burson marsteller-cnbc corporation perception indicator - topline findings - final - arial

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

PUBLICC-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

PUBLICC-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

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, South Africa, Turkey, UAE

Asia: 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

Executive Summary

Survey conducted by Penn Schoen Berland.

5

Six years after 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

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 35-49), 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

Survey finds real improvement of

corporate reputations, but also

significant work still to be done to

dispel qualms about the corporate

sector and its leaders


8

An overwhelming majority 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 economicgrowth

Creating jobs Driving innovation Providingconsumerproducts

Providingworkforce training

Supportingfinancial markets

Providinghealthcarecoverage

Promotingdiversity

Providingretirement benefits

Paying a fair shareof taxes

Address payinequality for

women

Helping thegovernment to

govern fairly andeffectively

Addressingincome 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

Solid majorities of the public in both developed and emerging markets view most major

industries favorably

Q: How favorable are you towards the following industries?

9085 84 84 81 81

76 75 72 70 69 6964 61

8479 76 79

65 6569

56

47

6052

47 50 47


10

Corporations are viewed 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

responsibleGP C-SUITE

GP C-SUITE

11

Corporations are overwhelmingly 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


GP C-SUITEGP C-SUITE

1212

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

1313

In developed markets, 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

1414

The general public 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

1515

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 OWEDON’T KNOW

China is the outlier, with 63% of both audiences saying corporations

tend to pay what they owe


EMERGING

MARKETS

DEVELOPED

MARKETS

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


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

Perspectives diverge between

“Main Street” and “C-Suite,”

especially in developed markets


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

GENERAL

PUBLICC-SUITE

GENERAL

PUBLIC

C-SUITE

EMERGING

MARKETS

DEVELOPED

MARKETS

EMERGING

MARKETS

DEVELOPED

MARKETS

EMERGING

MARKETS

DEVELOPED

MARKETS

EMERGING

MARKETS

DEVELOPED

MARKETS

19

General public 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

(continued)


FRANCE GERMANY

DEVELOPED

MARKETS

GENERAL

PUBLIC

C-SUITE

21

(continued)


AUSTRALIA

DEVELOPED

MARKETS

GENERAL

PUBLIC

C-SUITE

22

(continued)


CHINA BRAZIL

GENERAL

PUBLIC

C-SUITE

EMERGING MARKETS

23

(continued)


INDIA UNITED ARAB EMIRATES

GENERAL

PUBLIC

C-SUITE

EMERGING MARKETS

24

(continued)


SOUTH AFRICA

GENERAL

PUBLIC

C-SUITE

EMERGING MARKETS

25

There is a generational divide

within the US general public over

consumer priorities and

perspectives


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 MADEDON’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

Q: If a corporation outsources its manufacturing to another country, does that tend to make you more

or less favorable toward it?


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

Q: How does a corporation’s philanthropic giving influence your purchase habits?


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

Q: Which of the following do you think is the main reason corporations undertake philanthropic efforts?


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 know35+

18-34

30

Opposite Sides of the World: China

and the US Out of Sync


3131

The general public 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

UNFAVORABL

E

UNITED STATES CHINA

32

73%

17%12%

80%

15%

3%

Q: In your opinion, is government more on the side of average citizens or corporations?


CORPORATIONS

AVERAGE

CITIZENS

DON’T

KNOWCORPORATIONS

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

3333

The US general 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?


Government, 51%

Don't know, 11%

Corporations, 38%

Government, 95%

Don't know, 1%

Corporations, 3%

UNITED STATES CHINA

34

A majority in 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


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

3535

While there is 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?


UNITED STATES

CHINA

36

CEOs have an opportunity to

reshape their corporations’

reputations by redefining their

own


37

Globally, people look 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 ofgovernment

Politicians CorporateCEOs

Central Bankleaders

Journalists Labor unionleaders

Clergy Entertainers Universityleaders

ProfessionalAthletes

Other Don't know


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

However, CEOs are 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 ofgovernment

Clergy ProfessionalAthletes

CorporateCEOs

Universityleaders

Entertainers Politicians Journalists Central Bankleaders

Labor unionleaders

Other Don't know


Corporate CEOs are more respected by

respondents in emerging markets than developed

markets, most notably the BRIC nations, minus Russia

39

Corporate executives tend to be seen as most motivated by their own compensation


Their compensation (such as salary,

bonuses and stock options)36 34 40 33

Satisfying the corporation’s

shareholders18 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

There is concern 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

There is uncertainty 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 andexternal stakeholders to buildsupport for the organisation

Solving issues that theorganisation is facing

Defining the purpose or missionof the corporation

Creatively identifying newopportunities

Other

Don't know

Q: Which of the following best describes the role of CEO?

DEVELOPED

MARKETS

EMERGING

MARKETS

42

Corporations can strengthen their

reputations by communicating

more on the issues the general

public wants to know about more


43

General public has 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?


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 MARKETSDEVELOPED

MARKETS

TOO MUCHNOT ENOUGH THE RIGHT AMOUNT DON’T KNOW

burson marsteller-cnbc corporation perception indicator - topline findings - final - arial

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