2012 Edelman Trust Barometer Canada and Global Results

2012 Edelman Trust Barometer – Canada Findings METHODOLOGY OVERVIEW GENERAL INFORMED INFORMED PUBLIC PUBLIC PUBLIC 25-64 35-64 Twelfth annual study Indicates Global Data Online survey in 25 countries Indicates Canada Data 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 Canada sample: 1,000 general population respondents & an oversample of 200 informed publics * This year Informed Publics were surveyed via online methodology instead of telephone2 © Edelman, 2012. All rights reserved.

Edelman Trust Barometer in retrospect 2011 Rise of authority figures 2010 Trust is now an essential line of business 2009 Business must partner with government to regain trust 2008 Young influencers have more trust in business 2007 Business more trusted than government and media 2006 “A person like me” emerges as credible spokesperson 2005 Trust shifts from “authorities” to peers 2004 U.S. companies in Europe suffer trust discount 2003 Earned media more credible than advertising 2002 Fall of the celebrity CEO 2001 Rising Influence of NGOs3 © Edelman, 2012. All rights reserved.

Distrust is growing; nearly twice as many countries are now skepticsCanada remains in neutral zone 2011 2012 GLOBAL 55 GLOBAL 51 Brazil 80 > China 76 UAE 78 UAE 68 Indonesia 74 Singapore 67 China 73 TRUSTERS India 65 Netherlands 73 Indonesia 63 Mexico 69 Mexico 63 Singapore 67 Netherlands 61 Argentina 62 Canada 58 India 56 Italy 56 Italy 56 Argentina 54 NEUTRAL Canada 55 Australia 53 South Korea 53 < Brazil 51 Sweden 52 Sweden 49 Japan 51 > U.S. 49 Australia 51 South Korea 44 Spain 51 > Poland 44 France 50 U.K. 41 Poland 49 Ireland 41 DISTRUSTERS Germany 44 France 40 U.S. 42 Germany 39 U.K. 40 < Spain 37 Russia 40 < Japan 34 Ireland 39 Russia 32 Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 23 countries5 © Edelman, 2012. All rights reserved.

The Fragility of Trust: Focus on Japan 2011 2012 Informed Public Informed Public TRUST IN INSTITUTIONS INFORMED PUBLICS – AGES 25-64 TRUST IN INDUSTRIES Business Media NGOs Government 75% - 12 - 21 - 26 Energy 29% -46 53% 47% 48% 36% 51% 30% 51% 25% 54% Media 33% -21 55% Financial services 38% -17 71% Banks 51% -20 CREDIBLE SPOKESPEOPLE -38 -23 70% -43 -55 -43 65% 67% 63% 59% -26 TRUST IN INFORMATION SOURCES -30 48% 42% -17 -16 -26 -13 -13 39% 40% 32% 24% 22% 18% 16% 14% 8% Newspaper TV Radio Magazines Technical Academic CEO A Person NGO Regular Financial/ Government Expert or Expert Like Represent. Employee Industry Official Yourself Analyst Q11-14. [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); 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); 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 ea ch 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); 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. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in Japan6 © Edelman, 2012. All rights reserved.

Canadian trust in NGOs, business, government, media holds steady TRUST IN INSTITUTIONS – CANADA 2011 Informed Public 2012 Informed Public 56% 56% 2012 52% General Public 50% 51% 46% Government Business 72% 66% 54% 56% 50% 45% Media NGOs Q11-14. [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 AND Informed Publics ages 25-64 in Canada7 © Edelman, 2012. All rights reserved.

Several mature economies see double-digit drops in business trust; Trust in business steady in Canada and U.S. TRUST IN BUSINESS 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 80% 81% 78% 71% 70% 69% 64% 63% 61% 62% 63% 56% 56% 57% 53% 53% 52% 53% 50% 50%50% 46% 46% 47% 48% 46% 43% 44% 41% 41% 38% 34% 31% 32% 28% N/A N/A Global China Canada U.S. Russia India Italy Indonesia Ireland U.K. Argentina Japan South Germany Brazil France Spain Korea 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 16 countries 8 © Edelman, 2012. All rights reserved.

In Canada, technology, food & beverage and brewing & spirits maintain top three spots; several industries see trust gains in past year TRUST IN INDUSTRIES – CANADA AND GLOBAL 2012 2011 2012 Technology 68% Technology 75% #1 79% Brewing and spirits 58% Food and beverage 72% + 16 #3 64% Food and beverage 56% Brewing and spirits 70% + 12 59% Banks 52% Consumer packaged goods 65% + 15 62% Automotive 51% Automotive 61% + 10 #2 66% Telecommunications 51% Banks 56% 47%Consumer packaged goods 50% Financial services 56% + 13 45% Energy 46% Telecommunications 56% 60% Financial services 43% Media 55% + 13 51% Pharmaceuticals 43% Pharmaceuticals 55% + 12 56% Media 42% Energy 51% 53%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 onemeans 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 Canada and 20-country globaltotal (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE).9 © Edelman, 2012. All rights reserved.

Majority of countries now distrust government; trust levels stable in Canada and U.S. from 2011 to 2012 TRUST IN GOVERNMENT 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 88% 85% 75% 62% 56% 53% 54% 52% 52% 50% 51%50% 49% 43% 44% 43% 43% 45% 43% 40% 39% 40% 38% 36% 35% 33% 33% 33% 32% 31% 31% 26% 25% 20% 20% Q11-14. [Government 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 16 countries 10 © Edelman, 2012. All rights reserved.

Media only institution to see trust rise, driven in part by U.S. increase; In Canada, media trust steady over past year TRUST IN MEDIA 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 86% 80% 79% 80% 70% 73% 60% 61% 57% 54% 53% 52% 49% 50%50% 46% 46% 49% 48% 45% 45% 45% 42% 45% 45% 41% 37% 38% 36% 37% 35% 37% 33% 27% 22% N/A N/A Q11-14. [Media 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 16 countries 11 © Edelman, 2012. All rights reserved.

Diversification of Media TRUST IN INFORMATION SOURCES – CANADA 2011 Informed Public 2012 Informed Public 40% 26% 24% 20% 14% 11% 8% 4% 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. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in Canada12 © Edelman, 2012. All rights reserved.

NGOs still most trusted institution, despite some drops; Since 2011, trust levels remain consistent in Canada TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) 2011 Informed Public 2012 Informed Public Trust Trust Steady Trust 79% 80% 75% 74% 72% 70% 70% 67% 67% 66% 66% 63% 62% 61% 61% 60% 60% 58% 58% 58% 55% 53% 55% 54% 53% 51% 51% 53% 51%50% 48% 49% 42% 30% 28% Q11-14. [Non-governmental organizations (NGOs) 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) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 16 countries 13 © Edelman, 2012. All rights reserved.

Peers and regular employees see dramatic rise in credibility; CEOs and government officials fall to bottom in ranking CREDIBLE SPOKESPEOPLE – CANADA AND GLOBAL 2012 2011 2012 Academic or expert 70% Academic or expert 68% #1 68%Technical expert in the company 57% Technical expert in the company 64% #2 66%Government official or regulator 42% A person like yourself 61% + 33 #3 65% NGO representative 41% NGO representative 60% + 19 50% CEO 39% Regular employee 51% + 28 50% Financial or industry analyst 38% Financial or industry analyst 42% 46% A person like yourself 28% Government official or regulator 36% 29% Regular employee 23% CEO 32% 38% Biggest increase in Barometer historyQ119-126. [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 crediblewould the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64in Canada and 20-country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) 15 © Edelman, 2012. All rights reserved.

In Canada, government leaders less trusted than business leaders to tell the truth; majority of other markets also share this view Business Leaders Government Leaders % WHO DO NOT TRUST THEM AT ALL TO TELL THE TRUTH 73% 69% 69% 66% 66% 65% 53% 51% 50%50% 48% 51% 46% 46% 46% 44% 42% 43% 43% 41% 38% 36% 36% 36% 34% 27% 29% 23% 24% 21% 14% 10% 11% 10% 5% Q126A. [SPLIT SAMPLE] How much do you trust business leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 16 countries; Q126B. [SPLIT SAMPLE] How much do you trust government leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 16 countries 16 © Edelman, 2012. All rights reserved.

Globally, business not meeting public’s expectations GLOBAL LISTENS TO CUSTOMER NEEDS AND FEEDBACK 67% 36% -31 Business 67% Importance OFFERS HIGH QUALITY PRODUCTS OR SERVICES 48% -19 Company Performance 64% TREATS EMPLOYEES WELL 27% -37 PLACES CUSTOMERS AHEAD OF PROFITS 62% 26% -36 TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 62% 28% -34 HAS ETHICAL BUSINESS PRACTICES 61% 32% -29 HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 60% 27% -33 COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 57% BUSINESS 26% -31 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 55% 29% -26 ADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESS 50% 30% -20 CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 49% IN WHICH THE COMPANY OPERATES 26% -23 IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 46% 41% -5 HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 29% -12 41% Closing the DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 39% gap on 23% -16 RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST 38% expectations COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES 31% -7 PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 36% SOCIETAL ISSUES 19% -17 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 25 country global total (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 25 country global total17 © Edelman, 2012. All rights reserved.

And business not meeting public’s expectations in Canada CANADA Business LISTENS TO CUSTOMER NEEDS AND FEEDBACK 76% Importance 38% -38 Company Performance TREATS EMPLOYEES WELL 74% 29% -45 OFFERS HIGH QUALITY PRODUCTS OR SERVICES 74% 52% -22 PLACES CUSTOMERS AHEAD OF PROFITS 73% 26% -47 HAS ETHICAL BUSINESS PRACTICES 72% 34% -38 TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 72% 30% -42 HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 66% 24% -42 COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 63% BUSINESS 25% -38 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 60% 29% -31CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 56% IN WHICH THE COMPANY OPERATES 26% -30 ADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESS 53% 29% -24 HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 47% 26% -21 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 45% 22% -23 RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST 44% COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES 27% -17 IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 43% 42% -1PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 37% SOCIETAL ISSUES 18% -19 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 Canada (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 Canada18 © Edelman, 2012. All rights reserved.

Globally, government not meeting public’s expectations GLOBAL Government Importance Government Performance 67% LISTENS TO CITIZENS NEEDS AND FEEDBACK 17% -50 66% HAS TRANSPARENT AND OPEN PRACTICES 16% -50 EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 65% COUNTRY 19% -46 65% COMMUNICATES FREQUENTLY AND HONESTLY 16% -49 56% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 18% -38 PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 54% EMPLOYMENT OPPORTUNITIES 18% -36 CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 52% LOCAL COMMUNITIES 16% -36 PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 41% ADDRESS SOCIETAL ISSUES 14% -27 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 25 country global total; 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 25 country global total19 © Edelman, 2012. All rights reserved.

And government not meeting public’s expectations in Canada CANADA Government Importance Government Performance 75% LISTENS TO CITIZENS NEEDS AND FEEDBACK 16% -59 74% COMMUNICATES FREQUENTLY AND HONESTLY 16% -58 EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 73% COUNTRY 22% -51 71% HAS TRANSPARENT AND OPEN PRACTICES 15% -56 63% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 18% -45CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 60% LOCAL COMMUNITIES 17% -43 PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 56% EMPLOYMENT OPPORTUNITIES 20% -36 PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 42% ADDRESS SOCIETAL ISSUES 14% -28Q132-139. 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 trustand nine means it is extremely important to building your trust. (Top 2 Box , Very/Extremely Important) General Population in Canada; Q140-147. Please rate your government on how well you thinkthey 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 2Box , Performing Very/Extremely Well) General Population in Canada20 © Edelman, 2012. All rights reserved.

Despite lack of trust in government, calls for increased regulations % WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH 77% 70% 64% 58% 54% 54% 53% 51% 50%50% 49% 48% 48% 46% 45% 40% 38% 30% 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? (% who selected ‘not enough’) Informed Publics ages 25-64 in 25 country global total and across 16 countries 21 © 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 CANADA Business 31% PROTECT CONSUMERS from irresponsible business practices 47% can address on its own 25% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 28% 19% 10% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 16% 10% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 4% 2% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 4% 3% Government SHOULD NOT PLAY A ROLE in business Perceived drivers of irresponsible behavior: • Poor management (Global - 29%, Canada – 19%) • Unethical business practices (Global - 28%, Canada - 27%) • Shortcuts that lead to poor quality (Global - 21%, Canada -26%)Q127. Which of the following items do you think makes people in a company most likely to engage in risky and irresponsible behavior that could damage a company? Q131. Which ofthe following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total and Canada 22 © Edelman, 2012. All rights reserved.

BUSINESS CAN EARN LICENSE TO LEAD 2008-2009 Low trust in business and CEOs Business has flexibility and speed THE DYNAMIC OF TRUST BETWEEN Call for increased regulation BUSINESS & protection from Business leaders GOVERNMENT irresponsible behavior sought more trusted thangovernment leaders business has advantage in 24 out of 25 markets 2011 Government responds Dwindling trust in government policy paralysis 24 © Edelman, 2012. All rights reserved.

Business: from license to operate to license to lead CANADA Societal Operational CURRENT TRUST BUILDING FUTURE TRUST 51% TRUST BUSINESS 1) Listens to customer needs and feedback SOCIETAL ATTRIBUTES 1) Delivers consistent financial returns MORE IMPORTANT TO 2) High quality products or services BUILDING FUTURE 2) Innovator of new products 2) Treats employees well TRUST 4) Places customers ahead of profits 3) Ranks on a global list 5) Takes actions to address issue or crisis CURRENT TRUST 5) Has ethical business practices DRIVEN BY OPERATIONAL ATTRIBUTES 7) Has transparent and open business 8) Communicates frequently and honestly 9) Works to protect/improve environment 10) Positively impacts the local community 11) Addresses societys needs 12) Highly regarded, top leadership 13) Delivers consistent financial returns 14) Ranks on a global list 15) Innovator of new products 16) Partners with third partiesQ11-14. [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 ninemeans that you “trust them a great deal”. (Top 4 Box, Trust) General Population in Canada; Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where onemeans 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 Canada (excludes ‘Don’t Know’ responses)* ‘Current Trust’ results based on regression analysis of the general population25 © Edelman, 2012. All rights reserved.

Earn License to Lead 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 Practice radical transparency: speak first to employees; report on goals Shape the public discourse on issues of importance to business26 © Edelman, 2012. All rights reserved.

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2012 Edelman Trust Barometer Canada and Global Results

by Edelman Toronto on Feb 02, 2012

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