trust at the crossroads in australia - amazon s3 · • trust in australian institutions and...
TRANSCRIPT
The 2007 Edelman Australia Stakeholder Study:
Trust at the Crossroads in Australia
2
Our Starting Point
China Syndrome
Responsible Corporates?
Paradox of the Boom
3
Democratisation of Media
Election Year
The Accelerators
4
Relationship CapitalAccountability
Business Implications
Customers
Business
Investors
Employees
MediaTrade Bodies
Government
NGOs
Sphere of Cross Influence
5
Edelman Australia Stakeholder Study
Research Objectives-to examine and understand:
• Trust in Australian institutions and information sources
• The drivers of stakeholder opinions of corporations in Australia
• The drivers of responsible corporate behaviour / Corporate Social Responsibility in Australia
6
Edelman Australia’s Stakeholder Study
• Third Annual Quantitative Study for Australia
• Conducted by Harris Interactive
• 140 x 40 minute face to faceinterviews in Australia: Sydney and Melbourne
Six stakeholder groups:
• Government officials
• NGOs
• Institutional investors
• Media
• Senior business executives
• Up-scale consumers
The State of Trust
8
2521
1411
24
9
22
35
18
6
14
23
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NGOs
Government
Media
Business
Australia 07 Australia 06 Australia 05
Base: 140
Trust in Institutions (Australia)
How much do you trust each of the following institutions to do what is right?
(Percentage equals top three box score for each institution)
9
0
30
15
5
20
10
35
0
25
5
18
45
20
510
30 30
202526
10
0
10
23
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NGOs
Government
Media
Business
Govt Media Consumers NGO Snr Exec InvestorsBase: 140
Trust in Institutions by Stakeholder
(Australia)
How much do you trust each of the following institutions to do what is right?
(Percentage equals top three box score for each institution)
Sources and Channels
11
Trust in Media (Australia)
14 13 1523
39 10 12
4 10%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Media Overall
Foreign MSM*
Local MSM*
Web-Based M
edia
Bloggers
Australia 07 Australia 06
How much do you trust each of the following institutions to do what is right?
(Percentage equals top three box score for each institution)
*MSM= Mainstream MediaBase: 140
12
Media Trust (Australia)
What type of the following media do you turn to first for trustworthy information/news?
53 49
3429
812
610
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Newspaper Web-based
media
Radio Television
Australia 07 Australia 06
Base: 140
13
46
33
2219
17 1714 13 13 13
11 10 9 85
3
0%
10%
20%
30%
40%
50%
60%
Analyst Report
Association M
agazine
Word of M
outh
Corp's W
ebsite
Daily N
ewspaper
Trade Press
Regional Newspaper
Featured Speaker
Internet (
non corp)
Friends and peers
Attending C
orp Event
Regional TV
Radio
Local TV
Direct M
ail
Blogger Website
Australia 2007 Australia 2006
How trustworthy and believable do you feel certain communication vehicles are when passing information along about a corporation?
Trusted Communication Sources (Australia)
(Percentage equals top three box score for each channel)
Base: 140
14
“You have $100 to use to purchase information on a corporation. Allocate this on how you would spend it for the information. You must spend all $100.”
Researching Corporates (Australia)
56.5
19.4
13.7
6 4.4
0
10
20
30
40
50
60
News and info
from corporate
website
News and info
from a friend
who worked
there
News and info
from local
newspaper
News and info
on a business
blog site
News and info
from local TV
Base: 140
15
Trust in Spokespeople (Australia)
How trustworthy and believable do you feel each person is when passing information along about a corporation?
(Percentage equals top three box score for each spokesperson)
3934 32
21 20 17
2
36
48
35
1622 19
6
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AcademicCEO
Shareholder
Government
NGOMedia
Blogger
Australia 07 Australia 06
Base: 140
The Web & Blogs
17
Website Usage and Trust (Australia)
Which websites have you visited in the last year?
92 9185 82 80
76
37
28
97
3428 28
2429
48
24
3 20%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Int'l bro
wser website
s
Local corp
orate website
s
Local web-based news site
s
Local bro
wser website
s
Western prin
t/ electro
nic news sites
Local govt w
ebsites
Int'l corp
orate website
s
Business related blog site
s
Personal blog site
s
Visited last year Level of trust (8-10)
Base: 140
18
48
41 3833 32 30 30
2522
1815
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% o
f re
sp
on
de
nts
he
ard
of
China
MalaysiaKorea
India
Indonesia
Regional total
Taiwan
Japan
Hong Kong
Singapore
Australia
Base: 1050
Usage of “Blogging” (Regional)
Have you ever done any “blogging” yourself, that is, written and posted news or information on a website?
Drivers of Business Reputation in
Australia
20
1%6%Global vs local company
14%8%Innovation
12%
15%
16%
16%
20%
21%
25%
26%
28%
29%
Aus 07
0%
16%
16%
18%
11%
27%
22%
27%
5%
14%
Aus 06
Environmental protection
Ethical/Integrity
Corporate image/Reputation
Corporate citizenship/Socially responsible
Active promotion/Advertising
Employee development/Employee benefits
Management/Leadership
High profit/Profitable
Good after-sale service/Good service
Brand/Product quality
Stand Out Characteristics of a corporation in Australia
What is the first thing you notice that makes companies stand out from the rest?
Standout Characteristics (Australia)
Base: 140
21
“Should Australian businesses do more to reduce the impact of climate change than they are doing today? ”
Opinion About Climate Change
92
5 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Don't know / can't say
Base: 140
22
“Would you pay more for products or services from a company that has a public commitment to reducing the impact of climate change?”
Opinion About Climate Change
79
19
2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Don't know / can't say
Base: 140
Characteristics of ‘Good and
Responsible’ Corporations
24
37%
41%
75%
80%
73%
76%
92%
91%
Aus 06
51%
52%
77%
82%
84%
85%
92%
93%
Aus 07
Operate in an open an transparent fashion
Offers top quality products/services
Concerned about/active in doing something about community welfare
Makes products that really impress other people
Works hard at building relationship with core stakeholders
Communicates frequently and openly with employees
Stand behind its products/services when something goes wrong
Provides senior leadership that can be trusted
Characteristics of a Responsible Corporation in Australia
How important are the following characteristics for good and responsible corporations?
Good and Responsible (Australia)
Base: 140
NB: All 2007 totals have increased over 2006
Are Companies Measuring Up?
26
What degree do you believe different types of corporations live up to that characteristics?
(Percentage equals top three box score for each characteristic)
Responsible Corporation (Australia)
93
92
85
84
24
33
24
43
42
51
31
46
36
56
17
68
3
9
2
6
0% 20% 40% 60% 80% 100%
Provide senior leadership that can be trusted
Stand behind its products/services when
something goes wrong
Operates in an open and transparent fashion
Offer top quality products/services
Expectation Western Corp Australian Corp Japanese Corp Chinese Corp
Base: 140
27
What degree do you believe different types of corporations live up to that characteristics?
(Percentage equals top three box score for each characteristic)
82
77
52
51
25
34
44
22
29
41
32
27
25
43
72
1
11
12
217
0% 20% 40% 60% 80% 100%
Communicates frequently and openly with
employees
Works hard at building relationship with core
stakeholders
Makes products that really impress others
Concerned about/active in doing something
about community welfare
Expectation Western Corp Australian Corp Japanese Corp Chinese Corp
Responsible Corporation (Australia)
Base: 140
So, What Does This Mean?
29
The Edelman Reputation Pyramid
30
For Communication…
Pyramid of Authority vs. Sphere of Cross Influence
OLD MODEL
Mass
Audience
Experts
Customers
Business
Investors
Employees
MediaTrade Bodies
Government
NGOs
NEW MODEL
31
So, What Does This Mean?
� Understand stakeholder expectations
� Select the right mix of “media” and communication channels
� Engage in dialogue not monologue
32