2. TRUST
• Trust is leading indicator of reputation
• Trust in society is correlated with economic
growth and prosperity
(study by Paul Zak & Stephen Knack)
3. BUSINESS REPUTATION IS BUILT
ON TRUST
• Trust within the community is
essential to a business’s
operations.
• Long term business success is
built on trust, whether within
the local, the national, or the
global community.
4. 2013 TRUST BAROMETER:
EMERGING MARKETS SUPPLEMENT
4
GLOBAL
ONLINE SURVEY
IN NINE COUNTRIES
• 5,400 respondents
• Nine countries:
• Developed:
U.S., U.K., Germany, France
• Emerging:
China, India, Indonesia, Mexi
co, South Africa
INFORMED
PUBLICS
• 600 respondents in each country
• 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 dataIndicates Global Data
Indicates Indonesia Data
5. Indonesia 74
Mexico 82
China 74
India 81
US 62
UK 56
Germany 48
France 44
DISTRUSTERSTRUSTERSNEUTRALTRUST IN BUSINESS IN MAJORITY OF EMERGING MARKETS TRENDING UPWARD
5
Indonesia 77
Mexico 74
China 79
India 81
US 64
UK 56
Germany 52
France 55
South Africa 69
+3
-8
+5
No Change
+2
No Change
+4
+11
New
2013
Field date: Q4 2012
2013 Emerging
Markets Supplement
Field date: Q3 2013
8 MARKET AVERAGE: 56 8 MARKET AVERAGE: 65 9 MARKET AVERAGE: 67
2012
Field date: Q4 2011
Indonesia 78
Mexico 77
China 71
India 69
US 50
UK 38
Germany 34
France 28
HOW MUCH DO YOU TRUST BUSINESS IN GENERAL TO DO WHAT IS RIGHT
Q7. [Business in General] 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 4 Box, Trust) Informed Publics Ages 25-64
7. 2013
33 point gap between
developed and
emerging market trust
Brazil
China
France
Germany
India
Russia
UK
USA
20%
30%
40%
50%
60%
70%
80%
90%
2009 2010 2011 2012 2013
EMERGING MARKET HEADQUARTERED COMPANIES HAVE DECLINING TRUST
SINCE 2011
GLOBAL TRUST ACCORDING TO WHERE MNCs ARE HEADQUARTERED
DEVELOPED MARKET
AVERAGE
EMERGING MARKET
AVERAGE
Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to
do what is right. 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 in 20-country global total
# 2012 data is not available – a simple average has been used to show a trend
8. The 2013 Emerging Markets Supplement to the Edelman Trust Barometer
explores the following factors that may affect developed markets’ trust in
emerging market-based businesses, based on our hypotheses:
• Tangible actions dominate: Perceived poor
performance against concrete trust-building actions
(e.g., supply chain management, IP protection, etc.)
erodes trust.
• Low brand familiarity: Respondents in developed markets are not familiar
with emerging market-based multinational corporations (MNCs).
• Sensitivity about the state: Developed markets perceive
emerging market-based businesses to have close ties with
their national governments, whom they do not trust.
9. THE STATE OF TRUST IN EMERGING
MARKETS AND INDONESIA
11. 50%
11
DEVELOPED MARKET-BASED MNCs HAVE 33-POINT TRUST LEAD OVER MNCs
HEADQUARTERED IN EMERGING MARKETS
MOST TRUSTED NATIONAL IDENTITY FOR COMPANIES – GLOBAL VIEW
Developed Markets 76% Emerging Markets 43%
Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies
headquartered in the following countries to do what is right. 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 in 9-country global total
80%
78%
72% 72%
47% 45% 44% 43% 42% 40% 39%
Germany UK US France Brazil South
Africa
Russia India China Mexico Indonesia
12. TRUST DIVIDEND
• European and American based businesses gain from a
trust dividend in emerging markets, including in
Indonesia.
A 33-POINT TRUST LEAD OVER MNCs
HEADQUARTERED IN EMERGING MARKETS
12
Image: wikipedia
13. 50%
13
INDONESIAN HEADQUARTERED COMPANIES BENEFIT FROM A 32 POINT TRUST BONUS
AMONG DOMESTIC POPULATION
MOST TRUSTED NATIONAL IDENTITY FOR COMPANIES – INDONESIAN VIEW
Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies
headquartered in the following countries to do what is right. 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 in 9-country global total
91% 89%
85% 84%
71%
65%
61%
55%
51% 50%
45%
Germany UK France US Indonesia Russia China Brazil Mexico India South
Africa
Developed Markets 87% Emerging Markets 57%
14. 22%
46%
71%
23%
50%
64%
31%
55%
61%
24%
50%
83%
28%
48%
83%
50%
TRUST GAP: EMERGING MARKETS TRUST THEIR LOCALLY-BASED MNCs SIGNIFICANTLY
MORE THAN THE REST OF THE WORLD TRUSTS THOSE COMPANIES
TRUST RELATED TO COMPANIES’ NATIONAL IDENTITY
14
Indonesia-Based MNCs South Africa-Based
MNCs
India-Based MNCsChina-Based
MNCs
Mexico-Based MNCs
EMERGING TRUST IN
COUNTRY-BASED MNCs
NATIONAL TRUST IN
LOCALLY-BASED MNCs
DEVELOPED TRUST IN
COUNTRY-BASED MNCs
Q8. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies
headquartered in the following countries to do what is right. 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
15. • Indonesian companies are
mid-ranking in trust among
emerging market companies
operating in the west.
• Indian and Brazilian
companies are slightly more
trusted in the west than
other emerging market
companies.
15
TRUST GAP
16. 16
• Why are Indonesian
companies struggling to gain
trust abroad?
• One of the issues is likely to
be low brand familiarity –
can you name an Indonesian
MNC operating abroad?
TRUST GAP
18. 18
PROMPTED AWARENESS OF BRIC MARKET BRANDS BY MARKET
BRIC-BASED MNCs HAVE TO RAISE OVERSEAS AWARENESS; CONSUMER-FACING BRANDS
MAKING PROGRESS
50%
26%
9%
38%
11%
Petrobras Vale
72%
63%
54%
45%
70% 68%
63%
26%
89%
79%
87%
81%
Lenovo Air China Bank of China Haier
25%
36%
54%
23%
99% 98%
Tata Infosys
20%
30%
65%
23%
Gazprom Lukoil
50%
US EUROPE OWN MARKET
Q15. Below is a list of companies. Which are you aware of? SELECT ANY THAT APPLY. Informed Publics Ages 25-64 in US, Europe (France, Germany, UK) and own market
19. 14% 12% 10% 10%
5% 4% 3% 2%
0%
20%
40%
60%
80%
India* Russia China* Brazil
BRIC COMPANY CEOs HAVE LOW VISIBILITY GLOBALLY, ESPECIALLY IN
DEVELOPED MARKETS
19
UNPROMPTED AWARENESS OF BRIC MARKET COMPANY CEOs or CHAIRPERSONS BY MARKET
Top CEOs† Emerging Developed Emerging Developed Emerging Developed Emerging Developed
1 Ratan Tata
Tata
Ratan Tata
Tata
Alexey Miller
Gazprom
Alexey Miller
Gazprom
Yang Yuanqing
Lenovo
Yang Yuanqing
Lenovo
Maria das Graças
Silva Foster
Petrobras
Maria das Graças
Silva Foster
Petrobras
2
Naveen Jindal
Jindal Steel
Power Limited
N. R. Narayana
Murthy
Infosys
Oleg Deripaska
Basic Element
Company
Andrey Kostin
VTB Bank
Robin Li
Baidu
Hong Qi
Minsheng
Banking Corp
Murilo Pinto de
Oliveira Ferreira
Vale
Eike Batista
EBX Group
3
Mukesh Ambani
Reliance
Industries
Mukesh Ambani
Reliance
Industries
Andrey Kostin
VTB Bank
Oleg Deripaska
Basic Element
Company
Ren Zhengfei
Huawei
Fu Chengyu
Sinopec
Ricardo Semler
Semco SA
Murilo Pinto de
Oliveira Ferreira
Vale
*India: Emerging market data does not include Indian data; China: Emerging market data does not include Chinese data
†The top first-mentioned three CEOs by market
68% of Chinese can name a
Chinese HQ CEO
77% of Indians can name an
Indian HQ CEO
Level of
unprompted CEO
awareness in their
own country
EMERGING MARKETSDEVELOPED MARKETS
Q16. When you think of CEOS/Chairmen of companies from the following markets, which individuals first come to mind? [INSERT MARKET: CHINA, BRAZIL, INDIA, RUSSIA] (Respondents
answering with at least one current CEO/Chairman of a company headquartered in China/Brazil/India/Russia. Informed Publics Ages 25-64
20. 20
INDONESIAN COMPANIES AND CEOs NEED
TO RAISE THEIR PROFILE ABROAD
• More engagement
• Be more active in public discourse –
establishing yourself as a thought
and industry leader
• Raise your profile and visibility
21. 21
INDONESIAN COMPANIES AND CEOs NEED
TO RAISE THEIR PROFILE ABROAD
• This will all contribute to
. Growing trust
equals a more
. A positive
reputation makes it
in the community.
23. 23
Big difference in most important trust
building attributes for Indonesians.
Indonesian priorities differ from the
developed market norm…
24. DIFFERENCE IN TRUST BUILDING ATTRIBUTES
24
59%
48%
50%
48%
58%
51%
50%
47%
48%
54%
52%
50%
49%
49%
58%
48%
65%
68%
68%
70%
72%
74%
75%
76%
77%
78%
80%
80%
81%
81%
82%
82%
CONSISTENT…
TOP GLOBAL…
ADMIRED TOP…
PARTNERS W/ 3RD…
INNOVATOR
POSITIVELY…
ADDRESSES…
PROTECTS…
CUSTOMERS…
LISTENS TO…
LOOKS AFTER…
COMMUNICATES…
ACTS RESPONSIBLY…
IS ETHICAL
HIGH QUALITY…
TRANSPARENT &…
73%
70%
71%
70%
72%
73%
71%
72%
70%
72%
75%
71%
76%
72%
73%
73%
79%
80%
81%
82%
83%
83%
83%
84%
84%
84%
84%
84%
85%
86%
86%
87%
TRANSPARENT & OPEN
PARTNERS W/ 3RD PARTIES
TOP GLOBAL COMPANY
PROTECTS ENVIRONMENT
INNOVATOR
COMMUNICATES OFTEN
LOOKS AFTER EMPLOYEES
ACTS RESPONSIBLY IN…
CUSTOMERS BEFORE…
IS ETHICAL
CONSISTENT FINANCIAL…
ADDRESSES SOCIETY'S…
HIGH QUALITY PRODUCTS
ADMIRED TOP LEADERSHIP
LISTENS TO CUSTOMERS
POSITIVELY IMPACTS…
DEVELOPED MARKETS PERCEIVE A LARGE
GAP IN EXPECTATIONS VS. PERFORMANCE
ON KEY TRUST BUILDING ATTRIBUTES FOR
BRIC-BASED MNCS
FOR INDONESIANS, COMMUNITY
INVOLVEMENT, LISTENING TO CUSTOMERS AND
ADMIRED TOP LEADERSHIP ARE SEEN AS THE MOST
IMPORTANT TRUST BUILDING ATTRIBUTES
INTEGRITYENGAGEMENT PURPOSEPRODUCTS & SERVICES OPERATIONS
STATED IMPORTANCE VS. COMPANY PERFORMANCE (TOP 4 BOX)
Q16. How important is each of the following actions to building your TRUST in companies headquartered in [INSERT BRIC]? Use a nine-point scale where one means that action is “not at
all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Please select one response for each.) Q. 18 Please rate companies
headquartered in [INSERT BRIC] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are “performing extremely
poorly” and nine means they are “performing extremely well”. (Top 4 Box, Trust) Informed Publics, ages 25-64 (excluding “don’t know”)
25. Q80-Q96. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your
trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in 26-country global total (excludes ‘Don’t Know’
responses Q114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing
“extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in 26-country global total
FROM EDELMAN TRUST BAROMETER 2013 GLOBAL SURVEY:
DIFFERENCE IN PRIORITIES BETWEEN THE ANNUAL SURVEY
AND THE EMERGING MARKET SUPPLEMENT
HOWEVER, INDONESIANS MORE DRIVEN BY SOCIAL ISSUES IS STILL A
CONSISTENT THEME
26. 26
COMMUNITY – THE NUMBER
ONE PRIORITY FOR INDONESIANS!
• Indonesians expect
companies to operate
with a social conscience.
• Strong Corporate Social
Responsibility (CSR)
programs and community
outreach is mission
critical to doing business
in Indonesia. Image: World Bank
27. 27
COMMUNITY– THE NUMBER
ONE PRIORITY FOR INDONESIANS!
• Poor community
engagement will result in
poor trust levels – this
eventually will have a
negative impact on
business operations...
• Neglect the community at
your peril…
29. 29
DELIVERING A
MESSAGE
To communicate your
message with authenticity
and trust, use academics and
experts as spokespeople in
Indonesia.
Regular employees, unlike
the market norm, are taken
less seriously… Image: gettyimages.com
30. RECOMMENDATIONS FOR PROMOTING INDONESIAN
AND BRIC HEADQUARTERED COMPANIES OVERSEAS
30
BUILD YOUR BRAND
BE MORE PROACTIVE AND TRANSPARENT
FOCUS ON ETHICAL BEHAVIORS
USE EXPERTS AND EMPLOYEES AS SPOKESPERSONS, NOT CEO
31. 31
Key Pointers For Doing Business and
Building Trust In Indonesia
Developed market based companies benefit from a
trust dividend in Indonesia; they are more trusted
than all emerging market based companies, including
Indonesian companies.
Indonesian’s still have high levels of trust in business –
significantly higher than the market average.
32. 32
Key Pointers For Doing Business and
Building Trust In Indonesia
Indonesian based companies are the most trusted
emerging market based companies in Indonesia –
Indonesian’s are loyal to home grown MNCs.
European and American companies have a trust
advantage in Indonesia.
33. 33
Key Pointers For Doing Business And
Building Trust In Indonesia
Companies are expected to exercise social
responsibility and a real commitment to local societal
issues.
Community engagement really does matter in
Indonesia; it is the number one trust driver.