Charlie Arnot. Values Trust and Science Building Trust in an Age of Radical Transparency and Unbridled Social Media. Charlie_Arnot

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1 Values Trust and Science Building Trust in an Age of Radical Transparency and Unbridled Social Media Charlie Arnot Charlie_Arnot

2 Today s Topics How did we get here? Values, science and trust Avoiding social outrage Trust building transparency

3 Today s Food System Today food is: Safer More available More affordable And yet the very systems that created the safest, most abundant, most affordable food in history are challenged every day How did that happen?

4

5 1968 Events

6 1968 Democratic Convention

7 Vietnam

8 Christmas Eve 1968 Greetings from Lunar Orbit

9 Kent State

10 1972 Watergate Break-In

11 70s- 80s Events

12 90s 2000s Events

13 2000s - Events

14 Subprime Mortgage Crisis

15 2000s More Events

16 Food is personal We need it for survival

17 Food is personal We feed it to our children

18 Food is personal It s part of our culture/celebrations

19 Changing Industry The 10 largest grocery retailers sell the majority of groceries in the U.S.

20 Changing Industry The top 50 dairy cooperatives process 80% of milk.

21 Changing Industry The top ten chicken companies process 83% of chicken.

22 Changing Industry The top four beef packers process 85% of beef.

23 Consolidation, Integration and Industrialization

24 Significant Social Shifts Then Authority is granted by office Broad social consensus driven by WASP males Communication is formal, indirect (mass communication) Progress is inevitable Now Authority is granted by relationship No single social consensus, great diversity, many voices Communication is informal, direct (masses of communicators) Progress is possible

25 Right Direction/Wrong Track Right Direction/Wrong Track

26 Earning and Maintaining Social License (Sapp/CMA) Confidence Value Similarity Competence Influential Others Trust Social License Freedom to Operate Trust research was published in December, 2009 Journal of Rural Sociology

27 The Social License To Operate Flexible Responsive Lower Cost Social License Ethics Values Expectations Self regulation Tipping Point Single triggering event Cumulative impact Rigid Bureaucratic Higher Cost Social Control Regulation Legislation Litigation Compliance

28 Real Pressure: Food Babe When Consumers Feel Disconnected Food and Healthy Lifestyle blogger: Vani Hari, a.k.a. Food Babe Mission: to find out what s really in our food

29 Chick-Fil-A or Chemical-Fil-A?

30 Chick-Fil-A or Chemical-Fil-A? I wanted to expose Chick-Fil-A because I find it atrocious that companies can legally feed you a combination of chemicals that are known to have disastrous effects on your health. I find it even more disturbing when very smart people are easily fooled into thinking something may be a healthier option because of misleading marketing.

31 Earning and Maintaining Social License (Sapp/CMA) Confidence Value Similarity Competence Influential Others Trust Social License Freedom to Operate Trust research was published in December, 2009 Journal of Rural Sociology

32 Group Question The most important element in building trust is: 1. Giving consumers the facts 2. Connecting with them based on shared values

33 What Drives Consumer Trust? Shared values are 3-5X more important in building trust than demonstrating competence Trust research was published in December, 2009 Journal of Rural Sociology

34 Sustainable Balance Economically Viable ROI Demand Cost Control Productivity Efficiency Profitability Knowledge Sustainable Systems Ethically Grounded Ethically Grounded Compassion Responsibility Respect Fairness Truth Value Similarity Scientifically Verified Data Driven Repeatable Measurable Specific Objectivity Knowledge Feelings Belief

35 Radically Transparent Environment

36 Online in 60 seconds Source: Qmee

37 Traditional Communication Model is Less Effective in Today s Environment Traditional Communication Model Consumer Online Friends Family Neighbor Consumer Friend Family Expert Consumer Tribal Communication Model Online Friends Family Blogs

38 The Mom Tribe Consumer Panel What information sources have you used to come to your conclusions that GMOs are dangerous? Heidi: I m part of a moms group. When there is a big consensus, I think there s something here. You don t need doctors or scientists confirming it when you have hundreds of moms.

39 Avoiding Social Outrage in an Era of Radical Transparency

40 Food Affordability, Healthy Food Affordability and Food Safety Have High Potential for Outrage High Impact + High Concern = Potential for Outrage Issues Impact Concern Affordability of Food High High Affordability of Healthy Food High High Food Safety High High Impact of Processed Food on Health Moderate Moderate Increased Disease Impacted by Diet Moderate Moderate Genetic Modification in Food Moderate Moderate Impact of Sugary Drinks on Health Moderate Moderate Environmental Sustainability in Farming Moderate Moderate Classification was based on mean scores; mean scores of 8+ were considered high; mean scores of 4-7 were considered moderate; mean scores of 0-3 were considered low; all means.5+ were rounded up to the next whole number

41 Measuring Social Outrage

42 10 Outrage Factors Tested Social Outrage Factors 1. Lack of transparency 2. Intentional wrongdoing 3. Intentionally misleading 4. Putting private interest ahead of public interest 5. Insensitivity to public interest (tone deaf) 6. Callous disregard for public interest (malicious indifference) 7. Historical record of poor performance 8. Failure or unwillingness to accept responsibility 9. Impact on vulnerable populations or systems (people, animals, environment) 10.Negligence in following industry best practices *Factors stated in the Positive for Good Actor Scenarios

43 Impact of Perceptions of Good Actors and Bad Actors on Consumer Trust

44 Impact of Perceptions of Good/Bad Actors on Trust Respondents were shown four fictional news releases: Food Safety Bad Actor 3 people died Good Actor 7 people died Animal Well-Being Bad Actor intentional abuse captured on video Good Actor Intentional abuse captured on video Respondents gave ratings on the key Consumer Trust model variables: Competence, Confidence, Trust and Likelihood of Resuming Purchase

45 Group Question When it comes to building trust in on-farm animal care the best strategy is: 1. To prohibit cameras on the farm and shift the focus to the motives of activists 2. To accept responsibility and increase transparency and public engagement

46 Bad Actor Animal Well-Being Statement in Scenario It s because of situations like this that we support state laws that would prevent undercover videotaping. What happens on our farm is nobody else s business, the company said in a statement. Based on the video I have reviewed, there appears to be intentional wrongdoing and a wanton disregard for the well-being of animals, which would be a clear violation of our animal cruelty statute according to the county prosecutor. Records show that only seven of the farm s 18 employees had been certified under the pork industry s Pork Quality Assurance Plus (PQA+) program despite misleading claims on the company web site that 100 percent of their employees had completed the training. I understand the concern about pig care, but at the end of the day we are a business and we have to make money. Statement of farm owner What s the big deal? said Sam Kayley, owner of the farm. This kind of thing happens on farms, he said, apparently unaware of the public interest in animal care. Concept the Statement is Measuring Lack of Transparency Intentional Wrongdoing or Causing Harm Intentionally Misleading Putting Company Interest Ahead of Public Interest Insensitivity to Public Interest

47 Bad Actor Animal Well-Being (continued) In one instance, a farm worker is seen laughing and is heard to say these stupid pigs are getting what they deserve, showing a callous disregard for the animals. I was told I should mind my own business, said a farm worker, who points to a history of poor performance by noting that the worst abusers had worked at the farm five years or more. This isn t about animal welfare. These activist groups won t be satisfied until everybody is a vegetarian, said Kayley, owner of the farm, who appeared to shirk responsibility for the abuse. It s shameful that these vulnerable and defenseless animals unable to defend themselves are treated in such a manner. The farm neglected to follow industry best practices. Callous Disregard for Public Interest Historical Record of Poor Performance Failure or Unwillingness to Accept Responsibility Impact on Vulnerable Populations Negligence in Following Industry Best Practices

48 Good Actor Animal Well-Being Statement in Scenario In an effort to be more transparent, Kendall announced plans to install video cameras in his dairy barns, and post the video feed live on his website so that anyone can log on and see what is taking place on his farm. Investigators say Kendall has cooperated fully and there is no indication of intentional wrongdoing or that management knew about the abuse. I m glad they took the video because if this type of thing is happening I don t want to mislead anyone. I want to know about it and get it stopped, said the farm owner. I know that I have an obligation and responsibility to care for my animals. It s what the animals and the public deserve. This is first and foremost about doing what s right." We re devastated and I m certainly sensitive to why people who viewed this video are upset. What happened was completely unacceptable. Concept the Statement is Measuring Demonstrating Transparency No Intent to Do Wrong or Cause Harm Being Candid and Not Misleading Making Public Interest a Priority When Making Business Decisions Sensitive to Public Interest

49 Good Actor Animal Well-Being (Continued) We share the public s view that anyone who willfully abuses animals should be prosecuted, said the farm owner. They have a long history of excellent animal care and are known for doing things right, said farm veterinarian. I've been in the dairy business since I was a kid and I know that I have an obligation and responsibility to care for my animals. These animals deserve to be treated with respect, said the farm owner. A spokesman for a national dairy animal care certification program verified that Kendall Farms has a solid record of meeting industry best practices with participation their Dairy FARM (Farmers Assuring Responsible Management) program. Demonstrating a High Regard for Public Interest Historical Record of Good Performance Willingness to Accept Responsibility No Impact on Vulnerable Populations Diligent in Following Industry Best Practices

50 Mistreatment of Farm Animals Incident: Peace of Mind and Outrage Factor Impact Good Actor: Mistreatment of Farm Animal Incident Highest Contributor to Peace of Mind: Demonstrating transparency Highest Impact on Consumer Trust Elements: Historical record of good performance Bad Actor: Mistreatment of Farm Animals Incident Highest Contributor to Outrage: Callous disregard for public interest Intentional wrongdoing or causing harm Highest Impact on Consumer Trust Elements: Callous disregard for public interest Intentional wrongdoing or causing harm

51 Consumer Trust: Bad Actor Animal Well-Being Competence 53% 31% 16% (mean=3.65) Confidence 61% 26% 14% (mean=3.10) Trust 62% 26% 12% (mean=2.97) Likelihood of Resuming Purchasing 49% 35% 16% (mean=3.72) (n= 501) 0% 50% 100% 0 to 3 (Low Level of Trust) 4 to 7 8 to 10 (High Level of Trust)

52 Consumer Trust: Good Actor Animal Well-Being Competence 4% 35% 62% (mean=7.76) Confidence 5% 37% 59% (mean=7.58) Trust 4% 40% 56% (mean=7.54) Likelihood of Resuming Purchasing 6% 38% 57% (mean=7.50) (n= 501) 0% 50% 100% 0 to 3 (Low Level of Trust) 4 to 7 8 to 10 (High Level of Trust)

53 Trust Building Transparency

54 Overcoming the Bias Against Size Shared Values = Trust Big is Bad Inverse relationship between size and the perception of shared values

55 (Size) farms are likely to put their interests ahead of my interests. 0 to 3 4 to 7 8 to 10 Small % 53% 28% 2013 Mean % 20% 40% 60% 80% 100% 0 to 3 4 to 7 8 to 10 Large % 45% 48% 2013 Mean % 20% 40% 60% 80% 100%

56 I believe (size) food companies are likely to put their interests ahead of my interests. 0 to 3 4 to 7 8 to 10 Small % 55% 31% 2013 Mean % 20% 40% 60% 80% 100% 0 to 3 4 to 7 8 to 10 Large % 41% 53% 2013 Mean % 20% 40% 60% 80% 100%

57 Elements of Trust Building Transparency Motivations Accuracy Disclosure Credibility Stakeholder Participation Clarity Relevance

58 Trust Building Transparency Motivations Disclosure Stakeholder Participation 1. Motivation Act in a manner that is ethical and consistent with stakeholder interest. Show you understand and appreciate issues and take action that demonstrates you put public interest ahead of self-interest. 2. Disclosure Share information important to stakeholders, both positive and negative, even if it might be damaging. Make it easy to find; helpful in making informed decisions; easy to understand and timely. 3. Stakeholder Participation Ask those interested in your activities and impact, for input. Make it easy to provide; acknowledge it has been received and explain how and why you make decisions.

59 Trust Building Transparency Relevance 4. Relevance Share information stakeholders deem relevant. Ask them. Show you understand. Clarity 5. Clarity Share information that is easily understood.

60 Trust Building Transparency Credibility 6. Credibility Admit mistakes; apologize; accept responsibility; engage critics; share plans for corrective action. Demonstrate you genuinely care and present more than one side of controversial issues. Accuracy 7. Accuracy Share information that is truthful, objective, reliable and complete.

61 Our New Reality The social decision making process in complex and multidimensional Decisions are not made on facts and rational thought alone Mistrust of institutions has become the social norm Growing trend of questioning the motives and data of experts Tribal communication and relational expertise influences trusted sources and messages

62 Implications for You Who you are is as important as what you know Communicating shared values makes technical information more relevant and accessible Embrace skepticism It s not personal, it s a social condition Skepticism is the fuel for scientific discovery Transparency is no longer optional Authentic transparency is the path to building trust in science and technology in food

63 Three Things You Can Do 1. Begin your public engagement using shared values People don t care how much you know until they know how much you care. T. Roosevelt 2. Use independent credentialed experts who can connect to build credibility and use accessible language to make your message relevant Words are the tools we use to shape perception. Use the right tool 3. Commit to engaging online, in person and through your company. Your voice, your knowledge and your credibility matter. You can make a difference in building public support for today s supply chain

64 Questions/Discussion

65 Values Trust and Science Building Trust in an Age of Radical Transparency and Unbridled Social Media Charlie Arnot Charlie_Arnot