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The Burson-Marsteller/CNBC Corporate Perception Indicator
A global survey conducted by Penn Schoen Berland of over 25,000 individuals and 1,800 corporate executives revealed mixed perspectives on corporate reputations six years after the financial crisis. While the majority of respondents view corporations positively for their roles in economic growth and job creation, skepticism remains, particularly in developed markets, regarding their social responsibility and tax payments. Differences in opinions between the general public and C-suite executives highlight varying perceptions based on geographic location and generational factors.
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The Burson-Marsteller/CNBC Corporate Perception Indicator
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- 2. 2 GENERAL PUBLIC C-SUITE Sample Size Margin of Error Sample Size Margin of Error Total Sample 25,012 ±0.62% 1,816 ±2.3% United States 1000 ±3.10% 76 ±11.24% Canada 1001 ±3.10% 75 ±11.32% Brazil 1004 ±3.09% 77 ±11.17% Mexico 1000 ±3.10% 76 ±11.24% Colombia 1003 ±3.09% 54 ±13.34% Germany 1010 ±3.10% 78 ±11.10% France 1002 ±3.10% 77 ±11.17% United Kingdom 1013 ±3.08% 75 ±11.32% Russia 1015 ±3.08% 79 ±11.03% Italy 1009 ±3.09% 76 ±11.24% Spain 1000 ±3.10% 75 ±11.32% Netherlands 1003 ±3.09% 75 ±11.32% Poland 1000 ±3.10% 75 ±11.32% China 1000 ±3.10% 75 ±11.32% Japan 1000 ±3.10% 77 ±11.17% South Korea 1000 ±3.10% 75 ±11.32% India 1001 ±3.10% 75 ±11.32% Indonesia 1000 ±3.10% 75 ±11.32% GENERAL PUBLIC C-SUITE Sample Size Margin of Error Sample Size Margin of Error Malaysia 1001 ±3.10% 75 ±11.32% Singapore 1000 ±3.10% 77 ±11.17% Hong Kong 1000 ±3.10% 75 ±11.32% Turkey 1025 ±3.06% 60 ±12.65% UAE 923 ±3.23% 75 ±11.32% South Africa 1000 ±3.10% 34 ±16.81% Australia 1002 ±3.10% 75 ±11.32% GENERAL PUBLIC C-SUITE Sample Size Margin of Error Sample Size Margin of Error North America 2001 ±2.19% 151 ±7.98% Latin America 3007 ±1.79% 207 ±6.81% Europe 8052 ±1.09% 610 ±3.97% Asia 8002 ±1.10% 604 ±3.99% Middle East 1948 ±2.22% 135 ±8.43% Emerging Markets 11972 ±0.90% 830 ±3.40% Developed Markets 13040 ±0.86% 986 ±3.12% BRIC 4020 ±1.55% 306 ±5.60% Penn Schoen Berland fielded the survey June 28 through August 15, 2014 using a sample provided by Kantar. SAMPLE SIZES
- 3. 3 AUDIENCE DEFINITIONS General Public (GP): Individuals 18 years and older C-Suite: Executives at companies with 50+ employees with job titles of at least director, often including vice presidents and above Regions: North America: United States, Canada Latin America: Mexico, Brazil, Colombia Europe, Middle East, Africa: Germany, France, UK, Russia, Italy, Spain, Netherlands, Poland, Turkey, UAE, South Africa Asia-Pacific: China, Japan, Korea, India, Indonesia, Malaysia, Singapore, Hong Kong, Australia Other groups highlighted throughout: Emerging Markets: Brazil, Mexico, Colombia, Russia, Poland, China, India, Indonesia, Malaysia, Turkey, UAE, South Africa Developed Markets: United States, Canada, Germany, France, United Kingdom, Italy, Spain, Netherlands, Japan, Korea, Singapore, Australia, Hong Kong* BRIC: Brazil, Russia, India, China *Hong Kong SAR included separately from China given economic distinctions
- 4. 4 Executive Summary Survey conducted by Penn Schoen Berland.
- 5. 5 Six yearsafter the 2008 Financial Crisis, Burson-Marsteller and CNBC surveyed 25,000 individuals in the general public and more than 1,800 corporate executives in 25 markets around the world. The objective was to understand the hopes, fears and expectations about corporations and corporate executives in society and the economy and how to strengthen their reputations. PURPOSE There are signs globally of positive attitudes towards corporations Corporations generally are viewed as playing a positive role in job creation, economic growth and innovation Most major industries are viewed favorably in both developed and emerging markets They tend to be seen as having become more socially and environmentally responsible KEY FINDINGS: SEVERAL KEY DETERMINATIONS EMERGE THAT SET THE CONTEXT FOR THE ENTIRE REPORT: 1. Survey finds significant strength of corporate reputations, but still real work to be done Despite those positive attitudes, both the general public and business leaders retain reservations about the economic, political and social activities of corporations Large majorities in developed markets say the financial crisis did not humble corporations, leaving them to act no more responsibly than in 2008 Challenges, most prominent in developed markets, include concerns about whether corporations will play a positive role in the future, their influence over government and whether they pay a fair share of taxes 2. Where you sit shapes your views of corporations and CEOs MAIN STREET VS. C-SUITE In developed markets, there is a sharp difference between how the general public (more skeptical) and how C-Suite business leaders (more positive) view corporations DEVELOPED VS. EMERGING MARKETS The general public in emerging markets has a strongly positive view of the role corporations play, while the general public in developed markets tends to have less favorable views
- 6. 6 KEY FINDINGS(CONTINUED) US VS. CHINA The US general public and the Chinese general public sit on opposite sides of the spectrum on their views of both corporations today and the role of corporations in the future (Chinese have far more positive opinions of corporations than Americans) MILLENNIALS Pluralities of US Millennials (ages 18-34), along with Baby Boomers (ages 50-64), see corporations as a source of fear, while a plurality of Americans over 65 years sees them as a source of hope 2. Where you sit shapes your views of corporations and CEOs CEOs are viewed as among the most “powerful” people in society, but not the most “respected” – recasting the role of the CEO in a positive light is essential 3. CEOs have great potential to reshape perceptions by redefining their own roles Contributions to economic growth and job creation Social responsibility, especially related to the environment Policies toward employees Corporate purpose 4. Corporations and their CEOs have pathways for strengthening their reputations through greater communications about a range of activities that respondents say matter but don’t hear enough about, including:
- 7. 7 Survey findsreal improvement of corporate reputations, but also significant work still to be done to dispel qualms about the corporate sector and its leaders Survey conducted by Penn Schoen Berland.
- 8. 8 An overwhelmingmajority of the global general public believes corporations play a positive role in economic growth, jobs and innovation In developed markets, corporations are not seen as a positive a force on taxes or inequality Corporations play a positive role in… 83% 81% 81% 81% 78% 75% 69% 69% 66% 65% 61% 59% 58% 70% 66% 67% 73% 64% 58% 51% 55% 52% 45% 42% 40% 40% Creating economic growth Creating jobs Driving innovation Providing consumer products Providing workforce training Supporting financial markets Providing healthcare coverage Promoting diversity Providing retirement benefits Paying a fair share of taxes Address pay inequality for women Helping the government to govern fairly and effectively Addressing income inequality Emerging GP Developed GP Q: Do you think corporations generally play a positive role or a negative role in each of the following?
- 9. 9 Solid majoritiesof the public in both developed and emerging markets view most major industries favorably Q: How favorable are you towards the following industries? 90 85 84 84 81 81 76 75 72 70 69 69 64 61 84 79 76 79 65 65 69 56 47 60 52 47 50 47 Emerging GP Developed GP
- 10. 10 Corporations areviewed as having become more socially responsible, particularly by respondents in emerging markets 24% 18% 11% 4% 65% 77% GP C-Suite Q: Do you think corporations have become more or less socially responsible over the past decade? MORE SOCIALLY RESPONSIBLE LESS SOCIALLY RESPONSIBLE 39% 30% 17% 7% 44% 62% GP C-Suite DON’T KNOW EMERGING MARKETS DEVELOPED MARKETS Nearly 1/3 of C- Suite in developed markets say they are becoming less socially responsible 52% of the general public and C-Suite in Germany say less socially responsible GP C-SUITE GP C-SUITE
- 11. 11 Corporations areoverwhelmingly seen as becoming more environmentally responsible 29% 22% 7% 3% 64% 75% GP C-Suite Q: In general, do you think corporations are becoming more or less environmentally responsible? 26% 26% 14% 6% 60% 68% GP C-Suite MORE SOCIALLY RESPONSIBLE LESS SOCIALLY RESPONSIBLE DON’T KNOW EMERGING MARKETS DEVELOPED MARKETS GP C-SUITE GP C-SUITE
- 12. 12 Despite improvements,less than a quarter of the general public in developed markets says corporations have been humbled by the economic crisis 39% 23% 48% 44% 52% 55% 47% 41% 9% 22% 6% 15% C-Suite GP C-Suite GP EMERGING MARKETS DEVELOPED MARKETS CORPORATIONS GENERALLY WERE NOT HUMBLED BY THE ECONOMIC CRISIS THAT BEGAN IN 2008 AND THEY DO NOT ACT MORE RESPONSIBLY THAN THEY DID BEFORE THE ECONOMIC CRISIS THAT BEGAN IN 2008 GENERALLY HUMBLED CORPORATIONS, AND THEY NOW ACT MORE RESPONSIBLY DON’T KNOW Q: Which is closer to your view? The general public and C-Suite in Germany are most likely to say corporations have not been humbled (73% and 74%, respectively). GP C-SUITE GP C-SUITE
- 13. 13 In developedmarkets, no consensus among general public and C-Suite on whether corporations are a source of hope or fear Nearly half of the general public sees corporations as a source of hope in developed markets as well and 1 in 4 are not sure, indicating they could be swayed towards hope 58% 44% 70% 64% 32% 30% 23% 22% 11% 26% 7% 13% C-Suite GP C-Suite GP CORPORATIONS ARE A SOURCE OF HOPE CORPORATIONS ARE A SOURCE OF FEAR DON’T KNOW Q: Thinking about the role of corporations in the future, which is closer to your view? GP C-SUITE GP C-SUITE EMERGING MARKETS DEVELOPED MARKETS
- 14. 14 The generalpublic in developed and emerging markets strongly disagree whether strong corporations are a good thing General public and C-Suite are again more aligned in emerging markets than developed 51% 35% 61% 58% 42% 46% 35% 34% 7% 18% 4% 9% C-Suite GP C-Suite GP IT IS A GOOD THING WHEN CORPORATIONS ARE STRONG AND INFLUENTIAL, BECAUSE THEY ARE THE ENGINES OF INNOVATION AND ECONOMIC GROWTH IT IS A BAD THING WHEN CORPORATIONS ARE STRONG AND INFLUENTIAL, BECAUSE THEY RIG THE SYSTEM SO THEY DO NOT HAVE TO ACT RESPONSIBLY DON’T KNOW GP C-SUITE GP C-SUITE EMERGING MARKETS DEVELOPED MARKETS
- 15. 15 39% 24% 46% 40% 56% 62% 50% 52% 5% 14% 4% 9% C-Suite GP C-Suite GP Globally, majorities of both the general public and business leaders see corporations as not paying what they owe in taxes – especially in developed markets GP C-SUITE GP C-SUITE CORPORATIONS TEND TO PAY WHAT THEY OWE IN TAXES – ONLY A FEW TAKE ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE CORPORATIONS TEND TO TAKE ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE OF TAXES – ONLY A FEW PAY WHAT THEY OWE DON’T KNOW China is the outlier, with 63% of both audiences saying corporations tend to pay what they owe Q: Which is closer to your view? EMERGING MARKETS DEVELOPED MARKETS
- 16. 16 13% 1% 11% 5% 14% 7% 19% 8% 17% 38% 19% 43% 19% 33% 26% 35% 70% 61% 69% 52% 68% 60% 56% 57% GP C-Suite GP C-Suite GP C-Suite GP C-Suite Corporations tend to take advantage of loopholes to avoid paying their fair share of taxes – only a few pay what they owe Corporations tend to pay what they owe in taxes – only a few take advantage of loopholes to avoid paying their fair share Don’t know US CANADA UK NETHERLANDS Q: Which is closer to your view? Markets where tax inversions are happening, including the US, tend to have negative views on corporate tax payment General public in the Netherlands is slightly more likely than others to say corporations tend to pay what they owe
- 17. 17 Perspectives divergebetween “Main Street” and “C-Suite,” especially in developed markets Survey conducted by Penn Schoen Berland.
- 18. 18 24% 40% 14% 16% 72% 52% 86% 82% Emerging Countries Developed Countries Emerging Countries Developed Countries C-Suite is more consistent than the general public globally, indicating a global consensus exists among corporate executives Street and Suite tend to be more aligned in emerging markets, more divided in developed markets Q: How favorable are you towards the following institutions? Corporations 35% 39% 44% 38% 48% 48% 30% 41% 11% 12% 9% 13% Developed Countries Emerging Countries Developed Countries Emerging Countries TOO MUCH JUST THE RIGHT AMOUNT TOO LITTLE Q. Do corporations have too much, too little, or just the right amount of influence over our economic future? Where you sit shapes your view of the role of corporations EMERGING MARKETS DEVELOPED MARKETS EMERGING MARKETS DEVELOPED MARKETS GENERAL PUBLIC C-SUITE EMERGING MARKETS DEVELOPED MARKETS GENERAL PUBLIC EMERGING MARKETS DEVELOPED MARKETS C-SUITE
- 19. 19 Generalpublic in developed markets are the most negative audience C-Suite in developed markets look more like emerging markets than general public within their own markets There are significant differences in how the general public in developed and emerging markets talk about corporations Q: What is the first thing that comes to mind when you think of corporations? UNITED STATES UNITED KINGDOM GENERAL PUBLIC C-SUITE DEVELOPED MARKETS
- 20. 20 (continued) Q:What is the first thing that comes to mind when you think of corporations? FRANCE GERMANY DEVELOPED MARKETS GENERAL PUBLIC C-SUITE
- 21. 21 (continued) Q:What is the first thing that comes to mind when you think of corporations? AUSTRALIA DEVELOPED MARKETS GENERAL PUBLIC C-SUITE
- 22. 22 (continued) Q:What is the first thing that comes to mind when you think of corporations? CHINA BRAZIL GENERAL PUBLIC C-SUITE EMERGING MARKETS
- 23. 23 (continued) Q:What is the first thing that comes to mind when you think of corporations? INDIA UNITED ARAB EMIRATES GENERAL PUBLIC C-SUITE EMERGING MARKETS
- 24. 24 (continued) Q:What is the first thing that comes to mind when you think of corporations? SOUTH AFRICA GENERAL PUBLIC C-SUITE EMERGING MARKETS
- 25. 25 There isa generational divide within the US general public over consumer priorities and perspectives Survey conducted by Penn Schoen Berland.
- 26. 26 35+ 43% 41% 16% I WILL SPEND MORE MONEY TO PURCHASE A PRODUCT MADE DOMESTICALLY I WILL PURCHASE THE LESS EXPENSIVE OPTION, NO MATTER WHERE IT WAS MADE DON’T KNOW 18-34 55% 27% 18% It is far more important to older Americans that products are made in America UNITED STATES Q: Which of the following is closer to your view? Showing US General Public
- 27. 27 Q: Ifa corporation outsources its manufacturing to another country, does that tend to make you more or less favorable toward it? Showing US General Public 32% 22% 17% 11% 36% 43% 6% 2% Much more favorable Somewhat more favorable Somewhat less favorable Much less favorable Americans 35 years or older are more likely than Millennials to react negatively to outsourcing UNITED STATES 35+ 18-34
- 28. 28 Q: Howdoes a corporation’s philanthropic giving influence your purchase habits? Showing US General Public Millennials are slightly more likely to consider a corporation’s philanthropic contributions when making purchasing decisions 32% 40% 44% 36% 25% 24% 35+ 18-34 I’M MORE LIKELY TO PURCHASE A PRODUCT MADE BY A CORPORATION THAT MAKES PHILANTHROPIC CONTRIBUTIONS A CORPORATION’S PHILANTHROPIC CONTRIBUTIONS DO NOT INFLUENCE MY PURCHASE HABITS DON’T KNOW UNITED STATES 35+ 18-34
- 29. 29 Q: Whichof the following do you think is the main reason corporations undertake philanthropic efforts? Showing US General Public The US general public doubts corporations’ philanthropic motivations – especially Americans over 35 years 37% 34% 15% 14% 27% 49% 10% 15% Improve reputation Tax benefits Genuine belief in the cause Don't know 35+ 18-34
- 30. 30 Opposite Sidesof the World: China and the US Out of Sync Survey conducted by Penn Schoen Berland.
- 31. 31 The generalpublic in China has a significantly more positive opinion of corporations than the general public in the US 42% 21% 49% 75% United States China Q: How favorable are you towards the following institutions? Corporations Showing General Public FAVORABLE UNFAVORABLE UNITED STATES CHINA
- 32. 32 73% 17% 12% 80% 15% 3% Q: In your opinion, is government more on the side of average citizens or corporations? Showing General Public CORPORATIONS AVERAGE CITIZENS DON’T KNOW CORPORATIONS AVERAGE CITIZENS DON’T KNOW The US general public says the government is on the side of corporations; the Chinese general public says it is on the side of citizens UNITED STATES CHINA
- 33. 33 The USgeneral public is more than ten times as likely as the Chinese general public to say that corporations have more power than the government Q: Which of the following has more power? Showing General Public Government, 51% Don't know, 11% Corporations, 38% Government, 95% Don't know, 1% Corporations, 3% UNITED STATES CHINA
- 34. 34 A majorityin China says corporations pay what they owe in taxes, contradicting views in the US and globally 63% 63% 17% 38% 32% 36% 70% 61% 5% 1% 13% 1% GP C-Suite GP C-Suite Q: Which is closer to your view? CORPORATIONS TEND TO PAY WHAT THEY OWE IN TAXES – ONLY A FEW TAKE ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE CORPORATIONS TEND TO TAKE ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE OF TAXES – ONLY A FEW PAY WHAT THEY OWE DON’T KNOW UNITED STATES CHINA GP C-SUITE GP C-SUITE
- 35. 35 While thereis uncertainty over the future of corporations in the US, the Chinese general public clearly sees corporations as a source of hope 84% 36% 7% 37% 9% 28% China United States CORPORATIONS ARE A SOURCE OF HOPE CORPORATIONS ARE A SOURCE OF FEAR DON’T KNOW Q: Thinking about the role of corporations in the future, which is closer to your view? Showing General Public UNITED STATES CHINA
- 36. 36 CEOs havean opportunity to reshape their corporations’ reputations by redefining their own Survey conducted by Penn Schoen Berland.
- 37. 37 Globally, peoplelook to CEOs as some of the most powerful people in society, giving them a position of leadership Q: Who among the following are the most powerful people in society? 58% 44% 32% 20% 16% 14% 11% 10% 6% 5% 1% 4% 44% 35% 38% 29% 11% 11% 7% 7% 3% 4% 1% 11% Head of government Politicians Corporate CEOs Central Bank leaders Journalists Labor union leaders Clergy Entertainers University leaders Professional Athletes Other Don't know Emerging GP Developed GP In many developed markets, including the US (47%), Germany (43%) and the UK (42%), CEOs are identified as the most powerful people in society – more so than political leaders
- 38. 38 However, CEOsare not identified as the most respected people in society Q: Who among the following are the most respected people in society? 32% 25% 23% 19% 19% 16% 13% 11% 10% 8% 3% 10% 14% 17% 22% 10% 16% 16% 6% 7% 6% 5% 4% 28% Head of government Clergy Professional Athletes Corporate CEOs University leaders Entertainers Politicians Journalists Central Bank leaders Labor union leaders Other Don't know Emerging GP Developed GP Corporate CEOs are more respected by respondents in emerging markets than developed markets, most notably the BRIC nations, minus Russia
- 39. 39 Corporate executivestend to be seen as most motivated by their own compensation EMERGING MARKETS DEVELOPED MARKETS Their compensation (such as salary, bonuses and stock options) 36 34 40 33 Satisfying the corporation’s shareholders 18 18 19 22 Power 19 19 18 14 Satisfying the corporation’s customers 10 11 6 10 Helping to shape society 5 9 3 8 Satisfying the corporation’s employees 5 7 3 8 Don't know 6 2 11 4 General Public in Russia, Germany and South Korea are the most likely to say compensation motivates CEOs, with at least 50% saying compensation motivates corporate executives Q: What do you think most corporate executives are motivated by? GP C-SUITE GP C-SUITE
- 40. 40 There isconcern that CEOs care more about growing their own wealth than income inequality 34% 20% 35% 23% 56% 60% 59% 64% 10% 20% 6% 12% C-Suite GP C-Suite GP CORPORATE CEOS DO CARE ABOUT GROWING INCOME INEQUALITY EVEN IF THEY ARE GETTING WEALTHIER BECAUSE IT IS BAD FOR BUSINESS AND THE ECONOMY CORPORATE CEOS DON'T CARE VERY MUCH ABOUT GROWING INCOME INEQUALITY BECAUSE IT MEANS THEY ARE GETTING WEALTHIER Q: Which of the following is closer to your opinion? EMERGING MARKETS DEVELOPED MARKETS DON’T KNOW GP C-SUITE GP C-SUITE
- 41. 41 There isuncertainty about the role of CEOs – and, thus, an opportunity for CEOs to define their roles in a positive manner 7% 2% 20% 4% 1% 2% 2% 2% 19% 23% 12% 19% 24% 25% 21% 30% 24% 24% 23% 23% 26% 26% 22% 23% GP C-Suite GP C-Suite Communicating with internal and external stakeholders to build support for the organisation Solving issues that the organisation is facing Defining the purpose or mission of the corporation Creatively identifying new opportunities Other Don't know Q: Which of the following best describes the role of CEO? DEVELOPED MARKETS EMERGING MARKETS
- 42. 42 Corporations canstrengthen their reputations by communicating more on the issues the general public wants to know about more Survey conducted by Penn Schoen Berland.
- 43. 43 General publichas a strong appetite to hear more from corporations about social responsibility Q: Do you think corporations generally communicate not enough, the right amount, or too much about each of the following issues? Showing General Public 62% 61% 60% 54% 47% 30% 17% 18% 20% 21% 24% 28% 13% 11% 10% 16% 20% 35% 8% 10% 9% 9% 8% 7% Social responsibility Regulatory and legal issues Employees Financial performance Their corporate purpose New products and services 62% 56% 58% 47% 50% 27% 18% 19% 21% 26% 26% 39% 5% 7% 3% 10% 8% 20% 16% 18% 17% 17% 17% 14% Social responsibility Regulatory and legal issues Employees Financial performance Their corporate purpose New products and services EMERGING MARKETS DEVELOPED MARKETS TOO MUCH NOT ENOUGH THE RIGHT AMOUNT DON’T KNOW