the trust factor: getting things done on energy
Post on 17-Oct-2014
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We’re hearing from stakeholders that now, more than ever, energy leaders in the U.S. need to build — and in some cases, rebuild — trust in the industry. As our country becomes a major player in global energy markets, it is time for us to talk about trust — and to recognize the need not just for talk, but for concrete actions.TRANSCRIPT
energy industry
The Trust Factor: Getting Things Done on EnergyWashington, D.C.May 15, 2013
EDELMAN'S 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST
ONLINE SURVEY IN 26 COUNTRIES
• 31,000+ respondents
• 5 years in 20+ markets
• 8 years in 10+ markets
GENERAL POPULATION
• 1000 respondents per country surveyed
• Ages 18+
• 2 years of data
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
• 13 years of data
2
EDELMAN TRUST BAROMETER IN RETROSPECT
2013
RISING INFLUENCE OF NGOS2001
FALL OF THE CELEBRITY CEO2002
EARNED MEDIA MORE CREDIBLE THAN ADVERTISING2003
U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT2004
TRUST SHIFTS FROM “AUTHORITIES” TO PEERS2005
“A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON2006
BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA2007
YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS2008
BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST2009
TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS2010
RISE OF AUTHORITY FIGURES2011
THE FALL OF GOVERNMENT2012
CRISIS OF LEADERSHIP
TRUST ON THE RISE ACROSS INSTITUTIONS
TRUST IN INSTITUTIONS – U.S.
4
US
45% 51%
2012Total Trust
2013Total Trust
US
58%70%
2012Total Trust
2013Total Trust
NGOS
BUSINESS
MEDIA
GOVERNMENT2012
Total Trust2013
Total Trust
US
43%53%
US
50%62%
ENERGY
Series1
56% 59%
2012Total Trust
2013Total Trust
2012Total Trust
2013Total Trust
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution 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 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-64 in US
Q43-60. [TRACKING] 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) Informed Publics ages 25-64 (only industries tracked from 2012 to 2013 shown)
SLIGHT UPTICKS IN MANY SCORES, INCLUDING ENERGYTRUST IN INDUSTRIES – U.S.
5
Technology
Brewing and spirits
Food and beverage
Automotive
Consumer packaged goods
Telecommunications
Energy
Pharmaceuticals
Financial services
Banks
Media
80%
75%
72%
70%
70%
66%
59%
55%
52%
50%
50%
20132012
Banks
Financial services
Media
Energy
Pharmaceuticals
Telecommunications
Automotive
Brewing and spirits
Consumer packaged goods
Food and beverage
Technology
41%
46%
48%
56%
56%
64%
66%
71%
74%
74%
83%
Technology #1 in all markets surveyed
Energy Industry Renewables Natural Gas Utilities Oil
53%
65%
54% 53%
35%
Q61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors 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”. General Population in US
TRUST AMONG ENERGY SECTORS – RENEWABLES MOST TRUSTED; OIL LEAST TRUSTED
TRUST IN ENERGY INDUSTRY SECTORS – U.S.
6
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
PLACES CUSTOMERS AHEAD OF PROFITS
INTEGRITY
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
HAS ETHICAL BUSINESS PRACTICES
PURPOSE
OPERATIONS
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
RANKS ON A GLOBAL LIST OF TOP COMPANIES
PRODUCTS & SERVICES
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY
PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS
ENGAGEMENT
Edelman Trust Barometer research reveals 16 SPECIFIC ATTRIBUTES which build trust.
These can be grouped into FIVE PERFORMANCE CLUSTERS listed here in rank order of importance.
BUILDING TRUST – KEY PERFORMANCE CLUSTERS
7
THE EVOLUTION OF TRUST – WHAT MOVES THE NEEDLE
8
Edelman Trust Barometer’s 2008 Trust Drivers
Operations (76%)
Reputation as a place to work (81%)Financial performance (76%)
Respected CEO or leader (71%)
Integrity (58%)
Purpose (47%)
Operations (39%)
Products and Services (54%)
Engagement (59%)
Edelman Trust Barometer’s 2013 Trust Performance Clusters
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETAL ISSUES
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TO WORK FOR OR MOST ADMIRED
COMPANIES
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICH THE COMPANY OPERATES
COMMUNICATES FREQUENTLY & HONESTLY ON STATE OF ITS BUSINESS
TREATS EMPLOYEES WELL
HAS ETHICAL BUSINESS PRACTICES
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
PLACES CUSTOMERS AHEAD OF PROFITS
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
41%
49%
50%
55%
59%
63%
65%
68%
69%
69%
70%
72%
72%
76%
77%
77%
2013 ENERGY INDUSTRY IMPORTANCE – U.S.
TRUST BUILDING ATTRIBUTES – WHAT MATTERS FOR ENERGY
9
TRUST IN BUSINESS AND GOVERNMENT – A CRISIS OF LEADERSHIP
10Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- Trust A great Deal) General population across 26-country global total
Bu
sin
ess
Lea
der
s
26% 20% 19% 18%
Go
vern
men
t L
ead
ers
Solve Social or Societal Issues
15% 15% 14% 13%
Correct Issues Within Industries that are Experiencing Problems
Make Ethical and Moral Decisions
Tell You the Truth, Regardless of How Complex or Unpopular It Is
How much do you trust business and government leaders to do the following?
PYRAMID ofCOMMUNITY
PYRAMID ofAUTHORITY BOARD OF
DIRECTORS
ACADEMICS
TECHNICAL EXPERTS
ELITE MEDIA
CEO
ACTION CONSUMERS
SOCIAL ACTIVISTS
EMPLOYEES
GENERAL POPULATION
11
THE NEW DYNAMICS OF ENGAGEMENT
Many
Co-create
Flexible
Dialogue
Empowerment
Few
Dictate
Fixed
Monologue
Control
ToFrom
From License to OperateTo License to Lead