and, through that Trust, to bridge the divide between those with influence and those with authority. Through these four Trust-building elements—how you behave, your values, your level of employee advocacy, your model of engagement—those with authority have the opportunity to lead—and to earn the influence of the broader set of stakeholders.
- It means that Trust matters tremendously. It matters for sale of product. It matters for recruiting. And, at a time when peers are so influential and everyone goes online to research products and services, it matters for your reputation.
- Any questions