my2percent

I have little to say or comment… my boss has done it all here.

A dissenting view, as he likes to say…

I am bias, but this work from my colleagues in China is brilliant.

Well worth the time investment…

http://wordsofageneration.tumblr.com/

and 

http://www.edelman.com/post/words-of-a-generation/

We launched the Edelman TRUST barometer in Hong Kong just before Chinese New Year. This is our second year of data and we are starting to see some very interesting trends emerge.  I will post more over the coming days but as a starter, here is an essay we published.  Click here  for the publish essay and more from around the region.

Hong Kong: A Trusted Business Hub in Asia Pacific

The second year of Edelman’s Trust Barometer in Hong Kong was one filled with high-profile scandals, bribery charges, arrests and accusations in both business and government. This was balanced with renewed optimism in business and recognition that free speech is still a powerful force in Hong Kong.

The year of the Water Dragon started with the arrest of billionaire brothers who run Hong Kong’s largest property developer Sun Hung Kai on bribery charges. Frustration and anxiety continued to simmer over mainland China’s rising influence and a widening gap in wealth distribution. The 2012 summer will be remembered for the protests against government plans for patriotic ‘National Education’. Suspicion of Beijing and disenchantment for new leader CY Leung are both at an all-time high.

And yet trust in Hong Kong has risen and the territory remains one of the most trusting societies in the world. It is now ranked globally as the fifth most trusting market. The SAR saw an increase of 6 percentage points in its overall composite trust score* to reach 67%, 10 points above the global average and rising three spots.

Last year’s Trust barometer showed trust in business in Hong Kong was significantly lower than in most Asia-Pacific countries, but in line with global results. However, this year’s findings show a significant 13-point increase in the trust of businesses in Hong Kong, while global trust in business rose five percentage points. These numbers appear to reflect a shift in perception of how Hong Kong sees itself in comparison to other so-called ‘old’ global economies, such as Europe. This shift may indicate a stronger association of Hong Kong to Asia and that it is a steadily becoming more trusting market.

The economy has kept its footing and trust has risen dramatically in businesses, reinforcing the city’s credentials as the business and finance hub of Asia, and bolstering its appeal to foreign investors.

Despite increased competition from Singapore and Shanghai, Hong Kong is still the place to do business.

The improved financial performance of blue-chip companies may be a key driver of this as the barometer of Hong Kong’s stock market, the Hang Seng Index, rallied 23% in 2012, the best return since 2009. Interestingly, much of this economic momentum was generated locally within the city, rather than delivered from China. The best performing members of the benchmark stock index last year include Hong Kong companies New World Development and Wharf Holdings, outshining many of the mainland firms.

But there is an interesting paradox for business and government In Hong Kong. We trust the institutions of business and Government but we see a crisis of leadership. Trust of businesses to do what is right is at 43%, while trust in business leaders to tell the truth is at 20%, a 23% gap. Trust of government to do what is right is at 53%, while trust in government leaders to tell the truth is at 17%, a 36% percent gap.

In Hong Kong, a market that values democracy, this points to a need for both governments and businesses to be more transparent.

Across the board trust is stable or improving. Non-governmental organizations (NGOs) in Hong Kong earned a 76% score in the 2013 index, up 6 percentage points from 2012, and compares with the 63% global response. Trust in government rose 1 point to 63%, beating the global response of 48%.

Trust in media in Hong Kong rose three points to 68% compared with the 57% global rating.

To a large extent, however, businesses deserve credit for helping the city’s economy weather weaker growth in global trade, as financial concerns linger over the triumvirate of the U.S., Europe and China. Strong corporate management and improved business competitiveness has helped companies in Hong Kong thrive in an uncertain environment.

Most Hong Kongers still look back with unease at the protracted economic downturn that was precipitated by the Asian Financial Crisis in 1997. With memories of those painful events still lingering, the public is no doubt grateful that they have not been reprised amid the present global economic challenges.

Increased public trust in corporations in Hong Kong may also incentivize companies to review commercial opportunities in the city, as overseas investors aim to take advantage of the goodwill towards businesses and the city’s vibrant economy. Annual foreign direct investment in Hong Kong rose to a record US$83 billion, according to the United Nations Conference on Trade & Development’s World Investment Report published in July 2012.

Hong Kong’s largest companies are now more international than ever, taking advantage of lower asset prices post the 2008 Global Financial Crisis to acquire overseas businesses. Achieving global recognition is one of the key attributes helpful for companies to build trust, and the expanding overseas investment portfolio of many Hong Kong businesses may have helped them earn increased credibility from the public. In 2012, Hong Kong Exchanges & Clearing, operator of the city’s securities exchanges, completed its acquisition of the London Metal Exchange for 1.4 billion pounds. CNOOC Ltd., a Chinese energy producer incorporated in Hong Kong, is close to clinching a US$15.1 billion purchase of Nexen in Canada.

Credibility is, as always, an important part of success here. Hong Kong is a unique place with a unique culture, sensitive to scandal and the influence of mainland China. Because of its special characteristics and circumstances, trust in Hong Kong carries a distinctive meaning. However, government may be less trusted because of a perception of corruption and ties to Beijing. Businesses, too, must be sensitive to this, or they may face embarrassment and even protests, as did Dolce & Gabbana when it attempted to prevent Hong Kong residents from taking photos of its local flagship store in favor of mainlanders a year ago.

When it comes to who Hong Kongers identify as the most credible spokespeople, regular employees of a company saw the sharpest year-on-year increase of 12 percentage points to 63%. They are followed by technical experts with a year-on-year increase of 10 points to hit 70% overall.

NGO representatives and academics or industry expert’s holds the top position as the most credible spokespeople, both at 73%. Trust in NGO representatives as spokespeople rose 9 percentage points, whereas academics or experts gained 3 percentage points. A “person like yourself” also rose 3 points to 67%.

The least credible spokespersons are financial analyst 54%, a successful entrepreneur at 53%, a CEO of a company at 48% and a blogger and a company’s board of directors both at 45%. An entertainer or athlete is at the bottom of the list at 40%.

Clearly companies need to rethink who they put forward as spokespersons. In a celebrity and CEO driven culture like Hong Kong, real questions start to arise on whom best may represent your company. MTR Corporation has taken the lead with its employee centered campaign launched last year.

We now look forward to see what the year of the snake has in store. This year’s rise in trust is significant and allows businesses and institutions to build on their past successes – they need no reminders that trust is fragile. The successful know that winning and retaining trust from their stakeholders is an ongoing effort, and they need to continually invest in branding, communications and public engagement as an integral part of their business operations.

The power of narrative, messaging and media coaching were on full display today. Zuckerberg’s performance, while not perfect, did the job that was needed. His 2% objective was to settle the audience and to build confidence. He addressed the emotional state of the audience, acknowledging it was disappointing and then went on to talk action. His non-verbal queues also sent a very clear. Remember 90% of communication is non-verbal and vocal.

Doing media interviews is a skill we are NOT born with. You need to be coached, you need to train and you need to practice… just like an elite athlete would.

He was “on the money” this time, now we have to see whether Facebook will be on the mobile money as he promised.

Facebook Stock Up 4.6% After Zuckerberg Interview.

I live far away from Australia… but sometimes not far enough. Australian politics is going from silly to insane.

Now, this is a great way to start the working week.

Edelman Named Asia-Pacific Consultancy Of The Year.

Hong Kong is also mentioned as a stand-out agency!

Really great piece by my colleague Andres Vejarano

consumerACTIONism – Home – Postcard From the Orient: Is Art in Asia Only for the Elite?.