2011 Australian Edelman Trust Barometer

January 21, 2011Asia-Pacific (APAC) AUSTRALIA

Edelman Trust Barometer at a glance For more than a decade, Edelman’s Trust The Edelman Barometer™ has been: Trust Barometer • Probing the attitudes of opinion derives from shapers on the current state of trust more than 5,000 in business, institutions and interviews industries across 23 countries • Understanding the expectations of Participants are: Aged between 25 and stakeholders regarding policy impact 64; college-educated; on business and government top 25% of household income; significant • Aligning communications strategies consumers of media, and actions required to build trust business news and public policy30-minute telephone interviews conducted from October 11 – November 28, 2010. Australian sample N=200

State of TrustShifting centre of gravity

Trust in institutions (2010-2011) Trust in NGOs Government Australia rebounds since 2010 +14 65 % +11 52 % Business Media +7 54 % +2 32 %A7-10. [INSTITUTIONS] For each one, please tell me how much you TRUST that institution to do what is right.On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREATDEAL, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in Australia

Trust in institutions (2011) Australia most trusting of Global APAC U.S. Australia NGOs; least 100% trusting of 90% media 80% 70% 65% 64% 62% 62% 61% 61% 58% 60% 55% 54% 54% 52% 51% 50% 44% 40% 40% 32% 30% 27% 20% 10% 0% NGOs Business Government MediaA7-10. [INSTITUTIONS] For each one, please tell me how much you TRUST that institution to do what is right.On 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, how much do you trust [INSERT] to dowhat is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Business Trust in institutions (2009-2011) 70and NGOs 65 60 55 65%most trusted. 54% 52% 50 45 40 35 32% 30 25 20 2009 2010 2011Since trust was benchmarked in Australian in Business Government NGOs Media2009, trust in business has steadily increased,gaining 11%. Despite a small decline in 2010,trust in NGOs surges to a high of 65%, a 10%increase since 2009. A7-10. [INSTITUTIONS] For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in Australia

Globally, trust Trust in business (2010-2011) in business trends upward 2010 2011 2010 2011 while US drops100% Trusters Neutral Distrusters90% 80%80% +3 +4 70% +770% -8 67% 67% 64% 63% 61% 62% 61% 58% 57%60% 56% 54% 54% 54% 53%50% 46% 47% 45% 46%40%30%20%10% 0% Global APAC US Indonesia India Singapore China Australia Japan South Korea A9. On 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, how much do you trust [BUSINESS] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

11% increasein trust ingovernment since2010.Despite a tumultuous year in politics, more than half(52%) of Australian opinion leaders trust government todo what is right. Trust in government rebounds fromdrop in 2010, returning to 2009 levels.(Question A9, Top 4 Box, Informed Publics aged 25-64 in Australia)

Globally, trust in Trust in government (2010-2011) government rises 2010 2011 2010 2011 significantly 100% in 2011 Trusters Neutral Distrusters 88% 90% 84% 80% +5 77% 74% 70% +5 +11 64% 62% 62% 59% 60% -6 52% 52% 51% 50% 50% 50% 47% 46% 42% 43% 44% 40% 41% 40% 30% 20% 10% 0% Global APAC US China Singapore Indonesia Australia Japan South Korea IndiaA9. On 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, how much do you trust[IGOVERNMENT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Trust in business and NGOs (2011) Trust in NGOs now on par with business; business NGO business NGO business NGO Australia more 100% trusting of 90% NGOs. 80% 80% 70% 67% 70% 66% 65% 64% 63% 62% 61% 62% 61% 62% 61% 58% 60% 55% 54% 53% 51% 50% 46% 46% 40% 30% 20% 10% 0% Global APAC US Indonesia Australia Singapore China South Korea India JapanA9. On 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, how much do you trust[BUSINESS/NGOs] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

Australians skeptical of Trust in media (2010-2011) media, along with other developed 2010 2011 2010 2011 100% countries Trusters Neutral Distrusters 90% 86% 80% 80% +7 75% 70% +4 61% 63% 63% 59% 58% 60% 54% 53% 49% 49% 50% 48% 50% 45% -11 38% 40% 36% 32% 30% 30% 27% 27% 22% 20% 10% 0% Global APAC US Indonesia China Singapore South Korea India Japan Australia UKA9. On 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, how much do you trust[MEDIA] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

The Trust Index (2009/2011) Australia 2009 2011 increases China 61 Brazil 80 within global Brazil 58 Indonesia 74 trust India 58 China 73 improvement Indonesia 58 Singapore 67 Global 49 India 56 Japan 49 Global 55 Australia 47 South Korea 53 South Korea 45 Australia 51 UK 42 Japan 51 Germany 42 France 50 France 41 Germany 44 US 36 US 42 Singapore N/A UK 40Composite score is an average of a country’s trust in all four institutions Ages 25-64 (Global excludes Singapore, UAE and Argentina)

U.S. trust in institutions In U.S., 2011 decline mirrors 2009 drop; Only country to see across-the- Business Government Media NGOs 80% board fall 70% 63% 63% Worldwide Financial 60% 59% Crisis 54% 55% 50% 46% 45% 46% 46% 43% 40% 36% 40% 38% 31% 30% 30% 27% 20% 2008 2009 2010 2011A7-10. On 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,how much do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in the U.S.

Trust in Business A closer look

Trust in all Trust in industries (2011) industries remains Technology 68% steady over Food and beverage 65% the past year Retail 59% Entertainment 59% Pharmaceuticals 56% Automotive 55% Biotech 54% OTC personal health care products 53% Brewing and spirits 52% Technology Consumer packaged goods 47% firmly on top; Energy 45% Media and Telecommunications 38% Insurance 38% Finance Financial services 37% sector at Banks 33% bottom Media 28%A30-45. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of thefollowing industries to do what is right. Again, please use a nine-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means thatyou ―TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics ages 25-64 in Australia

In 2011, Trust in industries (2011) Automotive,Telecommunications Global ranking and Biotech less Technology 68% 81% 1. trusted in Australia Food and beverage 65% 66% 4. than globally Retail 59% 65% 6. Entertainment 59% 63% 7. Pharmaceuticals 56% 63% 8. Automotive 55% 69% 2. Biotech 54% 65% 5. OTC personal health care products 53% 57% 11. Brewing and spirits 52% 57% 12. Consumer packaged goods 47% 59% 10. Energy 45% 62% 9. Telecommunications 38% 68% 3. Insurance 38% 52% 14. Financial services 37% 50% 16. Banks 33% Aussies Aussies 51% 15. MORE LESS Media 28% trusting trusting 54% 13.A30-45. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Use a nine-point scale where one means that you ―DONOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics ages 25-64 in 23 countries and Australia

Trust in banks globally (2008/2011) Since financial crisis, trust in banks takes big hit in the West; +12 2008 2011 Reverse is true in +4 100% China, India, +10 -46 90% 90% 83% 87% +21 Japan 78% 80% 71% 69% -10 71% +12 -21 70% 61% -30 60% 54% 52% 48% 46% 50% 44% 44% -20 40% 40% 33% 29% 30% 25% 26% 23% 20% 16% 10% 6% 0% China India Japan Brazil France Australia* Russia US Germany UK Ireland** Compares 2009 rather than 2008 dataA30-45. [Banks TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businessesin each of the following industries to do what is right. Again, please use a nine-point scale where one means that you ―DO NOT TRUST THEM ATALL‖ and nine means that you ―TRUST THEM A GREAT DEAL.‖ (Top 4 Box) Informed publics ages 25-64

National identity for companies (2011) Australians distrusting of companies headquartered in Company Headquarters BRIC countries Aussies Aussies MORE LESS trusting trusting 76% 27% 26% 70% India Canada China Sweden 69% 67% 51% 20% 18% Switzerland Germany US Brazil RussiaA13-29. 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.(Top 4 box) Informed Publics ages 25-64 in Australia

Reputation attributes (2011) Top 2 Box, Very/Extremely Important64% Has transparent and honest business practices 51% Communicates frequently and honestly63% Offers high quality products 46% Is a good corporate citizen60% Is a company I can trust 33% Has highly regarded and top leadership57% Treats employees well 31% Delivers consistent financial returns to investors55% Prices its brands fairly and competitively 30% Is an innovator of new products, services or ideasB72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. Howimportant is this factor to overall reputation on a 9-point scale where one means ―not at all important‖ and nine means ―extremely important‖? (Top 2 Box, Very/Extremely Important) Informed Publics ages 25-64 in Australia.

Attributes affecting reputation (2011) Top 2 Box, Very/Extremely Important Global ranking Transparent and honest business practices 64% 65% 2. High quality products or services 63% 69% 1. Company I can trust 60% 65% 3. Treats employees well 57% 63% 4. Prices fairly and competitively 55% 55% 5. Globally quality Communicates frequently and honestly 51% 55% 5. tops the list of Good corporate citizen 46% 51% 7. reputation attributes; in Widely admired leadership 33% 39% 9. Australia Financial returns 31% transparency 39% 9 . and honesty Innovator 30% MORE LESS important to important to 46% 8. most important Aussies AussiesB72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? The first one is [INSERT FIRST]. Howimportant is this factor to overall reputation on a 9-point scale where one means ―not at all important‖ and nine means ―extremely important‖? (Top 2 Box, Very/Extremely Important) Informed Publics ages 25-64 in Australia and global in 23 countries.

Price matters.17%increase since 2010.Australians see pricing brands fairly andcompetitively as an important attribute for trustand reputation in 2011.(Question B72-81, Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in Australia)

Business and Society Toward shared value

Creating Shared Value“ The purpose of a corporation must be redefined Companies must around creating take the lead in shared value… bringing business and society back together. ” Michael Porter, Mike Kramer, Harvard Business Review

“The socialresponsibility ofbusiness is toincrease itsprofits.”Milton Friedman 5 out of 10G124. TOTAL 52%. Please tell me if you agree/disagree with the following quote from MiltonFriedman: ―The social responsibility of business is to increase its profits‖? (Net: Strongly agree + Australians agreesomewhat agree) Informed Publics ages 25-64 in Australia

Corporations need tocreate shareholdervalue in a way thataligns with societysinterests, even if thatmeans sacrificingshareholder value.G120. TOTAL 79%. Which of the following two positions comes closest to your view? A corporation 8 out of 10should focus only on creating shareholder value, even if the way in which they create shareholdervalue conflicts with societal interests OR corporations need to create shareholder value in a way thataligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics Australians agreeages 25-64 in Australia

Government needsto regulatecorporationsactivities to ensurethey are behavingin a responsiblemanner. 7 out of 10G123. TOTAL 73%. And which of the following statements is closest to your view? I trust corporationsto act on their own to behave in a responsible manner OR I think government needs to regulate Australians agreecorporations’ activities to ensure that they are behaving in a responsible manner.Informed Publics ages 25-64 in Australia

Government intervention (2011) Ireland 82% UK 82% Canada 74% Australia 73% Indonesia 70% Russia 69% Singapore 67% Australians more China 62% India 61% likely to call for US 61% government to step Mexico 56% in to ensure Brazil 53% France 50% business behaves Germany 49% responsibly Spain 48% S. Korea 44% Japan 42% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner OR I think government needs toregulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics ages 25-64 in 23 countries

Roadmap to TrustKey drivers of reputation

Trusted spokespeople (2009-2911) CEO and company Top 2 Box, Extremely Credible/Very Important spokespeople 2009 2010 2011 more trusted in 100% better economic 90% climate 80% 70% -9 70% 67% 69% 67% 61% 60% 54% -15 50% 52% 52% 49% 47% 47% 50% 44% 44% 46% 41% 38% 40% 34% 31% 33% 30% 30% 19% 20% 10% 0% N/A An academic or Technical expert A financial or CEO Government official NGO representative Person like yourself Regular employee expert within the company industry analystD104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information abouta company from that 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) Informed Publics ages 25-64 in Australia

Most trusted spokespeople (2011) Credibility matters 69% 67% 50% trust an trust a trust a academic or expert technical expert from financial or industry within the company analystD104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information abouta company from that 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) Informed Publics ages 25-64 in Australia

Most trusted spokespeople (2011) CEO experiences recovery of credibility 30 percentage point increase since 2009 to 49% in 2011

CEO credibility (2010-2011) CEO credibility Top 2 Box, Extremely Credible/Very Important increases 100% 2010 2011 globally 90% 78% 80% +7 70% +10 67% 66% +11 63% 58% 58% 58% 60% 53% 53% 50% 51% 50% 50% 50% +3 49% 50% 45% 40% 38% 40% 34% 31% 30% 20% 10% 0% Global APAC US India Japan South Korea Singapore China Indonesia AustraliaD104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information abouta company from that 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) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)

CEO Trusted spokespeople in a crisis (2011) must be vocal Trusted spokesperson Preferred spokesperson Preferred spokesperson when the 50% during a company crisis 50% during a product recall local community has been damaged 50% 47% 40% 36% 40% 36% 40% 33% 30% 30% 30% 21% 22% 20% 20% 20% 13% 14% 11% 9% 11% 10% 8% 7% 10% 8% 9% 6% 10% 6% 3% 0% 0% 0%D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about that crisis. D101.Keeping the same list of people in mind, when a company issues a product recall, which one person do you want to hear information from about that recall? D102. Keeping the same list of people in mind, whena company’s actions have damaged the local community where it operates, which one person do you want to hear information from about that damage? Informed Publics ages 25-64 in Australia.

Trusted information sources (2011) Trust a Great Deal (Top Box)/Trust (Top 2 Box) Traditional Magazines or business magazines 27% 82% Newspapers 23% 86% Radio or radio news 23% 83% Online Sources Television or television news 20% 76% Online search engines 27% 82% News/RSS feeds 17% 82% Blogs 9% 45%Social Media Content-sharing sites, such as YouTube 8% 47% Social networking sites 6% 39% Microblogging sites, such as Twitter 6% 35%Corporate Corporate communications 21% 78% Corporate/product advertising 9% 58%H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me 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 Australia

Most relied upon information source (2011) Most relied on source for company information (unaided) Strong 1. 48% media 2. 14% brands rise to the top 3. 12% 4. 12% 5. 10% 6. 9% 7. 8% 8. 7% 9. 6% 10. 6%I143. Please tell me the names of the specific sources you rely on most for information about companies. (Open Ended Response) Informed Publics ages 25-64 in Australia

Source of information about a company (2011) First Source Online search engine 35% Online news sources 22% People go to online first when looking for news Company website 16% and information about a Print (newspapers/magazines) 11% company – search, online news sources and Friends and family 7% company websites Broadcast (radio/TV) 5% Social media 4% 0% 10% 20% 30% 40% 50%I139. When looking for general news or information about a company, which one type of information source would you generally consult first? Informed Publics ages 25-64 in Australia

Source of information about a company (2011) First Source Second Source Online search engine 35% Online news sources 26% Online news sources 22% Company website 17% Company website 16% Online search engine 16% Broadcast (radio/TV) 14% Print (newspapers/magazines) 11% Print (newspapers/magazines) 11% Friends and family 7% Social media 8% Broadcast (radio/TV) 5% Friends and family 5% Social media 4% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%(I139. When looking for general news or information about a company, which one type of information source would you generally consult first? I140. Andafter [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking for general news or informationabout a company? Informed Publics ages 25-64 in Australia

Exposure to information (2011) Australians need information from multiple Ten or more times (10+), 6% sources and voices; Six to Nine times (6-9), 9% Once (1), 14% And need to hear it 3-5 times to believe Twice (2), 15% Four or Five times (4 - 5), 29% 3-5 times 56% Three times (3), 27%H137. Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposedto something about a specific company to believe that the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia

The Benefits of Trust The Benefits of Trust Why Trust Matters

Trust is a protective agentand leads to tangiblebenefits and sales.Lack of trust is barrier tochange.

Through personal action, trust has tangible benefits Distrusted Companies _+ Trusted Companies 76% 84% Refused to buy products/services Chose to buy products/services 75% 80% Criticized them to a friend/colleague Recommended them to a friend/colleague 61% Paid more for products/services 38% 42% Shared negative opinions online Shared positive opinions online 15% 29% Sold shares Bought shares Actions Taken Over Past 12 MonthsF118. [TRACKING] Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust?Please answer yes or no to each action. (Percent ―Yes‖) F119. [TRACKING] Still thinking about the past 12 months, have you taken any of the followingactions in relation to companies that you do not trust? Please answer yes or no to each action. (Percent ―Yes‖) Informed Publics ages 25-64 in Australia

Trust protects reputation (2011) When a company is distrusted When a company is trusted 57% will believe NEGATIVE information after 49% will believe hearing it 1-2 times POSITIVE information after hearing will believe positive it 1-2 times 16% information after 31% hearing it 1-2 times will believe negative information after hearing it 1-2 timesThink about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information)about that company to believe the information is likely to be true? Please give me a number.Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) aboutthat company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in Australia

Business must alignprofit and purpose forsocial benefit.

The Transformation of Trust Old Trust Framework New Trust Architecture Control Information Protect the Brand Stand Alone WHAT Focus Solely on Profit Profit With Purpose

Current media landscapeplus increasedskepticism requires multiplevoices and channels.

Demand for authority and Generational differencesaccountability set newexpectations for corporateleadership.

January 21, 2011Asia-Pacific (APAC) AUSTRALIA

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2011 Australian Edelman Trust Barometer

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2011 Australian Edelman Trust Barometer — Presentation Transcript