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Edelman Trust Barometer: U.S. Energy Industry

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There is a need and struggle to balance economic, environmental, security and societal concerns related to energy demand, production and impact. As U.S. energy companies look for domestic opportunities to bring energy solutions and economic benefits to Americans, policymakers face the complex balancing act between resource development and economic, environmental and political realities. When it comes to having a license to lead and operate in the energy space, the stakes are high, and trust and reputation are critical.

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Edelman Trust Barometer: U.S. Energy Industry

  1. 1. U.S. ENERGY INDUSTRY FINDINGS
  2. 2. EDELMANS 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST2ONLINE SURVEYIN 26 COUNTRIES• 31,000+ respondents• 5 years in 20+ markets• 8 years in 10+ marketsGENERALPOPULATION• 1000 respondents percountry surveyed• Ages 18+• 2 years of dataINFORMEDPUBLICS• 500 respondents in U.S. andChina & 200 in othercountries• Ages 25-64• College-educated• In top 25% of householdincome per age group ineach country• Report significant mediaconsumption andengagement in businessnews and public policy• 13 years of data
  3. 3. 2013RISING INFLUENCE OF NGOS2001FALL OF THE CELEBRITY CEO2002EARNED MEDIA MORE CREDIBLE THAN ADVERTISING2003U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT2004TRUST SHIFTS FROM “AUTHORITIES” TO PEERS2005“A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON2006BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA2007YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS2008BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST2009TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS2010RISE OF AUTHORITY FIGURES2011THE FALL OF GOVERNMENT2012CRISIS OF LEADERSHIPEDELMAN TRUST BAROMETER IN RETROSPECT3
  4. 4. TRUST 2013ENERGY INDUSTRY DEEP DIVETHE PATH FORWARD: TRUST BUILDING, TRUSTED SOURCESAND COMMUNICATION IMPLICATIONSTHE STATE OF TRUST4
  5. 5. STATE OF TRUST
  6. 6. GLOBAL 57China 80Singapore 76India 71Mexico 68Hong Kong 67UAE 66Malaysia 64Canada 62Indonesia 62U.S. 59Netherlands 59Brazil 55Germany 55France 54Sweden 54UK 53Italy 51Australia 50Poland 48S. Korea 47Ireland 46Argentina 45Spain 42Turkey 42Japan 41Russia 362011 20132012DISTRUSTERSTRUSTERSNEUTRALGLOBAL 51China 76UAE 68Singapore 67India 65Indonesia 63Mexico 63Netherlands 61Hong Kong 61Canada 58Malaysia 57Italy 56Argentina 54Australia 53Brazil 51Sweden 49U.S. 49South Korea 44Poland 44U.K. 41Ireland 41France 40Germany 39Spain 37Japan 34Russia 32EDELMAN’S TRUST INDEX: AFTER A YEAR OF HIGH DISTRUST IN 2012,SHIFT BACK TO NEUTRAL IN 2013GLOBAL 55Brazil 80UAE 78Indonesia 74China 73Netherlands 73Mexico 69Singapore 67Argentina 62India 56Italy 56Canada 55South Korea 53Sweden 52Japan 51Australia 51Spain 51France 50Poland 49Germany 44U.S. 42U.K. 40Russia 40Ireland 39Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total6Big Changesfrom 2008Germany +19China +18Canada +14India +11Big Changesfrom 2012Germany +16France +14UK +12US +10
  7. 7. 20137GLOBAL 57China 80Singapore 76India 71Mexico 68Hong Kong 67UAE 66Malaysia 64Canada 62Indonesia 62U.S. 59Netherlands 59Brazil 55Germany 55France 54Sweden 54UK 53Italy 51Australia 50Poland 48S. Korea 47Ireland 46Argentina 45Spain 42Turkey 42Japan 41Russia 36GLOBAL 48China 70India 64UAE 63Singapore 63Indonesia 61Malaysia 61Mexico 59Hong Kong 54Canada 52Brazil 51Netherlands 50Argentina 48U.S. 45Germany 44UK 43S. Korea 43Turkey 43France 41Italy 40Sweden 40Australia 39Spain 37Japan 35Poland 34Ireland 33Russia 30Composite score is an average of a country’s trust in all four institutions. General population and Informed Publics ages 25-64 in 26 country global total and across 26 countriesLargest Differences betweenGeneral & Informed PublicsPoland, US, Sweden: - 14 pointsSingapore, Ireland, Hong Kong,France: - 13 pointsGeneralPopulation9 points lowerthan InformedPublicsINFORMED PUBLIC2013GENERAL PUBLICDISTRUSTERSTRUSTERSNEUTRALLOWER TRUST AMONG GENERAL POPULATION THAN INFORMED PUBLICS
  8. 8. 54%39%50%43%56%59%59%36%54%46%50%62%43%30%46%40%43%53%63%45%63%55%58%70%20%30%40%50%60%70%80%2008 2009 2010 2011 2012 2013EnergyBusinessGovernmentNGOsTRUST IN INSTITUTIONS RISE PAST 2010 HIGHSTRUST IN INSTITUTIONS – INFORMED PUBLICS AGES 35-64 – U.S.Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 35-64 in US8200816 point gapbetween business &government trust2013Business, energy &government trust areall within 9 pointsNGOs
  9. 9. Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-64in USTRUST ON THE RISE ACROSS INSTITUTIONSTRUST IN INSTITUTIONS – U.S.92012Total Trust2013Total Trust45% 51%US2012Total Trust2013Total Trust58%70%US2012Total Trust2013Total TrustNGOSBUSINESSMEDIAGOVERNMENT2012Total Trust2013Total Trust43%53%US50%62%USENERGY2012Total Trust2013Total Trust56% 59%
  10. 10. 59%82%64%49%74%56%81%44%56%52%44%40%62%56%47% 48%63%58%48%61% 60%77%44%58%65%74%31%50%41%33%19%47%30%57%20%35%32% 32%29%53%47%40%43%60%58%48%62% 63%82%49%65%73%81%44%Q11-14. [Business in General and Government in General] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 26-countryglobal total and across 26 countriesBUSINESS TRUSTED MORE THAN GOVERNMENT IN16 OF 26 MARKETS SURVEYEDTRUST IN BUSINESS VS. GOVERNMENT - 26 MARKET OVERVIEWGovernmentBusinessGAP BETWEEN BUSINESS & GOVERNMENT GROWINGGlobally, largest gap since 2007*US Trust in Business: 62%US Trust in Government: 53%US Trust in Energy: 59%10
  11. 11. SLIGHT UPTICKS IN MANY SCORES, INCLUDING ENERGYTRUST IN INDUSTRIES – U.S.Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public ages 25-64 in US11Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 (only industries tracked from 2012 to2013 shown)80%75%72%70%70%66%59%55%52%50%50%TechnologyBrewing and spiritsFood and beverageAutomotiveConsumer packaged goodsTelecommunicationsEnergyPharmaceuticalsFinancial servicesBanksMedia2013201241%46%48%56%56%64%66%71%74%74%83%BanksFinancial servicesMediaEnergyPharmaceuticalsTelecommunicationsAutomotiveBrewing and spiritsConsumer packaged goodsFood and beverageTechnologyTechnology #1 in allmarkets surveyed
  12. 12. ENERGY INDUSTRY DEEP DIVE
  13. 13. 50%Trust in Business53%Trust in the Energy IndustryTHE GENERAL PUBLIC IS MORE TRUSTING OF THE ENERGY INDUSTRY THANBUSINESS OVERALLTRUST IN ENERGY INDUSTRY VS. TRUST IN BUSINESS – U.S.Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in eachof the following industries to do what is right. Again, please use the same 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 4 Box, Trust) General Population in US130%10%20%30%40%50%60%70%80%90%100%Energy IndustryTrust (53%)Business Trust(50%)
  14. 14. 1457%61%69%55%49%80%54%80%75%69%43% 42%47%71%76%67%76%49%55%49%57%53%52%37%40%36% 37%50%35%43%37%32%67%42%68%64%58%34% 33%38%63%69%60%69%44%51%45%53%50%54%42%48%44%49%Energy IndustryBusinessENERGY INDUSTRY MORE TRUSTED THAN BUSINESS IN 21 OF 26 MARKETS;LARGEST DIFFERENCES SEEN IN SOUTH KOREA AND HONG KONGTRUST IN ENERGY INDUSTRY VS. BUSINESS IN GENERAL – 26 MARKET OVERVIEWQ11-1[TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in eachof the following industries to do what is right. Again, please use the same 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 4 Box, Trust) General Population in 26 -country global total and across 26 countriesJUS Trust in Energy :53%US Trust in Business: 50%
  15. 15. 54%39%50%43%56%59%10%20%30%40%50%60%70%80%2008 2009 2010 2011 2012 2013TRUST IN ENERGY INDUSTRY RISES PAST 2008 PRE-RECESSION LEVELSTRUST IN ENERGY INDUSTRY – (INFORMED PUBLICS AGES 35-64) – U.S.15 Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public in US
  16. 16. TRUST AMONG EMERGING MARKETS HIGHER THAN TRUST AMONGDEVELOPED MARKETSTRUST IN ENERGY INDUSTRY BY REGION – GLOBAL OVERVIEW53% 54%62% 61% 61%58%43%57%53%70%67% 66%61%45%Global US BRIC Latin America APAC North America EU16 Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 26 -country global total and across APAC, BRIC,Latin America, North America and EU region2012 2013
  17. 17. 53%68%74%66% 66%65%68%64%68%69%56%52%54%50%54%52%58%43%38%43%37%46%30% 29% 30%41%57%80% 80%76% 76% 75%71%69% 69%67%61%57%55% 55%54% 53%52%49%49% 49%47%43%42% 40%37% 37% 36%2012 201350%Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 26 -country global total and across 26 countriesOVER THE PAST YEAR, TRUST IN THE ENERGY INDUSTRY SIGNIFICANTLY INCREASED INSEVERAL MARKETS WITH GREATEST INCREASES SEEN IN INDIA AND JAPAN2012 VS. 2013 TRUST IN ENERGY INDUSTRY– 26 MARKET OVERVIEW17n/a2012 US Trust in Energy :54%2013 US Trust in Energy: 53%
  18. 18. 57%80% 80%76% 76% 75%71%69% 69% 67%61%57%55% 55%54%53% 52%49% 49% 49%47%43% 42%40%37% 37% 36%23%7% 8%13%9%7%12%16%12%8%14%23%25% 25%29%26%23%31%28%21%33%35% 34% 34%40% 41%42%Trust in Energy IndustryDistrust in Energy IndustryQ43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust and Bottom 4 Box, Distrust) General Population in 26 -country global total andacross 26 countriesTRUST HIGHER THAN DISTRUST IN MAJORITY OF MARKETS;DISTRUST HIGHEST IN UK, GERMANY AND AUSTRALIATRUST IN ENERGY INDUSTRY VS. DISTRUST IN ENERGY INDUSTRY – 26 MARKET OVERVIEW18US Trust in Energy: 53%US Distrust in Energy: 26%
  19. 19. 53%65%54% 53%35%Energy Industry Renewables Natural Gas Utilities OilQ61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do whatis right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in USTRUSTED AMONG ENERGY SECTORS –RENEWABLES MOST TRUSTED; OIL LEAST TRUSTEDTRUST IN ENERGY INDUSTRY SECTORS – U.S.19
  20. 20. 68%84% 84%79% 77% 76% 76% 75%73%72% 71% 71% 70% 70%68%68% 65%65% 64% 64%61% 60% 59% 59% 57%55% 53%50%20TRUST IN ENERGY INDUSTRY SECTORS – RENEWABLESIN ALL 26 COUNTRIES SURVEYED, OVER HALF TRUST THE RENEWABLESSECTORQ61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do whatis right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 26 -country global total and across 26 countriesU.S. Trust in Renewables: 65%
  21. 21. 58%85%80%74% 72% 72% 71% 70% 70%65% 65%60%56%55% 54% 53% 53% 53%49%47% 46% 45% 45%43% 43%37% 37%50%21TRUST IN ENERGY SECTORS – NATURAL GASCHINA AND INDIA MOST TRUSTING OF THE NATURAL GAS SECTOR; TRUSTLOWEST IN GERMANY AND IRELANDQ61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do whatis right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 26 -country global total and across 26 countriesU.S. Trust in Natural Gas: 54%
  22. 22. 49%77% 77%74% 73% 72%69% 69%66%62%52%49%47%42% 41%39% 37%35%35%33% 33% 33%30% 30% 30% 29% 28%50%22TRUST IN ENERGY SECTORS – OILCOUNTRIES CLEARLY DIVIDED OVER TRUST IN THE OIL SECTOR; TRUST HIGHEST INEMERGING AND ASIAN MARKETS ONCE AGAINQ61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do whatis right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 26 -country global total and across 26 countriesU.S. Trust in Oil: 35%
  23. 23. 53%78%75%74% 73%69% 69% 68% 68%64%57%54% 54%53% 53%50% 47%40% 40% 40% 40% 39% 38%36% 36% 35%18%50%23TRUST IN ENERGY INDUSTRY SECTORS – UTILITIESEMERGING MARKETS TEND TO BE MOST TRUSTING OF THE UTILITIES SECTOR;RUSSIA OUTLIER WITH ONLY ONE IN FIVE RUSSIANS TRUSTING THE SECTORQ61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do whatis right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 26 -country global total and across 26 countriesU.S. Trust in Utilities: 53%
  24. 24. TRUST BUILDING
  25. 25. BUILDING TRUST – KEY PERFORMANCE CLUSTERSCOMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESSLISTENS TO CUSTOMER NEEDS AND FEEDBACKTREATS EMPLOYEES WELLPLACES CUSTOMERS AHEAD OF PROFITSINTEGRITYTAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISISHAS TRANSPARENT AND OPEN BUSINESS PRACTICESHAS ETHICAL BUSINESS PRACTICESPURPOSEOPERATIONSDELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORSHAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIPRANKS ON A GLOBAL LIST OF TOP COMPANIESPRODUCTS & SERVICESIS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEASOFFERS HIGH QUALITY PRODUCTS OR SERVICESWORKS TO PROTECT AND IMPROVE THE ENVIRONMENTADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESSCREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITYPARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDSENGAGEMENTEdelman Trust Barometerresearch reveals 16 SPECIFICATTRIBUTES which build trust.These can be grouped intoFIVE PERFORMANCE CLUSTERSlisted here in rank order ofimportance.25
  26. 26. THE EVOLUTION OF TRUST – WHAT MOVES THE NEEDLEINTEGRITY (58%)PURPOSE (47%)OPERATIONS (39%)PRODUCTS & SERVICES (54%)ENGAGEMENT (59%)Edelman Trust Barometer’s2013 TRUST PERFORMANCE CLUSTERSEdelman Trust Barometer’s2008 TRUST DRIVERS*OPERATIONS(76%)Reputation as a place to work (81%)Financial performance (76%)Respected CEO or leader (71%)26*Data used includes Informed Publics ages 35-64 only in 18-country global total
  27. 27. 37%45%42%52%46%55%62%57%65%72%74%72%55%71%74%74%41%49%50%55%59%63%65%68%69%69%70%72%72%76%77%77%PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TOADDRESS SOCIETAL ISSUESDELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORSRANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BESTCOMPANIES TO WORK FOR OR MOST ADMIRED COMPANIESHAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIPIS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEASADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESSHAS TRANSPARENT AND OPEN BUSINESS PRACTICESCREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCALCOMMUNITY IN WHICH THE COMPANY OPERATESCOMMUNICATES FREQUENTLY & HONESTLY ON STATE OF ITSBUSINESSTREATS EMPLOYEES WELLHAS ETHICAL BUSINESS PRACTICESOFFERS HIGH QUALITY PRODUCTS OR SERVICESWORKS TO PROTECT AND IMPROVE THE ENVIRONMENTPLACES CUSTOMERS AHEAD OF PROFITSTAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISISLISTENS TO CUSTOMER NEEDS AND FEEDBACK2013 ENERGY INDUSTRY IMPORTANCE VS. BUSINESS IMPORTANCE – U.S.TRUST BUILDING ATTRIBUTES – WHAT MATTERS FOR ENERGYGap+3+3+5+17--4-3+4+11+3+8+13+3+8+4+4ENERGYBUSINESS27
  28. 28. 2840%27%29%25%39%36%41%35%27%38%27%49%23%33%40%31%38%44%45%46%54%54%55%57%65%66%69%70%71%73%74%76%PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETALISSUESIS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEASRANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TOWORK FOR OR MOST ADMIRED COMPANIESWORKS TO PROTECT AND IMPROVE THE ENVIRONMENTDELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORSHAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIPCREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICHTHE COMPANY OPERATESADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESSHAS TRANSPARENT AND OPEN BUSINESS PRACTICESOFFERS HIGH QUALITY PRODUCTS OR SERVICESCOMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESSTREATS EMPLOYEES WELLTAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISISPLACES CUSTOMERS AHEAD OF PROFITSLISTENS TO CUSTOMER NEEDS AND FEEDBACKHAS ETHICAL BUSINESS PRACTICES -45-34-40-48-21-42-28-38-22-14-18-15-21-16-17+2Q70-85/Q86-101. Please think about businesses in the Energy Industry. How important is each of the following actions to building your trust in businesses in the Energy Industry?Please use a nine-point scale where one means that action is not at all important to building your trust and nine means it is extremely important to building your trust. [Top 2Box, Trust - Very Important (8-9)], General Population, Global 25-Country Total (Excludes Don’t Know) ;Q114-Q129. Please rate [INSERT COMPANY] on how well you think theyare performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing“extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in US*Importance attribute data used here is from the 2012 Trust Barometer2012 ENERGY INDUSTRY IMPORTANCE VS. 2013 BLINDED ENERGY COMPANY PERFORMANCE – US (FOR ILLUSTRATION PURPOSES)GapImportancePerformanceTRUST BUILDING ATTRIBUTES – LARGE GAP IN EXPECTATION VS. PERFORMANCE
  29. 29. 29PRODUCTS& SERVICESENGAGEMENTINTEGRITYPURPOSEOPERATIONSTrust-BuildingOpportunity QuadrantPRIORITIZING CLUSTERS BY IMPACT POTENTIALQ114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they areperforming “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in 26-countryglobal total*Energy importance attributes data was asked in the 2012 Trust BarometerINTEGRITYUNDER-PERFORMING ON HIGH PRIORITIES PERFORMINGQualitySocietyCommunicatesCustomersPERCEIVED PERFORMANCESTATEDIMPORTANCELOW PERFORMANCE ON LOWER EXPECTATIONS OVER-PERFORMING ON LOWER PRIORITIESENGAGEMENTPRODUCTS & SERVICESPURPOSEOPERATIONS2012 ENERGY IMPORTANCE VS. BLINDED ENERGY COMPANY PERFORMANCE (FOR ILLUSTRATION PURPOSES)
  30. 30. TRUSTED SOURCES ANDCOMMUNICATIONS IMPLICATIONS
  31. 31. 58% 58%43% 41% 40%51%47%32%26%30%65%71%56% 58%52%52% 51%38%28% 27%TRADITIONAL MEDIA ONLINE SEARCHENGINESHYBRID MEDIA SOCIAL MEDIA OWNED MEDIAGlobal Developed Emerging USQ178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where onemeans that you "do not trust it at all" and nine means that you "trust it a great deal". (Top 4 Box, Trust) General Population in 26-country global total, Developed vs. EmergingMarkets; Age breakdown for general population in 26-country global totalMAINSTREAM MEDIA REIGNS IN DEVELOPED MARKETS,EQUIVALENCE AMONG SOURCES IN EMERGING MARKETSYOUTH TRUSTS, OLDER GENERATIONS DISTRUST NON-TRADITIONAL MEDIA – GLOBAL OVERVIEW59%61%49% 47% 44%61% 60%48%45% 43%56% 56%40%37% 37%54%49%29% 29% 31%TRADITIONAL MEDIA ONLINE SEARCHENGINESHYBRID MEDIA SOCIAL MEDIA OWNED MEDIA18-29 30-44 45-64 65+GLOBAL AGE BREAKDOWN31
  32. 32. Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where onemeans that you "do not trust it at all" and nine means that you "trust it a great deal". (Top 4 Box, Trust)Informed Publics ages 25-64 in US, General Population in USSEARCH AND TRADITIONAL MEDIA CONTINUOUSLY PROVE MOST TRUSTEDAMONG THE INFORMED AND GENERAL PUBLICTRUST IN MEDIA SOURCES – U.S.32201362% 62%51%39%34%51% 52%38%28% 27%ONLINE SEARCHENGINESTRADITIONAL MEDIA HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA
  33. 33. TRUSTED SOURCES ARE EXPERTS AND PEERSCREDIBLE SPOKESPEOPLE – U.S.29%37%50%52%61%66%68%67%31%34%47%58%62%68%71%74%Government official or regulatorCEOFinancial or industry analystNGO representativeRegular employeeA technical expertA person like yourselfAcademic or expert2012Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, howcredible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publicsages 25-64 in US, General Population US33
  34. 34. 74%69%63%56%54%52%43%41%24%21%69%66%57%57%48%49%39%30%17%16%Academic or expertTechnical expert in the companyA person like yourselfRegular employeeNGO representativeFinancial or industry analystCEOGovernment official or regulatorBloggerEntertainer/athleteTRUSTED SOURCES ARE EXPERTS AND PEERSCREDIBLE SPOKESPEOPLE – U.S.2013Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, howcredible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publicsages 25-64 in US, General Population US34
  35. 35. 66% 66% 67%74% 74%25%19%31%34% 34%43%62%45%40%32%71%63%25% 26%32%28%31%41%45%34%32%23%62%56%10%20%30%40%50%60%70%80%2008 2009 2010 2011 2012 2013An academic or expert on company issues CEOA person like yourself Government official/regulatorRegular employeeTRUSTED SPOKESPEOPLE SOLIDIFYING RANK ORDERCREDIBILITY OF SPOKESPEOPLE – U.S. INFORMED PUBLICS AGES 35-64Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how crediblewould the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics ages 35-64 in US35
  36. 36. Who is Trusted MOST to provide you withcredible and honest information about:Company’sCEOCompany’sEmployeePassionate orActivistConsumerAcademicMediaSpokespersonA company’s employee programs, benefits & workingconditions15% 71% 16% 12% 8%How a company serves its customers and prioritizescustomer needs ahead of company profits14% 30% 46% 19% 15%A company’s situation in a time of crisis 32% 26% 21% 23% 25%A company’s innovation efforts and new productdevelopment28% 39% 26% 24% 11%How a company uses its resources and influence tosupport the environment18% 26% 36% 27% 12%How a company supports programs that positivelyimpact the local community18% 27% 39% 19% 25%Partnerships with NGO’s and effort to address societalissues23% 17% 31% 27% 14%A company’s financial earnings & operationalperformance29% 26% 20% 27% 11%A company’s business practices, both positive & negative 16% 40% 31% 23% 13%Accomplishments about a company’s senior leadership 32% 34% 21% 20% 17%Q197-201(Global Summary). We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select whichperson you trust MOST to provide you with credible and honest information about a company. General Population in USINFLUENCER MESSAGE MAPPING – U.S.ENGAGEMENTINTEGRITYPRODUCTSOPERATIONSPURPOSE36
  37. 37. 50%Q130-143. [TRACKING] (Credibility of CEOs and Government officials/regulators) Below is a list of people. In general, when forming an opinion of a company, if you heardinformation about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box,Very/ Extremely Credible) Informed publics ages 25-64 in 26 -country global total and across 26 markets (only spokespeople tracked from 2012 to 2013 included in analysis)2013 CREDIBILITY OF CEOS VS. GOVERNMENT OFFICIALS/REGULATORS – 26 MARKET OVERVIEWGovernment official orregulator CredibilityCEO Credibility37MAJORITY OF MARKETS FIND BOTH GOVERNMENT AND BUSINESS LEADERSBELOW 50% IN THEIR CREDIBILITY RATING45%52%70%55%52%73%41%52%34%36%62%55%42%22%37%39%43%27% 28%56%37%34%54%26%40%35%48%38%18%36%22%32%54%23%35%22% 25%54%48%35%15%31%36%41%25%27%55%37% 36%56%32%47%45%60%US CEO Credibility: 43%US Gov’t Official/Regulator Credibility: 41%
  38. 38. 14%24%13% 15%SOLVE SOCIAL OR SOCIETALISSUESCORRECT ISSUES WITHININDUSTRIES THAT AREEXPERIENCING PROBLEMSMAKE ETHICAL AND MORALDECISIONSTELL YOU THE TRUTH,REGARDLESS OF HOW COMPLEXOR UNPOPULAR IT ISTRUST IN BUSINESS AND GOVERNMENT – A CRISIS OF LEADERSHIPUS TRUST BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING:13% 13% 11% 10%SOLVE SOCIAL OR SOCIETALISSUESCORRECT ISSUES WITHININDUSTRIES THAT AREEXPERIENCING PROBLEMSMAKE ETHICAL AND MORALDECISIONSTELL YOU THE TRUTH,REGARDLESS OF HOW COMPLEXOR UNPOPULAR IT ISGOVERNMENT LEADERS38BUSINESS LEADERSQ144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- Trust A great Deal) Generalpopulation in US
  39. 39. 6%7%20%20%45%LACK OF REGULATION OR CONTROLTRANSPARENCY ISSUESWRONG INCENTIVES DRIVING POLICIESCORRUPTION OR FRAUDPOOR PERFORMANCE/ INCOMPETENCE4%10%11%35%36%TRANSPARENCY ISSUESPOOR PERFORMANCE/INCOMPETENCELACK OF REGULATION OR CONTROLCORRUPTION OR FRAUDWRONG INCENTIVES DRIVINGBUSINESS DECISIONSCORRUPTION/FRAUD IS A KEY REASON FOR DISTRUST IN BUSINESS AND GOVERNMENT,INCOMPETENCE IS A LEADING FACTOR FOR GOVERNMENT – U.S.REASONS FOR DECREASED BUSINESS AND GOVERNMENT TRUST(AMONG THOSE WHO REPORTED TRUSTING BUSINESS OR GOVERNMENT LESS OVER THE PAST YEAR)Q22. [ASK IF TRUST GOVERNMENTLESS IN Q18] Which of the following is the main reason why your trust in government decreased over the last year?; Q24. [ASK IF TRUST BUSINESSLESS IN Q20] Which of the following is the main reason why your trust in business decreased over the last year? General Population in USREASONS FOR TRUSTINGGOVERNMENT LESSREASONS FOR TRUSTINGBUSINESS LESS71% 65%39
  40. 40. 8%6%10%20%24%13%33%38%38%55%71%41%FranceGermanyUSIndiaChinaGlobalTrust in GovernmentTrust Government Leaders to tell the truth10%13%15%34%32%18%37%42%50%68%67%50%FranceGermanyUSIndiaChinaGlobalTrust in BusinessTrust Business Leaders to tell the TruthLEADERSHIP TRUST GAPGAP IN TRUST IN INSTITUTION VS. TRUST IN LEADERSHIP – SELECT COUNTRY OVERVIEWQ11 -14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you do not trustthem at all and nine means that you trust them a great deal. Q130-143. Below is a list of people. In general, when forming an opinion of a company, if you heard information about acompany from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? General Population-32-35-34-35-27-28-47-35-28-25-29-3240
  41. 41. GENERAL POPULATIONCEOBOARD OFDIRECTORSACADEMICSTECHNICAL EXPERTSELITE MEDIAVertical Flow &Controlled InformationPYRAMID of AUTHORITY41OLD MODELSNO LONGERWORKIN ISOLATION
  42. 42. GENERAL POPULATIONEMPLOYEESACTION CONSUMERSSOCIAL ACTIVISTSPower of Peer-to-Peer &Horizontal CommunicationsPYRAMID of COMMUNITYNew modelsare firmlyestablished42
  43. 43. THE NEW DYNAMICS OF ENGAGEMENT
  44. 44. LESSONS FOR LEADERS44Observe re-ordering of authorityOld values are not sufficientClear opportunity for businessTrust is fragile and perceived behaviors are an anchor
  45. 45. On the cover credits: HSBC: REUTERS/ Bobby Yip; UBS: REUTERS/Luke MacGregor; Bob Diamond: REUTERS/ Luke MacGregor; Bo Xilai: REUTERS/ Cheryl Ravelo ; LanceArmstrong: by Sebastian David Tingkær; Angela Merkel: REUTERS/ Sebastien Pirlet; Rajat Gupta: REUTERS/ Brendan McDermid; George Entwistle: Associated Press/ Rex Featu
  46. 46. APPENDIXINCLUDES INFORMED PUBLIC OR GENERAL PUBLIC VERSIONS OF SELECT SLIDES
  47. 47. TRUST AMONG EMERGING MARKETS HIGHER THAN TRUST AMONGDEVELOPED MARKETSTRUST IN ENERGY INDUSTRY BY REGION – GLOBAL OVERVIEW53%56%67% 65% 63%60%42%59% 59%74%64%69%64%49%Global US BRIC Latin America APAC North America EU47 Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public in 26 -country global total and across APAC, BRIC,Latin America, North America and EU region2012 2013
  48. 48. 53%78%76%72% 71%67%76%67% 66%71%59%56%51%47%56%51%65%45%29%39%37%49%31% 31%24%52%59%86%84%75%84%81%69% 71% 70%72%66%45%57% 56%55%59%47%60%53%49% 48%54%45% 45%38% 38%33%2012 201350%Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one meansthat you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publlic in 26 -country global total and across 26 countriesOVER THE PAST YEAR, TRUST IN THE ENERGY INDUSTRY SIGNIFICANTLY INCREASED INSEVERAL MARKETS WITH GREATEST INCREASES SEEN IN JAPAN AND POLAND2012 VS. 2013 TRUST IN ENERGY INDUSTRY– 26 MARKET OVERVIEW48n/a2012 US Trust in Energy :56%2013 US Trust in Energy: 59%
  49. 49. 57% 56%40%35%32%51% 52%38%28% 27%ONLINE SEARCHENGINESTRADITIONAL MEDIA HYBRID MEDIA SOCIAL MEDIA OWNED MEDIAQ178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where onemeans that you "do not trust it at all" and nine means that you "trust it a great deal". (Top 4 Box, Trust) General Population in USSEARCH AND TRADITIONAL MEDIA CONTINUOUSLY PROVE MOST TRUSTEDAMONG THE GENERAL PUBLICTRUST IN MEDIA SOURCES – U.S.492012 2013
  50. 50. 61%59%46%37% 36%62% 62%51%39%34%TRADITIONAL MEDIA ONLINE SEARCHENGINESHYBRID MEDIA SOCIAL MEDIA OWNED MEDIAQ178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where onemeans that you "do not trust it at all" and nine means that you "trust it a great deal". (Top 4 Box, Trust) Informed Publics in USTRADITIONAL MEDIA AND SEARCH CONTINUOUSLY PROVE MOST TRUSTEDAMONG INFORMED PUBLICSTRUST IN MEDIA SOURCES – U.S.502012 2013
  51. 51. TRUSTED SOURCES ARE EXPERTS AND PEERSCREDIBLE SPOKESPEOPLE – U.S.Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, howcredible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) General Populationin US512012 201329%37%50%52%61%66%67%68%Government official or regulatorCEOFinancial or industry analystNGO representativeRegular employeeA technical expertAn academic or expertA person like yourself 69%66%57%57%49%48%39%30%Academic or expertTechnical expertA person like yourselfRegular employeeFinancial or industryanalystNGO representativeCEOGovernment official orregulator
  52. 52. 74%69%63%56%54%52%43%41%Academic or expertTechnical expert in thecompanyA person like yourselfRegular employeeNGO representativeFinancial or industryanalystCEOGovernment official orregulatorTRUSTED SOURCES ARE EXPERTS AND PEERSCREDIBLE SPOKESPEOPLE – U.S.31%34%47%58%62%68%71%74%Government official or regulatorCEOFinancial or industry analystNGO representativeRegular employeeA technical expertA person like yourselfAcademic or expert20132012Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, howcredible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publicsages 25-64 in US52
  53. 53. Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scalewhere one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in US70%67%64%62%61%61%60%57%57%55%54%53%53%48%44%43%43%38%TechnologyConsumer Electronics…Food and BeverageBrewing and SpiritsAerospace & DefenseAutomotiveConsumer Packaged GoodsFood ManufacturingMetals IndustryTelecommunicationsConsumer Health CompaniesEnergyEntertainmentPharmaceuticalsChemicalsBanksFinancial ServicesMediaTIED WITH THE ENTERTAINMENT INDUSTRY THIS YEAR, TRUST IN THEENERGY INDUSTRY RANKS NEAR THE BOTTOMTRUST IN INDUSTRIES – U.S.532013201278%70%64%60%59%58%54%51%42%41%40%TechnologyFood & BeverageConsumer PackagedGoodsAutomotiveBrewing & SpiritsTelecommunicationsEnergyPharmaceuticalsBanksFinancial ServicesMediaTechnology #1 in US
  54. 54. Technology #1 in USSLIGHT UPTICKS IN MANY SCORES, INCLUDING ENERGYTRUST IN INDUSTRIES – U.S.20132012Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public ages 25-64 in US5480%76%75%72%71%70%70%70%69%66%64%62%59%55%55%52%50%50%TechnologyConsumer electronics manufacturingBrewing and spiritsFood and beverage4Aerospace and defenseMetals industryAutomotiveConsumer packaged goods3Food manufacturingTelecommunicationsConsumer health companiesEntertainmentEnergyPharmaceuticalsChemicalsFinancial servicesBanksMedia41%46%48%56%56%64%66%71%74%74%83%BanksFinancial servicesMediaEnergyPharmaceuticalsTelecommunicationsAutomotiveBrewing and spiritsConsumer packagedgoodsFood and beverageTechnology

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