1. 2016 Edelman Trust Barometer
Trust and the Family Business

2. Online Survey in 28 Countries
Methodology
General Online Population
5 years in 25+ markets
Ages 18+
1,150 respondents per country
Informed Public
Online Survey in 28 Countries
8 years in 20+ markets
Represents 15% of total global population
500 respondents in U.S. and China; 200 in all other countries
Must meet 4 criteria:
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
16 years of data
33,000+ respondents total
All fieldwork was conducted between October 13th and November 16th, 2015
Mass Population
All population not including Informed Public
Represents 85% of total global population
28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).

3. Trust in Retrospect 2016 Growing Inequality of Trust 2001 2002 2003
2004
2005
2006
2007
2008
Rising Influence of NGOs
Fall of the Celebrity CEO
Earned Media More Credible Than Advertising
U.S. Companies in Europe Suffer Trust Discount
Trust Shifts from “Authorities” to Peers
“A Person Like Me” Emerges as Credible Spokesperson
Business More Trusted Than Government and Media
Young Influencers Have More Trust in Business
2009
2010
2011
2012
2013
2014
2015
2016
Business Must Partner with Government to Regain Trust
Trust is Now an Essential Line of Business
Rise of Authority Figures
Fall of Government
Crisis of Leadership
Business to Lead the Debate for Change
Trust is Essential to Innovation
Growing Inequality of Trust

4. The Impact of Trust on Business
General Population
Percent who engage in each behavior based on trust
Behaviors for Distrusted Companies
Behaviors for Trusted Companies
Refused to buy products/services
Chose to buy products/services
Criticized companies
Recommended them to a friend/colleague
Shared negative opinions
Shared positive opinions online
most trusted content creators: #1
Friends and Family
Disagreed with others
Defended company
most trusted media source: #1
Online Search Engines
Paid more than wanted
Paid more
Sold shares
Bought shares
Source: 2016 Edelman Trust Barometer Q Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. General Population, 28-country global total, questions asked of half the sample. Q Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. General Population, 28-country global total, question asked of half the sample.

5. State of Trust for Family Business

6. Business Trust At Post-Recession Highs
Percent trust in business, 2012 vs. 2016
Informed
Public
Business
General
Population
Source: 2016 Edelman Trust Barometer Q Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-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 Public and General Population, 25-country global total.

7. Family Business Most Trusted, Lags in Asia
General Population
Public companies
Percent who trust different types of business
Family-owned
State-owned
Big businesses
Privately-held
Source: 2016 Edelman Trust Barometer Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a nine-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) General Population, 28-country global total and regions.

8. Trust in Family Business Rising
General Population
Percent trust in family-owned companies, General Population, 2015 vs. 2016
2015
2016
Increased trust in 19 countries
50% +8 +6
+10 +9 -5
n/a
Source: 2016 Edelman Trust Barometer Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a nine-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) General Population, 27-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.

9. Family Business Trusted Across All Demographics
General Population
Percent trust in family owned-businesses, General Population
Gender
Age
Male
Female
Generation Z
(18-20)
Generation Y
(21-34)
Generation X
(35-54)
Boomers
(55+)
Source: 2016 Edelman Trust Barometer Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a nine-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; Bottom 4 Box, Do not Trust) S1: What is your current age? (Please select one response.) S6: Are you male or female? (Please select one response.) General Population, 28-country global total.

10. The Risk: Concerns About Business Leadership
General Population
Percent who agree with each statement about CEOs
Overpaid
Unrelatable
Misplaced Focus
54%
Not fairly paid relative to everyone else
50%
Cannot relate to people like me
67%
Too focused on short-term
Source: 2016 Edelman Trust Barometer Q Thinking about CEOs, how strongly do you agree or disagree with the following statements? [‘CEOs are fairly paid relative to rest of workforce,’ ‘CEOs can relate to people like me,’ (Bottom 5 Box, Do Not Agree), ‘CEOs are too focused on short-term financial results (Top 4 Box, Agree), General Population, 28-country global total.

11. A Growing Trust Inequality…
Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2016
Informed
Public
Mass
Population
12pt
Gap
9pt
Gap
3-point increase
In trust inequality –which jumps to a
5-point increase among the GDP5
Source: 2016 Edelman Trust Barometer Q Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-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 Public and Mass Population, 25-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.

12. Trust Inequality Does Not Apply to Family Business
Percent trust in family business, 2012 to 2016
Informed
Public
Mass
Population
Source: 2016 Edelman Trust Barometer Q Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-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 Public and Mass Population, 25-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.

13. “The traditional playbook of low-key, let-the-results-speak-for-themselves behavior will not work in an increasingly skeptical society upset by imbalanced economic returns.” -- Richard Edelman

14. The Opportunity
for Family Business

15. The Opportunity: Lead to Solve Problems
General Population
80% agree
Up from 74% in 2015
“A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”
Source: 2016 Edelman Trust Barometer Q249. Please indicate how much you agree or disagree with the following statement? (Top 4 Box, Agree). General Population, 27-country global total, question asked of half the sample. .

16. The Opportunity: Leverage Purpose to Drive Trust
General Population
Percent who cite each as a reason for why their trust in business has increased or decreased
Reasons Trust in Business Has Increased
Reasons Trust in Business Has Decreased
59%
Produces economic growth
50%
Fails to contribute to the greater good
45%
Contributes to the greater good
39%
Lacks economic growth
40%
Allows me to be a productive member of society
36%
No public services
Source: 2016 Edelman Trust Barometer Q For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, 28-country global total.

17. The Opportunity: Drive Job Creation and Long-Term Impact
General Population
The Opportunity: Drive Job Creation and Long-Term Impact
Respondents who agree with each statement about CEOs
CEOs Do Not Deliver Enough:
57%
Positive
long-term
impact
49%
Job
creation
But when we asked people to tell us their views on business leaders today, they are not necessarily seeing the actions they want to see. They believe that CEOs are too focused on short-term results, not enough on driving long-term impact. Too much lobbying; not enough job creation.
Source: 2016 Edelman Trust Barometer Q Thinking about CEOs, how strongly do you agree or disagree with the following statements? General Population. [‘CEOs do too much lobbying,’ ‘Given that the average tenure of CEOs is just four years, CEOs aren’t in their role long enough to make a positive impact,’ ‘CEOs are too focused on short-term financial results’ (Top 4 Box, Agree), ‘CEOs can be trusted to create jobs’ (Bottom 5 Box, Do Not Agree)], 28 country global total.

18. The Opportunity: Embrace the License to Lead
General Population
Percent who agree that CEOs should be personally visible in discussing…
8 in10
Societal Issues
7 in10
Financial Results
Income inequality
Public policy discussions
Personal views on societal issues
Source: 2016 Edelman Trust Barometer Q How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, 28-country global total, question asked of half the sample.

19. High Expectations For CEO Engagement Across Stakeholders and Channels
General Population
High Expectations For CEO Engagement Across Stakeholders and Channels
Percent who agree that each of the following activities is important in building trust in a CEO
Employees
Your most important audience
Source: 2016 Edelman Trust Barometer Q Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of half the sample.

20. Leverage Diverse Voices
General Population
2015
2016
Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs. 2016
50% +9 +9
+10
Source: 2016 Edelman Trust Barometer Q Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General Population, 27-country global total, question asked of half the sample.
* Asked as “Brands I don’t use” in 2015.

21. Communicate Across Traditional and Digital Channels
General Population
Percent trust in each source for general news and information
Industry
2012
2013
2014
2015
2016
Search engines* 61 58 62 63
Traditional media 59 57
Online-only media** 46 44 47 45 53
Owned media 41 40 43
Social media
Millennials
Gap 66 3 58 5 51 7
Millennials
Even more trusting of digital media than general population
Source: 2016 Edelman Trust Barometer Q When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) General Population and Millennials, 25-country global total.
*From , “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.”
**From , “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.”

22. The Family Business Plan of Action
Trust
Actions
Values
Employee Advocacy
Engagement
To maintain and leverage the Family Business Trust Advantage,
family businesses must understand and activate around a
New Paradigm for Family Business Trust
Actions
Remain committed to sustainable business growth and leadership; explain how strategy is informed by family heritage
Be vocal on long-term business strategy/impact, as well as key societal issues
Develop meaningful philanthropic programming and communicate efforts and impact
Understand and protect against reputational and business vulnerabilities
Showcase the experience and contributions of next- generation leaders within the family company and prepare them for leadership
Initiate employee engagement programs to ensure employees understand the connection to and value in working for a family business
Create strategic opportunities to leverage next generation leaders and employee voices around key company perspectives and efforts
Employee Advocacy
Values
Create a differentiating narrative that highlights the heritage and principles of the family to express the inherent value and impact of the family and business
Leverage narrative to discreetly tell stories of business value and investments to key stakeholders across channels
Engagement
Lead from the front and explain to stakeholders not just what you do but how you do it and why
Illustrate how the family business thinks and acts for generations, not quarters
Drive visibility for the CEO and next generation leaders in the industry, around key social issues and in the communities in which they operate through speaking opportunities, partnerships, storytelling and initiative development

23. Thank You