2011 trust barometer canadian summary

trust2011 Edelman Trust Barometer Executive Summary

Brazil India Italy China Japan Germany Canada France U.S. U.K. Russia

67%70%

59%64% 62% 61%62%

81%

+19

2010

49%44%

36%

48%

-8

54%

46%

57%

53%54%

50%42% 41%

20112010 20112010 2011

40%

52%

+12 +12

0

10

20

30

40

50

60

70

80

90

100Trusters Neutral Distrusters

Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64

43%49%

2010 20112010 2011 2010 2011

China Brazil Japan Canada France Italy India U.K. U.S. Russia Germany

39%

85%

42%

51% 49%

36%

45%

74%

88%

+14 +46

-6

43%

33%

46%40%

43% 44%38%38%

43%39%

0

10

20

30

40

50

60

70

80

90

100

-10

52%


Trusters Neutral Distrusters

2 2011 EDELMAN TRUST BAROMETER

Business and Government: Trust Stabilizes Globally

In a year marred by corporate crises and financial turmoil for European governments, the 2011 Edelman Trust Barometer finds trust in business and government markedly resilient and sees a shifting centre of gravity. Trust in NGOs, “the fifth estate” in global governance, stays strong.

In this year’s Barometer, a three-part picture emerges of trusters, neutrals, and distrusters of business and gov-ernment (figures 1 and 2). Countries including Canada that are hover-ing in the 50 per cent range, so called “neutrals,” occupy a middle ground as the divide widens between trusters (over 60 per cent, includ-ing Brazil and China) and distrusters (under 50 per cent, including the U.S., U.K., France, and Russia).

The United States, which last year en-joyed an 18-point spike in trust in busi-ness, saw an eight-point drop, placing the world’s largest economic power within five points of last-place Russia. Trust in government tumbled in the U.S., where the two political parties were at loggerheads (see page 4 for more on the U.S.).

By contrast, Canada continues to enjoy stable levels of trust in both business and government, a finding that’s consistent with the fact that Canada was less affected by the economic downturn than many other countries.

In the early years of the Barometer, trust in business and government tended to move in opposition. In-creased trust in one was met by de-creased trust in the other. We generally now see the two moving in tandem, an important step as the expecta-tion is for the world’s two dominant institutions to work together.

Figure 1: Emerging markets dominate as “business trusters;” Canada remains neutral

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

Figure 2: China and Brazil drive rise in trust in government; Canada on par with Japan

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

2009 20112008 2011

83%87%

78%

90%

46%

16%

51% 52%

25%

71%-46

-30

China India U.S. U.K. Canada Canada

+12

0

10

20

30

40

50

60

70

80

90

100

2008 2011

32%

49% 48%53%

42%

51%

80%85%

75%

82%

China India U.S. U.K. Canada

+778%

73%69%

73%70%68%

93% 93%

77%

98%

China India U.S. U.K.

+21

+17


Banks Technology

2010 20112010 2011

0

10

20

30

40

50

60

70

80

90

100

CanadaGermany

75%76% 76%75%

Brazil India RussiaChina

39%42%

36%40% 39%

34%30%

35%

+3+5 +5

+4


0

10

20

30

40

50

60

70

80

90

100

Brazil China U.K./Fr/Ger CanadaU.S.

61% 63%

81% 80%

Business NGOs

46%

55%48%

55%50%

72%

Auto

3

Trust in Banks Plunges in Most of the West but Remains Stable in Canada; Technology Holds Firm in Top Spot Technology, which is in the No. 1 spot globally for the third straight year, is now followed by automotive and tele-communications. In Canada, brewing and spirits hold the second spot at 58 per cent, and food and beverage along with retail are tied for third at 56 per cent. The starkest contrast, how-ever, is between technology and banks (figure 3). The dramatic three-year drop in trust in banks in the West keeps this industry stuck at the bottom in global in-dustry rankings. By contrast, Canadian banks have enjoyed year-over-year stability, with virtually no change in trust from 2008 to 2011.

All four BRIC countries have gained trust as headquarter countries for global companies (figure 4). The trust comes mainly from fellow emerging markets, in-dicating that the BRIC strategy to target emerging economies is producing results. However, when compared to Ger-many and Canada, longtime leaders in the most-trusted-headquarter-country category, the BRICs still have a ways to go to be considered reliable business hubs.

In 16 of the 23 countries surveyed, NGOs are as or more trusted than business – especially in Canada, where informed publics trust NGOs much more than business (72 per cent vs. 50 per cent). In fact, trust in NGOs jumped from 58 per cent to 72 per cent from 2010 to 2011; NGOs were the only institu-tion to experience such a significant change in trust this year in Canada. This rise may be attributed to a percep-tion of NGOs as a stable force amidst corporate and government crises both at home and abroad, and reflects global findings that show a strong need for cor-porations to create shareholder value in a way that aligns with society’s interests.

Historically trusted most in developed markets, NGOs continue to gain trust in emerging markets (figure 5). In Brazil and China, where NGOs are on par with busi-ness, higher economic levels come with a greater concern for environmental re-sponsibility, education, and public health, the very province of NGOs.

Figure 3: Banks in Canada maintain consistent trust levels before and after world financial crisis; automotive climbs across the globe

How much do you trust the following industries to do what is right?

Figure 4: Trust in BRIC-based companies rises; Canadian- headquartered companies maintain high levels of trustHow much do you trust global companies headquartered in the following countries to do what is right?

Figure 5: Trust in NGOs on par with business in emerging markets; In Canada, trust in NGOs exceeds trust in businessHow much do you trust business to do what is right? How much do you trust NGOs to do what is right?

20

25

30

35

40

45

50

55

60

65

70

NGOs Business Government Media

Jan 2008 Jan 2009 Jan 2010 Jan 2011

63%

46%

59%

43%

45%

31%

36%

30%

63%

46%

54%

38%

46%

55%

40%

27%

Worldwide �nancial crisis

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

Informed publics ages 25 to 64

Trust in institutions: 2008-2011

Responses 6-9 only on 1-9 scale; 9=highest; Informed publics ages 25 to 64 Composite score is an average of a country’s trust in business, government, NGOs, and media

Global

Mexico

China

India

U.S.

Japan

S. Korea

Canada

Brazil

France

U.K.

Germany

Russia

Global

Brazil

China

Mexico

India

Canada

S. Korea

Japan

France

Germany

U.S.

U.K.

Russia

2008 2011

—

69

62

60

53

50

50

48

48

44

43

36

36

55

80

73

69

56

55

53

51

50

44

42

40

40


The United States: The Stark Exception

In a reversal of last year’s uptick, the U.S. suffers an across-the-board tumble, with declines in all four institutions.

The downturn in trust in the U.S. in 2010 echoed the drop that resulted from the worldwide financial crisis. While not as steep a decline, the country lost half the gains it earned back in 2009 (figure 6).

Several explanations emerge for the grim U.S. picture: the prolonged fighting between business and government; unemployment rates— not the full recovery the country expected; and the nation’s spot as the epicentre of many of the headline crises of 2010, including the oil spill, product recalls, and the SEC investigation of Goldman Sachs.

A four-year view paints a bleaker picture according to the Trust Barometer Index, in which each country’s score is an average of its trust in business, government, NGOs, and media. The U.S., fourth from the top in trust in 2008, sinks to the bottom this year, barely above the U.K. and Russia. On the other hand, Canada climbs to 5th spot, up from 7th in 2008. The BRICs hew closer to their 2008 rankings, with the exception of Brazil, which climbs sharply.

But if American business is largely not trusted by Americans, the opposite appears to be the case for American business abroad. Continuing a trend we have seen in recent years, trust in U.S.-based multinationals moved up in many markets, including China (+15), Brazil (+16), India (+16), and Indonesia (+16), possibly a halo effect of President Obama’s good standing abroad.

Figure 6: In U.S., 2011 decline mirrors 2008-2009 drop; only country to see trust fall in all four institutions

Trust Barometer Index U.S. drops while Brazil rises in composite scoring

Informed publics ages 25 to 64 in Canada “Extremely credible,” “very credible” and “somewhat credible” responses only

Academic/expert 98%

Financial/industry analyst 96%

Person like yourself 91%

NGO representative 95%

Regular employee 89%

CEO 79%

Government of�cial 88%

Academic/expert

Technical expert in company

NGO representative

Person like yourself

Government of�cial

CEO

Regular employee

99%

95%

Financial/industry analyst 88%

89%

94%

89%

80%

91%

2009 2011

5

Credentials Count More Than Ever

Trust in experts rises—and after years of being at or near the bottom, CEOs see increase in credibility.

Trust in credentialed spokespeople is higher this year, signaling a desire for authority and accountability — a likely result of the skepticism wrought by last year’s string of corporate crises. In Canada, 99 per cent of in-formed publics find academics and experts — long the front runners — “extremely,” “very,” or “some-what” credible.

For the first time, the Barometer asked about the credibility of a com-pany’s technical expert who is, in turn, deemed “somewhat,” “very,” or “extremely credible” by a majority in Canada (95 per cent).

CEOs are now considered more credible spokespeople, a shift from two years ago when they sat at the bottom (figure 7). Eighty-nine per

cent of Canadian informed pub-lics say CEOs are credible spokes-people for a company, a 10-point increase over 2009.

By contrast, a “person like me” dropped significantly, falling from the top four to the bottom two, virtually swapping spots with the CEO. This may be a result of changing attitudes about what constitutes “a person like me,” rather than an indication of a significant decrease in the actual credibility of peer-to-peer communica-tion. With some estimates indicating that the average Facebook user does not know one-fifth of the 500 people typically listed as friends on his or her page, it is reasonable to ask whether the meaning of the word “friend”— and by association “a person like me”— has become devalued.

In the wake of last year’s global crises, the Barometer posed a series of questions about who should speak for a company in a challenging time.

“Multiple voices” is the first conclusion drawn, as CEOs, third parties, com-pany chairmen, government officials and technical experts all have a role to play when a company confronts a crisis. In the case of a product recall, the technical expert and the CEO are the preferred spokespeo-ple in Canada (35 per cent for both). In Canada, in a situation where the local community has been dam-aged, more people want to hear from the CEO (50 per cent) than they do a third-party representative (15 per cent), government official (12 per cent), or company technical expert (12 per cent).

Figure 7: CEOs rise in trust in authority, but “person like me” drops amid flight to credentialed spokespeople

If you heard information about a company from one of these people, how credible would that information be?

Online search engine

Online news sources

Company website

Print (newspapers/magazines)

Friends and family

Social media

Broadcast (radio/TV)

Online news sources

Print (newspapers/magazines)

Company website

Online search engine

Friends and family

Social media

Broadcast (radio/TV)

15%

7%

34%

19%

11%

11%

2%

19%

10%

23%

23%

15%

7%

4%

Informed publics ages 25 to 64 in Canada

First Source Second Source


10+ times11% Twice

8 %

3 times33%

4-5 times32%

3 to 5 times65%

6-9 times13%

Once 2%


38%45%

36%

48%

2010 201120112010 2011

China Brazil India Japan Canada France Italy Germany Russia U.S. U.K.

54%

73%

58%50%

36%

45%

63%

80%

+17

31%22%

38%45%

38%39% 37% 37% 37%

27%

0

10

20

30

40

50

60

70

80

90

100

-9-11

+19

+12

Trusters Neutral Distrusters


Surround Sound Needed in Time of Skepticism

A jumbled media landscape and the domino effect of corporate and government crises have increased skepticism in some Western nations.

While trust in media as an institu-tion inched up globally, it remained steady in Canada and declined significantly in the U.S. and the U.K. (figure 8). As in 2009, Canadians need to hear something between three and five times to believe it (figure 9). But in the U.S. and the U.K., approximately one-quarter say they need to hear something six or more times to believe it, twice as many as two years ago.

In Canada, search engines rank No. 1 as the place people go first for information about a company, followed by online news sources, and print (figure 10). Their second stop is both on the screen as well to tra-ditional print media, with 23 per cent saying they go to both newspapers or magazines and online news sources, which do include the Web versions of traditional media like newspapers and television. Thirty three per cent of informed publics in Canada say they trust magazines or business magazines a great deal, followed by 27 per cent who say the same for newspapers.

The data portray a savvy consumer who turns first to search engines to see what is available on the topic of inter-est, and who then seeks out traditional media to confirm or expand on what he or she has learned. Information ubiquity has changed the playbook for corporate communications, the data suggest, signaling to companies that they cannot simply be present with their messages, but rather must be omnipresent through an approach that encompasses mainstream, new, so-cial, and owned media.

Figure 10: Search engines “go-to” source; online news second

Where do you generally go first for news about a company? Then where do you go?

Figure 9: Repetition enhances credibility

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?

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

Figure 8: Developed markets more distrustful of media though trust in media in Canada remains steady with an upward trend

negative information63% will believe

positive informationwill believe

7%

after hearing it 1-2 times


negative informationwill believe


need to hear positive information 3-5 times to

beleive it

57%40%

positive informationwill believe


22%


When a company is distrusted When a company is trusted

High quality products or services

Transparent and honest business practices

Communicates frequently

Company I can trust

Good corporate citizen

Widely admired leadership

Financial returns

Prices fairly

Treats employees well

Innovator

78%

72%

81%

83%

63%

52%

68%

49%

50%

38%

Responses 8-9 only on 1-9 scale; 9=highest. Informed publics ages 25 to 64 in Canada

7

This year’s Barometer explored wheth-er trust can diminish the impact bad news has on a company. The answer is yes (figure 12). In Canada, 63 per cent will believe negative informa-tion about a company they do not trust after hearing it just once or twice. When a company is trusted, however, only 22 per cent will believe negative news about it after hearing the news once or twice. The same holds true for positive information, with far fewer believing good news about a distrusted company. These findings send a strong signal that corporate leaders would be well advised to cre-ate a trust foundation so that positive information has an echo chamber in which to resonate.

The most important corporate reputa-tion factors remain quality products, transparency, trustworthiness, and employee welfare, while a company’s financial performance sits at the bot-tom along with being an innovator (figure 11).

Trust Is a Protective Agent

Trust has tangible value. Companies that are distrusted and facing an onslaught of negative news will have a harder time changing opinion after the storm than they would if they were trusted at the outset.

Figure 11: Quality, transparency, trust, and employee welfare most important to corporate reputation

How important are these factors to corporate reputation?

Figure 12: Trust protects reputation

Question A Question B

Franc

eSp

ain

S. Ko

rea Brazil

72% 71% 71%67%

63% 62%58%

89% 89% 89%

China

Mexico

Indon

esia

Cana

daNe

therla

nds

Swed

enRu

ssia

Austr

aliaSin

gapo

reArg

entin

a

85% 85% 85%82% 81% 81% 80% 79% 78% 78%

82% 82%

62% 61%56%

70%74%

57%

66% 69%73%

67%63%

50%

Germ

any

91%

49%

India Italy

74% 73%

61% 63%

48%53%

44%

53%

42%

55%

0

10

20

30

40

50

60

70

80

90

100

U.K.

Irelan

d

U.S.

Polan

d

Japa

nUA

E

Informed publics ages 25 to 64 in 23 countries

Old Trust Framework New Trust Architecture

Control Information

Focus Solely on Profit

Prot

ect t

he B

rand Stand Alone

WHAT

HOW

WHERETra

nspa

renc

y

Engagement

Profit with Purpose


The 2011 Edelman Trust Barometer is the firm’s 11th annual trust and credibility survey. The survey was produced by research firm StrategyOne and consisted of 30-minute telephone interviews conducted from October 11-November 28, 2010, with the exception of France and Germany, fielded January 3-13, 2011. The 2011 Edelman Trust Barometer survey sampled 5,075 informed publics including 200 in Canada in two age groups (25-34 and 35-64) in 23 countries. 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 212.704.4530.

About EdelmanAbout the Edelman Trust Barometer Edelman is the world’s largest independent public relations firm, with wholly-owned offices in 53 cities including three in Canada and 3,700 employees world-wide. Edelman was named Advertising Age’s top-ranked PR firm of the decade and one of its “2010 A-List Agencies” and “2010 Best Places to Work;” European Excellence Awards’ “2010 Agency of the Year;” PRWeek’s “2009 Agency of the Year;” Holmes Report’s “Agency of the Decade” and “2009 Asia Pacific Consul-tancy of the Year;” and among Glassdoor’s top five “2011 Best Places to Work.” Edelman owns specialty firms Blue (advertising), StrategyOne (research), Ruth (integrated marketing), DJE Science (medical education/ publishing and science communications), and MATTER (sports, sponsorship, and entertainment). Visit www.edelman.ca for more information.

The Transformation of Trust

Trust in business may have stabilized globally, but it is different and condi-tional, premised on what a company does and how it communicates. In this transformation, there are new expec-tations for governments, corporations, and leaders—as well as a new archi-tecture for earning trust. It supplants the “fortress framework” in which cor-porations have customarily protected their brands, controlled information, and given short shrift to partners, aiming to maximize returns solely for shareholders. The new model, a “trust triangle,” is based on the expectation for companies to act collaboratively to benefit society not just shareholders (What); be transparent about their op-erations and profit engines (How); and engage using a range of spokespeople and all forms of media—mainstream, new, social, and owned (Where). Trust is no longer a commodity that is acquired, but rather a benefit that is bestowed. Business has the opportu-nity to build an enduring foundation of trust by asking its leaders to commit to a strategy that brings value to both investors and society.

Richard Edelman President and CEO, Edelman

© Edelman, 2011. All rights reserved.

On the cover, from top left: newspaper stall in Dublin, Ireland; Wikileaks founder Julian Assange at press conference; oil-soaked pelican in wake of BP Deepwater Horizon rig explosion; Flag at Parliament, Ottawa, Canada; unemployed worker holds sign at rally; Dilma Rousseff, Brazilian president, receives presidential sash from Lula da Silva; Hudson’s Bay Co. Red Mittens

Figure 13: Expectations high for business to invest in society

A. Agree: Should corporations create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value? B. Agree: Should government regulate corporations’ activities to ensure business behaves responsibly?

For more information contact: Heather Conway, CEO, Edelman Canada 416.979.3310 / [email protected]

2011 trust barometer canadian summary

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