trust and purpose study switzerland 2011

E V I D E N C E - B A S E D C O M M U N I C AT I O N S

Trust and Purpose

21 June 2011


Methodology• PSB completed 2,843

online interviews among the general population in the following countries from 5 May to 16 May, 2011. Data has been weighted to age and gender demographics for each country.*

• In Switzerland, PSB completed 200 interviews

Overall Sub Audiences Number of Interviews

Margin of Error

Europe

UK, France, Italy, Germany, Spain, Sweden, Norway, Netherlands, Switzerland, Belgium, Estonia*, Denmark, Greece, Portugal*

3,161 +/- 1.74

Switzerland

Overall 200 +/- 6.93

Male 108 +/- 9.43

Female 92 +/- 10.22

Under 35 100 +/- 9.8

35 and over 100 +/- 9.8

*Estonia is not weighted due to low base size

2


Where is the trust?

• While trust in business is not high, it is higher than among media, central government and religious

leaders; central government is the least trusted of all

• Trust in business varies enormously and depends on a combination of factors:

1. Provenance: people trust local companies the most, national a little less and international least of

all. Europeans favour doing businesses with companies from America, Japan and Australia over

BRICs

2. Core values: honesty and trustworthiness, good value and treatment of employees remain more

important reputation builders than community and environmental credentials

3. Sector: industries that have experienced recent crises (finance and energy), perhaps unsurprisingly,

are less trusted that computer and food and beverage companies

• In general, Europeans are cynical about the motivations of business and CEOs believing them to be more

motivated by personal gain and profits than a desire to help society

3


Where is the trust?

• People prefer to seek out information about companies when they want it – through Google searches or

traditional media – rather than receive incoming updates through Facebook or Twitter. Many feel

companies only communicate to sell them things.

• The priorities of consumers and employees have more in common than might be expected: although

employees do prioritise paying employees a fair wage over quality products and services

4


TOP OF MIND IN 2011

5


Protests in 2011

6


The economic crisis needs no translation

In the last two years, has there been a single event which has caused you to lose trust in companies? (Open-end response)

7


Bonuses, the crisis and golden parachutes have undercut trust in CEOs

In the last two years, has there been an single event which has caused you to lose trust in CEOs? (Open-end response)

8


Large corporations are seen to be motivated by money, profit and greed

When you think of large corporations, what is the first word that comes to mind? (Open-end response)

9


TRUST IN COMPANIES AND ORGANISATIONS

10


Provenance is a key factor in trust in business

Local companies &

businesses

National companies &

businesses

Nationally-owned

companies

Front line staff

My local

council

International organizations

My local

government

European Commission

EuropeanParliament

Foreign-owned

companies

International companies &

businessesCentral

governmentCorporate

CEOs

21

-9-12

1

-33

-11

0

-33 -32-36

-28

-51-48

41

23 2217

8

-8

-15

-23

-30-36 -36

-48-52

European Average Switzerland

• Local companies and businesses are the most trusted across Europe, and more so in Switzerland• In Switzerland, trust is strongest at the local and national level

Compared to two years ago, are you more or less trusting of..? (Ranked by Switzerland, Showing Net Trust [(Much more + Somewhat more trusting) – (Somewhat less + Much less trusting)] )

11


Switzerland European Average

Among Switzerland

Male Female Under 35 Over 35

Local companies and businesses 41 21 45 36 47 37

National companies and businesses 23 -9 32 14 5 30

Nationally-owned companies 22 -12 27 17 10 27

Front line staff 17 1 30 4 30 12

My local council 8 -22 12 4 9 8

International organizations (e.g. United Nations) -8 -11 12 -27 -11 -7

My local government -15 -33 -3 -29 -8 -19

European Commission -23 -33 -23 -22 -27 -21

European Parliament -30 -32 -23 -36 -35 -28

Foreign-owned companies -36 -36 -24 -47 -34 -36

International companies and businesses -36 -28 -26 -43 -23 -40

Central government -48 -51 -50 -45 -29 -55

Corporate CEOs -52 -48 -49 -54 -42 -55

• In Switzerland, men and those over 35 tend to be more trusting of national companies & businesses

Compared to two years ago, are you more or less trusting of..? (Ranked by Switzerland, Showing Net Trust [(Much more + Somewhat more trusting) – (Somewhat less + Much less trusting)] )

Overall, trust is very low towards businesses and central gov’t

12


• Trust is far stronger for national companies over foreign-owned ones

Trust is strongest on the home front

Which of the following is closer to your opinion?

3426

6674

I would be less likely to trust companies that are foreign-owned

I would be more likely to trust companies that are foreign-owned

European Average

Switzerland

5571

26

18

1911

I am trusting of foreign-owned companies

The origin of the company does not matter to me; I trust them all equally

I am trusting of nationally owned companies

59 64

29 25

12 11I am less likely to trust com-panies that are from Europe

The origin of a company does not matter to me; I trust them all equally

I am more likely to trust companies that are from Europe

13


Australia, Japan and the US are the most trusted countries

8 (12)

14 (15)

19 (14)

19 (18)

22 (21)

39 (48)

45 (55)

57 (56)

16 (22)

32 (30)

19 (24)

10 (20)

21 (26)

31 (25)

24 (22)

30 (28)

76 (64)

53 (55)

62 (61)

72 (61)

56 (54)

30 (27)

31 (24)

13 (16)

Trusted Unsure Not trusted

• Australian companies rank the highest• Trust for the BRIC countries is very low

Thinking about foreign-owned companies, how much do you trust companies from each of the following countries? (Showing among Switzerland, European average shown in parenthesis)

14


And the US, Japan and Australia have the most trustworthy foreign-owned companies

27% (31%)

23%(31%)30%(24%)

10%(6%)

7%(3%)

2%(2%) 2%(2%) 1%(1%)

United StatesJapanAustraliaChinaSouth KoreaBrazilIndiaRussia

• China, South Korea, Brazil, India and Russia fall well behind

Thinking about foreign-owned companies, which country do you think has companies which are the most trustworthy? (Showing Switzerland, European average in parenthesis)

15


12 14 9 12 817 14 14 7 10 10 14 7

146 8

59 5855 54

39

47 55 4948

52 52 4649

44

3847

71 7264 66

47

6469

6355

62 62 60 56 58

44

55

Many industrial groups are more trusted than traditional thought leaders• In Switzerland, computer hardware & software manufacturers, supermarkets and NGOs are most trusted• In Switzerland, NGOs are far more trusted than in the rest of Europe

For each of the following, please indicate how trustworthy you consider each group or industry to be...? (Showing Very/Somewhat Trustworthy on a four-point scale, ranked by Switzerland combined)

16

6 8 4 4 3 2 3 4 7 7 4 3 2 1

3540

3443

2136

25 30 3120 20 23

11 10

4148

3847

24

38

2834

38

27 24 26

13 11

Very trustworthySomewhat trustworthy

Computer Hardware &

SoftwareSupermarkets NGOs Online Services Automotive Food Beverage

ManufacturersEntertainment and Television

Energy Providers Media Government Financial Services Social Media Religious Leaders Politicians

Eur. AvgSwitzerland


Having products and services that are good value is important across Europe

Treats employees fairly

Products & services are good value

Environmentally conscious

High standards in products &

services

Honest &

trustworthy

Ethical executive leadership

Useful products &

services

Innovative

High quality products &

services

Strong corporate purpose

Socially responsible

Inexpensive products & services

Cares about the comm

unity

Good grow

th in revenues & profits

Hires &

promotes m

inorities & w

omen

History of charitable contributions

28

39

1923

40

1318

9

28

10

18 1611

5 5 3

46 44

2824 22

19 18 16 15 15 139 7 5 4 2


• In Switzerland, treating employees fairly is most important, more so than in the rest of Europe

Thinking about what is important to you about companies, which of the following would you say important when considering which companies to purchase products or services from? (Respondents allowed to pick up to three, ranked by Switzerland)

17



Among SwitzerlandMale Female Under 35 Over 35

Treats employees fairly 46 28 47 46 32 52

Products & services are good value 44 39 33 54 34 47

Environmentally conscious 28 19 33 23 24 30

High standards in products & services 24 23 31 18 22 25

Honest & trustworthy 22 40 17 27 30 19

Ethical executive leadership 19 13 18 20 25 17

Useful products & services 18 18 15 22 14 20

Innovative 16 9 24 10 21 15

High quality products & services 15 28 17 13 22 12

Strong corporate purpose 15 10 17 13 3 19

Socially responsible 13 18 11 15 17 12

Inexpensive products & services 9 16 11 8 13 8

Cares about the community 7 11 6 9 10 7

Good growth in revenues & profits 5 5 3 7 1 6

Hires & promotes minorities & women 4 5 4 4 6 3

History of charitable contributions 2 3 2 2 4 2Thinking about what is important to you about companies, which of the following would you say important when considering which companies to purchase products or services from? (Respondents allowed to pick up to three, ranked by Switzerland)

18

Having products and services that are good value is important across Europe


CEOS

19


Personal profit

Profits for the company

Personal recognition

A desire to help society through de-livering qual-ity products or services

A desire to help society through de-livering qual-ity products or services at

a fair price

Having a strong cor-porate pur-

pose beyond profit making

A desire to help society through giv-ing back via

CSR pro-grams and

philanthropy

48

21

14

3 37

2

49

24

105 5 4

0


CEOs are seen to be motivated by personal profit and are also seen as less trustworthy than employees

32% (24%)

49% (60%)

20% (16%)

More Trustworthy

Less Trustworthy

Don't know

• Nearly half felt that CEOs were motivated by personal profit

What do you think most top executives are motivated by? (Ranked by Switzerland)Do you think the average CEO is more or less trustworthy than the average employee? (Showing Switzerland, European average in parenthesis)

20


EMPLOYEE AND CONSUMER VIEWPOINT

21


65 62

72

53 5462

52 5348

35

7268

5750

65

4942

4844

34

7873 72

6659 56

51

41 40 40

8071

6153

63

3641

5041

29

Consumer EmployeeConsumer Employee

Thinking as a consumer, how important are each of the following actions that companies could take to help increase your trust in them? / Thinking as an employee of a company, how important are each of the following in helping companies to increase your trust in them? (Showing ‘Very important’ on a four-point scale, Showing top ten ranked by Switzerland Consumer)

Eur. Avg. Switzerland

The desires of consumers and employees are not as disparate as might be expected• Employee issues (pay, treatment) were most important for both consumers and employees in Switzerland• Unsurprisingly, being more open about mistakes and customer service were more important for consumers

than employees

22

Paying employees a fair

wage

Treating its employees well (e.g. providing

them with benefits like a

pension, shares, etc.)

Delivering safe, reliable

products and services

Being more open about

their mistakes

Investing in their staff

Offering good, immediate customer

service

Doing more to help their customers

Delivering great value products

and services

Investing in our country

Communicate their corporate

purpose beyond profit making


The desires of consumers and employees are not as disparate as might be expected

Audience



Paying employees a fair wageConsumer 78 65 79 78 63 84

Employee 80 72 79 81 66 85

Treating its employees well (e.g. providing them with benefits like a pension shares, etc.)

Consumer 73 62 73 74 53 81

Employee 71 68 68 73 62 74

Delivering safe, reliable products and services

Consumer 72 72 81 64 65 75

Employee 61 57 63 59 42 68

Being more open about their mistakes

Consumer 66 53 62 70 49 72

Employee 53 50 42 63 50 54

Investing in their staffConsumer 59 54 51 66 42 65

Employee 63 65 59 67 51 68Thinking as a consumer, how important are each of the following actions that companies could take to help increase your trust in them? / Thinking as an employee of a company, how important are each of the following in helping companies to increase your trust in them? (Showing ‘Very important’ on a four-point scale) (Showing top ten ranked by Switzerland Consumer)

23


The desires of consumers and employees are not as disparate as might be expected

24

Audience



Offering good, immediate customer service

Consumer 56 62 47 64 53 57

Employee 36 49 29 42 32 38

Doing more to help their customers

Consumer 51 52 44 58 42 54

Employee 41 42 37 45 21 48

Delivering great value products and services

Consumer 41 53 41 42 27 47

Employee 50 48 53 47 31 58

Investing in our countryConsumer 40 48 31 49 40 40

Employee 41 44 39 42 25 46

Communicate their corporate purpose beyond profit making

Consumer 40 35 45 35 26 45

Employee 29 34 27 31 32 28Thinking as a consumer, how important are each of the following actions that companies could take to help increase your trust in them? / Thinking as an employee of a company, how important are each of the following in helping companies to increase your trust in them? (Showing ‘Very important’ on a four-point scale) (Showing top ten ranked by Switzerland Consumer)


Balancing making money with acting responsibly is most commonly associated with ‘Corporate Purpose’

Balancing making money with acting responsibly

A company's guiding prin-ciples for making decisions

beyond profit making

Making money and driving profits

Producing goods and services for their cus-

tomers

The organisation's approach to doing business

31

1822

1711

62

1511

7 6


• In Switzerland, over three-fifths said that balancing making money with acting responsibly was what most closely defined ‘Corporate Purpose’

Which of the following do you think most closely defines ‘Corporate Purpose’? (Ranked by Switzerland)

25


Responsibility and fairness are important• A strong corporate purpose is important, much more so in Switzerland• Consumers say they would rather pay more for products and services that are produced responsibly and

fairly

Which of the following is closer to your view?

European Average

Switzerland

6884

3216

A company's corporate purpose is not important to me

A company that has a strong corporate purpose is important to me

European Average

Switzerland

79 86

21 14

I would rather pay less for products and services and not know about how they are delivered and produced

I would rather pay more for products and services that are delivered and produced responsibly and fairly

26


While a company’s highest priority should be its consumers, many feel profit comes first• The majority feel customers and employees should come first, but that corporations are more focused on

their bottom-line

European Average

Switzerland

16 16

84 84

A company's highest priority should be adhering to thinking about their customers and employees and making sure they conduct their business in an ethical and responsible way

A company's highest priority should making a profit for their shareholders and in-vestors and driving the coun-try's economy

European Average

Switzerland

2720

7380

Corporations are generally focused on providing value to shareholders. Customers are important, but compan-ies put profits first

Corporations are generally focused on providing value to consumers.Profits are important, but companies put their customers first


27


European Average

Switzer-land

3948

6152 Generally, corpora-

tions and their spokespeople are dishonest, and most communications from companies are lies

Generally, corpora-tions and their spokespeople are honest, and most communications from companies are the truth

56 55

44 45I'm generally re-laxed about the data that compan-ies store on me and my family, as they typically only use it for market-ing and customer feedback

I'm generally sus-picious about the data that compan-ies store on me and my family, as I think it can often be used in a way that infringes on my privacy

7280

2820

Companies are more trustworthy today than when I was a kid

Companies were more trustworthy when I was a kid

Overall, companies are seen as dishonest• Many feel that companies have become more dishonest over time and that they cannot be trusted with

personal information


28


INFORMATION

29


Many search for information on companies, but traditional sources are still important

From new

spapers/journalsDirectly from

the company's w

ebsite

From search engines (e.g. Google)

Television news

From investigative television journalism

From third-party review

s/rating websites

From the radio

From friends, relatives, or colleagues

Facebook

From third-party w

atchdog websites

From the com

pany's staff/employees

From online blogs

Other

Twitter

MySpace

16

11

22

13

86

4 53 4

2 2 31 0

25

1714

8 8 75 4 4 3 2 2 1 0 0


• Newspapers and journals are the most common source of information on companies in Switzerland, more so than in the rest of Europe

Where do you tend to find out information about different companies? (Respondents allowed to select one, ranked by Switzerland)

30


Newspapers, journals and investigative television journalism are most trusted in Switzerland

New

spapers/journals

Investigati

ve television journalism

Friends, relatives, or colleagues

From the com

pany's staff/em

ployees

Company's w

ebsites

Television news

Radio

Third-party reviews/rati

ng websites

Third-party watchdog w

ebsites

Search engines (e.g. Google)

Twitt

er

Facebook

Online blogs

MySpace

15

2326

22

15 1512

15 1416

46 7

4

24 2321 21 21

1917

14 14

96 5 4 4


• Newspapers/journals are more trusted in Switzerland than the rest of Europe

How trusting would you be if a company was to use the following channels to engage with you? (Showing % ‘Very trusting’ on four-point scale of ‘Very trusting’ to ‘Not at all trusting’)

31


And being informed is important…• The majority of respondents feel they receive the right amount of information

European Average

Switzerland

31 28

69 72

I think I hear the right amount of information on companies and organ-izations

I feel overwhelmed by the amount of informa-tion I receive from com-panies and organizations

European Average

Switzerland

28 31

72 69I like to be constantly up to date with the news

I feel overwhelmed by 24 hour news


32


4156

26 2617

3011

20 13 15 8 13

4129

42 43

37

37

4644

44 39

3135

82 85

68 69

54

6757

6457 54

3948

AppliesApplies somewhat

But feel that companies only contact people to sell them something…• In Switzerland, there is a strong perception that too much is heard from CEOs and not enough from staff on

the front-lines

Thinking about how companies communicate with you. How much would you say the following applies? (Showing ‘Applies a lot / Applies somewhat’ on a four-point scale, ranked by Switzerland combined score)

33

They only get in touch to try and

sell me their products and services

They bombard me with marketing and literature that’s not

relevant

I hear too much from the CEO and not

enough from the staff on the front-line

They send me information that

tells me about their values and identity

as well as their products

They send personalized

letters or emails

They keep in touch with me in a

personal way

Eur. AvgSwitzerland


23 2415

23 21 26

7 5

59 60

49

54 59 49

3019

82 84

64

77 8075

37

24

FavSomewhat favourable

Consumers want to hear about a company’s values and identity

• Four-fifths of respondents were favourable to hearing about companies’ values and identities and in Switzerland.• They were most favourable to hearing about it through personalised letters and emails and from the front-line staff

Thinking about the future, how favourable would you be to the following ways in which companies could communicate with you?(Showing ‘Very favourable / Somewhat favourable’ on a four-point scale ranked by Switzerland combined score)

34

Eur. AvgSwitzerland

Hearing about the companies' values and identity

More personalised letters and emails

Hearing from the teams on the front-line not the board

Hearing from the board on Twitter or through blogs


THANK YOU!

35

trust and purpose study switzerland 2011

Business

feel companies

net trust

business local companies

switzerland combined16

following countries

trusted of alltrust

important reputation

foreignowned ones