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Trust in China and Europe 2016 (English)

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How do Chinese companies build trust in European markets?

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Trust in China and Europe 2016 (English)

  1. 1. Trust CHINA AND EUROPE How do Chinese companies build trust in European markets? AN EDELMAN PUBLICATIONMarch 2016
  2. 2. Addressing Economic and Social Conditions in Europe PREFACE
  3. 3. 1TRUST For companies to build market share in Europe trust in their brands is essential. Since 1952 Edelman has been helping companies evolve promote and protect their brands in ways that advance their business objectives. These are interesting times to try to build trust in Europe;tomaximiseyourinvestmentandgrow in the region. In Europe overall, the general stateoftrustcontinuestobedismal,especially among the mass population. According to the 2016 Edelman Trust Barometer, there is not a single state in Europe that is a net-truster. Only the Netherlands is neutral and all of the other states are distrusters. We are seeing a lack of trust among the mass population play out in a number of ways across the region, whether it is the backlash of migration, the far-right movement in France or in the UK a strong , ,
  4. 4. 2 TRUST PREFACE movement towards Brexit which could disrupt the entire European Union. Those who operate in our market should be under no illusions that populations are having their discontent heard. However, it is not all doom and gloom. The one bright spot in this year’s data is the opportunity for business to repair the trust divide and this presents an opportunity for Chinese businesses seeking to expand in the region. Quite remarkably, business is now the second most trusted of all institutions among the general population globally and in the European Union, and is most trusted to manage through change and innovation. Driven in part by the gradual recovery in the financial services sector, trust in business has increased or remained steady in 25 countries — closing in on the historic lead held by NGOs as the most trusted institution. In contrast, trust in government continues to languish, with one-third of the general population in Europe trusting government to do what’s right. Globally, 59 percent of respondents believe that it is the role of government to regulate, but 80 percent say it’s actually the responsibility of business to lead to address societal problems. From the findings this year, the key insight for Chinese businesses that are looking to build trust and increase their market share in Europe, is that 78 percent of respondents say a company can take actions that both increase profits and improve the economic and social conditions of where it operates. Among the issues cited as most critical for business to address are: access to education and healthcare, protecting and improving the environment, supporting human and civil rights and income inequality. These are all issues that a Chinese business looking for a licence to operate and lead in Europe must consider. In Europe, adding to this stronger position for business is the increased credibility of the CEO as a spokesperson. While employees remain among the most credible spokespeople overall, CEOs experienced a 10-point gain in the EU — more than experts, analysts or a person like yourself. For those Chinese businesses looking to expand in the region they need to continue to earn trust. Our data shows that CEOs as spokespeople play a crucial role in this and in terms of public perception will have to shift their focus from short-term results to job creation and long-term value creation — both economic and societal. In short, the public in Europe want to feel that businesses are invested in them and their communities for the long term, not just the quarterly earnings cycle. Michael Stewart President and CEO, Edelman Europe and CIS
  5. 5. Trade Dominates EU China Economic Diplomacy Understanding and Respecting the Rules of Engagement in Germany A Tale of Two Britains Expanding the French Friendship Improving China’s Reputation in Sweden 15 21 24 07 11 Content
  6. 6. Edelman China Jeffrey Yu, CEO jeffrey.yu@edelman.com Kevin Wang, Managing Director of Corporate Practice kevin.wang@edelman.com Beijing Sanjay Nair, Managing Director sanjay.nair@edelman.com Shanghai Sonny Shen, Managing Director sonny.shen@edelman.com Guangzhou Roxanne Wu, General Manager roxanne.wu@edelman.com v Edelman Europe Brussels Esther Busscher, General Manager esther.busscher@edelman.com Germany Susanne Marell, General Manager susanne.marell@edelmanergo.com Thomas Walther, Head of Strategic Development thomas.walther@edelmanergo.com UK & Ireland Ed Williams, CEO ed.williams@edelman.com Jodi Mclaren, New Business Director jodi.mclaren@edelman.com France Marion Darrieutort, General Manager marion.darrieutort@elanedelman.com Bérengère Meyer, New Business Executive berengere.meyer@elanedelman.com Sweden Mattias Ronge, CEO mattias.ronge@edelmandeportivo.com Jasper Nordling, Associate Planning Director (new business contact) jasper.nordling@edelmandeportivo.com Italy Fiorella Passoni, General Manager fiorella.passoni@edelman.com Myriam Panighini, Executive Assistant (new business contact) myriam.panighini@edelman.com Amsterdam AJ Hesselink, General Manager arentJan.hesselink@edelman.com Joel Bearden, Consumer Director (new business contact) joel.bearden@edelman.com Spain Miguel Aguirre, General Manager miguelangel.aguirre@edelman.com Edelman China and Europe Network
  7. 7. About Edelman Edelman is a leading global communications marketing firm that partners with many of the world’s largest and emerging businesses and organizations, helping them evolve, promote and protect their brands and reputations. Edelman was named one of Advertising Age’s “Agency to Watch” in 2014; one of Forbes’ “14 Most Influential Agencies of 2014”; and The Holmes Report’s “2013 Global Agency of the Year.” Edelman was awarded the Grand Prix Cannes Lion for PR in 2014 and was among Glassdoor’s “Best Places to Work” for the third time in 2014. Edelman owns specialty firms Edelman Intelligence (research) and United Entertainment Group (entertainment, sports, experiential), a joint venture with United Talent Agency. About the Edelman Trust Barometer The 2016 Edelman Trust Barometer is the firm’s 16th annual trust and credibility survey. The survey was powered by research firm Edelman Intelligence and consisted of 20-minute online interviews conducted on October 13th – November 16th, 2015. The 2016 Edelman Trust Barometer surveyed more than 33,000 respondents consisting of 1,150 general population respondents ages 18 and over and 500 informed public respondents in the U.S. and China and 200 informed public re- spondents in all other countries representing 15 percent of the total population across 28 countries. All informed publics met the following criteria: ages 25-64, college-educated; household income in the top 25 percent for their age in their country; report significant media consumption and engagement in busi- ness news and public policy. For more information, visit www. edelman.com/trust2016. For full report, please contact us directly.
  8. 8. www.edelman.com www.edelman.cn

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