Tokyo 2007 Edelman Japan Trust Barometer

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    (ADD LOGO) Trust Barometer 2006

    February 2007

    The Third Annual Japan Opinion Leaders Study

    2007, Edelman Japan: no copying or distribution without express prior written permission.

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    2007, Edelman Japan: no copying or distribution without express prior written permission.

    About the Study

    The Edelman Trust Barometer tracks the attitudes of opinion leadersaround the world which institutions, companies, and sources ofinformation they trust, as well as what drives that trust.

    The eighth annual survey (third annual in Japan) was conductedthrough 30-minute telephone interviews with 3,100 opinion leaders in18 countries (Japan, South Korea, China, US, Canada, UK,Germany, France, Italy, Spain, the Netherlands, Sweden, Poland,Russia, Ireland, India, Mexico, and Brazil).

    150 Japanese stakeholder interviews were conducted from Octoberto November 2006 by StrategyOne (a research consultancy ownedby Daniel J Edelman, Inc.).

    Opinion leaders are defined as being between 35-64 years of age,university graduates with annual household incomes within the topquartile of the population, and reporting a significant interest andengagement in the media, economic affairs, and policy issues.

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    31% 31%

    43% 42%41% 41%

    66%

    40%

    53%

    41%

    52%55%

    0%

    10%

    20%

    30%40%

    50%

    60%

    70%

    Government

    in general

    Media in

    general

    Business in

    general

    NGOs in

    general

    2005

    2006

    2007

    Trust in Institutions How much do you trust each of the following institutions

    to do what is right?

    Increased trust in government and NGOs in Japan

    Japanese respondents: n = 150

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    Trust in Industry Sectors How much do you trust businesses in each of the

    following industry sectors to do what is right?

    Japanese respondents: n = 150

    37%

    39%

    42%

    58%

    60%

    65%

    68%

    72%

    73%

    74%

    75%

    76%

    78%

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

    Media

    Insurance

    Entertainment

    Banks

    Health care

    Professional services

    (e.g. lawyers, consultants)

    Consumer packaged goods

    manufacturers

    Telecommunications

    Biotech/life sciences

    Energy

    Retail

    Automotive

    Technology

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    Trust in Japanese Companies How much do you trust global companies headquartered

    in Japan to do what is right?

    Respondent Countries

    Decreased trust from the West

    Increased trust from Asia

    16%

    30% 30%

    91% 91%85%

    80%79%

    24%

    40%

    46%

    84%82%

    78%

    65%67%

    0%

    20%

    40%

    60%

    80%

    100%

    China India South

    Korea

    Japan Germany UK US France

    20062007

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    Trust in Foreign Companies How much do you trust global companies headquartered

    in the following countries to do what is right?(Japanese respondents only)

    21%24% 25%26%

    35%40%

    46%49%50%

    63% 65%67%68%

    70%74% 78%

    82% 84%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    RussiaCh

    inaM

    exico

    BrazilPo

    landIndia

    SouthKo

    reaSp

    ainIre

    landItaly USFr

    ance

    Netherlands

    Canada

    Sweden UK

    Germ

    anyJa

    pan

    Headquarter Country

    Japanese respondents: n=150

    Japanese have the highest trust in their own companies;

    the Netherlands and Sweden are the only other countries

    that have over 80% trust in their own companies

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    Importance of Trust Do you believe that global companies have more of

    a positive or more of a negative impact on society?

    2% 3% 4% 5%12%

    11% 10%

    17%14% 10%

    32%25%

    72% 76%

    54% 53%

    0%

    20%

    40%

    60%

    80%

    100%

    Japan China EU US

    More positive

    More negative

    Neither

    Don't know

    Japanese respondents: n = 150

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    Basis for Trust Which would make you trust a global company more?

    2% 2% 3% 5%8% 7% 9% 9%

    31% 25%

    62% 56%

    59%66%

    26% 30%

    0%

    20%

    40%

    60%

    80%

    100%

    Japan China EU US

    A strong global brand

    A strong local presence

    Neither

    Dont know

    Japanese respondents: n = 150

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    Role of Global Businesses Do you believe global businesses play a role that no other institutions

    can in addressing major social and environmental challenges?

    Responses are for strongly agree and somewhat agree

    Japanese respondents: n = 150

    86%

    72% 70%

    57%

    0%

    20%

    40%

    60%

    80%

    100%

    Japan US China EU

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    Using & Sharing Information

    Responses are for strongly agree and somewhat agree

    53%

    70%

    70%

    74%

    77%

    84%

    92%

    0% 20% 40% 60% 80% 100%

    I generally distrust information that

    companies share about themselves

    It's hard to evaluate companies because

    there's so much conflicting information

    I frequently share my opinions aboutcompanies with others

    I only trust a company's information

    once I verify it for myself

    I look to people I trust to help form my

    opinions about companies

    Companies need to do a better job of

    listening to people like me

    I generally believe that companies are held

    accountable by public opinion

    Japanese respondents: n = 150

    Japan leads among all

    countries polled

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    Trust in Media Sources How credible do you feel each of the following

    sources is for information about a company?

    Answers are for extremely credible and very credibleJapanese respondents: n = 150

    16%

    15%

    14%

    20%

    28%

    37%

    47%

    55%

    39%

    35%

    37%

    12%

    13%

    18%

    23%

    40%

    41%

    49%

    50%

    52%

    55%

    62%

    0% 10% 20% 30% 40% 50% 60% 70%

    Weblogs or blogs

    Entertainment, such as movies andtelevision programs

    Corporate or product advertising

    A company's own website

    Communications issued by companies (press

    releases, annual reports, and newsletters

    Conversations with your friends and peers

    Stock or industry analyst reports

    Articles in business magazines

    News coverage on the radio

    Television news coverage

    Articles in newspapers

    JapanUS

    Rank order by Japan

    Japan leads among the

    US, EU, and China

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    Trust in Spokespeople When forming an opinion about a company, if you heard

    information about the company from the below spokespeople,how credible would the information be?

    Answers are for extremely credible and very credibleJapanese respondents: n = 150

    10%16%

    19%

    22%

    22%

    25%

    37%

    38%

    41%

    44%

    50%

    56%72%

    0% 10% 20% 30% 40% 50% 60% 70% 80%

    BloggerGovernment official or regulator

    Public relations executive

    Financial/Industry analyst

    Regular employee of company

    Entertainer/Athlete

    CEO of a company

    Academic

    Lawyer

    Non-profit organization or NGO representative

    A person like yourself

    Doctor or healthcare specialistThe CEO or leader of your company or employer

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    Inside Out Communications Which are the three most important actions for a global

    company seeking to build trust among its employees.

    Japanese respondents: n = 150

    4%

    16%

    16%

    20%

    25%

    39%

    39%

    55%

    61%

    0% 10% 20% 30% 40% 50% 60% 70%

    None of these

    Providing information about career advancement

    Communicating openly about layoffs

    Having CEO be accessible to employees

    Encouraging dialogue across different parts of the

    business

    Communicating the company's financial performance

    Communicating the company's business strategy

    Listening to employees

    Demonstrating its corporate social responsibility

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    2007, Edelman Japan: no copying or distribution without express prior written permission.

    2%

    2%

    3%

    3%

    4%

    8%

    14%

    16%

    48%

    0% 10% 20% 30% 40% 50% 60%

    Dialogue with all stakeholders

    A familiar or well-known corporate brand

    A visible CEO

    Good employee and labor relations

    Strong financial performance

    Attentiveness to customer needs

    Fair pricing for products and services

    Socially responsible activities

    Quality products and services

    Building Blocks for Trust Which one of the following factors is most important

    to building your trust in a global company?

    Japanese respondents: n = 150

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    Trust Influences Actions Have you ever taken any of the below actions in relation to a company you do not trust?

    0%

    2%

    2%

    2%

    4%

    5%6%

    10%

    15%

    54%

    0% 10% 20% 30% 40% 50% 60%

    Pay a premium for their products or services

    None of these

    Forgive them for inferior quality or service

    Work for them

    Forgive them for occasional missteps

    Don't knowDo business with them

    Recommend them to others

    Invest in them or buy their stock

    Purchase their products or services

    Trust in companies

    directly affects

    purchase behaviors

    in Japan

    If you consider a company to be socially responsible, which of the following are youmost inclined to do?

    13%

    20%

    28%

    29%

    47%

    52%

    55%

    63%

    65%

    81%

    0% 20% 40% 60% 80% 100%

    Actively demonstrated or protested against them

    Shared your opinion and experiences on the Web

    Investigated more about their activities

    Written a letter or e-mail complaining to the media, apolitician, or an official third-party

    Ignored their attempts to communicate with you

    Refused to work for them

    Supported legislation controlling or limiting their activities

    Refused to invest in them

    Criticized them to people you know

    Refused to buy their products or use their services

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    Drivers Destroying Trust Which three of the following situations would most

    undermine your trust in a company?

    Ranked by total

    0%1%1%0%Other

    1%0%0%1%None of these

    13%15%24%13%Investigation by a regulatory agency

    9%32%35%23%Excessively high CEO compensation

    20%21%15%23%Large-scale layoffs

    46%36%53%41%Accounting scandal

    65%62%56%55%Unethical labor practices

    63%46%55%68%Defective products/product liability

    47%58%37%68%Environmental crisis caused by a company

    CHINAEUUSJAPAN

    The environment is a main concern; so are defective products.

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    Important Issues to Address Which are the three most important issues that

    global companies you trust should address?

    Ranked by total

    6%3%6%0%None of these

    7%12%24%9%Immigration

    18%8%15%12%Pandemic flu, e.g. bird flu

    19%20%18%15%The AIDS epidemic

    32%24%23%20%Natural disasters, such as hurricanes or earthquakes

    45%61%57%48%Human rights

    50%33%40%50%Security

    53%60%40%57%Poverty alleviation

    34%56%42%79%Global warming

    CHINAEUUSJAPAN

    Global warming is the main concern among Japanese opinion leaders

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    Japan leads all polled countries in:

    Believing that global businesses play a role that no other institutions can inaddressing major social and environmental challenges

    Believing that companies are held accountable by public opinionChoosing corporate social responsibility as the most important action forglobal companies seeking to build trust among its employees

    Being inclined to purchase products or services of companies deemedsocially responsible

    Japan leads among world regions (the US, EU, and China) in:

    Believing that their own companys CEO or leader is a credible source ofinformation about the company, and feeling that CEOs in general are credible

    Believing that articles in newspapers are credible sources of informationabout a company

    Responding that the most important factor in building trust for a globalcompany is quality products and services

    Japan Leads The World

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    Communications conclusions

    The rise of Corporate Social Responsibility really matters in Japan;global companies are seen to have a unique responsibility for CSRand CSR is an important ingredient of corporate trust (especiallyamong company employees).

    Compared to other countries, Japanese opinion-leaders tend to bemore trusting of corporate information and information communicatedthrough traditional sources of authority.

    However, Japanese believe that their opinions are important toholding corporations responsible and more trust information from aperson like yourself than from CEO of a company.

    Therefore, companies need to find the sweet spot between the oldpower of top-down vertical corporate monologue and the newcredibility of peer-to-peer horizontal dialogue with stakeholders (likeemployees and customers and NGOs).

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    Communications conclusions

    The perceived quality of a companys products and services is the toptrust-building factor in Japan, so communicating that reality is key.

    Then standing behind those quality products and services especiallywhen something goes wrong is essential because Japanese aremore willing to reward companies they trust and punish companiesthat they do not trust.

    Defective products and environmental crises are the two biggest trustdestroyers in a country where quality and concern for the environmentreign supreme (so the importance of having a modern crisiscommunications regime in place is abundantly clear).

    This years data shows the rise of environmental issues; CSR is seenincreasingly through the prism of the environment and thus companiesmust be able to articulate alignment of their business practice withenvironmental imperatives (to be seen as sincere on CSR).

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    (ADD LOGO) Trust Barometer 2006