The Instrument First truly global trust survey for Edelman Seven years of tracking data 3,100 opinion elites Aged 35 to 64 College educated Household income within the top quartile for that country Reported a significant interest and engagement in the media, economic and policy affairs. 18 countries: 400 in the United States; 300 in China; 150 each in the United Kingdom, Germany, France, Italy, Spain, the Netherlands, Sweden, Poland, Russia, Ireland, Mexico, Brazil, Canada, Japan, South Korea, and India The study was a 30-minute telephone survey conducted in October - November 2006.

First truly global trust survey for Edelman

Seven years of tracking data

3,100 opinion elites

Aged 35 to 64

College educated

Household income within the top quartile for that country

Reported a significant interest and engagement in the media, economic and policy affairs.

18 countries: 400 in the United States; 300 in China; 150 each in the United Kingdom, Germany, France, Italy, Spain, the Netherlands, Sweden, Poland, Russia, Ireland, Mexico, Brazil, Canada, Japan, South Korea, and India

The study was a 30-minute telephone survey conducted in October - November 2006.

2007: A Changing World Order of Trust And the current market is very fluid. The old order is changing. The 2007 Edelman/ StrategyOne Trust Barometer shows signs of global schisms, economic disparity, and an erosion of trust in traditional icons. It shows a new way forward for global institutions. Trust is a market asset

Key Themes: 2007 The Challenge A Changing World Order Of Trust The global trust divide: developing countries put more trust in business, brands, CEOs and sources of information than do mature developed countries Trust declines in spokespeople, government and media in developed world

The Challenge

A Changing World Order Of Trust

The global trust divide: developing countries put more trust in business, brands, CEOs and sources of information than do mature developed countries

Trust declines in spokespeople, government and media in developed world

Key Themes: 2007 The Solution Build Trust From Local to Global Trusted Companies Need to be Great, Green and Good to Employees Trust is Personal

The Solution

Build Trust From Local to Global

Trusted Companies Need to be Great, Green and Good to Employees

Trust is Personal

Trust in Italy NGOs are the most trusted institutions in Italy Business magazine as well as friends and peers are considered the most trusted credible sources of information on companies Trust in banking is less than any other countries Italy is one of the countries that puts most emphasis on social and environmental reporting as a key activity to engage in

NGOs are the most trusted institutions in Italy

Business magazine as well as friends and peers are considered the most trusted credible sources of information on companies

Trust in banking is less than any other countries

Italy is one of the countries that puts most emphasis on social and environmental reporting as a key activity to engage in

A Changing World Order of Trust The Global Trust Divide

The Global Trust Divide Trust looks very different when comparing the more developed* * nations Canada, France, Germany, Ireland*, Italy, Japan, Netherlands*, South Korea, Spain, Sweden, United Kingdom, United States with the more developing ** nations Brazil, China, India*, Poland*, Mexico*, Russia* ** Developed Countries defined as top 50 nations with $20,000 or more GDP per capita – data source CIA fact book * New countries in 2007 Barometer

Trust looks very different when comparing the more developed* * nations

Canada, France, Germany, Ireland*, Italy, Japan, Netherlands*, South Korea, Spain, Sweden, United Kingdom, United States

with the more developing ** nations

Brazil, China, India*, Poland*, Mexico*, Russia*

The Developing World Sees Business Playing a More Trusted and Vital Role Developing (Brazil, China, India, Poland, Mexico, Russia) Developed (Canada, France, Germany, Ireland, Italy, Japan, Netherlands, South Korea, Spain, Sweden, United Kingdom, United States) Most trusted institution Business NGOs Trust in business 60% 47% Believe companies have a more positive (than negative) impact on society) 77% 56% Most trusted industries Technology, Biotech, Energy, Telecom, Auto Technology, Healthcare, Biotech, CPG Trust in OWN CEO as a spokesperson 61% 43% Top factors building trust Quality products, customer attentiveness, fair pricing Quality products, socially responsible activities customer attentiveness

2007 Global Trust in Institutions: Government Least Trusted Everywhere but Asia North America Latin America Asia I’m going to read you a list of institutions. For each one ,please tell me how much you TRUST that institution to do what is right. Please use a 9-point scale where 1 means that you do not trust them at all and 9 means that you trust them a great deal. (Top 4 boxes shown) E.U. includes UK, Germany, France, Italy, Spain, Netherlands, Sweden, Poland, Ireland, and excludes Russia. 38% 42% 52% 53% 57% RELIGION BUSINESS MEDIA NGO’s GOVERNMENT 37% 62% 68% 55% 64% RELIGION BUSINESS MEDIA NGO’s GOVERNMENT E.U. 35% 36% 45% 37% 50% RELIGION BUSINESS MEDIA NGO’s GOVERNMENT 39% 53% 55% 55% 60% RELIGION BUSINESS MEDIA NGO’s GOVERNMENT

2007 Global Trust in Institutions: Religion - An Untapped Resource? I’m going to read you a list of institutions. For each one ,please tell me how much you TRUST that institution to do what is right. Please use a 9-point scale where 1 means that you do not trust them at all and 9 means that you trust them a great deal. (Top 4 boxes shown) BUSINESS RELIGIOUS MEDIA NGOs 37% 37% 29% GOVERNMENT 50% 48% BUSINESS 44% RELIGIOUS 27% MEDIA 19% NGOs 41% GOVERNMENT 16% BUSINESS 42% RELIGIOUS 48% MEDIA 33% NGOs 62% GOVERNMENT 32% GOVERNMENT 17% GBR Spain Ireland Poland Germany Netherlands Sweden Italy France Russia BUSINESS 56% RELIGIOUS 21% MEDIA 29% NGOs 29% GOVERNMENT 57% BUSINESS 51% RELIGIOUS 40% MEDIA 49% NGOs 57% GOVERNMENT 40% BUSINESS 28% RELIGIOUS 26% MEDIA 27% NGOs 60% GOVERNMENT 26% GOVERNMENT 66% BUSINESS 60% RELIGIOUS 57% MEDIA 55% NGOs 61% BUSINESS 39% RELIGIOUS 31% MEDIA 35% NGOs 27% GOVERNMENT 32% BUSINESS 45% RELIGIOUS 44% MEDIA 46% NGOs 49% BUSINESS 31% RELIGIOUS 36% MEDIA 29% NGOs 39% GOVERNMENT 17%

Developing World Is More Trusting Of Business Now I would like to focus on your trust in different institutions. Please tell me how much you TRUST that institution to do what is right. Please use 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 FOUR BOXES SHOWN] France, 28% Germany, 31% Russia, 39% Italy, 42% UK, 44% Poland, 45% Canada, 45% Korea, 46% Ireland, 50% Spain, 51% Japan, 52% US, 53% Sweden, 56% Netherlands, 60% Brazil, 65% China, 67% India, 67% Mexico, 71% 0% 20% 40% 60% 80% 100% Trust in business in general Developing Developed

Now I would like you to tell me how much you TRUST each to do what is right . Please use 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 FOUR BOXES SHOWN] US Trust in Institutions (2001-2007) Religious 55%

Trust in Institutions UK / France / Germany (2001-2007) Now I would like you to tell me how much you TRUST each to do what is right . Please use 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 FOUR BOXES SHOWN] Religious 30%

Italy Trust in Institutions (2003-2007) Gap Between NGOs and Other Institutions Now I would like you to tell me how much you TRUST each to do what is right . Please use 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 FOUR BOXES SHOWN] Religious

Countries Headquartered in Developed World Are More Trusted Now I would like to focus on your trust in global companies headquartered in specific countries. Please tell me how much you TRUST global companies headquartered in the following countries to do what is right. Please use 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 FOUR BOXES SHOWN] 77% 61% 57% 71% 71% 66% 68% 46% 44% 44% 41% 47% 77% 75% 72% 79% 47% Ranked on Developing 60% Developing Developed

The Developing World Is More Trusting of All Sectors Except Healthcare Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Please use 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 FOUR BOXES SHOWN] 78% 70% 62% 67% 63% 67% 63% 59% 59% 67% 65% 54% 57% Sector Trust Ranked By Developing Countries 40% 39% 56% 47% 61% 55% 52% 54% 55% 48% 61% 73% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Insurance Media Health care Consumer packaged goods manufacturers Entertainment Retail Professional services Banks Telecommunications Automotive Energy Biotech/ Life sciences Technology Developing Developed 75% 54% 51% 66% 46% 71% 47% 59% 68% 63% 45% 63% 42% 69% 53% 47% 40% 39% 68% 53% 51% 29% 52% 51% 62% 30%  13 N/A  2  13  12  14 2006/2007  17  20 N/A  16  7 N/A  9 54% 55% 50% 39% 60% 45% 48% 46% 57% 50% 61% 37% 72%

Companies Have Positive Impact on Society NEGATIVE POSITIVE North America Latin America Asia On the whole, do you believe that global companies have more of a positive or more of a negative impact on society? POSITIVE POSITIVE NEGATIVE NEGATIVE Europe POSITIVE NEGATIVE

NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE NEGATIVE POSITIVE 59% 29% 45% 42% 58% 31% 50% 36% 69% 20% 51% 21% NEGATIVE POSITIVE 55% 30% 63% 33% 70% 16% 75% 13% On the whole, do you believe that global companies have more of a positive or more of a negative impact on society? … Italy Positive On Business Impact vs. Germany or UK

Business - Trust vs Social Impact Building reputation on Trust and Social Responsibility Positive Impact on Society High Trust Please tell me how much you TRUST that institution to do what is right. Please use 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 FOUR BOXES SHOWN] On the whole, do you believe that global companies have more of a positive or more of a negative impact on society Low Trust Negative Impact on Society

People Issues: Poverty or Human Rights # 1or #2 2) Global Warming 42% 1) Human Rights 57% Which are the most important issues that global companies you trust should address? 1) Global Warming 85% 2) Poverty 65% 1) Global Warming 63% 2) Human Rights 63% 1) Global Warming 77% 2) Poverty 59% 1) Poverty 63% 2) Human Rights 62% 1) Poverty 66% 2) Human Rights 44% 1) Poverty 53% 2) Security 50% 1) Global Warming 79% 2) Poverty 57% 1) Human Rights 70% 2) Poverty 56% 1) Poverty 71% 2) Global Warming 63% 1) Human Rights 71% 2) Global Warming 54% 1) Global Warming 65% 2) Human Rights 61% 1) Poverty 69% 2) Global Warming 53% 1) Poverty 71% 2) Human Rights 55% 1) Human Rights 68% 2) Poverty 63% 1) Human Rights 63% 2) Poverty 50% 1) Poverty 65% 2) Global Warming 57% 1) Human Rights 61% 2) Poverty 60%

Communicating Trust Two Axes Emerging

Companies Should Communicate Along Two Axes Vertical axis : Traditional “top-down” media still plays role Business magazines and stock/industry analysts most trusted sources of company info Expertise valued (e.g., doctors, academics) Horizontal axis : Peer-to-peer conversation highly influential “ Person like yourself” most trusted in Europe, North America, Latin America “ Person like me” more credible when interests shared rather than demographic traits “ Regular employee of a company” often more trusted than CEO of company

Vertical axis : Traditional “top-down” media still plays role

Business magazines and stock/industry analysts most trusted sources of company info

Expertise valued (e.g., doctors, academics)

Horizontal axis : Peer-to-peer conversation highly influential

“ Person like yourself” most trusted in Europe, North America, Latin America

“ Person like me” more credible when interests shared rather than demographic traits

“ Regular employee of a company” often more trusted than CEO of company

Developed Countries Showing Trust Declines in Traditional Media Sources In general, how credible do you feel each of the following sources is for information about a company? Is information about a company that you get from [INSERT SOURCE] extremely credible, very credible, somewhat credible, or not credible at all? [TOP 2 BOXES SHOWN] Percentage Point Drops ’06 -- ’07 United States UK/France/Germany Italy Articles in Business Magazines -11 -11 -21 Articles in Newspapers -7 -16 -18 TV News Coverage -3 -7 -5 Radio News Coverage -9 -12 -7 Company-Issued Communications -8 -11 -5

Traditional Top-Down Media: Informed, Authoritative Coverage Still Valued In general, how credible do you feel each of the following sources is for information about a company? Is information about a company that you get from [INSERT SOURCE] extremely credible, very credible, somewhat credible, or not credible at all? [TOP 2 BOXES SHOWN] Credible Information Source Ranked by Developing 47% 20% 14% 55% 37% 35% 39% 28% 15% 37% 16% 44% 18% 14% 51% 54% 41% 32% 44% 11% 33% 17%  3 N/A 46% 56% 52% 26% 38% 24% 26% 15% 14% 11% 26%  15  21 N/A  5 2006/2007  7  18  5  10  4

Rise of Horizontal Media: “Person Like Yourself’ Highly Influential Credible Information Source In general, when forming an opinion of a company, if you heard information from [INSERT PERSON], how credible would the information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all? [TOP 2 BOXES SHOWN] * Asked only of employed respondents Ranked by Developing 31% 34% 51% 59% 50% 30% 16% 18% 14% 11% 22% 54% 21% N/A  19 2006/2007  16  7  2  5  9 N/A  1  10  11  17  7 39% 45% 53% 45% 46% 34% 30% 25% 15% 14% 13% 50% 24% 37% 42% 51% 48% 49% 43% 36% 16% 22% 21% 12% 11% 9%

Person Like Yourself Most Trusted in Americas; Least in France and Russia In general, when forming an opinion of a company, if you heard information from [INSERT PERSON], how credible would the information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all? [TOP 2 BOXES SHOWN]

“ Person Like Me” Shares My Interests, But Doesn’t Always Look Like Me All other things being equal, which THREE of the following characteristics are most likely to increase your trust in someone sharing information about a company? Are you most likely to trust the person if he/ she… 8% 9% 8% 19% 35% 42% 38% 60% 9% 10% 16% 30% 36% 36% 45% 63% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Is the same race/ethnicity as you Is the same religion as you Is the same gender as you Is the same nationality as you Is from your local community Holds similar political beliefs to you Is the same profession as you Shares common interests with you Developing Developed Shares my interests Looks Like Me Ranked on Developing

Building Trust Through Corporate Social Responsibility and employee engagement

Building Trust Trust has two sides: Rational : Quality of products & services, fair prices, attentiveness to customer needs Emotional : Socially responsible activities, employee relations

Trust has two sides:

Rational : Quality of products & services, fair prices, attentiveness to customer needs

Emotional : Socially responsible activities, employee relations

Trust Builders: Doing Basics Well Is Important Social Responsibility More Important in Developed Countries Than Corporate Brand or Financial Performance Which ONE of the following factors is most important to building your trust in a global company? Ranked on Developing 33% 10% 13% 20% 12% 2% 5% 2% 2% 36% 13% 9% 18% 12% 3% 2% 3% 2% 35% 14% 12% 22% 8% 3% 2% 3% 0%

Social Responsibility Centers on Employees When you think of the major global companies that you trust, which are the three most important activities for a socially responsible company to engage in? Ranked on Developing 53% 58% 43% 44% 15% 22% 20% 13% 52% 63% 44% 25% 21% 11% 41% 12% 4% 12% 37% 57% 21% 24% 14% 34%

Listening to Employees Builds Trust Which are the THREE most important actions for a global company seeking to build trust among its employees? Ranked on Developing 59% 44% 35% 30% 33% 36% 14% 16% 62% 46% 38% 29% 34% 34% 14% 21% 58% 45% 42% 24% 23% 41% 11% 19%

EU The High Cost Of Losing Trust Building trust Reaction to distrust I’m going to read out a list of actions. For each of one please tell me if you have ever done this in relation to a company that you do not trust? Which one of the following factors is the most important to building your trust in a global company?

The Personalities Of Trust

Influencers: How Trust Is Activated and Communicated Brand Active Brand Passive Talk, Engage Listen, Watch Public Activists 27% Solo Actors 15% Uninvolved 30% Social Connectors 28% Global Trust Influencer Audiences Segmented by Brand Trust Actions and Communication Styles

TrustHolders: The Way Forward We profiled four trust influencer segments: TrustHolders We found that Trust has a personality Three segments have distinct orientations in how people form, share, and act on their trust in brands The “Uninvolveds” engage little beyond personal consumption How global institutions reach and relate to these TrustHolders is central to their success Public Activists Engage in outspoken public actions Social Connectors Share, seek, and value public opinions Solo Actors Take more passive or personal actions Uninvolved Opinion of brands not driven by trust reputation

TrustHolders Have Different Motivations Trust Influence Style Trust in Business Solo Actors 15% Observe, act individually Listen, share, seek Social Connectors 28% Highest Globally Public Activists 27% Vocalize, investigate, demonstrate Moderate Uninvolved 30% Consumption, not reputation driven Moderate Moderate Accounting scandal Quality Products/Services Large-scale layoffs Financial Performance Unethical labor practices Social Responsibility Defective Products Quality Products/Services Trust Busters Trust Builders

TrustHolders Differ In Media & Spokespeople Credible Spokespersons Media Corporate Implications TV news business magazines Peers, doctors Listen, engage Peers, experts, corporate Business magazines, brand advertising, analyst reports Sound business management Peers, own CEO, employees, experts TV news, business magazines, conversations, entertainment Be visible in community Peers, doctors Analyst reports, business magazines Mass market 15% 28% Globally 27% 30% Solo Actors Social Connectors Public Activists Uninvolved

The Solution To Trust Build Trust From Local to Global Trusted Companies Need to be Great, Green and Good to Employees Trust is Personal Communicate trust along both top-down media and horizontal peer-to-peer modes A “person like me” is highly influential; they share my interests but don’t always look like me TrustHolders have their own trust behaviors and personality which affects how trust in companies is activated and spread. TrustHolders can be targeted with the right messages, spokespeople, and media

Build Trust From Local to Global

Trusted Companies Need to be Great, Green and Good to Employees

Trust is Personal

Communicate trust along both top-down media and horizontal peer-to-peer modes

A “person like me” is highly influential; they share my interests but don’t always look like me

TrustHolders have their own trust behaviors and personality which affects how trust in companies is activated and spread. TrustHolders can be targeted with the right messages, spokespeople, and media