8. Edelman Trust Barometer, Germany

Slide 1: Frankfurt, 29. Januar 2007 1

Slide 2: 2 State of Trust: Business on the Rise: Filling the Void Left by Declining Trust in Government

Slide 3: 2007 Global Trust in Institutions 3 Business Ahead of Media and Government Trust North America E.U. Asia 50% NGOs NGOs 57% BUSINESS 60% RELIGIOUS 45% 53% RELIGIOUS MEDIA 55% BUSINESS 37% 52% BUSINESS GOVERNMENT 55% 36% MEDIA 42% MEDIA NGOs 53% 35% GOVERNMENT 38% GOVERNMENT RELIGIOUS 39% Latin America BUSINESS 68% NGOs 64% MEDIA 62% RELIGIOUS 55% 37% GOVERNMENT 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)

Slide 4: The Developing World Sees Business Playing a More 4 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

Slide 5: Developing World Is More Trusting Of Business 5 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]

Slide 6: UK/France/Germany Trust in Institutions: 6 Trust in Government at All-Time Low 60% 51% 52% 48% 45% 47% 43% 45% 41% 41% 40% 42% 35% 38% 40% 36% 33% 36% 34% 31% 31% 32% 28% 32% 26% 27% 28% 25% 27% 26% 25% 23% 22% 20% 20% 0% Summer Winter Summer Winter Winter Winter Winter Winter 2001 2002 2002 2003 2004 2005 2006 2007 NGOs Business Government Media 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]

Slide 7: Germany Trust in Institutions Dropped Except For 7 NGOs 100% 80% 60% 40% 39% 38% 43% 37% 40% 36% 37% 34% 31% 35% 27% 33% 33% 29% 33% 27% 20% 26% 27% 24% 19% 11% 0% Winter 2003 Winter 2004 Winter 2005 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]

Slide 8: 8 Trust in Industries Technology is the Only Globally Trusted Industry

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

Slide 10: 10 Trust in Companies: Ongoing US Corporate Trust Deficit in Western Europe

Slide 11: 11 Trust in Countries: Sweden, Canada and Germany are Most Trusted Headquarter Countries Ongoing US-trust deficit

Slide 12: Sweden, Canada and Germany Most Trusted Headquarter Countries 12 Respondent Region EU North America Latin America Asia Sweden 75 70 82 70 Canada 72 76 85 72 71 57 85 77 Germany 69 65 82 61 The Netherlands 66 63 81 64 Japan 65 73 80 72 United Kingdom 64 63 58 53 Ireland HQ 56 38 78 70 France Highest Ranked 51 50 74 55 Spain 48 66 72 71 United States Lowest Ranked 42 54 74 66 Italy 31 41 54 61 South Korea 29 43 51 47 Poland 26 37 45 45 India 25 27 44 52 China 22 34 61 43 Brazil 19 26 60 43 Mexico 15 20 44 42 Russia 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 Top 4 boxes shown DO NOT TRUST THEM AT ALL and 9 means that you TRUST THEM A GREAT DEAL.

Slide 13: Germans Trust in Companies by Country of Origin 13 Canada 75% Sweden 75% The Netherlands 69% Germany 67% Ireland 66% Japan 58% France 54% The United Kingdom 53% Spain 40% Italy 35% The United States 34% China 31% South Korea 26% India 18% Poland 17% Mexico 14% Brazil 13% Russia 11% 0% 20% 40% 60% 80% 100%

Slide 14: Trust in German Companies Among Different Nationalities 14 Brazil 88% The Netherlands 85% Mexico 83% Japan 82% Russia 81% 80% India 78% France 77% Poland 76% South Korea Sweden 75% Spain 75% China 73% Germany 67% Italy 65% 59% Canada 59% Ireland 57% The United States 57% The United Kingdom 0% 20% 40% 60% 80% 100%

Slide 15: US Trust Deficit Has Remained Over Time 15 UK/France/Germany Trust Scores Minus US Trust Scores 2001 2002 2003 2004 2005 2006 2007 TOP 2 BOX % % % % % % % ExxonMobil -14 2 -7 -5 -16 -12 -17 Citicorp N/A -27 -23 -21 -31 -24 -37 McDonald’s N/A -29 -33 -26 -33 -21 -34 Coca-Cola N/A N/A -29 -26 -24 -24 -37 UK/France/Germany Trust Score Greater *UK, France, and Germany only US Trust Score Greater

Slide 16: Non-US Brands receive high trust scores across regions 16 Germans trust less Non-US Brands Receive High Trust Across Regions US E.U. Russia China Germ. Siemens * 63% 68% 87% 93% 57% Nissan 69% 60% 89% 63% 47% Danone 72% 57% 73% 88% 44% Electrolux 60% 62% 81% 78% 40% Samsung 69% 62% 76% 90% 52% Gucci 58% 46% 71% 51% 41% Greenpeace 56% 68% 56% 80% 73% Amnesty 52% 70% 53% 56% 79% * = Interviews in October 06 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.

Slide 17: 17 Trust in global companies: Positive impact on society

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

Slide 19: … Except in Germany 19 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% On the whole, do you believe that global companies have more of a positive or more of a negative impact on society?

Slide 20: 20 Why Trust Matters: Opinion Elites in Many Countries are Taking More Actions Against Distrusted Companies

Slide 21: Germans Have Become More Likely to Take Several Actions 21 in Response to Distrusted Companies Refused to buy their products or use their 82% 86% services 67% Refused to invest in them 74% 75% Criticized them to people you know 84% 43% * Investigated more about their activities 58% Supported legislation controlling or limiting 2006 42% 51% their activities 2007 49% * Refused to work for them 66% Ignored their attempts to communicate 61% * 46% with you Shared your opinion and experiences on 10% * 23% the Web * = Significant difference, >10 Actively demonstrated or protested against 16% * 27% them 0% 20% 40% 60% 80% 100% For each one, please tell me if you have ever done this in relation to a company you do not trust.

Slide 22: 22 Information Sources: Business Magazines & Analyst Reports Lead in Trust

Slide 23: UK/France/Germany Credible Sources: 23 Business Magazines and Analyst Reports Lead TOP 2 BOX 2003 2004 2005 2006 2007 % % % % % Articles in business magazines 52 52 51 60 49 Stock or industry analyst reports 42 44 47 60 49 News coverage on the radio 58 47 52 55 43 Friends and family (2003-2006)/Conversations with 51 44 43 50 39 your friends and peers (2007) Television news coverage 45 37 43 45 38 Articles in newspapers 37 38 34 45 29 Communications issued by companies such as 32 30 27 36 25 press releases, annual reports, and newsletters Weblogs or blogs N/A N/A N/A 15 13 A company’s own website 27 22 17 23 11 Lowest ranked Highest ranked 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?

Slide 24: Germany Credible Information Sources: 24 Business Magazines Remain Most Credible TOP 2 BOX 2003 2004 2005 2006 2007 % % % % % Articles in business magazines 47 53 74 83 71 Television news coverage 55 49 75 76 68 News coverage on the radio 67 49 72 73 67 Friends and family (2003-2006)/Conversations 62 42 62 67 56 with your friends and peers (2007) Stock or industry analyst reports 35 40 59 75 50 Articles in newspapers 40 37 54 59 46 Communications issued by companies such as 34 24 31 47 38 press releases, annual reports, and newsletters A company’s own website 28 17 22 26 13 Weblogs or blogs N/A N/A N/A 17 7 Highest ranked Lowest ranked 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?

Slide 25: 25 Spokespeople: Person Like Yourself Continuing to Lead Industry Experts Also Important

Slide 26: Credible Spokespersons for Information about a 26 Company North Latin TOP 2 BOX E.U. Asia America America % % % % A person like yourself 53 51 83 54 Doctor or healthcare specialist 50 49 80 56 Non-profit organization or NGO representative 46 44 67 48 Academic 45 47 70 48 Financial/ Industry analyst 45 43 71 47 Regular employee of company 34 36 54 39 The CEO/leader of your company or employer* 32 31 62 48 Lawyer 30 16 35 43 Government official or regulator 25 22 30 41 CEO of a company 24 22 55 41 Public relations executive 15 12 46 22 14 11 39 24 Entertainer/ Athlete Blogger 13 9 21 18 * Asked only of employed respondents Highest ranked Lowest ranked 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?

Slide 27: German Credible Spokespersons: 27 Person Like Yourself Continues to Lead, CEO Drops 2003 2004 2005 2006 2007 TOP 2 BOX % % % % % A person like yourself 46 55 79 73 68 Doctor or healthcare specialist 58 55 62 59 46 Non-profit organization or NGO representative 39 30 56 62 45 Lawyer 52 49 49 57 44 Academic 38 27 49 49 38 Financial/ Industry analyst N/A 31 51 65 31 Regular employee of company 47 25 36 41 26 The CEO or leader of your company or employer N/A N/A N/A N/A 25 CEO of a company 33 13 29 34 23 Public relations executive 14 13 24 21 14 Entertainer/ Athlete 19 12 22 15 14 Blogger N/A N/A N/A 13 4 Highest ranked 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, Lowest ranked 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]

Slide 28: Germany: “A Person Like Me” Defined 28 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] 62% Shares common interests with you Holds similar political beliefs to you 48% 47% Is from your local community 34% Is the same profession as you 6% Is the same religion as you Is the same nationality as you 12% Is the same gender as you 9% Is the same race/ethnicity as you 13% 0% 20% 40% 60% 80% 100%

Slide 29: 29 Building Trust Personalization, Localization and Inside-Out Reputation

Slide 30: Social Responsibility is More Important than 30 Corporate Brand or Financial Performance 33% Quality products and services 47% 37% 20% Socially responsible activities 9% 18% 13% Fair pricing for products and 10% services 9% 12% Good employee and labor 5% relations 12% US 10% Attentiveness to customer ASIA 14% needs 13% EU 5% Strong financial performance 5% 2% 3% A familiar or well-known 6% corporate brand 2% 2% Dialogue with all 2% stakeholders 3% Ranked on US 2% A visible CEO 2% 3% 0% 20% 40% 60% 80% 100% Which ONE of the following factors is most important to building your trust in a global company?

Slide 31: Germany Factors which build Trust in Global Companies 31 Quality products and services 31% Good employee and labor relations 26% A visible CEO 16% Socially responsible activities 13% Dialogue with all stakeholders 4% Attentiveness to customer needs 4% Strong financial performance 3% A familiar or well-known corporate brand 1% Fair pricing for products and services 1% 0% 20% 40% 60% 80% 100%

Slide 32: Employees Are The New “Green” in US and Globally 32 63% 53% Fair treatment of employees 58% 52% Ensuring that products meet accepted environmental/ 52% social standards 53% 44% Communication of both positive and negative 43% performance 43% 41% CEO commitment to responsible business practices 23% US 20% ASIA 25% 41% Social or environmental reporting EU 44% 21% 32% Philanthropic donations or activities 15% 12% Media coverage of responsible business practices 23% 13% 11% Ranked on US Partnerships with NGOs or non-profits 18% 22% 0% 20% 40% 60% 80% 100% 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?

Slide 33: Companies Need to Communication Along Both 33 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 

Slide 34: The Evolving Trust Landscape 34 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 

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