Global Deck: 2012 Edelman goodpurpose Study

GOODPURPOSEEdelman goodpurpose® 2012GLOBAL CONSUMER SURVEY

Fifth Global Consumer Study 2012What consumers have to say… CANADA INDIA 500 500 BRAZIL CHINA 500 500 US JAPAN 500 500 UK UAE 500 500 FRANCE GERMANY 500 500 NETHERLANDS ITALY 500 500 BELGIUM INDONESIA 500 500 SINGAPORE MALAYSIA 500 500 StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+

Consistent Commitment; Diverse Opportunity Improving the quality of healthcare 89% Protecting the environment 89% Ensuring access to safe drinking water 86% Equal opportunity to education 86% Stopping relationship violence and abuse 84% Reducing poverty 84% Aiding in disaster relief 83% Alleviating hunger and homelessness 83% Supporting human and civil rights 83% Encouraging tolerance for people who are different 82%Fighting the spread of global disease and pandemics 80% Helping to raise peoples self-esteem 78% Supporting animal rights 74% Supporting the creative arts 67% 3

But, Differences Exist in Local Markets (US) Alleviating hunger and homelessness 91% Improving the quality of healthcare 91% Supporting human and civil rights 90% Stopping relationship violence and abuse 89% Reducing poverty 89% Ensuring access to safe drinking water 89% Equal opportunity to education 88% Protecting the environment 87%Fighting the spread of global disease and pandemics 86% Aiding in disaster relief 86% Encouraging tolerance for people who are different 85% Supporting animal rights 78% Helping to raise peoples self-esteem 77% Supporting the creative arts 76%

The Me in We The Reengineering of Brand Marketing 5 Years of goodpurposeThe NewPurpose Bull Markets The “License to Lead” 5

5 Years of PurposeThe Reengineering of Brand Marketing

The Power of PurposeFrom product innovation and R&D, tosupply chain optimization and 360marketing, our study reveals it is thepower of Purpose that is helping to driveconsumer preference in a world wheretrust in corporations is low anddifferentiation between brands isnegligible

The Reengineering of Brand Marketing 8

Profit + Purpose: The New NormalIt is OK for brands to support good causes and make money at the same time +33% 90% 80% 76% 70% 70% 68% 60% 57% 50% 40% 30% 20% 2008 2009 2010 2012 9

Social Purpose as Purchase TriggerWhen quality and price are the same, Social Purpose most important factor 60% + 26% 53% 50% 42% 43% Growth from 2010 41% 40% • Japan (100%) • China (79%) • Netherlands (43%) 30% • Germany (36%) • India (43%) 20% 2008 2009 2010 2012 10

Global Consumers Prefer Purpose 2008 52% RECOMMEND 2009 64% 2010 63% + 39% 2012 72% 2008 53% PROMOTE 2009 59% + 34% 2010 62% 2012 71% 2009 SWITCH 67% 2010 63% + 9% 2012 73% 11

Purchase Frequency„At Least Monthly‟ purchases of cause-supporting brands increased by 47%from 2010 - 2012 2010 2012 34% 19% EVERY 6 TO 12 EVERY 6 TO 12 MONTHS MONTHS 32% 47% AT LEAST AT LEAST MONTHLY MONTHLY 12

License to LeadBuilding Future Performance on Societal Actions

The New ImperativeRather than merely exercising their“license to operate,” leading brandsand corporations of the future mustmove beyond operational imperativesand social add-on‟s to establish their“license to lead.”

Business vs. Society87% globally believe business should place at least equal weight on business and society 94% 91% 90% 90% 89% 87% 87% 87% 87% 87% 86% 85% 84% 84% 84% 83% 79% 15

Business is Struggling to Meet ExpectationsOnly 28% believe business is performing well in addressing societal issues 58% 49% 42% 42% 28% 30% 26% 27% 21% 22% 23% 23% 25% 18% 20% 13% 15% 16

Performance Gap in Addressing Societal IssuesGap could drive disillusionment, disengagement and distrust 87% Performance believe business lacking on should place addressing at least equal societal issues weight on societal issues and business issues Only 28% believe business is performing well 17

The Role of the CEOCEOs must think proactively about using their business to address issues CREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS 56% MAKE A LONG-TERM COMMITMENT TO SOCIETAL ISSUES 55% PUBLICALLY SUPPORTING SOCIETAL ISSUES 55% MOTIVATE EMPLOYEES TO TAKE PART 52% COMMUNICATE EFFORTS TO ADDRESS SOCIETAL ISSUES 51% ISSUE REPORTS ON ENVIRONMENT/SOCIAL EFFORTS 41% USE REVENUE TO PRODUCE MATERIALS THAT RAISE AWARENESS FOR SOCIETAL ISSUES 36% 18

What Should Companies be Doing?50%+ believe companies should donate a portion of profits or products/services toaddress societal issues DONATING A PORTION OF PROFITS 51% DONATING PRODUCTS OR SERVICES 50% CREATING NEW PRODUCTS OR SERVICES 49% PROVIDING EDUCATIONAL INFORMATION 47% WORKING WITH THE GOVERNMENT 45% OFFERING PROGRAMS FOR EMPLOYEES 45% PARTNERING WITH NGOS 43% ENABLING EMPLOYEES TO VOLUNTEER 42% ORGANIZING CONSUMER EVENTS 41% COLLABORATING WITH OTHER COMPANIES 36%SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES 28% EMPLOYEE FUNDRAISING PROGRAMS 27% CREATING SOFTWARE/MOBILE FUNDRAISING APPS 19% CREATING SOFTWARE/MOBILE COMMUNICATION APPS 19% 19

Consumers will praise…and punish Company that does NOT actively support a good cause _ + Company that actively supports a good causeIncrease from 2010 Increase from 2010 +7 44% 76% +9 REFUSE TO BUY PRODUCTS/SERVICES BUY ITS PRODUCTS/SERVICES +7 44% 76% +9 CRITICIZE IT TO OTHERS RECOMMEND ITS PRODUCTS/SERVICES +5 44% 73% +8 SHARE NEGATIVE OPINIONS SHARE POSITIVE OPINIONS AND EXPERIENCES AND EXPERIENCES + 11 48% 57% +4 NOT WANT TO WORK FOR IT WANT TO WORK FOR IT +7 53% 45% NOT INVEST IN IT INVEST IN IT 44% PAY A PREMIUM FOR ITS PRODUCTS/SERVICES 20

Punishment Goes Public 21

The More You KnowIt is critical for companies to make consumers aware of their efforts 92% 90% 88% 87% 87% 86% 84% 84% 80% 80% 76% 73% 73% 73% 72% 70% 68% 22

Societal Performance = The Human Factor Current Purchase Consideration Building Future Purchase IntentWorks to protect and improve the environment Treats employees wellCreates programs that positively impact the local Listens to customer needs and feedbackcommunity in which the company operatesHas ethical business practices Works to protect and improve the environmentTakes responsible actions to address an issue Has ethical business practicesor a crisis Takes responsible actions to address an issue or aAddresses society‟s needs in its everyday business crisisListens to customer needs and feedback Places customers ahead of profits Creates programs that positively impact the localTreats employees well community in which the company operatesPlaces customers ahead of profits Addresses society‟s needs in its everyday business 23

Take Note: Be More Human 24

The New “Purpose Bull Markets”

Bullish on PurposeConsumers in Rapid GrowthEconomies (RGEs) have muchhigher expectations of andengagement with brands andcorporations on societal issues.

Who are the Purpose Bull Markets? INDIA BELGIUM CHINA BRAZIL ITALY FRANCE MALAYSIA NETHERLANDS INDONESIA VS JAPAN GERMANY UAE US UK 27

Empowered to Make a Difference Purpose Bull Markets Purpose Bear Markets COMPARED TO FIVE YEARS AGO, 63% ‘PEOPLE LIKE ME’ NOW HAVE MORE POWER 29% AND INFLUENCE TO MAKE A DIFFERENCE THE RESPONSIBILITY OF 56% ‘PEOPLE LIKE ME’ HAS INCREASED 37% 28

Passion in ActionBull Market consumers contrast those in Bear Markets Purpose Bull Markets Purpose Bear Markets I HAVE MORE TRUST IN A BRAND THAT IS ETHICALLY AND 83% SOCIALLY RESPONSIBLE 66% I AM MORE LIKELY TO RECOMMEND A BRAND THAT 82% SUPPORTS A GOOD CAUSE THAN ONE THAT DOESNT 64% I WOULD HELP A BRAND PROMOTE ITS PRODUCT/SERVICES 81% IF IT HAD A GOOD CAUSE 63% I WOULD SWITCH BRANDS IF A DIFFERENT BRAND 80% SUPPORTED A GOOD CAUSE 67% I WANT BRANDS TO MAKE IT EASIER FOR ME TO MAKE A 79% DIFFERENCE IN THE WORLD 62% BRANDS CAN SUPPORT GOOD CAUSES AND MAKE MONEY 78% AT THE SAME TIME 72% I WANT BRANDS TO DO MORE FOR ME THAN PROVIDE A 73% PRODUCT 57% 29

Responsibility at WorkBull Market consumers are more likely to donate and personally participate Purpose Bull Markets Purpose Bear Markets 63% DONATED MONEY 52% VOLUNTEERED AT AN EVENT IN MY 44% COMMUNITY 23% 44% DONATED MY TIME OR EXPERTISE 23% PARTICIPATED IN FUNDRAISING EVENTS 26% SPONSORED BY A BRAND OR CORPORATION 12% 30

Paying for PurposeBull Market consumers more willing to pay a premium for Purpose 80% 71% 55% 55% 54% 43% 44% 42% 39% 38% 35% 34% 30% 30% 29% 29% 28% 31

Preference in PracticeBull Market consumers‟ cause-related purchases 84% AT LEAST 62% YEARLY AT LEAST 57% MONTHLY 37% AT LEAST AT LEAST MONTHLY YEARLY 22% 19% EVERY SIX TO 12 EVERY SIX TO 12 MONTHS MONTHS Bull Markets Bear Markets *Note: „At least yearly‟ NET may not add to the total due to rounding 32

But…activity not limited to offlineTechnology in societal action At least monthly Internet use Use mobile at least yearly 82% 76% 78% 76% 73% 71% 72% 69% 71% 66% 66% 60% 55% 45% 33

Discovering the “Me in We” 34

Defining the Me in We As the disparity between the haves and have not‟s continues, more and more consumers are discovering the me (personal need) in the we (the common good)…Purpose Gets Personal. 35

The Globalization of Need Because of the global recession, societal issues are hitting close to home Unable to pay Unable to medical Reduced My salary Reduced decreased donate as expenses or spending on 85% leisure much money to afford food shopping societal issues healthcare of those surveyed around the world. say they have been affected by the economic downturn in some way. 36

Balancing Me and We Sales 52% of global consumers believe it‟s equally important to address issues that impact me personally and society overall. 37

Me: Empowered„People like me‟ now have more power and influence to make a difference 77% 73% 66% 58% 57% 57% 44% 47% 41% 39% 37% 36% 29% 26% 21% 20% 20% 38

Me: On the RiseWho should be most responsible to address societal issues? People Like Me Government 80% In the US, “people like me” are most responsible to address societal issues 73% 68% 62% 59% 56% 56% 55% 54% 54% 52% 51% 48% 47% 43% 40% 36% 35% 24% 25% 26% 20% 22% 18% 17% 18% 18% 17% 16% 15% 19% 14% 10% 3% 39

Me: InvolvedPersonal involvement in good causes on the rise in most markets, except US 2010 2012 +5 94% 89% +6 +10 69% +9 65% 63% +6 60% 56% 55% 55% 53% 48% +7 44% -7 39% 38% 26% 19% Global China Netherlands Brazil US Germany Italy Japan 40

Purpose is PersonalEconomic uncertainty is redefining what we consider “cause” 41

Me: in Action of global consumers take part in 89% activities to address societal issues. 72% in US 77% of Chinese recycle regularly donated money 63% of Braziliansvoiced their concerns 75% of Germans take actions to conserve energy

Turning Insights into Action

5 Years of Learning 1 Purpose key driver in reengineering brand marketing 2 Purpose definitive purchase trigger 3 Largest growth markets bullish on Purpose 4 Operational excellence + societal performance rewarded 5 Corporations earn License to Lead via Purpose 44

Not IF, but HOW… LEAD Powerful programs are leader led CONSTRUCT Start with depth, not scale CUSTOMIZE Customize for local execution COLLABORATE Work with NGOs, colleagues, competitors MEASURE Build performance measures up front NARRATE Story, story, story ENGAGE Employees, partners, consumers EVOLVE Evolve programs to stay relevant 45

What‟s Your Purpose? 46

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Global Deck: 2012 Edelman goodpurpose Study

by Edelman Insights

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