Trust in Companies Headquartered in
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1 August
2 Trust in Companies Headquartered in Canadians have high expectations of companies that are headquartered here. Canada Norway A second tier of companies, which includes many of the historical industrialized world (e.g U.K., Germany, Japan and the U.S.) are also well trusted. United Kingdom Germany Japan United States Few place trust in China, India, Russia or Mexico. Italy China India Russia Mexico A little A lot Q: How much do you trust global companies headquartered in the following countries to do what is right? ethics aug.5.08 pg 2
3 Factors that Build Trust in Companies Companies naturally build the trust and confidence of consumers when they provide quality, service and value for money. Each customer experience offers an organization the opportunity to strengthen or weaken its brand. Quality Customer service Value for money Core product/ service attributes Reputation matters almost as much to Canadians as the direct service or product attributes. Indirect methods of building reputation clearly can support brand strength and equity. Reputation Financial performance Financial performance, a Canadian headquarters, and knowing someone who works there are clearly secondary for Canadians when it comes to trust. Canadian Headquarters Knowing someone who works there Very Q: How important are each of the following factors to building your trust in a company? ethics aug.5.08 pg 3
4 Likely Response to Good Corporate News Good news creates a positive momentum for companies though the effect is largest for the direct purchase of a product and recommending a product to others. Buy products Few see good news as providing the basis to pay a premium for a product or service. Recommend it The average Canadian is somewhat more likely to invest money in companies based on positive information. Pay a premium Invest money 34 6 Very Q: If you hear positive information about a company, how likely are you to do the following? ethics aug.5.08 pg 4
5 Likely Response to Bad Corporate News If good news can provide some positive momentum, bad news has the clear opposite. Almost half (49%) would be very likely to refuse to buy a product based on some negative news. Refuse to invest money A majority is likely to provide a negative opinion to others, thus spreading the bad news but interestingly this is the least likely course of action people will take. Refuse to buy products Provide a negative opinion of it to people Very Q: If you hear negative information about a company, how likely are you to do the following? ethics aug.5.08 pg 5
6 Recent Actions Taken (Past 6 months) The choices we make to buy or recommend companies or products is a measure of personal commitment to socially responsible corporate behaviour. On this measure almost half of Canadians are not engaged. Recommended a product based on it being a green or environmentally responsible product Refused to purchase a product you would otherwise buy because you think the company is not a good corporate citizen Though few (16%) have paid a premium many more (28%) have refused to purchase a product because of the company s reputation. A reputation for being socially responsible or for doing positive things for the environment translates into positive word-of-mouth. Recommended a product to someone else based on the positive things that the company does for the environment Recommended a product to someone else based on reputation the company has for being socially responsible Paid a premium price for a product because the company is a good corporate citizen None of the above 46 Q: Have you taken any of the following actions in the past six months? ethics aug.5.08 pg 6
7 Searching out ethical companies The ultimate expression of the value of corporate social responsibility is the extent to which consumers are active in seeking out ethical companies. This could include the active search for information, networking with others, and being aware of this dimension of choice. Strongly agree agree Although 45% search out ethical companies, only 10% feel strongly about doing so. Neither disagree Strongly disagree 6 Q: Agree with statement: I search out ethical companies to do business with? ethics aug.5.08 pg 7
8 About the author About Dr. Richard Jenkins: An accomplished researcher, Dr. Jenkins is responsible for TNS Canadian Facts public sector research. This includes traditional public opinion and market research as well as all research conducted by the Social and Policy Research Group at TNS. He is also the primary spokesperson for TNS Canadian Facts for news interviews and analysis of recent trends in public opinion and market behaviour. Dr. Jenkins has more than nine years of experience, derived from both academic and private sector experience, as a researcher of public opinion and public policy. He has published articles in a number of respected peer-reviewed journals, including the Canadian Journal of Political Science, and chapters in a number of edited books, including the State of the Federation (2001) and the Review of Economic Performance and Social Progress (2002) and continues to contribute to our collective understanding of politics through his recent publications on turnout and attitudes about democracy. Dr. Jenkins holds an Honours and Masters degree in Political Studies from Queen s University and a Doctoral Degree in Political Science from the University of British Columbia. His academic training focused on public opinion (including both methodological and substantive issues), public policy and Canadian politics. Before joining TNS Canadian Facts, Dr. Jenkins spent two years at EKOS Research Associates and two years as an Assistant Professor in Political Studies at Queen s University, where he taught Canadian politics, democracy and election, and statistics. He is a member of MRIA and a number of professional associations devoted to the study of public opinion and politics. For more information please contact: Richard W. Jenkins, Ph.D. Vice President Corporate Director of Public Opinion Research (613) ext 101 richard.jenkins@tns-global.com ethics aug.5.08 pg 8
9 August
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