2021 | Edelman

The Edelman Trust Barometer Special Report: Institutional Investors identifies critical issues shaping investment criteria and how companies can build trust with the investment community.

The 2021 report reveals that Canadian investors believe that companies that deliver strong environmental, social and governance (ESG) initiatives and related disclosure by Canadian issuers deserve a premium valuation. However, the majority now look at ESG through a critical lens and have a lack of confidence in companies’ ability to deliver on their ESG or net zero commitments. The 2021 report also provides important perspective on topics such as shareholder and employee activism and the recent rise of the retail investor.

The Edelman Trust Barometer Special Report: Institutional Investors is a supplement to the Edelman Trust Barometer, which is released annually at the World Economic Forum each January. This year’s report surveyed 700 institutional investors, including financial analysts, chief investment officers and portfolio managers across seven markets (Canada, U.S., U.K., Germany, the Netherlands, the Middle East and Japan). The report is launched annually in Canada by Edelman Smithfield.

Canada is facing a crisis in leadership

This year, after months of unprecedented disaster and turbulence – including the COVID-19 pandemic, economic crisis, the global outcry over systemic racism and political instability – the findings reveal widespread misinformation and mistrust of societal leaders in Canada.

In fact, 50% of respondents worry that business leaders are purposely trying to mislead them, and 46% believe the same about government leaders – this is a wake-up call for leaders, who need to take action to build trust amongst their stakeholders, or risk falling behind.

CANADIAN TRUST INSIGHTS

Spring trust bubble bursts with no institution remaining in the trusted category

In the Spring, business, government and NGOs all saw a spike in trust, moving them into the trusted category among the Canadian general population. Since then, the trust bubble has burst, with all institutions giving back most (if not all) of the gains they saw and returning to the neutral zone. Government saw the biggest increase in the Spring with a 20-point increase; however, despite declining 11 points in the past six months, government remains the most trusted institution in Canada.

Societal leaders are not trusted to do what is right

Amid urgent problems and a year of crisis, leadership is failing. Government leaders, CEOs and religious leaders are not trusted to do what is right. Instead, we’re seeing Canadians look to experts and those that are local – like people in their community – to help tackle the issues that matter most to them. In fact, 50% of respondents worry that business leaders are purposely trying to mislead them, and 46% believe the same about government leaders – this is a wake-up call for leaders, who need to take action to build trust amongst their stakeholders.

Trust in most information sources at record lows

Not one information source – traditional media (55%), search engines (47%), owned (32%) or social media (22%) – is trusted in Canada and the latter three are distrusted. All four information sources have witnessed a decline in trust compared to last year.

NEW YORK – February 23, 2021 – Today, Edelman announces the launch of Edelman’s Disinformation Shield, a global solution designed to help the private sector combat disinformation that could threaten their business interests.

Edelman’s newest CommsTech offering, Disinformation Shield will enable companies to monitor for disinformation, including on the dark web, and combat it with transparency and fact-based communications campaigns. The global team behind the offering includes corporate reputation and crisis specialists, predictive intelligence experts, behavioral scientists, and psychometric analysts.

Disinformation Shield is co-led by Edelman global corporate practice chair Jim O’Leary and Edelman Chief Data and Analytics Officer Yannis Kotziagkiaouridis. Graham Brookie, Managing Editor of The Atlantic Council’s Digital Forensic Research Lab, and Sander van der Linden, Professor of Social Psychology at the University of Cambridge and Director of the Cambridge Social Decision-Making Lab, are serving as senior advisors.

“The 2021 Edelman Trust Barometer has revealed an epidemic of disinformation, with more than two out of three executives at large global companies worrying about the weaponization of false information", said Jim O’Leary, Edelman global corporate practice chair. “In some instances, we’ve already seen this ‘infodemic’ adversely affected a company’s share price, destroy a brand’s loyal customer base, and even threaten the safety of some executives and their families.”

“The evolution of media manipulation and disinformation online requires us to completely rethink the traditional communications playbook,” said Yannis Kotziagkiaouridis, Chief Data and Analytics Officer and Head of Edelman Data & Intelligence (DxI). “We’re combining the most diverse data and cognitive science tools available to intercept and disrupt disinformation in real-time.”

The Disinformation Shield’s technology stack uses sophisticated and proprietary technology to uncover illicit actors and identify at-risk audience segments, using the latest techniques in advanced algorithms, stakeholder modeling, and highly-targeted and measurable messaging campaigns. It draws on Edelman’s deep investment in Data & Intelligence (DxI), the new business unit led by Kotziagkiaouridis, a Wunderman Thompson veteran. Together, Edelman’s people, processes, and technologies allow companies to intercept disinformation with messaging designed to break through the psychological tools deployed by threat actors.

Visit here to learn more.

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About Edelman

Edelman is a global communications firm that partners with businesses and organizations to evolve, promote and protect their brands and reputations. Our 6,000 people in more than 60 offices deliver communications strategies that give our clients the confidence to lead and act with certainty, earning the trust of their stakeholders. Our honors include the Cannes Lions Grand Prix for PR; Advertising Age’s 2019 A-List; the Holmes Report’s 2018 Global Digital Agency of the Year; and, five times, Glassdoor’s Best Places to Work. Since our founding in 1952, we have remained an independent, family-run business. Edelman owns specialty companies Edelman Data x Intelligence (research, data) and United Entertainment Group (entertainment, sports, lifestyle)..

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About Edelman Data & Intelligence

Edelman Data & Intelligence (DxI) is a global, multidisciplinary research, analytics and data consultancy with a distinctly human mission. We use data and intelligence to help businesses and organizations build trusting relationships with people: making communications more authentic, engagement more exciting and connections more meaningful. DxI brings together and integrates the necessary people-based PR, communications, social, research and exogenous data, as well as the technology infrastructure to create, collect, store and manage first-party data and identity resolution. DxI is comprised of over 350 research specialists, business scientists, data engineers, behavioral and machine-learning experts and data strategy consultants based in 15 markets around the world.

The PR Awards Asia, now in their 20th year, are presented by PRWeek Asia and Campaign Asia-Pacific and celebrate the most outstanding, inspired, and successful campaigns, individuals, and companies in Asia-Pacific’s communications industry. This year’s awards were independently judged by a panel of 69 leading senior PR practitioners. At the end, DXI's submission for the Banking Trust Index for Singapore with The Banking Association of Singapore (ABS) won silver in the Best Use of Analytics category.

Arising from a strong desire to understand public sentiment towards banks, our inaugural Banking Trust Index for Singapore (BTIS) is the first standardized means of measuring consumers’ trust towards banks in Singapore. DXI surveyed more than 3,500 Singapore residents and 15 participating banks. The BTIS played a crucial role in helping the industry conduct self-assessments and identify emerging issues to shape strategic action plans.

“This award says a lot about the need for all brands and institutions to manage their trust capital. It is the cornerstone of mutually beneficial relationships. The award also speaks to the indisputable advances Edelman has made in this field. We owe it to our clients and all the brilliant minds who helped develop our unique trust science.”

– Thibault Moreau, EVP, Head of Southeast Asia

Marketing Magazine’s Agency of the Year (AOTY) Awards, now in their 14th year, are designed to measure, reward, and recognize Singapore’s top-performing agencies, big and small. Judged by an independent panel of high-caliber marketing professionals, the awards focus on the overall performance of an agency, rather than a specific campaign. It is about products and services, business performance, perspectives and people.

DXI's Singapore team was recognized in all three of their shortlisted categories, taking home:

Silver Award for Market Research Agency of the Year
Silver Award for Analytics Agency of the Year
Bronze Award for Agency Team of the Year.

Additionally, our colleagues at EdelmanDigital Singapore took home the Bronze Award for Digital Agency of the Year and a Gold Award for Social Media Marketing Agency of the Year. Our friends and colleagues at Edelman Singapore also took home Gold Award for Public Relations Agency of the Year.

The AOTY Awards are perceived as Singapore’s leading benchmark for evaluating agency performance and a very prestigious recognition for Edelman Data & Intelligence as well as our sister partners, Edelman and Edelman Digital.

“After such an unpredictable year, these awards mean a lot. They mean that we practice what we preach. They mean that in challenging times, when remote work is the norm, we can still make a big impact for our clients. They mean that TRUST DRIVES GROWTH.”

– Thibault Moreau, EVP, Head of Southeast Asia

DXI (ranked #44) was recognized for a fourth consecutive year by the Insights & Analytics Market and Top 50 Report, within the Established Marketing Research Segment.

The Top 50 Report (formerly Honomichl & Gold) has a 47-year history. It is authored this year by Diane Bowers, a consultant to research and data analytics businesses and industry associations, in partnership with the Insights Association and Michigan State University, and sponsored by the AMA, ESOMAR, and the Global Research Business Network. Under its new name, the Insights & Analytics Market and Top 50 Report serves as a leading resource in the global market research industry, recognizing companies with demonstrated growth, strategic consultancy, and business acumen.

“The newly expanded scope of the Top 50 Report is a true reflection of the breadth of work being done by the companies leading our industry forward,” Melanie Courtright, CEO of the Insights Association, said. “The gains accomplished during a most challenging year should instill confidence that our industry’s leading companies are positioned well for the economic recovery."

This article originally appeared in Venture Beat.

It’s now a given that countries worldwide are battling for AI supremacy. To date, most of the public discussion surrounding this competition has focused on commercial gains flowing from the technology. But the AI arms race for military applications is racing ahead as well, and concerned scientists, academics, and AI industry leaders have been sounding the alarm.

Compared to existing military capabilities, AI-enabled technology can make decisions on the battlefield with mathematical speed and accuracy and never get tired. However, countries and organizations developing this tech are only just beginning to articulate ideas about how ethics will influence the wars of the near future. Clearly, the development of AI-enabled autonomous weapons systems will raise significant risks for instability and conflict escalation. However, calls to ban these weapons are unlikely to succeed.
In an era of rising military tensions and risk, leading militaries worldwide are moving ahead with AI-enabled weapons and decision support, seeking leading-edge battlefield and security applications. The military potential of these weapons is substantial, but ethical concerns are largely being brushed aside. Already they are in use to guard ships against small boat attacks, search for terrorists, stand sentry, and destroy adversary air defenses.

For now, the AI arms race is a cold war, mostly between the U.S., China, and Russia, but worries are it will become more than that. Driven by fear of other countries gaining the upper hand, the world’s military powers have been competing by leveraging AI for years — dating back at least to 1983 — to achieve an advantage in the balance of power. This continues today. Famously, Russian President Vladimir Putin has said the nation that leads in AI will be the “ruler of the world.”

How policy lines up behind military AI use

According to an article in Salon, diverse and ideologically-distinct research organizations including the Center for New American Security (CNAS), the Brookings Institution, and the Heritage Foundation have argued that America must ratchet up spending on AI research and development. A Foreign Affairs article argues that nations who fail to embrace leading technologies for the battlefield will lose their competitive advantage. Speaking about AI, former U.S. Defense Secretary Mark Esper said last year, “History informs us that those who are first to harness once-in-a-generation technologies often have a decisive advantage on the battlefield for years to come.” Indeed, leading militaries are investing heavily in AI, motivated by a desire to secure military operational advantages on the future battlefield.

Civilian oversight committees, as well as militaries, have adopted this view. Last fall, a U.S. bipartisan congressional report called on the Defense Department to get more serious about accelerating AI and autonomous capabilities. Created by Congress, the National Security Commission on AI (NSCAI) recently urged an increase in AI R&D funding over the next few years to ensure the U.S. is able to maintain its tactical edge over its adversaries and achieve “military AI readiness” by 2025.

In the future, warfare will pit “algorithm against algorithm,” claims the new NSCAI report. Although militaries have continued to compete using weapon systems similar to those of the 1980s, the NSCAI report claims: “the sources of battlefield advantage will shift from traditional factors like force size and levels of armaments to factors like superior data collection and assimilation, connectivity, computing power, algorithms, and system security.” It is possible that new AI-enabled weapons would render conventional forces near obsolete, with rows of decaying Abrams tanks gathering dust in the desert in much the same way as mothballed World War II ships lie off the coast of San Francisco. Speaking to reporters recently, Robert O. Work, vice chair of the NSCAI said of the international AI competition: “We have got … to take this competition seriously, and we need to win it.”

The accelerating AI arms race

Work to incorporate AI into the military is already far advanced. For example, militaries in the U.S., Russia, China, South Korea, the United Kingdom, Australia, Israel, Brazil, and Iran are developing cybersecurity applications, combat simulations, drone swarms, and other autonomous weapons.

A recently completed “global information dominance exercise” by U.S. Northern Command pointed to the tremendous advantages the Defense Department can achieve by applying machine learning and artificial intelligence to all-domain information. The exercise integrated information from all domains including space, cyberspace, air, land, sea, and undersea, according to Air Force Gen. Glen D. VanHerck.

Gilman Louie, a commissioner on the NSCAI report, is quoted in a news article saying: “I think it’s a mistake to think of this as an arms race” — though he added, “We don’t want to be second.”

A dangerous pursuit

West Point has started training cadets to consider ethical issues when humans lose some control over the battlefield to smart machines. Along with the ethical and political issues of an AI arms race are the increased risks of triggering an accidental war. How might this happen? Any number of ways, from a misinterpreted drone strike to autonomous jet fighters with new algorithms.

AI systems are trained on data and reflect the quality of that data along with any inherent biases and assumptions of those developing the algorithms. Gartner predictsthrough 2023, up to 10% of AI training data will be poisoned by benign or malicious actors. That is significant, especially considering the security vulnerability of critical systems.

When it comes to bias, military applications of AI are presumably no different, except that the stakes are much higher than whether an applicant gets a good rate on car insurance. Writing in War on the Rocks, Rafael Loss and Joseph Johnson argue that military deterrence is an “extremely complex” problem — one that any AI hampered by a lack of good data will not likely be able to provide solutions for in the immediate future.

How about assumptions? In 1983, the world’s superpowers drew near to accidental nuclear war, largely because the Soviet Union relied on software to make predictions that were based on false assumptions. Seemingly this could happen again, especially as AI increases the likelihood that humans would be taken out of decision making. It is an open question whether the risks of such a mistake are higher or lower with greater use of AI, but Star Trek had a vision in 1967 for how this could play out. The risks of conflict had escalated to such a degree in a “Taste of Armageddon” that war was outsourced to a computer simulation that decided who would perish.

There is no putting the genie back in the bottle. The AI arms race is well underway and leading militaries worldwide do not want to be in second place or worse. Where this will lead is subject to conjecture. Clearly, however, the wars of the future will be fought and determined by AI more than traditional “military might.” The ethical use of AI in these applications remains an open-ended issue. It was within the mandate of the NSCAI report to recommend restrictions on how the technology should be used, but this was unfortunately deferred to a later date.

Gary Grossman is Senior Vice President of Technology, and Global Lead of the Edelman AI Center of Excellence

At President Joe Biden’s Leaders Summit on Climate, the administration announced plans to cut GHG emissions by at least 52% by 2030, as part of its Nationally Determined Contribution (NDC). It’s an ambitious goal with enormous ramifications for global efforts. It’s equally significant for the private sector—another strong signal that now is the time to step up on climate leadership.

There’s been great progress by countries to decarbonize, committing to reduce emission to meet the requirements of the Paris Agreement. Governments at all levels understand their roles and responsibilities. While their efforts are commendable, they’re not enough.

“Governments are nowhere close to the level of ambition needed to limit climate change to 1.5 degrees and meet the goals of the Paris Agreement,” said UN Secretary General António Guterres, calling a February report highlighting the shortcomings of sovereign actors by the UNFCCC a “red alert.”

Averting the worst effects of climate change is the challenge of our time, but with that challenge comes unprecedented opportunities. This momentous year presents this rare opportunity to accelerate action and meet the moment.

Into this challenge steps business. Businesses will play a vital role in adopting and advancing the commitments put forth by governments, and governments will rely on strong public-private partnerships and market forces to ensure they are implemented and successful. The more involved businesses are as part of the conversation, the bigger the opportunity they have to help shape the path forward.

Many business leaders, confronted with new or expanded mandates to lead on climate, are asking a simple question: What does that leadership look like? Given the ongoing sustainability commitment arms race, changing metrics, proprietary lists and rankings and a slew of acronyms to navigate, it can be difficult to assess what constitutes corporate leadership.

A blueprint for climate leadership

Measuring corporate climate action is a complex and fractured issue. As businesses look to become leaders on climate action, they should think of Impact and Trust as their North Stars. Our own data backs this up: 2021 Edelman Trust Barometer showed us that business is the most trusted institution today, with 86 percent of participants expecting CEOs to publicly speak on societal challenges. With that trust comes responsibility as well as opportunity for those willing to lead. Such leadership often consists of the following:

Build a credible foundation: Measurable, transparent impact itself is the best barometer for sustainability leadership. There are no shortcuts to leadership, only a foundational commitment, constantly questioned, tested and improved over time, for the greatest impact on material issues.
Create both long and short-term goals: Long term commitments to action are vital, especially as the IPCC calls for net-zero global emission by 2050. But 30 years is a long time away, time we don’t have, so short-term goals and immediate action are imperative. Leading businesses have and continue to set and measure against short-term goals, while targeting longer term goals in parallel, to reduce their impact immediately.
Set science-based targets: Climate goals should be validated along science-based targets. Sector-specific goals must be in line with the latest climate science and should include clear pathways to meet the goals of the Paris Climate Agreement. The Science-Based Target initiative (SBTi) is leading this charge.
Partnerships and collaboration: If you want to go fast go alone, if you want to go far, go together. The gravity of the shared challenges we face invite cross-sector, cross-industry and even competitor collaboration. And climate action is stronger and more effective when we endeavor together.
Report and repeat: Reporting is increasingly important to measure sustainable leadership. Ensuring alignment on the issues most material to your business and to stakeholders while updating them on progress along the way is essential to a credible sustainability plan and ultimately to impact. Reporting should be honest about the challenges faced and forthright about the company’s current stage of sustainability development. Critics will otherwise be quick to denounce efforts as incomplete, insincere or as greenwashing.
Net Zero or not zero: what about offsets? Net Zero is an important goal to set. But as stakeholders look underneath the hood, Net Zero by 2050 commitments are inviting scrutiny if they lack rigor, transparency and urgency. Commitments should focus less on the net and more on the “zero,” through a stringent focus on emissions reductions (throughout the supply chain) and minimizing the use of offsets to only that portion that has no viable alternative solution.
Plan for change: Companies must stay vigilant to understand and react to the rapidly changing sustainability landscape and expectations that will continue to intensify. As devastating climate events persist, we’ll continue to see stakeholders demand more ambitious commitments to action and the evolving systems to understanding who is doing their part.

One reality that hasn’t changed since the signing of the Paris Agreement: The importance of bold leadership on climate issues can’t be understated. This is a unique moment in our history, where we have an unprecedented opportunity to build a more sustainable, equitable world with more intentional plans and policies that can pave way for brighter days ahead. Here’s to continuing progress.

We caught up with Ilaria Pattareeya Luca, Senior Account Executive, Corporate Affairs, as she reflects on her time as an intern within the Edelman’s Corporate team.

Why did you join the Edelman Corporate Internship Programme?

I started my career in fashion magazines and fashion PR but quickly realised it was not for me. As I was struggling to identify what industry I wanted to enter, I thought an internship at Edelman was the perfect setting to gain experience in a variety of sectors and understand which one I was more passionate about.

What does a typical day in your role look like?

Every day offers a new challenge, but I have some key duties that give cadence to my day such as reviewing the daily news collated by junior members of the team, ensuring team members are on track with deliverables and updating clients on campaign progress. The element I enjoy the most is keeping up with the global and local debates relevant to my clients’ industry through podcasts, research, and news consumption.

What has been your favourite project/campaign to work on?

I am very passionate about VC and innovation and have recently developed the engagement plan for a global executive who leads one of my clients’ VC operations. It was a very stimulating project as I had complete ownership of the deliverables, managed the client relationship, and it was a mix of strategy and stakeholder engagement.

What advice would you give to others applying to the Edelman Corporate Internship Programme?

Don’t be afraid of showing what you are passionate about, passion is priceless, and Edelman has a place for you to cultivate that.

How do you see your career path developing?

Having worked across multiple industries and clients, I am now planning on developing a more industry-specific knowledge of the fintech and VC industry.

25 Years of Trust

2021 Edelman Trust Barometer Special Report: Institutional Investors – Canada Results

Other Resources

2021 Edelman Trust Barometer: Canada

Canada is facing a crisis in leadership

CANADIAN TRUST INSIGHTS

Spring trust bubble bursts with no institution remaining in the trusted category

Societal leaders are not trusted to do what is right

Trust in most information sources at record lows

Other Resources

Edelman Launches First Ever Global Offering to Help Companies Fight Against Disinformation

About Edelman

About Edelman Data & Intelligence

DXI Wins at PR Awards Asia 2021

DxI Wins at Marketing Magazine AOTY Awards Singapore 2021

DXI Recognized as Top 50 U.S. Insights & Analytics Market Leader

The AI arms race has us on the road to Armageddon

How policy lines up behind military AI use

The accelerating AI arms race

A dangerous pursuit

This Earth Week, a blueprint for climate leadership

A blueprint for climate leadership

From Intern to Executive - Where the Corporate Internship Programme can take you

Why did you join the Edelman Corporate Internship Programme?

What does a typical day in your role look like?

What has been your favourite project/campaign to work on?

What advice would you give to others applying to the Edelman Corporate Internship Programme?

How do you see your career path developing?

Applications for this year's scheme have now closed

The Belief-Driven Employee