Edelman Trust Barometer 2007

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Slide 2: 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. 2

Slide 3: 2007: A Changing World Order of Trust Trust is a market asset 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. 3

Slide 4: 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 4

Slide 5: 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  5

Slide 6: 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 6

Slide 7: A Changing World Order of Trust The Global Trust Divide 7

Slide 8: 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*  * New countries in 2007 Barometer 8 ** Developed Countries defined as top 50 nations with $20,000 or more GDP per capita – data source CIA fact book

Slide 9: The Developing World Sees Business Playing a More Trusted and Vital Role Developed Developing (Canada, France, Germany, Ireland, Italy, (Brazil, China, India, Poland, Mexico, Japan, Netherlands, South Korea, Spain, Russia) Sweden, United Kingdom, United States) Most trusted institution Business NGOs Trust in business 60% 47% Believe companies have a more positive (than negative) 77% 56% impact on society) Technology, Biotech, Energy, Technology, Healthcare, Most trusted industries Telecom, Auto Biotech, CPG Trust in OWN CEO as a 61% 43% spokesperson Quality products, Quality products, customer Top factors building trust socially responsible activities attentiveness, fair pricing customer attentiveness 9

Slide 10: 2007 Global Trust in Institutions: Government Least Trusted Everywhere but Asia North America Asia 52% BUSINESS E.U. NGO’s 57% 60% BUSINESS 45% MEDIA BUSINESS 42% 53% NGO’s GOVERNMENT NGO’s 50% 38% MEDIA 55% MEDIA RELIGION 53% 36% 55% GOVERNMENT 35% GOVERNMENT RELIGION 39% RELIGION 37% Latin America 68% BUSINESS NGO’s 64% MEDIA 62% GOVERNMENT 37% E.U. includes UK, Germany, France, Italy, RELIGION 55% Spain, Netherlands, Sweden, Poland, Ireland, and excludes Russia. 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) 10

Slide 11: 2007 Global Trust in Institutions: Religion - An Untapped Resource? Sweden Russia GBR BUSINESS 56% BUSINESS 39% BUSINESS 44% NGOs 29% NGOs 27% NGOs 41% MEDIA 29% MEDIA 35% MEDIA 19% Poland GOVERNMENT 57% GOVERNMENT 32% GOVERNMENT 16% RELIGIOUS 21% RELIGIOUS 31% RELIGIOUS 27% Netherlands BUSINESS 45% Ireland NGOs 49% MEDIA 46% GOVERNMENT 17% BUSINESS 60% RELIGIOUS 44% BUSINESS NGOs 61% 50% NGOs MEDIA 55% 48% Germany MEDIA 37% GOVERNMENT 66% France GOVERNMENT 37% RELIGIOUS 57% RELIGIOUS 29% BUSINESS 31% BUSINESS 28% NGOs 39% Italy NGOs 60% MEDIA 29% Spain MEDIA 27% GOVERNMENT 17% GOVERNMENT 26% RELIGIOUS 36% RELIGIOUS 26% BUSINESS 42% BUSINESS 51% NGOs 62% NGOs 57% MEDIA 33% MEDIA 49% GOVERNMENT 32% GOVERNMENT 40% RELIGIOUS 48% RELIGIOUS 40% 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) 11

Slide 12: Developing World Is More Trusting Of Business Mexico, 71% India, 67% China, 67% Brazil, 65% Netherlands, 60% Sweden, 56% US, 53% Developing Japan, 52% Developed Trust in business Spain, 51% in general Ireland, 50% Korea, 46% Canada, 45% Poland, 45% UK, 44% Italy, 42% Russia, 39% Germany, 31% France, 28% 0% 20% 40% 60% 80% 100% 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] 12

Slide 13: US Trust in Institutions (2001-2007) 100% 80% Religious 55% 60% 55% 54% 57% 48% 48% 53% 51% 43% 49% 44% 48% 49% 47% 48% 39% 44% 43% 38% 41% 41% 40% 44% 38% 38% 36% 35% 32% 27% 30% 28% 30% 24% 20% 20% 0% Summer Winter Summer Winter Winter Winter Winter Winter 2001 2002 2002 2003 2004 2005 2006 2007 Government Media NGOs Business 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] 13

Slide 14: Trust in Institutions UK / France / Germany (2001-2007) 100% 80% Religious 30% 60% 52% 51% 48% 47% 45% 45% 42% 41% 40% 36% 34% 43% 41%33% 32% 38% 40%31% 31% 32% 35% 36% 28% 28% 27% 27% 26% 26% 25% 25% 23% 22% 20% 20% 0% Summer Winter Summer Winter Winter Winter Winter Winter 2001 2002 2002 2003 2004 2005 2006 2007 Business NGOs Media Government 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] 14

Slide 15: Italy Trust in Institutions (2003-2007) Gap Between NGOs and Other Institutions 100% Religious 80% 62% 66% 60% 51% 48% 42% 40% 39% 31% 33% 32% 20% 0% Winter 2006 Winter 2007 Business Government NGOs Media Religious 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] 15

Slide 16: Countries Headquartered in Developed World Are More Trusted 79% 68% Germany 77% 73% Canada 77% 73% Sweden 67% UK 75% 72% 53% France 53% US 71% 65% Japan 71% Developing 67% Netherlands 68% Developed 47% Italy 66% 51% Spain 60% 36% South Korea 57% 56% Ireland 61% 26% China 47% 32% Poland 47% 26% Brazil 46% 23% Mexico 44% 18% Russia 44% Ranked on Developing 41% 31% India 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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] 16

Slide 17: The Developing World Is More Trusting of All Sectors Except Healthcare 2006/2007 Sector Trust Ranked By Developing Countries 78%  13 69% 72% 73% Technology 75% N/A Biotech/ Life sciences 68% 60% 71% 70% 61% 2 Energy 48% 53% 45% 47% 67% Automotive 54% 67%  13 53% 54% 55% Telecommunications 48% 59% 67% 54%  12 51% Developing 46% 68%  14 Banks 52% 29% 65% Developed 55% 51%  17 Professional services 52% 55% 63% Retail 62% 47%  20 61% 57% 63% Entertainment 59% 40% N/A 47% 50% 45% Consumer packaged 51%  16 50% 66% 56% 59% goods manufacturers 63% 62% 7 Health care 57% 61% 63% 39% Media N/A 57% 39% 42% 39% 30% 9 Insurance 37% 46% 54% 40% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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 17

Slide 18: Companies Have Positive Impact on Society Europe POSITIVE 54% Asia North America NEGATIVE 32% POSITIVE 78% 52% POSITIVE 11% NEGATIVE NEGATIVE 27% Latin America POSITIVE 79% NEGATIVE 15% 18 On the whole, do you believe that global companies have more of a positive or more of a negative impact on society?

Slide 19: … Italy Positive On Business Impact vs. Germany or UK POSITIVE 55% NEGATIVE 30% POSITIVE 70% POSITIVE 42% NEGATIVE 16% NEGATIVE 45% 63% POSITIVE POSITIVE 75% POSITIVE 51% 33% NEGATIVE NEGATIVE 13% NEGATIVE 21% 59% POSITIVE 31% POSITIVE NEGATIVE 29% 58% NEGATIVE 69% POSITIVE 20% NEGATIVE POSITIVE 50% NEGATIVE 36% 19 On the whole, do you believe that global companies have more of a positive or more of a negative impact on society?

Slide 20: Business - Trust vs Social Impact Building reputation on Trust and Social Responsibility High Trust 100 80 Mex China India Brazil Netherlands 60 Sweden Positive Negative Impact Japan US Impact Spain Ireland on Society 80 Korea 0 20 40 60 100 Canada Pol UK on Society Italy 40 Russia Germany France 20 0 Low 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 20

Slide 21: People Issues: Poverty or Human Rights # 1or #2 1) Global 1) Human 1) Human 1) Poverty 66% Warming 79% Rights 70% Rights 71% 2) Human 2) Poverty 57% 2) Poverty 56% 2) Global Rights 44% Warming 54% 1) Poverty 53% 1) Human 1) Poverty 71% 1) Global 2) Security 50% Rights 57% Warming 65% 2) Human 2) Global Rights 55% 2) Human Warming 42% Rights 61% 1) Poverty 71% 1) Human 1) Global 1) Poverty 65% 2) Global Rights 68% Warming 77% 2) Global Warming 63% 2) Poverty 63% 2) Poverty 59% Warming 57% 1) Global 1) Poverty 63% 1) Human 1) Global Warming 63% Rights 61% 2) Human Warming 85% 2) Human 2) Poverty 60% Rights 62% 2) Poverty 65% Rights 63% 1) Human 1) Poverty 69% Rights 63% 2) Global 2) Poverty 50% Warming 53% Which are the most important issues that global companies you trust should address? 21

Slide 22: Communicating Trust Two Axes Emerging 22

Slide 23: 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 23

Slide 24: Developed Countries Showing Trust Declines in Traditional Media Sources Percentage Point UK/France/ United States Italy Drops ’06 -- ’07 Germany Articles in Business -11 -11 -21 Magazines Articles in -7 -16 -18 Newspapers TV News Coverage -3 -7 -5 Radio News Coverage -9 -12 -7 Company-Issued -8 -11 -5 Communications 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 24 [INSERT SOURCE] extremely credible, very credible, somewhat credible, or not credible at all? [TOP 2 BOXES SHOWN]

Slide 25: Traditional Top-Down Media: Credible Information Source Informed, Authoritative Coverage Still Valued 2006/2007 51% Stock or industry analyst reports 46%  15 51% 54% 47% 51% Articles in business magazines 56% 21 51% 51% 55% 50% Conversations with your friends and peers 52% 43% N/A 44% 37% 48% 26% Television news coverage 41% 5 42% 35% 43% News coverage on the radio 45% 38% 7 44% 39% 40% Communications issued by companies 30% 24% 5 32% 28% 38% Articles in newspapers  18 26% 38% 33% 37% 34% A company's own website 15%  10 20%