8. Edelman Trust Barometer, Germany

Frankfurt, 29. Januar 2007

State of Trust: Business on the Rise: Filling the Void Left by Declining Trust in Government

2007 Global Trust in Institutions GOVERNMENT BUSINESS RELIGIOUS GOVERNMENT BUSINESS RELIGIOUS North America Latin America MEDIA NGOs NGOs MEDIA E.U. Asia Business Ahead of Media and Government Trust 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) NGOs RELIGIOUS MEDIA GOVERNMENT BUSINESS GOVERNMENT BUSINESS RELIGIOUS NGOs MEDIA

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

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

UK/France/Germany Trust in Institutions: Trust in Government at All-Time Low 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]

Germany Trust in Institutions Dropped Except For NGOs 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]

Trust in Industries Technology is the Only Globally Trusted Industry

Tech Leads Globally, Other Sectors Show Far Greater Regional Variation 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. Again, 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. Ranking 13 9 9 5 3 9 2 7 12 6 7 4 1 Russia 1 1 2 1 1 Technology 4 11 13 7 12 Entertainment 9 11 11 12 13 Media 10 10 10 13 11 Insurance 12 11 1 11 10 Energy 5 6 9 4 2 7 10 3 E.U. 5 8 7 8 5 11 3 4 China 2 5 6 3 7 8 9 4 Germany 5 8 Automotive 2 7 Telecommunications 7 5 Health care 10 4 Consumer packaged goods manufacturers 3 3 Banks 6 2 Biotech/ life sciences 7 5 Retail 13 9 Professional services India US

Trust in Companies: Ongoing US Corporate Trust Deficit in Western Europe

Trust in Countries: Sweden, Canada and Germany are Most Trusted Headquarter Countries Ongoing US-trust deficit

Sweden, Canada and Germany Most Trusted Headquarter Countries HQ Respondent Region Top 4 boxes shown Now I would like to focus on 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. Use the same 9-point scale where 1 means that you DO NOT TRUST THEM AT ALL and 9 means that you TRUST THEM A GREAT DEAL. Highest Ranked Lowest Ranked 70 82 70 75 Sweden 42 44 20 15 Russia 43 60 26 19 Mexico 43 61 34 22 Brazil 44 45 51 54 74 72 74 78 58 80 81 82 85 85 Latin America 25 26 29 31 42 48 51 56 64 65 66 69 71 72 EU 27 37 43 41 54 66 50 38 63 73 63 65 57 76 North America 52 China 45 India 47 Poland 61 South Korea 66 Italy 71 United States 55 Spain 70 France 53 Ireland 72 United Kingdom 64 Japan 61 The Netherlands 77 Germany 72 Canada Asia

Germans Trust in Companies by Country of Origin

Trust in German Companies Among Different Nationalities

US Trust Deficit Has Remained Over Time UK/France/Germany Trust Scores Minus US Trust Scores *UK, France, and Germany only -24 -21 -24 -12 % 2006 -24 -33 -31 -16 % 2005 N/A -29 -27 2 % 2002 -29 -33 -23 -7 % 2003 -26 -26 -21 -5 % 2004 -37 N/A Coca-Cola -34 N/A McDonald’s -37 N/A Citicorp -17 -14 ExxonMobil % % 2007 2001 TOP 2 BOX UK/France/Germany Trust Score Greater US Trust Score Greater

Non-US Brands Receive High Trust Across Regions I am going to read you a list of organizations and companies. For each one, please tell me how much you TRUST that company or organization to do what is right. This time, 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. Non-US Brands receive high trust scores across regions Germans trust less * = Interviews in October 06 41% 51% 71% 46% 58% Gucci 73% 80% 56% 68% 56% Greenpeace 53% 76% 81% 73% 89% 87% Russia 57% 93% 68% 63% Siemens * 70% 62% 62% 57% 60% E.U. 56% 90% 78% 88% 63% China 52% 69% Samsung 40% 60% Electrolux 44% 72% Danone 47% 69% Nissan 79% 52% Amnesty Germ. US

Trust in global companies: Positive impact on society

Global 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? … Except in Germany

Why Trust Matters: Opinion Elites in Many Countries are Taking More Actions Against Distrusted Companies

Germans Have Become More Likely to Take Several Actions in Response to Distrusted Companies For each one, please tell me if you have ever done this in relation to a company you do not trust. * * * * * = Significant difference, >10 *

Information Sources: Business Magazines & Analyst Reports Lead in Trust

UK/France/Germany Credible Sources: Business Magazines and Analyst Reports Lead In general, how credible do you feel each of the following sources is for information about a company? Is information that you get from [SOURCE] extremely credible, very credible, somewhat credible, or not credible at all? Highest ranked Lowest ranked 43 55 52 47 58 News coverage on the radio 39 50 43 44 51 Friends and family (2003-2006)/Conversations with your friends and peers (2007) 25 36 27 30 32 Communications issued by companies such as press releases, annual reports, and newsletters 38 45 43 37 45 Television news coverage 22 N/A 38 44 52 % 2004 17 N/A 34 47 51 % 2005 23 15 45 60 60 % 2006 11 27 A company’s own website 13 N/A Weblogs or blogs 29 37 Articles in newspapers 49 42 Stock or industry analyst reports 49 52 Articles in business magazines % % 2007 2003 TOP 2 BOX

Germany Credible Information Sources: Business Magazines Remain Most Credible In general, how credible do you feel each of the following sources is for information about a company? Is information that you get from [SOURCE] extremely credible, very credible, somewhat credible, or not credible at all? Highest ranked Lowest ranked 56 67 62 42 62 Friends and family (2003-2006)/Conversations with your friends and peers (2007) 67 73 72 49 67 News coverage on the radio 68 76 75 49 55 Television news coverage N/A 17 24 37 40 53 % 2004 N/A 22 31 54 59 74 % 2005 17 26 47 59 75 83 % 2006 13 28 A company’s own website 38 34 Communications issued by companies such as press releases, annual reports, and newsletters 46 40 Articles in newspapers 50 35 Stock or industry analyst reports 71 47 Articles in business magazines 7 N/A Weblogs or blogs % % 2007 2003 TOP 2 BOX

Spokespeople: Person Like Yourself Continuing to Lead Industry Experts Also Important

Credible Spokespersons for Information about a Company In general, when forming an opinion of a company, if you received information from (INSERT PERSON) about this company, how credible would the information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all? 39 54 36 34 Regular employee of company 22 46 12 15 Public relations executive 18 21 9 13 Blogger 24 39 11 14 Entertainer/ Athlete 41 55 22 24 CEO of a company 54 83 51 53 A person like yourself 56 80 49 50 Doctor or healthcare specialist 48 67 44 46 Non-profit organization or NGO representative 48 70 47 45 Academic 47 71 43 45 Financial/ Industry analyst 48 62 31 32 The CEO/leader of your company or employer* 43 35 16 30 Lawyer 41 30 22 25 Government official or regulator % % % % Asia Latin America North America E.U. TOP 2 BOX Highest ranked Lowest ranked * Asked only of employed respondents

German Credible Spokespersons: Person Like Yourself Continues to Lead, CEO Drops 2003-2006 wording: In general, when forming an opinion of a company, if you received information from a/an [INSERT PERSON] about a company, how credible would the information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all? The next is … [READ LIST. RANDOMIZE. ACCEPT ONLY ONE RESPONSE] 2007 wording: In general, when forming an opinion of a company, if you heard information about a company from a/an [INSERT PERSON], how credible would the information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all? The next is … [READ LIST. RANDOMIZE. ACCEPT ONLY ONE RESPONSE] Highest ranked Lowest ranked 44 57 49 49 52 Lawyer 38 49 49 27 38 Academic 25 N/A N/A N/A N/A The CEO or leader of your company or employer 31 65 51 31 N/A Financial/ Industry analyst 26 41 36 25 47 Regular employee of company 68 73 79 55 46 A person like yourself 4 13 N/A N/A N/A Blogger 12 13 13 30 55 % 2004 22 24 29 56 62 % 2005 15 21 34 62 59 % 2006 14 19 Entertainer/ Athlete 23 33 CEO of a company 45 39 Non-profit organization or NGO representative 46 58 Doctor or healthcare specialist 14 14 Public relations executive % % 2007 2003 TOP 2 BOX

Germany: “A Person Like Me” Defined by Interests Not Demographics All other things being equal, which THREE of the following characteristics are most likely to increase your trust in someone sharing information about the company? Are you MOST likely to trust the person if he/ she… [RANDOMISE LIST. ACCEPT THREE]

Building Trust Personalization, Localization and Inside-Out Reputation

Social Responsibility is More Important 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 US

Germany Factors which build Trust in Global Companies

Employees Are The New “Green” in US and Globally 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 US

Companies Need to Communication Along Both the Vertical and the Horizontal Axis
Vertical axis : Traditional “top-down” media still plays role, although credibility is declining
Business magazines and TV news most trusted media sources
Expertise valued (e.g., doctors, academics)
Significant credibility declines for many traditional media sources
Horizontal axis : Peer-to-peer conversation highly influential
“Person like yourself” most trusted in Europe, North America, Latin America
“Regular employee of a company” generally more trusted than CEOs

Trust is not distributed evenly
Business has recovered from low point of 2002
Government at low in the West
The developing world puts far more trust and faith in business than does the developed world
Technology is the only globally trusted industry sector
American companies face a lingering trust deficit in Europe
New attributes matter in building trust:
Personalization
Localization
Developing reputation from the “inside-out”
CEO Important but not sufficient
The Evolving Trust Landscape

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8. Edelman Trust Barometer, Germany

by Wolfgang Luenenbuerger

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