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2012 Edelman Trust Barometer: Global Deck

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					2012
EDELMAN TRUST BAROMETER
GLOBAL RESULTS
    2012 Edelman Trust Barometer
    METHODOLOGY OVERVIEW
                                                                                                  GENERAL   INFORMED   INFORMED
                                                                                                   PUBLIC     PUBLIC     PUBLIC
                                                                                                               25-64      35-64



        Twelfth annual study

        Online survey in 25 countries
        30,000+ respondents

        1,000 general population respondents per country
        Ages 18+
        Oversample of informed publics*
        500 respondents in U.S. and China & 200 in
        all other countries
        Ages 25-64
                   (Trending data among Ages 35-64)
        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




         * This year Informed Publics were surveyed via online methodology instead of telephone




2   © Edelman, 2012. All rights reserved.
    Edelman Trust Barometer in retrospect


                    2011                    Rise of authority figures

                    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   © Edelman, 2012. All rights reserved.
4   © Edelman, 2012. All rights reserved.
    Distrust is growing; nearly twice as many countries are now skeptics
    Fewer countries now in neutral zone

                                                 2011                                                                                  2012
                                       GLOBAL                          55                                                  GLOBAL                           51
                                       Brazil                          80           >                                      China                            76
                                       UAE                             78                                                  UAE                              68
                                       Indonesia                       74                                                  Singapore                        67
                                       China                           73                                                                                                                TRUSTERS
                                                                                                                           India                            65
                                       Netherlands                     73                                                  Indonesia                        63
                                       Mexico                          69                                                  Mexico                           63
                                       Singapore                       67                                                  Netherlands                      61
                                       Argentina                       62                                                  Canada                           58
                                       India                           56                                                  Italy                            56
                                       Italy                           56                                                  Argentina                        54                           NEUTRAL
                                       Canada                          55                                                  Australia                        53
                                       South Korea                     53                                             <    Brazil                           51
                                       Sweden                          52                                                  Sweden                           49
                                       Japan                           51           >                                      U.S.                             49
                                       Australia                       51                                                  South Korea                      44
                                       Spain                           51           >                                      Poland                           44
                                       France                          50                                                  U.K.                             41
                                       Poland                          49                                                  Ireland                          41                           DISTRUSTERS
                                       Germany                         44                                                  France                           40
                                       U.S.                            42                                                  Germany                          39
                                       U.K.                            40                                             <    Spain                            37
                                       Russia                          40                                             <    Japan                            34
                                       Ireland                         39                                                  Russia                           32
    Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and
    UAE) and across 23 countries


5   © Edelman, 2012. All rights reserved.
    The Fragility of Trust: Focus on Japan
           2011                                2012
           Informed Public                     Informed Public



      TRUST IN INSTITUTIONS INFORMED PUBLICS – AGES 25-64

                                                                                                                                                                                   TRUST IN INDUSTRIES

             Business                               Media                              NGOs                        Government
                                                                                                                                                                                                                                                                         75%
                                                              - 12                             - 21                              - 26
                                                                                                                                                                    Energy
                                                                                                                                                                                                                     29%                                                             -46

         53%              47%                   48%            36%                51%           30%                    51%        25%
                                                                                                                                                                                                                                                    54%
                                                                                                                                                                      Media
                                                                                                                                                                                                                          33%                                   -21


                                                                                                                                                                                                                                                     55%
                                                                                                                                                      Financial services
                                                                                                                                                                                                                                38%                              -17


                                                                                                                                                                                                                                                                       71%
                                                                                                                                                                     Banks
                                                                                                                                                                                                                                              51%                                  -20
      CREDIBLE SPOKESPEOPLE

                            -38
              -23        70%                     -43                                                                                  -55
                                                                                                      -43
        65%                               67%
                                                                                                                                63%
                                                                                              59%                    -26                                                         TRUST IN INFORMATION SOURCES
                                                                                  -30
                                                                            48%
               42%                                                 -17                                                                                                                 -16                           -26                            -13                        -13
                                                           39%                                                 40%
                                32%
                                                 24%
                                                                  22%
                                                                                   18%               16%
                                                                                                                      14%
                                                                                                                                       8%                                        Newspaper                             TV                          Radio                     Magazines


       Technical Academic                   CEO            A Person           NGO       Regular Financial/ Government
        Expert   or Expert                                   Like           Represent. Employee Industry     Official
                                                           Yourself                              Analyst
    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 means that you “do not trust them at all” and nine means that you “trust them a
    great deal”. (Top 4 Box, Trust); Q16-26. [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 means that you “do not trust them at all”
    and nine means that you “trust them a great deal”. (Top 4 Box, Trust); Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from ea ch 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); Q149-160. [TRACKING] Below is a list of places where you might get information about a company.
    For each, please indicate 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 Japan

6   © Edelman, 2012. All rights reserved.
    Trust in three of four institutions declines; only media rises
    TRUST IN INSTITUTIONS

         2011
         Informed Public                                                                                                 56%
         2012                                                         52%                                                            53%
         Informed Public
                                                                                                                                                      47%
         2012                                                                     43%
         General Public
                                                                                                  38%




                                             Government                                                                                                          Business



                                                                                                                         61%
                                                                                                                                     58%
                                                                      49%         52%
                                                                                                                                                      50%
                                                                                                  46%




                                                       Media                                                                                                       NGOs



    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 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 20 country global total (excludes Argentina, Hong Kong, Malaysia,
    Singapore and UAE) AND General Population in 25 country global total



7   © Edelman, 2012. All rights reserved.
    Record decline in government -- NGOs and business fall to 2009 trust level
    TRUST IN INSTITUTIONS – 18-COUNTRY GLOBAL TOTAL
            NGOs

            Media

            Business

            Government


     80%



     70%



                                                                                                                                                                  59%
     60%                                                                                                                         57%
                                                              53%                              54%                                                                                              54%
                             52%                                                                                                                                  53%
                                                                                                                            53%
                       52%                                                                     49%
     50%                                                 51%                                                                                                                                    47%
                                                                                                                                 46%                                    49%
                                                                                                                                                                                                      47%
                                                              48%                          46%                                                                                                   BUSINESS
                       44%                                                                                                                                        46%
                                                                                               44%                               45%
     40%                                                      43%
                             40%                                                                                                                                                                      38%
                                                                                                                                                                                               GOVERNMENT


     30%



     20%
                            2007                            2008                              2009                             2010                              2011                          2012
    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 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 35-64 in 18 country global total (excludes Argentina, Australia,
    Hong Kong, Indonesia, Malaysia, Singapore and UAE)



8   © Edelman, 2012. All rights reserved.
      Several mature markets see double-digit drops in business trust
      TRUST IN BUSINESS
            2011
            Informed Public
            2012
            Informed Public




                  Trust                                                  Trust Steady                                                                                         Trust


                                                                                                      80%              81%                                                                  81%
                                                                                                            78%              77%                                  78%
                                                                                                                                                          74%
                   71%                                                    70% 69%
                                                                                    67%                                                                                 67%
                                                                                       66%                                                                      65%                                                       65%
                                                                                             64%                                        63%                                                       63%
                  61%                                                                           62%
      56%                  56%               57%                                                                                              57%
                                          54%                  54%                                                                               53%                                                        53%
            53%                                             52%                                                                                                                     52%
                         50%        50%
50%                                                                                                                                                                        46%
                                                                                                                                                                                                    48%
                                 46%                  46%                                                     46%               44%                    47%                                                                        47%
                                                   44%                                                              43%
                                                                     41% 41%
                                                                                                                                      38%
                                                                                                                                                                                          34%                     32%
                                                                                                                                                                                 31%
                                                                                                                                                                                                          28%




                                                                                                                                                                                                                    N/A     N/A




      Q11-14. [Business in General 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 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 20 country global total
      (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries



 9    © Edelman, 2012. All rights reserved.
     Technology remains on top in all markets, finance sector still at bottom
     TRUST IN INDUSTRIES – GLOBAL




                                          2011                                                                                                                 2012
                         Technology                                                       80%                                               Technology                                                    79%

             Telecommunications                                                    67%                                                     Automotive                                               66%
            2009:       Automotive                                                                                                Food and beverage
                                                                                   67%                                                                                                          64%
            58%
               Food and beverage                                                 64%                                     Consumer packaged goods                                               62%

                  Pharmaceuticals                                              61%                                              Telecommunications                                             60%

                               Energy                                         60%                                                  Brewing and spirits                                        59%

      Consumer packaged goods                                                57%                                                      Pharmaceuticals                                         56%

               Brewing and spirits                                           57%                                                                 Energy                                   53%

                               Media                                      52%                                                                     Media                                  51%

                                Banks                                   50%                                                                       Banks                                 47%

                 Financial services                                                                                                  Financial services
                                                                       48%                                                                                                              45%



                                          2008 Trust in Banks: 56%                                                                           2012 Trust in Banks: 40% -16


     Q16-26. [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
     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 20 country global total (excludes
     Argentina, Hong Kong, Malaysia, Singapore and UAE) & Informed Publics ages 35-64 in 18 country global total


10    © Edelman, 2012. All rights reserved.
     Dramatic fall for banks in Japan and S. Korea; now at low levels seen in West
     TRUST IN BANKS
             U.S.                    Japan
             UK/France/Germany

             China

             India
             S. Korea


     100%

                                                                                                                                                                     88%
     90%                                                                                        84%                                85%                                                 90%
                                                              83%
                             77%                                                                                                                                     87%            82%
     80%                                                                                                                       83%
                                                              72%                                81%
                         75%
     70%                                                           69%                                                             76%
                         68%                                                                                                                                               68%
                                                              67%
     60%                64%                                                                                                                                          55%
                           58%                                59%                                 52%
     50%                                                                                                                                 51%
                                                                                                   51%                                                                                 49%
                                                                                                                                                                                 38%
     40%                                                                                        36%
                                                              41%
                             39%                                                                                                   29%                               29%
     30%                                                                                                                                                                          35%

                                                                                                27%
     20%                                                                                                                                                             24%
                                                                                                                                   22%                                           21%
     10%

       0%
                            2007                             2008                              2009                              2010                               2011         2012

     Q16-26. [Banks 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 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 35-64 in the U.S.,
     UK/France/Germany, China, India, Japan and South Korea



11    © Edelman, 2012. All rights reserved.
     Trust in technology remains high in all markets
     TRUST IN TECHNOLOGY
             U.S.                    Japan
             UK/France/Germany

             China

             India
             S. Korea


     100%                                                                                                                                                             95%
                                                                    91%                           93%
                                                                                                                                89%                                                93%
     90%                                                                                     90%                                                                          93%
                        87%                                                                                                                                                      93%
                                                                                                     86%                       88%
                                                                                                                                       83%                         83%
                                                               80%                                                                     80%                                         81%
     80%                  78%                                                                    78%                                                            79%
                                                                 78%                                                          78%                                                  78%
                          76%                                  76% 77%
                                                                                              73%                                                                     74%          73%
     70%                  75%                                                                                                      76%
                                                                                                                                                                                   67%
     60%                      66%                             67%                                66%


     50%

     40%

     30%

     20%

     10%

       0%
                            2007                             2008                               2009                              2010                              2011        2012

     Q16-26. [Technology 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 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 35-64 in the U.S.,
     UK/France/Germany, China, India, Japan and South Korea


12    © Edelman, 2012. All rights reserved.
      Majority of countries now distrust government
      TRUST IN GOVERNMENT
           2011
           Informed Public
           2012
           Informed Public




                Trust                              Trust Steady                                                                                       Trust
                                                                                                       88%            88%
                                                                                                                                                                                                            85%

                                                                   77%                                    78%
                                                                                                                            75%                 75%
                                                                         73%


                                                          64%
                                                                62%                                                                                  61%                          62%                                     62%

                                  56%
                            53% 52%                                                                                                                                       54%
       52%                                                                          52%                                                                                                             51%
                                                                                                                                                         50%                                                                          49%
50%                                                                                                                                                               49%
                          44%                                                           47%
             43%                             43%                           43%             42%                                 42%      45%                                                  43%
                                          40%                                                                 39%                                                                      40%
                                                                                38%
                    35%                                                                          35%                                                                          36%
                                                   33% 33%                                                                                                     33%
                                                                                                                                            31%                       31%                                         32%
                                                                                                                                     28%
                                                                                                                  26%
                                                                                                                                                                                                          25%
                   20%                                                                                                                                                                         20%




                                                                                                                                                                                                                    N/A         N/A




      Q11-14. [Government in General 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 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 20 country global total (excludes
      Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries



 13    © Edelman, 2012. All rights reserved.
      Media only institution to see trust increase
      TRUST IN MEDIA
           2011
           Informed Public
           2012
           Informed Public




                                 Trust                                                                     Trust Steady                                                                        Trust

                                                                                                                                                          86%

                                                                                                      80% 79%                                                   80%

                                                                                                                                                                                            72%       73%
                   70%                                                                                                                                            69%
                                                                                                               67%
                                                                       65%                                           65%                                                                                                    65%
                                                                                                                                                                        61%           60%           61%     61%
                                                                    59%
                                               57%
                                                              54%                                                                                53%                       53%
         52%
50%    49% 50%                                                                                                                                        48%                                49%                  48%
                                                                                           46% 46%                                                                              45%                                                     47%
                            45%            45%         43% 45%                 42%                                                      45%
                                                                                                                                              41%
                                     37%                                     37%        38%                            38%     37%
                                                                                     37%                                                                                                                            36%
                                                                                                                             35%
                                                     32%                                                                          33%
                         27%
                                  22%




                                                                                                                                                                                                                      N/A         N/A




      Q11-14. [Media in General 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
      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 20 country global total (excludes Argentina,
      Hong Kong, Malaysia, Singapore and UAE) and across 25 countries



 14    © Edelman, 2012. All rights reserved.
     Skepticism requires repetition
     MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE




                                                                                    13%                                   5% ONCE (1)
                                                        TEN OR MORE TIMES (10+)
                                                                                                                                                 14% TWICE (2)
                                                                       6%
                                              SIX TO NINE TIMES (6-9)



                                                                                                                                                                35% THREE TIMES (3)

                                                            28%
                                  FOUR OR FIVE TIMES (4-5)




                                                                                                                                               63%                THREE TO FIVE TIMES




     Q148. [TRACKING] 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 exposed to
     something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses) Informed publics
     ages 25-64 in 25 country global total



15    © Edelman, 2012. All rights reserved.
     Diversification of Media
     TRUST IN INFORMATION SOURCES
         2011
         Informed Public
         2012
         Informed Public




                                  +          10%

                          29%
                                         32%                                        +        18%

                                                                            22%
                                                                                           26%
                                                                                                                                       + 75            %
                                                                                                                                                                                           +    23%

                                                                                                                                              14%                                               16%
                                                                                                                                                                                  13%
                                                                                                                                8%



                          TRADITIONAL                                     ONLINE MULTIPLE                                      SOCIAL MEDIA                                         CORPORATE
                                                                             SOURCES




     Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate 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 20 country global total (excludes Argentina, Hong Kong, Malaysia,
     Singapore and UAE)


16   © Edelman, 2012. All rights reserved.
      NGOs still most trusted institution, despite some declines
      TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
            2011
            Informed Public
            2012
            Informed Public




               Trust                                                            Trust Steady                                                                                         Trust

                                                                                                                                        85%

                  79%                                                                                                                                                                                        80%
                                                                                                                                              78%
                                               75%     74%
                                                                                                                      72%      72%                                                   72%
                                           70%       70%                                                                                                                                                                 70%
                            67%      67%                                          65%                                                                                                                                                68%
                                                                               65% 64% 64%                                  66%    66%                                    66%
               63%                62%
      61%               61%                                                 60%                                                                          60%
                                                                     58% 58%                                                                                                           59%
            58%                                                                                56%
                                                                   55%                                                                          55%
                                                               54%                       53% 53% 55%                                                              53%          53%
                                                             51%                                                                                               51%                                   51%
50%                                                                                                                                                   48%                                                          49%

                                                                                                                                                                                           42%
                                                                                                                                                                        41%


                                                                                                                                                                                                           30%
                                                                                                                                                                                                28%




                                                                                                                                                                                                                     N/A       N/A




      Q11-14. [Non-governmental organizations (NGOs) 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 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 20 country global total
      (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries



 17    © Edelman, 2012. All rights reserved.
     NGOs surge in China and India
     TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
             U.S.
             UK/France/Germany

             China

             India




     80%

     75%                                                                                                                                                                                79%

     70%
                                                                                                                                                                                             68%
     65%

     60%

     55%
                                                                                                                                                                                             54%
                                                                                                                              52%
     50%            48%

     45%                                                                                                                                                                               48%

     40%

     35%
                 36%
                                                                    31%
     30%
                     2001            2002           2003             2004            2005             2006             2007             2008             2009            2010   2011   2012


     Q11-14. [Non-governmental organizations (NGOs) 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 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 35-64 in U.S., UK/France/Germany, India and China


18    © Edelman, 2012. All rights reserved.
19   © Edelman, 2012. All rights reserved.
     Trust in business and government move in sync since 2008 in Western Economies
     TRUST IN BUSINESS AND GOVERNMENT
          Business

          Government

                                          U.S.
               80%

                                                                                                                                  58%
               60%                                                                                                  53%                                        51%
                                                                      51%              48%            49%
                             44%         48%             48%                                                                                                                                  45%
                                                                                                                                                                               45%
                                                                                                                                                 38%
               40%                                                       48%
                                         44%                                           44%                                                                       43%                               36%
                                                          39%                                                                    39%                                           37%
                                                                                                      38%           38%
                                                                                                                                                 30%
                                  27%
               20%


                 0%
                             2001          2002           2003          2004          2005           2006          2007           2008           2009          2010          2011           2012


                                         UK/France/Germany
                 80%


                 60%
                                                                                                                                                                                 46%
                                               41%                          40%
                              36%                           35%                           36%            38%                                        37%         39%
                 40%                                                                                                   34%
                                                                                                                                     36%
                                                                                                                                                                                 43%
                                                                                                                                                       36%             38%                          31%
                               32%                                                                      31%                                32%                                                  30%
                                                                            31%              27%
                 20%                            26%            25%                                                        22%



                   0%
                              2001            2002          2003          2004           2005          2006           2007           2008          2009           2010          2011           2012
     Q11-14. [Business in General and Government in general 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 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 35-64 in the U.S. and UK/France/Germany


20    © Edelman, 2012. All rights reserved.
     Credibility of CEOs and government officials plummet
     Peers and regular employees see dramatic rise
      CREDIBLE SPOKESPEOPLE




                                                         2011                                                                                                  2012
                        Academic or expert                                                  70%                                      Academic or expert                                                68%     Greatest
                                                                                                                                                                                                               increase
                                                                                                                                                                                                               since 2004
       Technical expert in the company                                                   64%                        Technical expert in the company                                                    66%


             Financial or industry analyst                                         53%                                             A person like yourself                                              65% + 22


                                         CEO
                                          CEO                                    50%                                                   Regular employee                                        50% + 16


                        NGO representative                                      47%                                                  NGO representative                                        50%


                     A person like yourself                                   43%                                         Financial or industry analyst                                      46%


     Gov’t official or regulator
       Government official or regulator                                       43%                                                                       CEO
                                                                                                                                                        CEO                              38% - 12


                         Regular employee                                34%                                        Gov’t official or regulator
                                                                                                                     Government official or regulator                               29% - 14

                                                                                                                                                                                                         Biggest
                                                                                                                                                                                                         declines in
                                                                                                                                                                                                         Barometer
     Q119-126. [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 credible would the
                                                                                                                                                                                                         history
     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 20 country global
     total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE)



21    © Edelman, 2012. All rights reserved.
     CEO credibility returns to low of 2009
     CEO CREDIBILITY
             U.S.                    Japan
             UK/France/Germany

             China

             India
             S. Korea



     100%

     90%                                                                                                                                                        83%

     80%

     70%                                                       66%                                                                                                68%
                                                                                               60%
                                                                                                                              59%                                                       63%
     60%
                                60%                                                                                        53%                                        56%
     50%                                                                                        46%                                 51%                         46%
                                                            44%                                                               49%                                                       45%
     40%                   37%                                                             44%                                                                  35%
                        37%                                  41%
                              34%                                                                   33%                                                                                28%
     30%                                                          32%                                                          26%                                34%
                           22%                             23%                                                                                                                           27%
     20%                                                                                          17%                           26%                                                     22%
                                                               23%                                                                                                                     21%
                             18%                                                            17%
     10%

       0%
                            2007                            2008                             2009                             2010                             2011                  2012

     Q119-126. [A CEO of a company 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 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 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea



22    © Edelman, 2012. All rights reserved.
      Government leaders less trusted than business leaders to tell the truth
           Business
           Leaders
           Government
           Leaders



      % WHO DO NOT TRUST THEM AT ALL TO TELL THE TRUTH
                  73%
                           69%      69%
                                               66% 66%      65%

                                                                    60%


              51%                                                            53%
                                                 50%                                 51%     50%
50%                             48%
        46%                                                                                          47%       46%     46%      46%
                      44%                                                                                                              43%       43%
                                        42%
                                                                                                                                                          41%     40%
                                                                40%     38%
                                                         36%                                                                                                               36%
                                                                                                  34%     36%     34%                                                              34%
                                                                                                                                                                                            30%
 27%                                                                                                                                                                                  28%         29%
                                                                                                                                                             26%
                                                                                 23%                                                                                                          24%        24%
                                                                                                                           21%
                                                                                                                                                                                                            17% 17%
                                                                                                                                                                                                          14%       15%
                                                                                         13%                                                        14%
                                                                                                                                   10%                                        11%                   9%
                                                                                                                                             10%

                                                                                                                                                                      5%




      Q126A. [SPLIT SAMPLE] How much do you trust business leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General
      Population in 25 country global total and across 25 countries; Q126B. [SPLIT SAMPLE] How much do you trust government leaders to tell you the truth, regardless of how complex or
      unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries


 23    © Edelman, 2012. All rights reserved.
     Business not meeting public’s expectations
          Business
          Importance
          Company                      LISTENS TO CUSTOMER NEEDS AND FEEDBACK                                                                                                                         67%
          Performance                                                                                                                                  36%                                      -31
                                      OFFERS HIGH QUALITY PRODUCTS OR SERVICES                                                                                                                        67%
                                                                                                                                                                         48%                   -19
                                                             TREATS EMPLOYEES WELL                                                                                                                  64%
                                                                                                                                         27%                                              -37
                                              PLACES CUSTOMERS AHEAD OF PROFITS                                                                                                               62%
                                                                                                                                       26%                                             -36
                TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS                                                                                                                     62%
                                                                                                                                           28%                                         -34
                                                   HAS ETHICAL BUSINESS PRACTICES                                                                                                            61%
                                                                                                                                                 32%                                  -29
                                HAS TRANSPARENT AND OPEN BUSINESS PRACTICES                                                                                                                 60%
                                                                                                                                         27%                                        -33
           COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS                                                                                                                   57%
                                                          BUSINESS                                                                      26%                                     -31
                           WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT                                                                                                            55%
                                                                                                                                            29%                              -26
                          ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS                                                                                                50%
                                                                                                                                             30%                     -20
      CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY                                                                                                         49%
                                    IN WHICH THE COMPANY OPERATES                                                                      26%                          -23
                       IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS                                                                                             46%
                                                                                                                                                             41%    -5
               HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
                                                                                                                                            29%        -12
                                                                                                                                                              41%                           Closing the
                       DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS                                                                                  39%                              gap on
                                                                                                                                   23%              -16
                   RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST                                                                                 38%
                                                                                                                                                                                            expectations
                   COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES'                                                                          31% -7
      PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS                                                                                      36%
                                                  SOCIETAL ISSUES                                                            19%                -17

     Q52-69. How important is each of the following actions to building your TRUST in a company? 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” in a company. (Top 2 Box, Very/ Extremely Important) General Population in 25 country global total (excludes ‘Don’t
     Know’ responses); Q103-118. 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 are
     performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in 25 country global total


24    © Edelman, 2012. All rights reserved.
     Government not meeting public’s expectations
          Government
          Importance
          Government
          Performance




                                                                                                                                                                                                   67%
                              LISTENS TO CITIZENS' NEEDS AND FEEDBACK
                                                                                                                         17%                                                                 -50
                                                                                                                                                                                                   66%
                                  HAS TRANSPARENT AND OPEN PRACTICES
                                                                                                                       16%                                                                   -50

             EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE                                                                                                                                     65%
                                                    COUNTRY                                                                 19%                                                             -46
                                                                                                                                                                                                  65%
                           COMMUNICATES FREQUENTLY AND HONESTLY
                                                                                                                       16%                                                                  -49
                                                                                                                                                                                    56%
             WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
                                                                                                                           18%                                              -38
              PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE                                                                                                                      54%
                                  EMPLOYMENT OPPORTUNITIES                                                                 18%                                              -36

       CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT                                                                                                                     52%
                                      LOCAL COMMUNITIES                                                                16%                                                 -36
           PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO                                                                                                 41%
                                    ADDRESS SOCIETAL ISSUES                                                         14%                                       -27


     Q132-139. How important is each of the following actions to building your trust in government? 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 2 Box, Very/Extremely Important) General Population in 25 country global total;
     Q140-147. Please rate your government on how well you think they are performing on each of the following attributes using 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 25 country global total


25    © Edelman, 2012. All rights reserved.
      Despite lack of trust in government, calls for increased regulations


      % WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH
              77%

                        70%
                                 68%
                                          64%
                                                61%
                                                       58%
                                                               54% 54% 54% 53%
                                                                                                51% 50%
50% 49%
                                                                                                                 48% 48% 46% 45%

                                                                                                                                                 40% 40%
                                                                                                                                                                  38%
                                                                                                                                                                          36% 35%
                                                                                                                                                                                  34%
                                                                                                                                                                                        30% 30%
                                                                                                                                                                                                  25%




      Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (% who selected ‘not
      enough’) Informed Publics ages 25-64 in 25 country global total and across 25 countries


 26    © Edelman, 2012. All rights reserved.
     Calls for greater protection and responsible behavior

        THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS:


                31%
                                  PROTECT CONSUMERS from irresponsible business practices
                                                                                                                                                                                               Business can address
                                                                                                                                                                                                    on its own
                 25%
                                  REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly


                 19%                BUILD INFRASTRUCTURE that promotes and facilitates business opportunities

                 16%                Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries

                   4%               GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis

                   4%               Government SHOULD NOT PLAY A ROLE in business




                  Perceived drivers of irresponsible behavior:
                  • Poor management (29%)
                  • Unethical business practices (28%)
                  • Shortcuts that lead to poor quality (21%)


     Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total; Q127. Which of the following items do
     you think makes people in a company most likely to engage in risky and irresponsible behavior that could damage a company? Informed Publics ages 25-64 in 25-country global total


27    © Edelman, 2012. All rights reserved.
28   © Edelman, 2012. All rights reserved.
                            BUSINESS
             CAN EARN LICENSE TO LEAD                                                2008-2009
                                                                                     Low trust in
                                                                                     business and CEOs
                Business has
       flexibility and speed




                                                                    THE DYNAMIC OF
                                                                    TRUST BETWEEN                Call for increased
                                                                                                 regulation
                                                                      BUSINESS &                 protection from
   Business leaders                                                  GOVERNMENT                  irresponsible
                                                                                                 behavior sought
 more trusted than
government leaders
 business has advantage
 in 24 out of 25 markets


                                       2011
                                                                                         Government
                                                                                         responds
                                              Dwindling trust
                                              in government
                                                 policy paralysis


 29   © Edelman, 2012. All rights reserved.
      Business: from license to operate to license to lead

               CURRENT TRUST                                                                                                                            BUILDING FUTURE TRUST
Attributes that Correlate with Current Trust                                                                                                Most Important Attributes that Build Trust
               47% TRUST BUSINESS                                                                                                                1 Listens to customer needs and feedback
        1 Delivers consistent financial returns                                                     SOCIETAL ATTRIBUTES
                                                                                                    MORE IMPORTANT TO                            1 High quality products or services

        2 Innovator of new products                                                                 BUILDING FUTURE                              3 Treats employees well
                                                                                                    TRUST
        3 Highly regarded, top leadership                                                                                                        4 Places customers ahead of profits

        3 Ranks on a global list                                                                                                                 4 Takes actions to address issue or crisis

                                                                                                                                                 6 Has ethical business practices
        5 Partners with third parties
                                                                                                                                                 7 Has transparent and open business

        CURRENT TRUST                                                                                                                            8 Communicates frequently and honestly
        DRIVEN BY OPERATIONAL
        ATTRIBUTES                                                                                                                               9 Works to protect/ improve environment

                                                                                                                                                 10 Addresses society's needs

                                                                                                                                                 11 Positively impacts the local community

                                                                                                                                                 12 Innovator of new products

                                                                                                                                                 13 Highly regarded, top leadership

                                                                                                                                                 14 Delivers consistent financial returns
        Societal
                                                                                                                                                 15 Ranks on a global list
        Operational
                                                                                                                                                 16 Partners with third parties
      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 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 25 country global total; Q52-69. How important is each of the following actions to building your TRUST in a company? 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” in a company. (Top 2 Box, Very/ Extremely Important)
      General Population in 25 country global total (excludes ‘Don’t Know’ responses) * ‘Current Trust’ results based on regression analysis of general population in 25 country global total

 30    © Edelman, 2012. All rights reserved.
     Earn License to Lead




                       Exercise principles-based leadership, not rules based performance
                       Recognize that operational factors responsible for current trust won’t
                          build future trust, societal and engagement behaviors will
                       Practice radical transparency: speak first to employees; report on goals
                       Shape the public discourse on issues of importance to business




31   © Edelman, 2012. All rights reserved.
32   © Edelman, 2012. All rights reserved.

				
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Description: The 2012 Edelman Trust Barometer is the firm’s 12th annual trust and credibility survey. The survey was produced by research firm StrategyOne and consisted of 20-minute online interviews conducted from October 10 - November 30, 2011. The 2012 Edelman Trust Barometer online survey sampled 25,000 general population respondents with an oversample of 5,600 informed publics in two age groups (25-34 and 35-64) across 25 countries. All informed publics met the following criteria: college-educated; household income in the top quartile for their age in their country; read or watch business ⁄ news media at least several times a week; follow public policy issues in the news at least several times a week