2009 Edelman Trust Barometer

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1 2009 Edelman Trust Barometer

2 Edelman Trust Barometer at a glance Tenth edition 4,475 people in 20 countries on 5 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

3 A decade of insights from the Edelman Trust Barometer Rising Influence of NGOs Fall of the celebrity CEO Earned media more credible than advertising U.S. companies in Europe suffer trust discount Trust shifts from authorities to peers A person like me is most credible spokesperson Business more trusted than government and media Young influencers have more trust in business 3

4 What a difference a year-and-a-half makes May 14, 2007 January 19, 2009

5 2008: A year unlike any other Dow Jones Industrial Average: Jan 1, 2008 Dec 15, 2008

6 1 The State of Trust Every financial system depends on trust...we are in a full-blown crisis because investors and financial managers the people who run banks, investment banks, hedge funds, insurance companies have lost that trust. Robert J. Samuelson, Newsweek Richard S. Fuld Jr., former CEO, Lehman Brothers

100% 90% 70% Trust in business is country-specific % who trust business to do what is right 2008 2009 Trust Down Trust Steady Trust Up 75% 74% 69% 71% 65% 65% 63% 61% 62% 61% 58% 55% 54% 51% 49% 49%

7 100% 90% 70% Trust in business is country-specific % who trust business to do what is right Trust Down Trust Steady Trust Up 75% 74% 69% 71% 65% 65% 63% 61% 62% 61% 58% 55% 54% 51% 49% 49% 47% 49% 45% 45% 45% 45% 47% 51% 45% 45% 43% 41% 42% 39% 38% 41% 35% 33% 29% 27% New additions in % 68% 10% 0% A10. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-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) Informed publics (global 18 countries, excluding Australia, Indonesia) 7

8 The Trust Divide Trust in business < among 25-to-64-year-olds Trust in business > among 25-to-64-year-olds

Globally, younger and older informed publics now trust business equally Big drops among younger cohort in US, France, South

45% 2008 52% 39% 36% 33% 32% 29% 46% 45% 64% 63% 64% 69% 2008 32% 38% 56% 62% 41% 34% 71% 68% 59% 56% 2008 52% 32% 45% 10% 0%

For each one, please tell me how much you TRUST that institution to do what is right.

9 Globally, younger and older informed publics now trust business equally Big drops among younger cohort in US, France, South Korea 100% % who trust business to do what is right % 70% 51% 70% 45% 46% 27% 78% 78% 65% 65% 58% 54% 51% 48% 47% 45% % 39% 36% 33% 32% 29% 46% 45% 64% 63% 64% 69% % 38% 56% 62% 41% 34% 71% 68% 59% 56% % 32% 45% 10% 0% A10. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-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) Informed publics (global 18 countries, excluding Australia, Indonesia) 9

Companies less trusted now than year ago 100% % who trust companies less 90% 83% 79% 77% 74% 73% 70% 62% 69% 67% 67% 67% 66% 62% 61% 56% 55% 54% 49% 49% 32% 21% 10% 0% A60 Thinking about everything

10 Companies less trusted now than year ago 100% % who trust companies less 90% 83% 79% 77% 74% 73% 70% 62% 69% 67% 67% 67% 66% 62% 61% 56% 55% 54% 49% 49% 32% 21% 10% 0% A60 Thinking about everything you have read, seen, or heard about business in the last year, in general, do you trust corporations a lot less, a little less, the same, a little more, or a lot more than you did at the same time last year? (Bottom 2 Box: Trust less) Informed publics in 20 countries 10

11 In U.S., trust in business at lowest level, including post-enron US UK/France/Germany 58% 20 point drop 55% 53% 51% Enron, the dot-com bust and September 11 48% 48% 49% 45% 44% 44% 41% 35% 35% 36% 38% 34% 36% 38% 36% 32% U.S. is the new Europe A10. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-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) Informed publics in the United States and UK/France/Germany 11

Trust in government did not rise to offset lower trust in business 100% 90% 70% 10% 44% 43% 63% 39% 39% 49% 49% % who trust government to do what is right 41% 43% 37% 34% 38% 35% 35% 45% 45% 2008

12 Trust in government did not rise to offset lower trust in business 100% 90% 70% 10% 44% 43% 63% 39% 39% 49% 49% % who trust government to do what is right 41% 43% 37% 34% 38% 35% 35% 45% 45% Trust Down Trust Steady Trust Up 35% 36% 79% 43% 41% 38% 32% 34% 35% 29% 27% 64% 74% 39% 51% 11% 33% 22% New additions in % 52% 53% 0% A8. [Government in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-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) Informed publics (global 18 countries, excluding Australia, Indonesia) 12

Business still more trusted than government in 13 of 20 countries 100% 90% Business in general Business more trusted Government in general Government more trusted 70% 74% 71% 69% 68% 65% 65% 63% 62%

13 Business still more trusted than government in 13 of 20 countries 100% 90% Business in general Business more trusted Government in general Government more trusted 70% 74% 71% 69% 68% 65% 65% 63% 62% 51% 52% 51% 51% 53% 45% 47% 45% 45% 43% 45% 45% 45% 41% 39% 41% 41% 43% 38% 38% 39% 33% 34% 35% 35% 36% 33% 32% 29% 27% 10% 0% A 8,10. [Government in general, business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-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) Informed publics (global 20 countries, including Australia, Indonesia) 13

NGOs most trusted institution in every region except Asia Pacific 100% 90% % who trust each institution NGOs Business Media Government 70% 54% 47% 45% 45% 39% 32% 32% 68% 67% 58% 46% 57% 42% 52% 61%

14 NGOs most trusted institution in every region except Asia Pacific 100% 90% % who trust each institution NGOs Business Media Government 70% 54% 47% 45% 45% 39% 32% 32% 68% 67% 58% 46% 57% 42% 52% 61% 61% 56% 10% 0% Global Total North America Latin America EU Asia Pacific A8-11. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a nine-point scale where one means that you "DO NOT TRUST THEM AT ALL" and nine means that you "TRUST THEM A GREAT DEAL. The higher the number, the more. you TRUST them to do what is right. (Top 4 Box) Informed publics (global 20 countries) 14

15 Technology remains most trusted industry sector globally Technology Biotech/life sciences Health care industry Automotive CPG manufacturers Energy Retail Food Pharmaceuticals Entertainment Banks Media companies Insurance N/A 66% 65% 57% 61% 57% 62% 55% 55% 55% 57% 55% 59% 55% 53% 56% 53% 45% 56% 42% 46% 45% 76% 77% A [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you "DO NOT TRUST THEM AT ALL" and nine means that you "TRUST THEM A GREAT DEAL. (Top 4 Box) Informed publics in 18 countries

In U.S., trust in every industry declined 100% 90% 70% -33-27 69% 36% 33% 44% 25% Banks and automotive led the way 64% 58% 54% 54% 49% 49% 42% 42% 33% 31% 2008 2009 73% 62% 63% 54% 73% 10% 0% A25-37.

16 In U.S., trust in every industry declined 100% 90% 70% % 36% 33% 44% 25% Banks and automotive led the way 64% 58% 54% 54% 49% 49% 42% 42% 33% 31% % 62% 63% 54% 73% 10% 0% A [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale, where one means that you "DO NOT TRUST THEM AT ALL" and nine means that you "TRUST THEM A GREAT DEAL. (Top 4 Box) Informed publics in the United States 16

17 In the U.K., France, and Germany, trust in automotive, energy, banks, and media companies fell 100% % 70% 52% 49% 44% 39% 41% 35% 27% 28% 10% 0% Automotive Energy Banks Media companies U.K./France/Germany A [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you "DO NOT TRUST THEM AT ALL" and nine means that you "TRUST THEM A GREAT DEAL. (Top 4 Box) Informed publics

In emerging economies, industries that suffer in West remain trusted 100% 2008 2009 100% 2008 2009 100% 2008 2009 90% 70% 83% 84% 72% 72% 72% 55% 67% 90% 70% 79% 81% 72% 71% 83% 81% 55% 65% 90% 70%

18 In emerging economies, industries that suffer in West remain trusted 100% % % % 70% 83% 84% 72% 72% 72% 55% 67% 90% 70% 79% 81% 72% 71% 83% 81% 55% 65% 90% 70% 52% 59% 10% 10% 10% 0% Automotive Energy Banks Media companies 0% Automotive Energy Banks Media companies 0% Banks China India Brazil A [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the following industries to do what is right. Again, please use a nine-point scale where one means that you "DO NOT TRUST THEM AT ALL" and nine means that you "TRUST THEM A GREAT DEAL." (Top 4 Box) Informed publics

Companies headquartered in Sweden, Germany, and Canada remain most trusted; companies in China and Russia trusted the least 100% 2008 2009 90% 70% 76% 73% 74% 72% 74% 71% 71% 68% 68% 65% 62% 59% 53%

19 Companies headquartered in Sweden, Germany, and Canada remain most trusted; companies in China and Russia trusted the least 100% % 70% 76% 73% 74% 72% 74% 71% 71% 68% 68% 65% 62% 59% 53% 52% 54% 53% 43% 36% 32% 28% 24% 26% 24% 10% 0% A [TRACKING] Now I would like to focus on global companies headquartered in specific countries. Please tell me how much you TRUST global companies headquartered in the following countries to do what is right. Use the same nine-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) Informed publics in 18 countries 19

20 2 Lack of Trust Triggers Call for Government Intervention...our problem is not just a deficit of dollars. It s a deficit of accountability...a deficit of trust. Barack Obama

21 By a 3:1 margin, informed publics agree government should impose stricter regulations and greater control over business across all industries Agree, 65% Disagree, 22% Don't know, 1% Neither agree nor disagree, 12% F146. The recent credit crisis and government bail-outs have led to debates on how much governments should intervene to regulate industry or nationalize companies to restore public trust. Please tell me how strongly you agree or disagree that your government should in the future impose stricter regulations and greater control over business across all industry sectors.(informed publics in 20 countries) 21

22 Four Global Issues: Who Is Responsible for Causing and Solving? Financial Credit Crisis Energy Costs Global Warming Access to Affordable Healthcare

Government and business share responsibility for causing global issues Government and regulators Businesses 100% 90% 79% 81% 84% 77% 81% 70% 63% 10% 0% Energy Costs Financial Credit Crisis Global

23 Government and business share responsibility for causing global issues Government and regulators Businesses 100% 90% 79% 81% 84% 77% 81% 70% 63% 10% 0% Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare E , E , , Now thinking about (energy costs, financial credit crisis, global warming, affordable healthcare), please tell me how responsible you think each of the following entities are for contributing. to (global issue)? TOP 4 BOX informed publics in 20 countries 23

24 Government held most responsible for solving these issues Despite being most trusted institution globally, NGOs not considered most responsible for solutions 100% Government and regulators Businesses NGOs 90% 70% 70% 47% 53% 41% 10% 0% 24% 21% 17% 9% 4% 6% 2% 3% Energy Costs Financial Credit Crisis Global Warming Affordable Healthcare E138. And which ONE entity do you think should be MOST responsible for (solving each global issue)? Informed. publics in 20 countries 24

Business has lost ability to lead unilaterally Must partner with others to solve global issues Partner with governments and third parties Do what it can alone Play no role 100% 90% 83% 70% 66% 65%

25 Business has lost ability to lead unilaterally Must partner with others to solve global issues Partner with governments and third parties Do what it can alone Play no role 100% 90% 83% 70% 66% 65% 65% 69% 57% 31% 39% 33% 29% 10% 0% 3% 2% 4% 2% 1% 2% Global North America EU Asia-Pacific Latin America BRIC 15% E139. Thinking about the role that business should play in helping to solve global issues such as energy costs, the financial credit crisis, global warming, or access to affordable healthcare, which of these following three statements is closest to your view? Business has to partner with governments and advocacy groups to solve these global issues, it cannot do it alone; OR Business should focus on what they themselves can do on these global issues, whether or not governments or others partner with them ; OR Business should not play a part in helping to solve these global issues (Informed publics in 20 countries) 25

26 3 Who Can We Trust? Trust in Information Sources and Spokespeople Declines Across the Board Under the circumstances, I am tendering my resignation.i am now prepared to subject myself to the laws of the land and face the consequences thereof. Ramalinga Raju, former chairman, Satyam Computers

Trust wanes for traditional information sources Ranking stays consistent 100% 2008 2009 90% 70% 56% 57% 47% 44% 49% 49% 49% 38% 36% 47% 34% 10% 0% Stock or industry analyst reports Articles in

27 Trust wanes for traditional information sources Ranking stays consistent 100% % 70% 56% 57% 47% 44% 49% 49% 49% 38% 36% 47% 34% 10% 0% Stock or industry analyst reports Articles in business magazines Conversations with your friends and peers News coverage on the radio Television news coverage Articles in newspapers C95-98,103. [TRACKING] Now I m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages in 18 countries 27

28 Trust in digital channels down but still important Internet search engines most trusted 100% 90% 70% % 38% 19% 16% 27% 15% 10% 0% Internet search engines e.g. Google news, Yahoo news Business Blogs Personal or Non Business Blogs or bulletin boards Free content sources, such as wikipedia or webportals* *asked as Free content encyclopedia (such as Wikipedia) in 2008 Social networking sites (such as MySpace or Facebook) C [TRACKING] Now I m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages in 18 countries 28

100% 90% 70% 2009 Trust in corporate channels also down Employees most trusted source 2008 2009 27% 38% 26% 31% 24% 13% 10% 0% Conversations with company employees Live communication such as a CEO

29 100% 90% 70% 2009 Trust in corporate channels also down Employees most trusted source % 38% 26% 31% 24% 13% 10% 0% Conversations with company employees Live communication such as a CEO speech Corporate communications such as press releases, reports and s A company s own website Corporate or product advertising C99-101,109,110. [TRACKING] Now I m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages in 18 countries 29

30 Experts, peers, and employees top 2009 list of credible sources Stock or industry analyst reports 48% Articles in business magazines 44% Conversations with company employees Conversations with friends/peers News coverage on the radio Television news coverage Internet search engines Articles in newspapers 38% 36% 35% 34% Live communication such as a CEO Wikipedia or web portals Corporate communications 27% 29% 29% A company's own Web site 24% Business Blogs Personal or non-business blogs Social networking sites 17% 16% Corporate or product advertising 13% C95-98,103. [TRACKING] Now I m going to read you a list of places where you might get information about a company. Please tell me how credible you believe each one of them is as a source of information about the company is it extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box), Informed publics ages in 20 countries 30

CEO credibility hits new low globally Driven by drops in North America and Europe 100% 2008 2009 90% 70% 36% 29% 46% 61% 43% 29% 15% 31% 19% 37% 29% 21% 13% 29% CEO credibility at 6-year low in US

31 CEO credibility hits new low globally Driven by drops in North America and Europe 100% % 70% 36% 29% 46% 61% 43% 29% 15% 31% 19% 37% 29% 21% 13% 29% CEO credibility at 6-year low in US 27% 21% 23% 17% 25% 22% 19% 19% 10% 0% D [TRACKING] Now I m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box) Informed Publics in 18 countries 31

Trust in nearly every spokesperson down Academics, industry experts most credible 100% 2008 2009 90% 70% 59% 56% 57% 58% 47% 47% 49% 38% 39% 36% 29% 32% 27% 10% 0% An academic or expert on that

32 Trust in nearly every spokesperson down Academics, industry experts most credible 100% % 70% 59% 56% 57% 58% 47% 47% 49% 38% 39% 36% 29% 32% 27% 10% 0% An academic or expert on that company's industry or issues* Financial or industry analyst A person like yourself Non-profit organization or NGO representative Regular employee of a company CEO of company Government official or regulator *asked as an academic in 2008 D [TRACKING] Now I m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box) Informed publics in 18 countries 32

33 Informed publics need information from multiple sources, multiple voices And need to hear it 3-5 times to believe it Ten or more times (10+) 5% Six to nine times (6-9) 6% Don t know/refused (vol) 7% Once (1) 6% Twice (2) 16% 3-5 times Four or five times (4-5) 25% Three times (3) 35% C111. 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 hear something about a specific company to believe that the information is likely to be true? Please give me a number Informed publics 33

34 4 The Business Case for Trust Reputation, Sales, and License to Operate Driven by Trust and Transparency Trust is the cornerstone for the survival of an enterprise and a society. China Daily

35 Communication and trust as important to reputation as value for money Offers high quality products or services 94% Is a company that treats its employees well 93% Communicates frequently and honestly on its business Is a company I trust Gives value for money 91% 91% 91% Stays within the spirit and the letter of the law in [country] Has a strong financial future 90% 90% Has senior leadership that can be trusted 89% Has a strong commitment to protect the environment Is an innovator of new products, services or ideas 87% 87% Creates and keeps jobs in your area 86% Commits time, money and resources to the greater public good 85% B When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is not at all important and nine means it is extremely important to overall reputation. (Top 4 Box) Informed publics in 20 countries 35

36 Through personal action, trust has tangible benefits Personal actions taken with trusted and distrusted companies + 77% 91% Refused to buy their products/services Chose to buy their products/services 72% Criticized them to a friend or colleague 76% Recommended them to a friend or colleague 55% Paid a premium for their products/services 34% Shared negative company opinions/experiences online 17% Sold shares 42% Shared positive company opinions/experiences online 26% Bought shares B74-78 Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. B Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. Informed publics in 20 countries 36

37 5 Rebuilding Trust The Power of Public Engagement "I understand your disappointment, your anger. This situation is perfectly unacceptable. Daniel Bouton, former CEO of Société Générale

38 Sep Jun Mar Dec Sep Jun 03 Mar Dec Sep Jun 06 Mar Dec Sep Jun Dec Mar Sep Jun Mar Dec Sep Jun 15 Mar Dec Sep Jun 18 Mar Dec Sep Jun 21 Mar Dec Sep Jun 24 Mar Dec Sep Jun 27 Mar Dec Sep Jun 30 Mar Dec Sep Jun 33 Mar Dec Sep Jun 36 Mar Dec Sep Jun 39 Mar Dec Sep Jun 42 Mar Dec Sep Jun 45 Mar Dec Sep Jun 48 Mar Dec Sep Jun 51 Mar Dec Sep Jun 54 Mar Dec Sep Jun 57 Mar Dec Sep Jun 60 Mar Dec Sep Jun 63 Mar Dec Sep Jun 66 Mar Dec Sep Jun 69 Mar Dec Sep Jun 72 Mar Dec Sep Jun 75 Mar Dec Sep Jun 78 Mar Dec Sep 81 Mar Jun Dec Sep Jun 84 Mar Dec Sep Jun 87 Mar Dec Sep Jun 90 Mar Dec Sep Jun 93 Mar Dec Sep Jun 96 Mar Dec Sep Jun 99 Mar Dec Sep Jun 02 Mar Dec Sep Jun 05 Mar Dec Sep Jun 08 Mar Sep Dec Jun Dec Sep Mar Jun 14 Mar Dec Sep Jun 17 Mar Dec Sep Jun 20 Mar Dec Sep Jun 23 Mar Dec Sep Jun 26 Mar Dec Sep Jun 29 Mar Dec Sep Jun 32 Mar Dec Sep Jun 35 Mar Dec Sep Jun 38 Mar Dec Sep Jun 41 Mar Dec Sep Jun 44 Mar Dec Sep Jun 47 Mar Dec Sep Jun 50 Mar Dec Sep Jun 53 Mar Dec Sep Jun 56 Mar Dec Sep Jun 59 Mar Dec Sep Jun 62 Mar Dec Sep Jun 65 Mar Dec Sep Jun 68 Mar Dec Sep Jun 71 Mar Dec Sep 74 Mar Jun Dec Sep Jun 77 Mar Dec Sep Jun 80 Mar Dec Sep Jun 83 Mar Dec Sep Jun 86 Mar Dec Sep Jun 89 Mar Dec Sep Jun 92 Mar Dec Sep Jun 95 Mar Dec Sep Jun 98 Mar Dec Sep 01 Mar Jun Dec Sep Jun 04 Mar Dec Sep Jun 07 Mar Dec Jun Sep 10 Mar Dec Sep Jun 13 Mar Dec Sep Jun 16 Mar Dec Sep Jun A study in chickens and eggs Which will drive recovery? 70% Enron, the dot-com bust and September 11 Trust in US business in general S&P 500: Sep 2001 Dec % an economy is a society of trust and faith. A recession is a mental event, and every recession has its own unique spirit. This recession was caused by deep imbalances and is propelled by a cascade of fundamental insecurities. David Brooks, New York Times A10. Business in General [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. Please use a 9-point scale where one means that you "DO NOT TRUST THEM AT ALL" and nine means that you "TRUST THEM A GREAT DEAL". (Top 4 Box) Informed Publics in the US 38

39 What We Have Learned Diminished trust impedes business license to operate Regulation abdication A public company serves shareholders and society Partnership is the solution

40 Public Engagement: A Strategy for Changing Policy and Communication Private Sector Diplomacy Mutual Social Responsibility Shared Sacrifice Continuous Conversation

Private Sector Diplomacy Private Sector Diplomacy Mutual Social Responsibility Shape policy on world s most pressing problems, including ones that don t concern company s industry Partner with

41 Private Sector Diplomacy Private Sector Diplomacy Mutual Social Responsibility Shape policy on world s most pressing problems, including ones that don t concern company s industry Partner with government, NGOs to drive decision-making and set strategy on major societal issues Shared Sacrifice Continuous Conversation Come together government, NGOs and business in new approach to solving big problems facing our country. This can work. H. Lee Scott, Jr., President and CEO, Wal-Mart

Mutual Social Responsibility Private Sector Diplomacy Mutual

Integrate approaches to societal problems into products and

actions about company s social responsibility Shared Sacrifice

42 Mutual Social Responsibility Private Sector Diplomacy Mutual Social Responsibility Benefit society and the bottom line Integrate approaches to societal problems into products and services Involve employees and customers in decisions and actions about company s social responsibility Shared Sacrifice Continuous Conversation Starbucks invites customers to partner as a force for good

Shared Sacrifice Private Sector Diplomacy Mutual Social Responsibility Set collaborative tone for company: we re all in this together Equitable compensation (executive pay cuts, bonus forfeiting)

43 Shared Sacrifice Private Sector Diplomacy Mutual Social Responsibility Set collaborative tone for company: we re all in this together Equitable compensation (executive pay cuts, bonus forfeiting) sends powerful message Communicate with employees, welcome their voices Shared Sacrifice Continuous Conversation Heavy equipment maker Caterpillar Inc announced in late December it would cut executive pay in half, and many salaried employees would see cuts of as much as 15 percent. Wall Street Journal

Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility Be agile and of the moment Inform, don t control the conversation

44 Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility Be agile and of the moment Inform, don t control the conversation Say... then do as you say Shared Sacrifice Continuous Conversation Johnson & Johnson among first companies to join public conversation on health

A Ten Year Overview of Trust The 2009 Edelman Trust Barometer is the firm s 10 th trust and credibility survey. The survey was produced by research firm StrategyOne.

45 A Ten Year Overview of Trust The 2009 Edelman Trust Barometer is the firm s 10 th trust and credibility survey. The survey was produced by research firm StrategyOne. The survey consisted of 30-minute telephone interviews conducted in November December For the first time, the survey sampled two different age groups concurrently (25-34 and 35-64). For more information on the Edelman Trust Barometer and to view past results, please visit

46 Methodology 10 th Edelman Trust Barometer Global Reach 20 countries on five continents Sample Size Audience Profile Field Dates N=4475 Total N=3400 age (20 countries) N=1075 age (20 countries) Informed Publics (same as 2008) College-educated In top 25% of household income per age group in each country Reported significant media consumption and engagement in business news and public policy Nov 5 -Dec 14, 2008 (post-u.s. election) 46

47 2009 Edelman Trust Barometer

2009 Edelman Trust Barometer. Canada Findings

2009 Edelman Trust Barometer. Canada Findings 2009 Edelman Trust Barometer Canada Findings Edelman Trust Barometer at a glance Tenth edition since 2001 4, 475 people in 20 countries on 5 continents Ages 25 to 64 College-educated In top 25% of household