1. The 2011 Edelman Trust Barometer found that globally, trust increased in all institutions - business, government, media, and NGOs. 2. Trust was highest in emerging markets like Brazil and China, while trust dropped in developed countries like the US, now on par with Russia. 3. NGOs are now equally or more trusted than business in most countries, seen as more credible spokespeople than traditional authorities like government and media.

1. 2011 Edelman Trust Barometer
Findings

2. Edelman Trust Barometer at a glance
Eleventh annual study
5,075 people in 23 countries on five continents
Ages 25 to 64
College-educated
In top 25% of household income per age group
in each country
Report significant media consumption and engagement
in business news and public policy
2

3. The Edelman Trust Barometer in retrospect
2010 Trust is now an essential line of business
2009 Business must partner with government to regain trust
2008 Young influencers have more trust in business
2007 Business more trusted than government and media
2006 “A person like me” emerges as credible spokesperson
2005 Trust shifts from “authorities” to peers
2004 U.S. companies in Europe suffer trust discount
2003 Earned media more credible than advertising
2002 Fall of the celebrity CEO
2001 Rising Influence of NGOs
3

4. 1. State of Trust
Shifting center of gravity

5. Globally, trust increases in all institutions
How much do you trust the institution to do what is right?
2010 2011
100%
90%
+4 +2
80%
+5 +4
70%
61%
60% 57% 56%
54%
52%
49%
50% 47%
45%
40%
30%
20%
10%
0%
NGOs Business Government Media
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
5

6. Emerging markets dominate as “business trusters”
U.S. drops to within 5 points of Russia
How much do you trust business to do what is right?
2010 2011
Trusters Neutral Distrusters
100%
90% +19
81%
80%
70%
-8
70% 67%
64%
+12
62%
59%
62% 61% +12
60% 57%
53% 54%
52%
48% 49% 44%
50% 46%
40% 42% 41%
40% 36%
30%
20%
10%
0%
Brazil India Italy China Japan Germany France US UK Russia
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64; Top 10 GDP countries
6

7. China and Brazil drive rise in trust in government; U.S. now on par with Russia
How much do you trust government to do what is right?
2010 2011
Trusters Neutral Distrusters
100% +14
88% +46
90% 85%
80% 74%
70% -6
60%
-10
51%
49%
50% 43% 45% 46%
42% 43% 44% 43% 43%
39% 40%
36% 38% 38% 39%
40%
33%
30%
20%
10%
0%
China Brazil Japan France Italy India UK US Russia Germany
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64; Top 10 GDP countries
7

8. Developed markets more distrustful of media
How much do you trust media to do what is right?
2010 2011
Trusters Neutral Distrusters
100% +17
90% +19
80%
80%
73%
70%
63%
+12
58%
60% 54% - 11
50% 48%
-9
50% 45% 45%
38% 39% 37% 37% 37% 38%
40% 36% 36%
31%
30% 27%
22%
20%
10%
0%
China Brazil India Japan France Italy Germany Russia US UK
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64; Top 10 GDP countries
8

9. Trust in NGOs now on par with business in emerging markets
More trusted than business in developed markets
How much do you trust NGOs to do what is right?
How much do you trust business to do what is right?
Business NGOs
Brazil China U.S. UK/FR/GER
100%
90%
81% 80%
80%
70% 63%
59% 61% 63% 59%
60% 56% 58% 55% 56% 55%
48% 46% 48%
50%
40%
40%
30%
20%
10%
0%
2008 2011 2008 2011 2008 2011 2008 2011
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
9

10. Trust Barometer Index:
U.S. drops while BRICs hold in composite scoring
2008 2011
Global ― Global 55
Mexico 69 Brazil 80
China 62 China 73
India 60 Mexico 69
US 53 India 56
Japan 50 Canada 55
S. Korea 50 S. Korea 53
Canada 48 Japan 51
Brazil 48 France 50
France 44 Germany 44
UK 43 US 42
Germany 36 UK 40
Russia 36 Russia 40
Composite score is an average of a countries trust in business, government, NGOs, and media
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
10

11. In U.S., 2011 decline mirrors 2008-2009 drop
Only country to see across-the-board fall
Trust in Institutions: 2008-2011
Business Government Media NGOs
80%
70%
63%
63%
60% 59%
Worldwide 54%
Financial Crisis 55%
50%
45% 46%
46% 46%
43%
40% 36% 40%
38%
31%
30%
30% 27%
20%
2008 2009 2010 2011
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
11

12. Trust in BRIC-based companies rises
How much do you trust global companies headquartered in the following countries to do what is right?
+15
Brazil HQs Russia HQs India HQs China HQs
100% 100% +32 100% 100% + 21
+ 32
90% 86% 90% +12 90% +13
+15 90%
80% +17
80% 80% 80% + 15 74%
+17 +16 70%
70% 65% 70% 70% 65% 70% +33
62% 60% +20
60% 60% 60% 56% -6
60%
53%
+14 +15
50% 44% 50%
43%
50% 50% 45%
40% -6
40% 37%
40%
33% 40% -7 40%
30%
28% 27% 30%
30% 30% 30%
20% 20%
13%
20% 20% 15%
10% 10% 10% 10%
0% 0% 0% 0%
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
12

13. Technology firmly on top; automotive rallies. Finance sector at bottom
How much do you trust the following industries to do what is right?
Trust in Industries – Global
Technology 81%
Automotive 69%
Telecommunications 68%
Food and beverage 66%
Biotech 65%
Retail 65%
Entertainment 63%
Pharmaceuticals 63%
Energy 62%
Consumer packaged goods 59%
OTC personal health care products 57%
Brewing and spirits 57%
Media 54%
Insurance 52%
Banks 51%
Financial services 50%
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
13

14. Since financial crisis, banks cannot recoup trust in U.S., while tech stays high
worldwide; in two years, auto climbs in the U.S. and China
How much do you trust the following industries to do what is right?
Technology Banks Automotive
+21
2008 2011 +12 2008 2011 2009 2011
100%
98% +7
93% 93%
90%
87%
90% 85%
83%
- 46 82% 80%
80% 77% 78% 78%
73% 75%
73%
71%
69%
70%
- 30 +17
60%
53%
49% 48%
50% 46%
40%
32%
30%
25%
20% 16%
10%
0%
China India U.S. U.K. China India U.S. U.K. China India U.S. U.K.
Responses 6-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
14

15. Business and Society
Toward shared value

16. What matters for corporate reputation:
Quality, transparency, trust, employee welfare most important
How important are these factors to corporate reputation?
High quality products or services 69%
Transparent and honest business practices 65%
Company I can trust 65%
Treats employees well 63%
Communicates frequently 55%
Prices fairly 55%
Good corporate citizen 51%
Innovator 46%
Widely admired leadership 39%
Financial returns to investors 39%
Responses 8-9 on 1-9 scale; 9=highest; Informed publics ages 25 to 64
16

17. Expectations high for business to invest in society
Corporations should create shareholder value in a way that aligns with society’s interests,
even if that means sacrificing shareholder value
Government should regulate corporations’ activities to ensure business behaves responsibly
100%
91% 89% 89% 89%
90% 85% 85% 85%
82% 82% 82% 81% 81% 80%
79% 78% 78%
80% 74% 74% 73% 72%
73% 71% 71%
70% 69%
70% 66% 67% 67%
62% 61% 63% 61% 63% 63% 62%
56% 57% 58%
60%
53% 53%
49% 50% 48%
50% 55%
44% 42%
40%
30%
20%
10%
0%
Informed publics ages 25 to 64
17

18. Roadmap to Trust
A new way forward

19. CEOs lead rise in trust in authority, but “person like me” drops amid flight to
credentialed spokespeople
If you heard information about a company from one of these people, how credible would that information be?
2009 2011
An academic or expert 70%
Academic/expert 62%
Technical expert within the
64%
company
Financial/industry analyst 49%
A financial or industry analyst 53%
Person like yourself 47%
CEO 50%
NGO representative 41%
NGO representative 47%
Regular employee 32%
Government official 43%
CEO 31% Person like yourself 43%
Government official 29% Regular employee 34%
Responses “Extremely credible” and “very credible”; Informed publics ages 25 to 64
19

20. Search engines “go-to” source; online news second
Where do you generally go first for news about a company? Then where do you go?
First Source Second Source
Online search engine 29% Online news sources 23%
Print
Online news sources 19% (newspapers/magazines)
17%
Print
(newspapers/magazines)
15% Online search engine 16%
Broadcast (radio/TV) 12% Broadcast (radio/TV) 14%
Company website 11% Company website 11%
Friends and family 7% Friends and family 10%
Social media 5% Social media 7%
0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%
Informed publics ages 25 to 64
20

21. Repetition enhances believability
How many times in general do you need to hear something about a specific company to believe
that information is likely to be true?
Don’t
Ten or more
know, 2% Once (1), 4%
times (10+), 6%
Six to Nine
times (6-9), 8%
Twice (2), 22%
Four or Five
times (4 - 5), 26%
3-5 times
59%
Three times (3), 33%
Informed publics ages 25 to 64
21

22. Trust protects reputation
When a company is distrusted When a company is trusted
57% will believe
negative information
after hearing it 1-2 times
51%
will believe
positive information
will believe positive after hearing it 1-2 times
15%
information after 25%
hearing it 1-2 times
will believe negative information
after hearing it 1-2 times
Informed publics ages 25 to 64
22

23. Conclusions
Business must align profit and purpose for social
benefit
Current media landscape plus increased
skepticism requires multiple voices and channels
Demand for authority and accountability set new
expectations for corporate leadership
Trust is a protective agent and leads to tangible
benefits; lack of trust is barrier to change
23

24. 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
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25. For more information, or to request the
global or a country-specific presentation,
please contact
latraviette.smith@edelman.com