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2012
EDELMAN TRUST BAROMETER:
U.S. FINANCIAL SERVICES AND
BANKING INDUSTRIES

Winning back the license to operate
2012 Edelman Trust Barometer
    METHODOLOGY OVERVIEW
                                                                                                 GENERAL   INFORMED   INFORMED
                                                                                                  PUBLIC     PUBLIC     PUBLIC
                                                                                                              25-64      35-64
        Twelfth Annual Study

        Online survey in 25 countries
        30,000+ respondents
        1,000 general population respondents per country
        Ages 18+
        Oversample of informed publics*
        500 respondents in U.S. and China & 200 in
        all other countries
        Ages 25-64
                  (Trending data among Ages 35-64)
        College-educated
        In top 25% of household income per age group in
        each country
        Report significant media consumption and
        engagement in business news and public policy
        * This year Informed Publics were surveyed via online methodology instead of telephone

                                               Regions
        APAC: Japan, South Korea, China, India, Australia, Indonesia, Singapore, Hong Kong,
        Malaysia
        EMEA: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K.,
        UAE, Russia
        North America: United States, Canada
        Latin America: Mexico, Brazil, Argentina
        EU: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K.

2   © Edelman, 2012. All rights reserved.
WHY ACTIVATE TRUST?
       WHY NOT JUST FOCUS ON REPUTATION?

                     > TRUST and REPUTATION are inter-relational, not hierarchical.
                     > REPUTATION is invaluable, but doesn’t inherently provide license to lead.




                       REPUTATION           TRUST
                       is an aggregate      is an expectation of future
                       "analysis" of        behavior based on past
                       past behavior        performance




3   © Edelman, 2012. All rights reserved.
WHAT IS THE STATE OF TRUST IN U.S.
            FINANCIAL SERVICES?
                                            2012




4   © Edelman, 2012. All rights reserved.
The U.S. is still more trusting of the Financial Services Industry than other
      developed economies; however, the Industry is only trusted by a majority of                                                                                                                           GENERAL
                                                                                                                                                                                                             PUBLIC
      respondents in nine markets
      TRUST IN THE FINANCIAL SERVICES INDUSTRY


                                                                                                                                                                                          APAC
                                      APAC
                                                                                                                 U.S.                                                                     Latin America

                              72%                                                                                                                                                         North America
                                      67% 66%
                                              64%                                                                                                                                         EMEA
                                                        61% 59%
                                                                57% 57% 56%
50%                                                                                         49% 46%
                      43%                                                                                 44% 41%                                                     EMEA
                                                                                                                  39% 39% 37%
                                                                                                                                              34% 32%
                                                                                                                                                      31% 31% 29%

                                                                                                                                                                                  20% 18%
                                                                                                                                                                                          17% 16%




Q16-26. [Financial Services TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you 'do
not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust), General Population, 25-Country Global Total




  5   © Edelman, 2012. All rights reserved.
Trust in Financial Services is higher than trust in Business in 9 of 25 markets;
        the U.S. however, is more trusting of Business than Financial Services                                                                                                                                                                                                                  GENERAL
                                                                                                                                                                                                                                                                                                 PUBLIC

        TRUST IN THE FINANCIAL SERVICES INDUSTRY & TRUST IN BUSINESS – HEAT MAP INDEX




                        *Negative and positive
                       numbers are difference
                         between industry and
                    business. Positive numbers
                   and darker colors represent
                 countries where the Financial
                    Services Industry is trusted
                    more than Business overall




                                                                                                                                                                                                    Netherlands
                                                                                                                      Hong Kong




                                                                                                                                                                                                                                               Singapore
                                                 Argentina




                                                                                                                                          Indonesia
                                                                                                            Germany




                                                                                                                                                                                Malaysia
                                                             Australia




                                                                                                                                                                                                                                    S. Korea




                                                                                                                                                                                                                                                                   Sweden
                                                                                  Canada




                                                                                                                                                                                           Mexico
                                                                                                                                                      Ireland




                                                                                                                                                                                                                  Poland
                                                                                                   France




                                                                                                                                                                                                                           Russia
                                                                                                                                                                        Japan
                                                                                           China
                                                                         Brazil




                                                                                                                                                                                                                                                           Spain
                                                                                                                                  India




                                                                                                                                                                Italy




                                                                                                                                                                                                                                                                            UAE

                                                                                                                                                                                                                                                                                  U.K.

                                                                                                                                                                                                                                                                                         U.S.
              Financial Services                 39          46          49       56       72      20       17        57          59      66          18        32      39      67         61       37            31       34       44         64          16      31       57    29     41
                    Business                     49          45          55       51       62      27       33        42          61      63          36        50      40      58         68       52            37       32       30         59          35      45       54    38     44
                   Difference                    -10          1          -6       5        10      -7 -16 15                      -2       3          -18 -18 -1                 9         -7 -15 -6                       2        14          5          -19 -14          3     -9     -3
Q16-26. [Financial Services TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you 'do not
trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box – Trust), General Population, Global 25-Country Total; Q11 -14. [Business in General TRACKING] Below is a list of institutions. For each one,
please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust),
General Population, 25-Country Global Total




    6    © Edelman, 2012. All rights reserved.
Financial Services and Banking remain least trusted industries in the world
    TRUST IN INDUSTRIES – GLOBAL AND UNITED STATES




                                            2011                                                                                                2012
                                                                                                                                   Technology
                        Technology                                                       80%                                                                                                       79%
                                                                                                                                  Automotive
            Telecommunications                                                    67%                                                                                                        66%
                                                                                                                          Food and beverage
                       Automotive                                                 67%                                                                                                    64%
                                                                                                                Consumer packaged goods
              Food and beverage                                                 64%                                                                                                     62%
                                                                                                                       Telecommunications
                  Pharmaceuticals                                             61%                                                                                                       60%
                                                                                                                          Brewing and spirits
                              Energy                                         60%                                                                                                       59%

     Consumer packaged goods                                                                                                 Pharmaceuticals
                                                                            57%                                                                                                        56%

              Brewing and spirits                                                                                                       Energy
                                                                            57%                                                                                                    53%

                              Media                                                                                                      Media
                                                                         52%                                                                                                      51%

                               Banks                                                                                                     Banks
                                                                       50%                                                                                                     47%

                Financial services                                                                                          Financial services
                                                                      48%                                                                                                     45%

                                                                                                                                                                                                   *Significant difference at
                                                                                                                                                                                                   the 95% confidence level
                                                                                                                                                                                                   vs. 2012 global

    Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one
    means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in 20 country global total (excludes
    Argentina, Hong Kong, Malaysia, Singapore and UAE) and U.S. & Informed Publics ages 35-64 in 18 country global total


7   © Edelman, 2012. All rights reserved.
In the U.S., Financial Services and Banking have gained trust but remain
    at the bottom
    TRUST IN INDUSTRIES – UNITED STATES




                                            2011                                                                                                  2012
                      Technology                                              73%                                           Technology                                                    83%      + 10

           Food and beverage                                        54%                                 Consumer packaged goods                                                         74% + 26

            Brewing and spirits                                     53%                                           Food and beverage                                                     74% + 20

          Telecommunications                                      51%                                              Brewing and spirits                                              71% + 18

                       Automotive                                49%                                                        Automotive                                            66% + 17

 Consumer packaged goods                                         48%                                             Telecommunications                                              64% + 13

                             Energy                           43%                                                                Energy                                        56% + 13

               Pharmaceuticals                             38%                                                        Pharmaceuticals                                          56% + 18

              Financial services                    25%                                                                           Media                                 48% + 26

                              Banks                 25%                                                             Financial services                                 46%       + 21

                              Media               22%                                                                             Banks                             41%         + 16




Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one
means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in the U.S.


8   © Edelman, 2012. All rights reserved.
U.S. trust in banks did rise last year, but is still significantly below
    2007-2008 levels
    TRUST IN BANKS
            US

            UK/France/Germany

            China

            India

    100%
                                                                                                                                                                    88%
    90%                                                                                        84%                                85%                                                      90%
                                                             83%
                             77%                                                                                                                                    87%                82%
    80%
                                                             72%                                                              83%
                                                                                                81%
                        75%
    70%                                                           69%                                                                                                          34 point decline
                        68%                                                                                                                                                      since 2008
    60%

    50%

    40%                                                                                        36%
                                                             41%                                                                  29%
                             39%                                                                                                                                    29%                35%
    30%

    20%                                                                                        27%
                                                                                                                                                                    24%
                                                                                                                                  22%                                                21%
    10%

      0%
                           2007                             2008                              2009                              2010                               2011             2012


    Q16-26. [Banks TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale
    where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 35-64 in the U.S.,
    UK/France/Germany, China, India, Japan and South Korea



9   © Edelman, 2012. All rights reserved.
HOW DO WE REACH FINANCIAL SERVICES
            INDUSTRY TRUSTERS AND DISTRUSTERS?
                                             2012




10   © Edelman, 2012. All rights reserved.
In the U.S., the Financial Services Industry must win back trust among
      distrusters ages 30-64                                                                                                                                                                                   GENERAL
                                                                                                                                                                                                                PUBLIC
      FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS BY SEGMENT (AGE, GENDER, EDUCATION, INCOME) – UNITED STATES


      SEGMENT                                        INDUSTRY TRUSTERS                                                                INDUSTRY DISTRUSTERS
                                                    18-29               30-44                45-64               65+                         18-29                30-44               45-64                65+
                Age                                  32%                 31%                  26%               11%                            19%                 30%                 40%                 10%




           Gender
                                                      52% Male                                                                           53% Male
                                                                                48% Female                                                                           47% Female


      Bachelors+
      Education                                                 49%                                                                                   48% 
                                              $10,000-$49,999         $50,000-$99,999                    $100,000+           $10,000-$49,999                $50,000-$99,999                    $100,000+

         Income $                                  34%                         35%                            19%                      41%                           30%                           14%



Q1. What is your current age?; Q6. Are you male or female?; Q7. What is the last grade in school you completed? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General
Population, U.S




 11   © Edelman, 2012. All rights reserved.
U.S. Financial Services Industry trusters and distrusters are most trusting of
     traditional media; distrusters are less trusting of corporate sources                                                                                                                                  GENERAL
                                                                                                                                                                                                             PUBLIC


     TRUST IN INFORMATION SOURCES – UNITED STATES
         Financial Services Industry Trusters

         Financial Services Industry Distrusters
                           83%
                                                                              79%                                                                                                     77%
                                            67%
                                                                                             64%
                                                                                                                                  57%


                                                                                                                                                 39%
                                                                                                                                                                                                      31%




                            TRADITIONAL                                    ONLINE MULTIPLE                                        SOCIAL MEDIA                                          CORPORATE
                                                                              SOURCES




     Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or
     not at all as a source of information about a company. (Trust, Top 3-4), General Population, 25 country global total; [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a
     1-9 scale], General Population, U.S.


12   © Edelman, 2012. All rights reserved.
Financial Services distrusters turn first to traditional media, are more likely
  than trusters to use online search engines for company announcements                                                                                                                  GENERAL
                                                                                                                                                                                         PUBLIC
  FIRST SOURCE FOR COMPANY ANNOUNCEMENTS – UNITED STATES




             40%          40%
                                     36%
                                                                       31%
                                                             28%
                                                  22%
                                                                                         18%
                                                                                                    13%
                                                                                                              11%
                                                                                                                                 9%                  7%
                                                                                                                                            7%                         7%     7%
                                                                                                                                                                                   4%



          Traditional Media                   Online Search Engines                       Owned Media                            Hybrid Media                            Social Media
                         Financial Services Industry Trusters                   Financial Services Industry Swing                      Financial Services Industry Distrusters


Q183. And when a company makes an announcement, such as a new CEO or financial earnings, which type of source would you go to first to find information about the company's
announcement? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.




 13   © Edelman, 2012. All rights reserved.
Credibility of “person like me” and regular employee surges over the past year
  in the U.S.; CEO falls to the bottom two in 2012
     CREDIBLE SPOKESPEOPLE – UNITED STATES



                                              2011                                                                                            2012
                  Academic or expert                                       67%                                         Academic or expert                                             74%    +7

 Technical expert in the company                                         63%                                         A person like yourself                                         71%     + 39

                  NGO representative                        35%                                         Technical expert in the company                                            68%


                                      CEO                  34%                                                          Regular employee                                        62%     + 39

       Financial or industry analyst                       33%                                                         NGO representative                                     58%     + 23

                A person like yourself                    32%                                                Financial or industry analyst                               47%     + 14

  Government official or regulator                       28%                                                                            CEO                        34%


                    Regular employee                  23%                                                Government official or regulator                        31%




Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--
extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in United States



14    © Edelman, 2012. All rights reserved.
A technical expert in a company is the most credible spokesperson among
     Financial Services trusters, while a “person like yourself” is most credible                                                                                                                      GENERAL
                                                                                                                                                                                                        PUBLIC
     among distrusters
     CREDIBLE SPOKESPEOPLE – UNITED STATES
                             - 50 Gap                                           - 49 Gap                                           - 32 Gap                                        - 35 Gap
                  65%                                                  76%                                             80%

                                                                                                                                48%            Industry                    49%
                                                                                27%                                                         Trusters most
                            15%                                                                                                                 trusted                             14%
                                                                        #3       #6                                     #1       #4                                         #8
                   #5        #7                                                                                                             spokesperson                             #8
                        CEO                                    Financial or Industry                            Technical Expert in                                Government Official
                                                                     Analyst                                      the Company                                         or Regulator


                                                                           Financial Services Industry TRUSTERS
                                                                           Financial Services Industry DISTRUSTERS

                  79%                                                                                                                                                   74%
                                  - 26 Gap                                            - 18 Gap                          65%               - 8 Gap                                68% - 6 Gap
                                                                       60%                                                       57%
                            53%
                                                                                42%                                                                                                            Industry
                                                                                                                                                                                              Distrusters
                                                                                                                                                                          #4      #1
                   #2        #3                                         #7       #5                                      #5       #2                                                         most trusted
                                                                                                                                                                                             spokesperson

         Academic or Expert                                    NGO Representative                                 Regular Employee                               Person Like Yourself


Q119-126. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible,
very credible, somewhat credible, or not credible at all? Total Credible (3-4), [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.




15   © Edelman, 2012. All rights reserved.
Skepticism requires repetition
      MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE

      UNITED STATES




                                                                   Ten or more times (10+),
                                                                                                                  Once (1), 6%
                                                                                10%
                                              Six to nine times (6-9),
                                                                                                                                          Twice (2), 12%
                                                            6%




                                                                                                                                                      Three times (3), 34%

                                 Four or five times (4 - 5),
                                              32%

                                                                                                                                    Three to five times (3-5)
                                                                                                                                                     66%



Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be
exposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses)
Informed publics ages 25-64 in the U.S.

 16   © Edelman, 2012. All rights reserved.
WHAT IS THE ROLE OF GOVERNMENT?

                                             2012




17   © Edelman, 2012. All rights reserved.
Government performance is not meeting public’s expectations in the U.S.                                                                                                                                        GENERAL
                                                                                                                                                                                                                     PUBLIC
     UNITED STATES
          Government
          Importance
          Government
          Performance
                                                                                                                                                                                                                    Gap
                                                                                                                                                                                                              74%   -57
                          LISTENS TO CITIZENS' NEEDS AND FEEDBACK
                                                                                                                                17%

                                                                                                                                                                                                              74%   -56
                      COMMUNICATES FREQUENTLY AND HONESTLY
                                                                                                                                  18%

                                                                                                                                                                                                            72%     -55
                              HAS TRANSPARENT AND OPEN PRACTICES
                                                                                                                                17%

         EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE                                                                                                                                                   71%     -54
                            COUNTRY                                                                                             17%

 CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT                                                                                                                                           55%                   -37
                 LOCAL COMMUNITIES                                                                                                18%

                                                                                                                                                                                             54%                    -34
        WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
                                                                                                                                     20%

         PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE                                                                                                                                  51%                         -35
                   EMPLOYMENT OPPORTUNITIES                                                                                   16%

     PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO                                                                                                           37%
                 ADDRESS SOCIETAL ISSUES                                                                                                                                                                            -21
                                                                                                                              16%




Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is 'not at all important to building your trust'
and nine means it is 'extremely important to building your trust'. (Top 2 Box , Very/Extremely Important) General Population in United States; Q140-147. Please rate your government on how well you
think they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well".
(Top 2 Box , Performing Very/Extremely Well) General Population in the U.S.


18   © Edelman, 2012. All rights reserved.
Financial Services distrusters feel business is not regulated enough by
     government; over one quarter of trusters believe business is regulated the                                                                                                                   GENERAL
                                                                                                                                                                                                   PUBLIC
     right amount
     VIEWS OF GOVERNMENT REGULATION OF BUSINESS – UNITED STATES




                                                                                                                                                                                47%

                                                                                              - 20 Gap
                   33%                        31%                                                                                                  31%
                                                                                  27%



                                                                                                                7%


                               Too Much                                                  Right Amount                                                       Not Enough


           Financial Services Industry Trusters
           Financial Services Industry Distrusters

        Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? [Trusters=Top 2 Box, Swing =5,
        Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.




19   © Edelman, 2012. All rights reserved.
Calls for greater protection and responsible behavior
      THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS:

            GLOBAL

                31%               PROTECT CONSUMERS from irresponsible business practices                                                                          33%


                 25%              REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly                                                        24%


                 19%                                                                                                                                               11%
                                    BUILD INFRASTRUCTURE that promotes and facilitates business opportunities


                 16%                                                                                                                                               21%
                                    Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries


                 4%                                                                                                                                                1%
                                    GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis


                 4%                                                                                                                                                8%
                                    Government SHOULD NOT PLAY A ROLE in business




Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total and U.S.



 20   © Edelman, 2012. All rights reserved.
WINNING BACK “LICENSE TO OPERATE”

                                             2012




21   © Edelman, 2012. All rights reserved.
Business not meeting public’s expectations in the U.S.
                                                                                                                                                                                                                   GENERAL
     UNITED STATES                                                                                                                                                                                                  PUBLIC
                                                                                                                                                                                                                Gap
        Business
                                              HAS ETHICAL BUSINESS PRACTICES                                                                                                                                 76% -37
        Importance                                                                                                                                   39%
        Company
        Performance             LISTENS TO CUSTOMER NEEDS AND FEEDBACK                                                                                                                                       76% -34
                                                                                                                                                         42%

                               OFFERS HIGH QUALITY PRODUCTS OR SERVICES                                                                                                                                 73%
                                                                                                                                                                               56%                               -17

         TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS                                                                                                                                     72%       -34
                                                                                                                                                   38%

                                                       TREATS EMPLOYEES WELL                                                                                                                          71%        -38
                                                                                                                                            33%

                                        PLACES CUSTOMERS AHEAD OF PROFITS                                                                                                                             70%        -38
                                                                                                                                           32%

                         HAS TRANSPARENT AND OPEN BUSINESS PRACTICES                                                                                                                            66%              -34
                                                                                                                                           32%
     COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS                                                                                                                               65%                  -31
                                                    BUSINESS                                                                                  34%
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY                                                                                                                     57%                              -26
                              IN WHICH THE COMPANY OPERATES                                                                              31%

                    WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT                                                                                                             55%                                 -21
                                                                                                                                             34%

                   ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS                                                                                                       54%                                  -19
                                                                                                                                              35%
                                                                                                                                                                       51%                                       -16
         HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
                                                                                                                                              35%

                IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS                                                                                                 49%                                           -2
                                                                                                                                                                 47%

                DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS                                                                                                 48%                                           -21
                                                                                                                                   27%
            RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST                                                                                           44%
            COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES'                                                                           31%                                                                     -13
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS                                                                              31%
                                            SOCIETAL ISSUES                                                               21%                                                                                    -10

     Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your
     trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in the US (excludes ‘Don’t Know’
     responses);Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are
     performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in the U.S.


22    © Edelman, 2012. All rights reserved.
Ethical business practices and listening to customer needs and feedback
        are the most important attributes to building U.S. stakeholder trust in                                                                                                                                     GENERAL
                                                                                                                                                                                                                     PUBLIC
        Financial Services
                                                                                                                                                                                                            SOCIETAL
        FINANCIAL SERVICES INDUSTRY TRUST BUILDING ATTRIBUTES – UNITED STATES
                                                                                                                                                                                                        OPERATIONAL

                                                      HAS ETHICAL BUSINESS PRACTICES                                                                                                                                      76%
                                       LISTENS TO CUSTOMER NEEDS AND FEEDBACK                                                                                                                                           74%
                                                  PLACES CUSTOMERS AHEAD OF PROFITS                                                                                                                                    73%
                           TAKES RESPONSIBLE ACTIONS TO ADDRESS ISSUE/CRISIS                                                                                                                                       71%
                                                             TREATS EMPLOYEES WELL                                                                                                                                70%
        COMMUNICATES FREQUENTLY & HONESTLY ON STATE OF ITS BUSINESS                                                                                                                                             69%
                                      OFFERS HIGH QUALITY PRODUCTS OR SERVICES                                                                                                                             66%
                                HAS TRANSPARENT AND OPEN BUSINESS PRACTICES                                                                                                                              65%
                          ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS                                                                                                                57%
              CREATES PROGRAMS TO POSITIVELY IMPACT LOCAL COMMUNITY                                                                                                                      55%
                       DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS                                                                                                              54%
               HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP                                                                                                                   54%
                          WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT                                                                                                    46%
                                   RANKS ON A GLOBAL LIST OF TOP CO's/BEST CO's                                                                                         45%
                       IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS                                                                                              44%
PARTNERS WITH NGO'S, GOV'T, THIRD PARTIES TO ADDRESS SOCIETAL ISSUES                                                                                         38%


        Q70-85/Q86-101. Please think about businesses in the Financial Services Industry. How important is each of the following actions to building your trust in businesses in the Financial Services Industry? Please use
        a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. [Top 2 Box, Trust - Very Important (8-9)], General
        Population, U.S.




   23     © Edelman, 2012. All rights reserved.
U.S. Financial Services Industry: societal attributes are more important to                                                                                                                                      GENERAL
      building future trust                                                                                                                                                                                             PUBLIC


    CURRENT TRUST                                                                                                                          BUILDING FUTURE TRUST
Attributes that Correlate with Current Trust                                                                                              Most Important Attributes that Build Trust
         41% TRUST FINANCIAL SERVICES INDUSTRY                                                                                                 1) Has ethical business practices

      1) Delivers consistent financial returns                                                                                                 2) Listens to customer needs and feedback

                                                                                                                                               3) Places customers ahead of profits
       CURRENT TRUST                                                                                                                           4) Takes actions to address issue or crisis
       DRIVEN BY OPERATIONAL
       ATTRIBUTES                                                                                                                              5) Treats employees well

                                                                                                                                               6) Communicates frequently and honestly

                                                                                                                                               7) High quality products or services
       Societal
                                                                                                                                               8) Has transparent and open business
       Operational
                                                                                                                                               9) Addresses society's needs

                                                                                                                                              10) Positively impacts the local community

                                                                                                                                              11) Delivers consistent financial returns

                                                                                                                                              11) Highly regarded, top leadership

                                                                                                                                              13) Works to protect/improve environment

                                                                                                                                              14) Ranks on a global list

                                                                                                                                              15) Innovator of new products

                                                                                                                                              16) Partners with third parties
 Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and
 nine means that you “trust them a great deal”. (Top 4 Box, Trust) General population in the U.S.; Q70-85/Q86-101. Please think about businesses in the [INSERT INDUSTRY] industry. How important is each of the following
 actions to building your trust in businesses in the [INSERT INDUSTRY] industry? Please use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely
 important to building your trust”. (Top 2 Box, Very/ Extremely Important) General Population in the U.S. (excludes ‘Don’t Know’ responses)
 * ‘Current Trust’ results based on regression analysis of the general population

 24   © Edelman, 2012. All rights reserved.
Financial Services Industry needs to win back trust
                                in order to re-earn license to operate

                          Exercise principles-based leadership, not rules-based performance
                               Recognize that operational factors responsible for current trust
                                won’t build future trust; societal and engagement behaviors will
                                             Prepare for crisis, and if one occurs, do the right thing
                                   Use the channels and spokespeople who are most trusted
                                              Build trust among those who don’t trust you yet




                                              Exercise utilizing frequent communications channels




25   © Edelman, 2012. All rights reserved.

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2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries

  • 1. 2012 EDELMAN TRUST BAROMETER: U.S. FINANCIAL SERVICES AND BANKING INDUSTRIES Winning back the license to operate
  • 2. 2012 Edelman Trust Barometer METHODOLOGY OVERVIEW GENERAL INFORMED INFORMED PUBLIC PUBLIC PUBLIC 25-64 35-64 Twelfth Annual Study Online survey in 25 countries 30,000+ respondents 1,000 general population respondents per country Ages 18+ Oversample of informed publics* 500 respondents in U.S. and China & 200 in all other countries Ages 25-64  (Trending data among Ages 35-64) College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy * This year Informed Publics were surveyed via online methodology instead of telephone Regions APAC: Japan, South Korea, China, India, Australia, Indonesia, Singapore, Hong Kong, Malaysia EMEA: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K., UAE, Russia North America: United States, Canada Latin America: Mexico, Brazil, Argentina EU: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K. 2 © Edelman, 2012. All rights reserved.
  • 3. WHY ACTIVATE TRUST? WHY NOT JUST FOCUS ON REPUTATION? > TRUST and REPUTATION are inter-relational, not hierarchical. > REPUTATION is invaluable, but doesn’t inherently provide license to lead. REPUTATION TRUST is an aggregate is an expectation of future "analysis" of behavior based on past past behavior performance 3 © Edelman, 2012. All rights reserved.
  • 4. WHAT IS THE STATE OF TRUST IN U.S. FINANCIAL SERVICES? 2012 4 © Edelman, 2012. All rights reserved.
  • 5. The U.S. is still more trusting of the Financial Services Industry than other developed economies; however, the Industry is only trusted by a majority of GENERAL PUBLIC respondents in nine markets TRUST IN THE FINANCIAL SERVICES INDUSTRY APAC APAC U.S. Latin America 72% North America 67% 66% 64% EMEA 61% 59% 57% 57% 56% 50% 49% 46% 43% 44% 41% EMEA 39% 39% 37% 34% 32% 31% 31% 29% 20% 18% 17% 16% Q16-26. [Financial Services TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust), General Population, 25-Country Global Total 5 © Edelman, 2012. All rights reserved.
  • 6. Trust in Financial Services is higher than trust in Business in 9 of 25 markets; the U.S. however, is more trusting of Business than Financial Services GENERAL PUBLIC TRUST IN THE FINANCIAL SERVICES INDUSTRY & TRUST IN BUSINESS – HEAT MAP INDEX *Negative and positive numbers are difference between industry and business. Positive numbers and darker colors represent countries where the Financial Services Industry is trusted more than Business overall Netherlands Hong Kong Singapore Argentina Indonesia Germany Malaysia Australia S. Korea Sweden Canada Mexico Ireland Poland France Russia Japan China Brazil Spain India Italy UAE U.K. U.S. Financial Services 39 46 49 56 72 20 17 57 59 66 18 32 39 67 61 37 31 34 44 64 16 31 57 29 41 Business 49 45 55 51 62 27 33 42 61 63 36 50 40 58 68 52 37 32 30 59 35 45 54 38 44 Difference -10 1 -6 5 10 -7 -16 15 -2 3 -18 -18 -1 9 -7 -15 -6 2 14 5 -19 -14 3 -9 -3 Q16-26. [Financial Services TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box – Trust), General Population, Global 25-Country Total; Q11 -14. [Business in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust), General Population, 25-Country Global Total 6 © Edelman, 2012. All rights reserved.
  • 7. Financial Services and Banking remain least trusted industries in the world TRUST IN INDUSTRIES – GLOBAL AND UNITED STATES 2011 2012 Technology Technology 80% 79% Automotive Telecommunications 67% 66% Food and beverage Automotive 67% 64% Consumer packaged goods Food and beverage 64% 62% Telecommunications Pharmaceuticals 61% 60% Brewing and spirits Energy 60% 59% Consumer packaged goods Pharmaceuticals 57% 56% Brewing and spirits Energy 57% 53% Media Media 52% 51% Banks Banks 50% 47% Financial services Financial services 48% 45% *Significant difference at the 95% confidence level vs. 2012 global Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and U.S. & Informed Publics ages 35-64 in 18 country global total 7 © Edelman, 2012. All rights reserved.
  • 8. In the U.S., Financial Services and Banking have gained trust but remain at the bottom TRUST IN INDUSTRIES – UNITED STATES 2011 2012 Technology 73% Technology 83% + 10 Food and beverage 54% Consumer packaged goods 74% + 26 Brewing and spirits 53% Food and beverage 74% + 20 Telecommunications 51% Brewing and spirits 71% + 18 Automotive 49% Automotive 66% + 17 Consumer packaged goods 48% Telecommunications 64% + 13 Energy 43% Energy 56% + 13 Pharmaceuticals 38% Pharmaceuticals 56% + 18 Financial services 25% Media 48% + 26 Banks 25% Financial services 46% + 21 Media 22% Banks 41% + 16 Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in the U.S. 8 © Edelman, 2012. All rights reserved.
  • 9. U.S. trust in banks did rise last year, but is still significantly below 2007-2008 levels TRUST IN BANKS US UK/France/Germany China India 100% 88% 90% 84% 85% 90% 83% 77% 87% 82% 80% 72% 83% 81% 75% 70% 69% 34 point decline 68% since 2008 60% 50% 40% 36% 41% 29% 39% 29% 35% 30% 20% 27% 24% 22% 21% 10% 0% 2007 2008 2009 2010 2011 2012 Q16-26. [Banks TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea 9 © Edelman, 2012. All rights reserved.
  • 10. HOW DO WE REACH FINANCIAL SERVICES INDUSTRY TRUSTERS AND DISTRUSTERS? 2012 10 © Edelman, 2012. All rights reserved.
  • 11. In the U.S., the Financial Services Industry must win back trust among distrusters ages 30-64 GENERAL PUBLIC FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS BY SEGMENT (AGE, GENDER, EDUCATION, INCOME) – UNITED STATES SEGMENT INDUSTRY TRUSTERS INDUSTRY DISTRUSTERS 18-29 30-44 45-64 65+ 18-29 30-44 45-64 65+ Age 32% 31% 26% 11% 19% 30% 40% 10% Gender 52% Male 53% Male  48% Female  47% Female Bachelors+ Education 49%  48%  $10,000-$49,999 $50,000-$99,999 $100,000+ $10,000-$49,999 $50,000-$99,999 $100,000+ Income $ 34% 35% 19% 41% 30% 14% Q1. What is your current age?; Q6. Are you male or female?; Q7. What is the last grade in school you completed? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S 11 © Edelman, 2012. All rights reserved.
  • 12. U.S. Financial Services Industry trusters and distrusters are most trusting of traditional media; distrusters are less trusting of corporate sources GENERAL PUBLIC TRUST IN INFORMATION SOURCES – UNITED STATES Financial Services Industry Trusters Financial Services Industry Distrusters 83% 79% 77% 67% 64% 57% 39% 31% TRADITIONAL ONLINE MULTIPLE SOCIAL MEDIA CORPORATE SOURCES Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Trust, Top 3-4), General Population, 25 country global total; [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S. 12 © Edelman, 2012. All rights reserved.
  • 13. Financial Services distrusters turn first to traditional media, are more likely than trusters to use online search engines for company announcements GENERAL PUBLIC FIRST SOURCE FOR COMPANY ANNOUNCEMENTS – UNITED STATES 40% 40% 36% 31% 28% 22% 18% 13% 11% 9% 7% 7% 7% 7% 4% Traditional Media Online Search Engines Owned Media Hybrid Media Social Media Financial Services Industry Trusters Financial Services Industry Swing Financial Services Industry Distrusters Q183. And when a company makes an announcement, such as a new CEO or financial earnings, which type of source would you go to first to find information about the company's announcement? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S. 13 © Edelman, 2012. All rights reserved.
  • 14. Credibility of “person like me” and regular employee surges over the past year in the U.S.; CEO falls to the bottom two in 2012 CREDIBLE SPOKESPEOPLE – UNITED STATES 2011 2012 Academic or expert 67% Academic or expert 74% +7 Technical expert in the company 63% A person like yourself 71% + 39 NGO representative 35% Technical expert in the company 68% CEO 34% Regular employee 62% + 39 Financial or industry analyst 33% NGO representative 58% + 23 A person like yourself 32% Financial or industry analyst 47% + 14 Government official or regulator 28% CEO 34% Regular employee 23% Government official or regulator 31% Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be-- extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in United States 14 © Edelman, 2012. All rights reserved.
  • 15. A technical expert in a company is the most credible spokesperson among Financial Services trusters, while a “person like yourself” is most credible GENERAL PUBLIC among distrusters CREDIBLE SPOKESPEOPLE – UNITED STATES - 50 Gap - 49 Gap - 32 Gap - 35 Gap 65% 76% 80% 48% Industry 49% 27% Trusters most 15% trusted 14% #3 #6 #1 #4 #8 #5 #7 spokesperson #8 CEO Financial or Industry Technical Expert in Government Official Analyst the Company or Regulator Financial Services Industry TRUSTERS Financial Services Industry DISTRUSTERS 79% 74% - 26 Gap - 18 Gap 65% - 8 Gap 68% - 6 Gap 60% 57% 53% 42% Industry Distrusters #4 #1 #2 #3 #7 #5 #5 #2 most trusted spokesperson Academic or Expert NGO Representative Regular Employee Person Like Yourself Q119-126. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? Total Credible (3-4), [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S. 15 © Edelman, 2012. All rights reserved.
  • 16. Skepticism requires repetition MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE UNITED STATES Ten or more times (10+), Once (1), 6% 10% Six to nine times (6-9), Twice (2), 12% 6% Three times (3), 34% Four or five times (4 - 5), 32% Three to five times (3-5) 66% Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses) Informed publics ages 25-64 in the U.S. 16 © Edelman, 2012. All rights reserved.
  • 17. WHAT IS THE ROLE OF GOVERNMENT? 2012 17 © Edelman, 2012. All rights reserved.
  • 18. Government performance is not meeting public’s expectations in the U.S. GENERAL PUBLIC UNITED STATES Government Importance Government Performance Gap 74% -57 LISTENS TO CITIZENS' NEEDS AND FEEDBACK 17% 74% -56 COMMUNICATES FREQUENTLY AND HONESTLY 18% 72% -55 HAS TRANSPARENT AND OPEN PRACTICES 17% EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 71% -54 COUNTRY 17% CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 55% -37 LOCAL COMMUNITIES 18% 54% -34 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 20% PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 51% -35 EMPLOYMENT OPPORTUNITIES 16% PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 37% ADDRESS SOCIETAL ISSUES -21 16% Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. (Top 2 Box , Very/Extremely Important) General Population in United States; Q140-147. Please rate your government on how well you think they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well". (Top 2 Box , Performing Very/Extremely Well) General Population in the U.S. 18 © Edelman, 2012. All rights reserved.
  • 19. Financial Services distrusters feel business is not regulated enough by government; over one quarter of trusters believe business is regulated the GENERAL PUBLIC right amount VIEWS OF GOVERNMENT REGULATION OF BUSINESS – UNITED STATES 47% - 20 Gap 33% 31% 31% 27% 7% Too Much Right Amount Not Enough Financial Services Industry Trusters Financial Services Industry Distrusters Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? [Trusters=Top 2 Box, Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S. 19 © Edelman, 2012. All rights reserved.
  • 20. Calls for greater protection and responsible behavior THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS: GLOBAL 31% PROTECT CONSUMERS from irresponsible business practices 33% 25% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 24% 19% 11% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 16% 21% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 4% 1% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 4% 8% Government SHOULD NOT PLAY A ROLE in business Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total and U.S. 20 © Edelman, 2012. All rights reserved.
  • 21. WINNING BACK “LICENSE TO OPERATE” 2012 21 © Edelman, 2012. All rights reserved.
  • 22. Business not meeting public’s expectations in the U.S. GENERAL UNITED STATES PUBLIC Gap Business HAS ETHICAL BUSINESS PRACTICES 76% -37 Importance 39% Company Performance LISTENS TO CUSTOMER NEEDS AND FEEDBACK 76% -34 42% OFFERS HIGH QUALITY PRODUCTS OR SERVICES 73% 56% -17 TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 72% -34 38% TREATS EMPLOYEES WELL 71% -38 33% PLACES CUSTOMERS AHEAD OF PROFITS 70% -38 32% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 66% -34 32% COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 65% -31 BUSINESS 34% CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 57% -26 IN WHICH THE COMPANY OPERATES 31% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 55% -21 34% ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS 54% -19 35% 51% -16 HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 35% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 49% -2 47% DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 48% -21 27% RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST 44% COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES' 31% -13 PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 31% SOCIETAL ISSUES 21% -10 Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in the US (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in the U.S. 22 © Edelman, 2012. All rights reserved.
  • 23. Ethical business practices and listening to customer needs and feedback are the most important attributes to building U.S. stakeholder trust in GENERAL PUBLIC Financial Services SOCIETAL FINANCIAL SERVICES INDUSTRY TRUST BUILDING ATTRIBUTES – UNITED STATES OPERATIONAL HAS ETHICAL BUSINESS PRACTICES 76% LISTENS TO CUSTOMER NEEDS AND FEEDBACK 74% PLACES CUSTOMERS AHEAD OF PROFITS 73% TAKES RESPONSIBLE ACTIONS TO ADDRESS ISSUE/CRISIS 71% TREATS EMPLOYEES WELL 70% COMMUNICATES FREQUENTLY & HONESTLY ON STATE OF ITS BUSINESS 69% OFFERS HIGH QUALITY PRODUCTS OR SERVICES 66% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 65% ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS 57% CREATES PROGRAMS TO POSITIVELY IMPACT LOCAL COMMUNITY 55% DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 54% HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 54% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 46% RANKS ON A GLOBAL LIST OF TOP CO's/BEST CO's 45% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 44% PARTNERS WITH NGO'S, GOV'T, THIRD PARTIES TO ADDRESS SOCIETAL ISSUES 38% Q70-85/Q86-101. Please think about businesses in the Financial Services Industry. How important is each of the following actions to building your trust in businesses in the Financial Services Industry? Please use a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. [Top 2 Box, Trust - Very Important (8-9)], General Population, U.S. 23 © Edelman, 2012. All rights reserved.
  • 24. U.S. Financial Services Industry: societal attributes are more important to GENERAL building future trust PUBLIC CURRENT TRUST BUILDING FUTURE TRUST Attributes that Correlate with Current Trust Most Important Attributes that Build Trust 41% TRUST FINANCIAL SERVICES INDUSTRY 1) Has ethical business practices 1) Delivers consistent financial returns 2) Listens to customer needs and feedback 3) Places customers ahead of profits CURRENT TRUST 4) Takes actions to address issue or crisis DRIVEN BY OPERATIONAL ATTRIBUTES 5) Treats employees well 6) Communicates frequently and honestly 7) High quality products or services Societal 8) Has transparent and open business Operational 9) Addresses society's needs 10) Positively impacts the local community 11) Delivers consistent financial returns 11) Highly regarded, top leadership 13) Works to protect/improve environment 14) Ranks on a global list 15) Innovator of new products 16) Partners with third parties Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General population in the U.S.; Q70-85/Q86-101. Please think about businesses in the [INSERT INDUSTRY] industry. How important is each of the following actions to building your trust in businesses in the [INSERT INDUSTRY] industry? Please use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 2 Box, Very/ Extremely Important) General Population in the U.S. (excludes ‘Don’t Know’ responses) * ‘Current Trust’ results based on regression analysis of the general population 24 © Edelman, 2012. All rights reserved.
  • 25. Financial Services Industry needs to win back trust in order to re-earn license to operate Exercise principles-based leadership, not rules-based performance Recognize that operational factors responsible for current trust won’t build future trust; societal and engagement behaviors will Prepare for crisis, and if one occurs, do the right thing Use the channels and spokespeople who are most trusted Build trust among those who don’t trust you yet Exercise utilizing frequent communications channels 25 © Edelman, 2012. All rights reserved.