2. 2009 Edelman Trust Barometer at a glance
Tenth edition, fourth to include Korea data
4,475 people in 20 countries on 5 continents
Ages 25 to 64
- Two age groups concurrently (25~34 and 35~64)
“Opinion elites” meeting the following screening criteria:
- 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
3. A Decade of Insights from the Edelman Trust Barometer
2001 Rising Influence of NGOs
2002 Fall of the celebrity CEO
2003 Earned media more credible than advertising
2004 U.S. companies in Europe suffer trust discount
Trust shifts from “authorities” to peers
2005
“A person like me” is most credible spokesperson
2006
Koreans more likely to criticize companies they
distrust
2007 Business more trusted than government and media
Korea leads the world in trusting the internet and
blogs in sharing credible information
2008 Young influencers have more trust in business
Rising trust in Government, Media and NGOs but
Korean business facing eroding trust overseas
3
4. What a Difference a Year-and-a-Half Makes
May 14, 2007 January 19, 2009
5. Key Themes in 2009 for Business in Korea
• Trust in business takes major hit in Korea, particularly among financial,
automotive and, surprisingly, healthcare sectors:
7/10 people trust business less compared to last year
Koreans trust business less compared to rest of Asia-Pacific as well as China, India, Japan and Indonesia
Koreans lost faith in American businesses but European companies maintain levels of trust despite troubling
economic conditions in 2008
• Young opinion leaders lose optimism and faith in Korean institutions:
Trust eroded in business from 52% in 2008 to 32% in 2009
Trust in the media drops from 60% to 38%
• The NGO opportunity in Korea:
Korea is significantly more trusting of NGOs compared to Asia-Pacific as a whole as well as individual
countries like Japan and Australia
• Rise of ‗authentic‘ employee and digital communications:
Trust in employees as information sources shoots up from 28% to 40%
Trust in social networks almost doubles from 24% to 45% and conversations with peers and friends rises
from 40% to 62%
• Communication and trust more important for reputation than value for money
Value for money scores 68% versus global score of 91%, even during prevailing downturn, and follows other
reputation factors like frequent communication and trusted company
6. 1
The State of Trust 2009
―Every financial system depends on
trust...We are in a full-blown crisis
because investors and financial
managers—the people who run banks,
investment banks, hedge funds, insurance
companies—have lost that trust.‖
– Robert J. Samuelson, Newsweek
Richard S. Fuld Jr., former CEO, Lehman Brothers
7. 7 out of 10 in Korea Trust Business Less Following Year of Economic
Troubles
A lot more 1%
A little more 8%
16%
A lot less
22%
The Same
53%
A little less
A60 Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less,
a little less, the same, a little more, or a lot more than you did at the same time last year? (Bottom 2 Box: Trust less) 25-64 Informed publics
in 20 countries
7
8. 7 out of 10 in Korea Trust Business Less Following Year of Economic
Troubles
% who trust companies less
100%
90%
83%
79%
77%
80%
74% 73%
69%
67% 67% 67% 66%
70%
62% 62% 61%
60% 56% 55%
54%
50% 49% 49%
50%
40%
32%
30%
21%
20%
10%
0%
A60 Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less,
a little less, the same, a little more, or a lot more than you did at the same time last year? (Bottom 2 Box: Trust less) 25-64 Informed publics
in 20 countries
8
9. Young Koreans Less Trusting of Business Compared to Rest of Asia,
Similar to Many Western Countries
Trust in business <50% among 25-to-64-year-olds
Trust in business >50% among 25-to-64-year-olds
10. Trust in Business in Korea Low Compared to Asia Pacific
% who trust Business
100%
90%
80%
71%
70%
63%
62% 62%
57%
60%
50%
43%
39%
40%
30%
20%
10%
0%
Korea Asia Pacific India China Japan Indonesia Australia
A9. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what
is right. Please use a 9-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM
A GREAT DEALquot;. The higher the number the more you TRUST them to do what is right. Let's start with… [INSERT FIRST. RANDOMIZE.
ACCEPT ONLY ONE RESPONSE]. (Top 4 Box), informed publics aged 25-64
10
11. Older (35-64) Opinion Elites‘ Overall Trust in Business in Korea,
However, Remains Steady
% who trust business to do what is right
2008 2009
100%
New
Trust Down Trust Steady Trust Up additions
90%
in 2009
80%
75% 74%
71%
69% 68%
70%
65% 63%
65%
62% 61%
61%
58%
60%
55% 54%
51%
51%
49%
49% 49% 47%
50% 47% 45% 45% 45% 45% 45%
45%
43% 42%
41%
41% 39%
40% 39%
38%
40% 35%
33% 30%
29%
30% 27%
20%
10%
0%
A10. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that
institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means
that you quot;TRUST THEM A GREAT DEALquot;. (Top 4 Box) Informed publics 35-64 (global 18 countries, excluding Australia, Indonesia)
11
12. Trust in Business in Korea and Europe Remains Steady
despite Major Drop in US 20
point
drop in
60%
58%
US
US UK/France/Germany Korea
55%
53%
51%
49%
50%
48% 48%
Enron, the dot-com bust
and September 11 46%
46%
45%
44% 44%
45%
43%
41%
40% 40%
38%
38%
36%
36% 36%
34%
35% 35%
U.S. is the new Europe
32%
30%
2001 2002 2003 2004 2005 2006 2007 2008 2009
A10. Business in general [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that
institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine means
that you quot;TRUST THEM A GREAT DEALquot;. (Top 4 Box) Informed publics 35-64 in the United States.
12
13. Older (35-64) Opinion Elites‘ Faith Remains Unwavered
2008 2009
100%
90%
80%
70%
60% 59% 57%
60% 55%
50% 45%
43%
40% 38%
40%
30%
20%
10%
0%
Business Media Government NGOs
NB: changes in Business, Media and NGO are statistically significant with this data set
A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that
institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and
nine means that you quot;TRUST THEM A GREAT DEAL.‖ The higher the number, the more you TRUST them to do what is right.
(Top 4 Box) Informed publics 34 (global 20 countries – Korean Data shown only)
13
14. Young (25-34) Opinion Elites Lose Faith in Korea Institutions:
Business, Media and the Government
2008 2009
100%
90%
80%
70%
60% 60%
60%
52%
50% 44% 42%
38% 36%
40%
32%
30%
20%
10%
0%
Business Media Government NGOs
NB: changes in Business, Media and NGO are statistically significant with this data set
A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that
institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and
nine means that you quot;TRUST THEM A GREAT DEAL.‖ The higher the number, the more you TRUST them to do what is right.
(Top 4 Box) Informed publics 25-34 (global 20 countries – Korean Data shown only)
14
15. The NGO Opportunity in Korea
NGOs most trusted institution in Korea and Globally, but not in Asia Pacific as a region
% who trust each institution
100%
NGOs Business Media Government
90%
80%
70%
58% 57% 56%
60% 54% 52%
51%
50%
47%
50% 45%
43%
39% 37%
40%
30%
20%
10%
0%
Global Total Korea Asia Pacific
A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you
TRUST that institution to do what is right. Please use a nine-point scale where one means that you quot;DO NOT
TRUST THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.” The higher the number, the
.
more you TRUST them to do what is right. (Top 4 Box) Informed publics 25-64 (global 20 countries)
15
16. Technology Remains Most Trusted Industry Sector Globally
2009 2008
76%
Technology 77%
66%
Biotech/life sciences 65%
57%
Health care industry 61%
57%
Automotive 62%
55%
CPG manufacturers 55%
55%
Energy 57%
55%
Retail 59%
55%
Food N/A
53%
Pharmaceuticals 56%
50%
Entertainment 53%
45%
Banks 56%
42%
Media companies 46%
40%
Insurance 45%
A25-37. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses
in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you quot;DO NOT TRUST
THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics 35-64 in 18 countries 2008-2009
16
17. Trust Falls for Most Sectors in Korea, with Some Big Losers
100%
Significant Losses in Trust, >10% 2008 2009
90%
81%
78%
80%
73% 73%
71%
69%
68% 68%
70% 65%
63%
61% 60%
59%
60% 56%
52%
53% 53%
49% 49% 49%
46%
50% 46%
43%
40% 35%
31%
30%
20%
10%
n/a
0%
A25-37. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses
in each of the following industries to do what is right. Again, please use a nine-point scale, where one means that you quot;DO NOT TRUST
THEM AT ALLquot; and nine means that you quot;TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics 25-64 in the United States
17
18. US, Chinese, Russian and Irish Companies Big Losers of Trust in Korea
Trust in most European-based companies remains stable
(i.e. non-significant changes)
2008 2009
-17 -17 -18 -16
100%
90%
81%
77% 76% 77% 76% 76%
80%
74% 73% 74%
71%
69%
66%
70%
61% 61%
58%
60% 55% 54%
52%
49%
46%
50%
44%
39% 39%
40%
28%
30%
23%
20%
10%
10%
0%
A12-24. [TRACKING] Now I would like to focus on global companies headquartered in specific countries. Please tell me how much you TRUST global companies
headquartered in the following countries to do what is right. Use the same nine-point scale where one means that you quot;DO NOT TRUST THEM AT ALLquot; and nine
means that you quot;TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics 35-64 in 18 countries
18
19. 2
Lack of Trust Triggers Call for Shared Responsibility
―...our problem is not just
a deficit of dollars. It‘s a deficit of
accountability...a deficit of trust.‖
– Barack Obama
20. Call for Stricter Regulations and Greater Control over Business Present in
Korea, although Less Certainty Compared to Global and Asian Trend
Informed Publics, Globally Informed Publics, Korea
Agree,
65% Disagree,
Disagree,
(64% in 33%
22%
Asia Agree, 41%
Pacific)
Neither
Agree nor
Dont know,
Neither Disagree,
0%
Don't agree nor 26%
know, 1% disagree,
12%
F146. The recent credit crisis and government bail-outs have led to debates on how much governments should intervene to regulate industry or
nationalize companies to restore public trust. Please tell me how strongly you agree or disagree that your government should in the future impose
stricter regulations and greater control over business across all industry sectors.(Informed publics 25-64 in 20 countries)
20
21. What Should Government Do To Address the Issue Caused by the Recent
Financial Crisis?
Informed Publics, Korea
2/3 still believe Free Market,
33%
government Intervention,
intervention is 64%
necessary
Don't Know,
3%
Government should intervene in the activity of banks and the financial industry using
whatever means it sees appropriate, including lending money or guaranteeing deposits?
OR
Government should permit the free market to function independently, allowing banks and
other financial institutions to fail or be acquired?
F144. Given the recent financial crisis, which one of the following choices comes closest to your view on how your government should respond to
prevent future
21
22. Four Global Issues:
Who Is Responsible for Causing and Solving?
Energy
Financial
Costs
Credit Crisis
Access to
Global
Affordable
Warming
Healthcare
23. Government and Business Share Responsibility for Causing Global Issues
Korea‘s Perspective consistent with global data – responsibility is shared
Government and regulators Businesses
100%
90%
80% 75%
71% 71% 71%
70%
64% 64%
61% 61%
60%
50%
40%
30%
20%
10%
0%
Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare
E. 119-120, E124-125, 129-130, 134-135. Now thinking about (energy costs, financial credit crisis, global
warming, affordable healthcare), please tell me how responsible you think each of the following entities are for
.
contributing to (global issue)? TOP 4 BOX 25-64 informed publics in 20 countries (Korea data only shown)
23
24. Government Held Most Responsible for Solving These Issues
Despite being most trusted in Korea,
NGOs not considered most responsible for solutions
Government and regulators Businesses NGOs
100%
90%
80%
80%
67%
65%
70%
60%
52%
50%
36%
40%
30% 24%
22%
20%
13%
10%
3% 1% 1% 1%
0%
Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare
E138. And which ONE entity do you think should be MOST responsible for (solving each global issue)?
.
Informed publics 25-64 in 20 countries (Korea Data only shown)
24
25. Business Has Lost Ability to Lead Unilaterally
Must Partner with Others to Solve Global Issues
Only businesses in Latin America face greater expectation for partnership than Korean business
Partner with governments and third parties Do what it can alone Play no role
100%
90%
83%
75%
80%
69%
66% 65%
70%
61%
56%
60%
50%
40%
35%
40%
33%
31% 29%
23%
30%
15%
20%
4%
10%
2%
3% 2% 2% 2%
1%
0%
Global North America EU Asia-Pacific Latin America BRIC Korea
E139. Thinking about the role that business should play in helping to solve global issues such as energy costs, the financial credit crisis,
global warming, or access to affordable healthcare, which of these following three statements is closest to your view? Business has to
partner with governments and advocacy groups to solve these global issues, it cannot do it alone; OR Business should focus on what they
themselves can do on these global issues, whether or not governments or others partner with them ; OR Business should not play a part in
helping to solve these global issues (Informed publics 25-64 in 20 countries)
25
26. 3
Who Can We Trust?
Trust in Information Sources & Spokespeople Declines Across the Board Globally
Rise of ‗Authentic‘ Regular Employee and Digital Communications
quot;I understand your disappointment,
your anger. This situation is perfectly
unacceptable.‖
-Daniel Bouton,
-former CEO of Société Générale
27. Friends and Peers, along with Experts and Traditional News Sources
Most Credible Sources of Information in Korea
Conversations with friends/peers 62%
News coverage on the radio 62%
Stock or industry analyst reports 61%
Television news coverage 60%
Articles in newspapers 58%
Internet search engines 56%
Articles in business magazines 56%
Conversations with company employees 55%
Business blogs 50%
Personal or non-business blogs 46%
Social networking sites 45%
Wikipedia or web portals 44%
Corporate communications 39%
Senior management speech or interview 35%
A company's own Web site 31%
Corporate or product advertising 25%
C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 25-64 in 20 countries
27
28. In Korea, Mainstream Media Still are the Most Credible
and Digital Media are Rising Up
80%
TV news coverage
Mainstream media
70% Articles in business magazine
News coverage on the radio
Articles in newspapers
60%
Internet search engines
50%
Business blog
The Internet general
Social networking sites
Digital media
40%
Personal blog or bulletin boards
blogs
30%
20%
10%
0%
2006 2007 2008 2009
C95-110. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), informed publics ages 35-64 in 18 countries (Korea data shown only)
28
29. Trust Wanes for Traditional Information Sources Globally
Ranking Stays Consistent
2008 2009
100%
90%
80%
70%
57%
56%
60%
49% 49% 49%
47% 47%
50% 44%
40% 38% 36%
40% 34%
30%
20%
10%
0%
Stock or industry Articles in Conversations News coverage Television news Articles in
analyst reports business with your friends on the radio coverage newspapers
magazines and peers
C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries
29
30. Korea Ahead of Global Trends in the Trust of New Digital Communications
Korea is an ideal test bed for engaging online audiences in meaningful dialogue (before other global
markets)
Global Korea
100%
90%
80%
70%
60%
60%
47% 47%
50% 43% 42%
38%
40% 34%
27%
30% 23%
19%
16%
20% 15%
10%
0%
Free content Social networking A company‘s own Internet search Business blogs Personal or non
sources, such as sites (such as website engines e.g. business blogs or
wikipedia or MySpace or Google news, bulletin boards
webportals Facebook) Yahoo news
C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries (Korea data shown only)
30
31. Trust in ‗Non-Controlled‘ Digital Information Rises in Korea
Overtakes Company‘s Own Website
Organizations in Korean should engage with online audiences in meaningful dialogue
2008 2009
100%
90%
80%
70%
60%
50%
43% 42%
38%
40%
32%
30% 25% 25%
20%
10%
0%
A company‘s own website
Free content sources, such as Social networking sites (such as
wikipedia or webportals MySpace or Facebook)
C95-98,103. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell me how
credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box), Informed publics ages 35-64 in 18 countries (Korea data shown only)
31
32. Employees More Trusted than Corporate Communications in Korea
2009 2008 2009
100%
Employees
90%
Trusted
More
80%
70%
60% 55%
50%
40% 39%
40% 35% 35%
31%
30% 25% 25%
20%
10%
0%
A company‘s own
Conversations Live Corporate Corporate or product
with company communication communications such website advertising
employees such as a CEO as press releases,
speech reports and emails
C99-101,109,110. [TRACKING] Now I‘m going to read you a list of places where you might get information about a company. Please tell
me how credible you believe each one of them is as a source of information about the company—is it extremely credible, very credible,
somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages 25-64 in 18 countries
32
33. Experts Trusted As Spokespeople over CEOs and Public Officials in Korea
Employees and ‗people like me‘ exert powerful influence (private sources of information)
2008 2009
100%
90%
80%
Regular Employees on
70%
credibility par with CEOs
61%
57% 57%
60% 55%
50%
47%
50% 45% 45%
41%
36%
40%
33% 33%
27% 26%
30%
20%
10%
0%
An academic or Financial or A person like Non-profit Regular employee CEO of company Government
expert on that industry analyst yourself organization or of a company official or regulator
company's NGO
industry or issues* representative
*asked as “an
academic” in 2008
D112-118. [TRACKING] Now I‘m going to read you a list of people. In general, when forming an opinion of a company, if you heard
information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box) Informed publics 35-64 in 18 countries
33
34. Informed Publics Need Information from Multiple Sources, Multiple Voices
7/10 need to hear it 3-5 times to believe it in Korea
Don‘t know/refusedOnce
(1) 2% Twice
(vol) 2%
Ten or more times (2) 9%
(10+) 13%
Six to nine times
(6-9) 5%
3-5 times
70%
Three times
(3) 46%
Four or five times
(4-5) 24%
C111. Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do
you need to hear something about a specific company to believe that the information is likely to be true? Please give me a number.
25-64 Informed publics
34
35. 4
The Business Case for Trust
Reputation, Sales, and License to Operate Driven by Trust and Transparency
―Trust is the cornerstone for the
survival of an enterprise and a society.
As an established brand in the country's
dairy sector, Sanlu's growth originated
from people's confidence in it.‖
– China Daily
36. Drivers of Trust in Business in Korea (Top 4 Factors)
Trusted Quality and High Quality Products on Top
Is a company I trust 92%
Offers high quality products or services 91%
Creates and keeps jobs in your area 89%
Has a strong commitment to protect the environment 88%
Is an innovator of new products, services or ideas 87%
Has a strong financial future 87%
Commits time, money and resources to the greater public good 85%
Is a company that treats its employees well 85%
Communicates frequently and honestly on its business 84%
Gives value for money 83%
Stays within the spirit and the letter of the law in [country] 77%
Has senior leadership that can be trusted 68%
B62-73. When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the
company? Please use a nine-point scale where one means that factor is ―not at all important‖ and nine means it is ―extremely important‖ to
overall reputation. (Top 4 Box) 25-64 Informed publics in 20 countries
36
37. Communication and Trust More Important for Reputation than Value for Money
in Korea (bucks global trend)
84%
Communicates frequently and honestly on its business
91%
92%
Is a company I trust
91%
83%
Gives value for money
91%
Korea Global
B62-73. When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the
company? Please use a nine-point scale where one means that factor is ―not at all important‖ and nine means it is ―extremely important‖ to
overall reputation. (Top 4 Box) 25-64 Informed publics in 20 countries
37
38. Through Personal Action, Trust Has Tangible Benefits
Personal actions taken with trusted and distrusted companies in Korea
– +
75% 92%
Refused to buy their products/services Chose to buy their products/services
79% 82%
Criticized them to a friend or colleague Recommended them to a friend or colleague
69%
Paid a premium for their products/services
50% 65%
Shared negative company opinions/experiences online Shared positive company opinions/experiences online
29% 46%
Sold shares Bought shares
B74-78 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.
B79-82. 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. Informed publics 25-64 in 20 countries
38
39. How Should Business Act When Problems or Difficulties Arise?
Act quickly to correct problems 73
Make significant changes so the problems don’t happen again 63
Admit their mistakes when things go wrong 62
Make full public disclosure about the problems and their
60
causes
Partner with governments, or other third parties to solve the
58
problems
Have senior executives take a visible lead in communicating
49
about the problems
Fire any executive or employee found to be guilty of
47
wrongdoing
Cap pay for executives who are accountable for the problems 44
B83-90. How much would you trust companies to take the following actions when problems or difficulties arise? Please use 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‖ to take this action
when problems arise. [ROTATE ITEMS; REPEAT SCALE ONLY AS NECESSARY] (Korea Data Shown Only)
39
40. How Trust Lends Support for Business Activity in Korea
Less than majority would allow foreign companies to take a controlling interest, even if trusted
Sell their products or services in your market 58
Pursue changes in local laws or changes in planning
51
permission
Seek preferential treatment for tax, employment or environment 49
Have foreign investors take a controlling interest in local
37
companies
B91-94. Thinking now about how companies operate in your country, how supportive would you be towards a good and responsible company
being allowed to… [INSERT FIRST]? Would you be not at all supportive, not very supportive, neutral, somewhat supportive or very supportive
towards a company operating in your country taking this action? [ACCEPT ONE RESPONSE]
40
41. 5
Rebuilding Trust
The Power of Public Engagement
―IT services are unlike hardware or
software in that they focus on a
relationship with a ‗trusted partner,‘
rather than on a product. We believe
Satyam‘s difficulties have considerably
diminished its ability to retain and
inspire this trust.‖
– Partha Iyengar, Vice President,
Distinguished Analyst, Gartner
Ramalinga Raju, Chairman, Satyam Computers
42. Public Engagement: A Strategy for Changing
Policy and Communication
Private Sector Mutual Social
Diplomacy Responsibility
Shared Continuous
Sacrifice Conversation
43. Private Sector Diplomacy Private Sector Mutual Social
Diplomacy Responsibility
Shape policy on world‟s most pressing Continuous
Shared Sacrifice
Conversation
problems, including ones that don‟t concern
company‟s industry
Partner with government, NGOs to drive
decision-making and set strategy on major
societal issues
― …Come together—government, NGOs and
business—in new approach to solving big
problems facing our country. … This can work.‖
– H. Lee Scott, Jr.,
President and CEO, Wal-Mart
44. Private Sector Mutual Social
Mutual Social Responsibility Diplomacy Responsibility
Benefit society and the bottom line Continuous
Shared Sacrifice
Conversation
Integrate approaches to societal
problems into products and services
Involve employees and customers in
decisions and actions about company‟s
social responsibility
Starbucks invites customers to
partner as a force for good
45. Private Sector Mutual Social
Shared Sacrifice Diplomacy Responsibility
Set collaborative tone for company: Continuous
Shared Sacrifice
Conversation
we‟re all in this together
Equitable compensation (executive pay cuts, bonus
forfeiting) sends powerful message
Communicate with employees, welcome their voices
―Heavy equipment maker Caterpillar
Inc announced in late December it
would cut executive pay in half, and
many salaried employees would see
cuts of as much as 15 percent.‖
– Wall Street Journal
46. Continuous Conversation Private Sector Mutual Social
Diplomacy Responsibility
Be agile and “of the moment” Continuous
Shared Sacrifice
Conversation
Inform, don‟t control the
conversation
Say... then do as you say
Johnson & Johnson among first
companies to join public
conversation on health
47. About the Edelman Trust Barometer
The 2009 Edelman Trust Barometer is the
firm‟s 10th trust and credibility
survey. The survey was produced by
research firm StrategyOne and consisted of
30-minute telephone interviews using the
fielding services of World One from
November 5–December 14, 2008. The 2009
Edelman Trust Barometer survey sampled
4,475 informed publics in two age groups
(25-34 and 35-64). All informed publics
met the following criteria: college-educated;
household income in the top quartile
for their age in their country; read or watch
business/news media at least several
times a week; follow public policy issues in
the news at least several times a week.
For more information, visit
http://www.edelman.com/trust or call +212-
704-4834.
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48. About Edelman & Edelman Korea
Edelman is the world‟s largest independent PR
firm, with 3,400 people in 54 offices around the
world. Recent industry awards include „Large
Agency of the Year (PRWeek, 2007 and 2008),‟
and „Global Agency of the Year (Holmes Report,
2008).‟ CEO Richard Edelman was honored as
“2007 Agency Executive of the Year” by both
Advertising Age and PRWeek.
Edelman continues to set the New PR Standard
in Korea, and was awarded „PR Agency of the
Year‟ and „International Campaign of the Year‟
in 2008 by the Korea Public Relations
Association.
For more information, and to access our annual,
proprietary research, please visit
www.edelman.com / www.edelman.co.kr.
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