WHO DO WE TRUST Robert Phillips President CEO

WHO DO WE TRUST? Robert Phillips President & CEO Edelman EMEA Edelman

TEN YEARS OF TRUST DATA Business more trusted than government and media U. S. companies in Europe suffer trust discount Earned media more credible than advertising Rising Influence of NGOs Fall of the celebrity CEO 2001 “A person like me” emerges as credible spokesperson 2002 2003 2005 2006 Business must partner with government to regain trust Young influencers have more trust in business Trust shifts from “authorities” to peers 2004 Trust protects reputation 2007 2008 Trust is now an essential line of business 2009 2010 2011

TRUST PROTECTS REPUTATION When a company is distrusted When a company is 57 %will believe negative information 51% after hearing it 1 -2 times 15 % will believe positive information after hearing it 1 -2 times trusted will believe positive information after hearing it 1 -2 times 25 % will believe negative information after hearing it 1 -2 times

celebrate complexity

TRUST IN GOVERNMENT IS HIGHER IN RUSSIA & CHINA THAN US & UK 90% 80% 72% 60% 50% 46% 39% 40% 37% 30% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

TRUST IN INSTITUTIONS 90% 80% 63% 70% 60% 55% 63% 45% 50% 40% NGOs 54% 59% 46% BUSINESS 46% 43% 36% 46% 31% GOVERNMENT 40% 38% 30% MEDIA 30% 27% 2008 2009 2010 2011

“Here is the fact of the age. People believe nothing. They believe everything is spin and lies. When people believe nothing, they believe anything” Peggy Noonan

SHARED VALUES PAYS DIVIDENDS 70% 65% 69% ENERGY COMPANY 65% FOOD & BEVERAGE COMPANY 56% RETAIL COMPANY 58% 61% 53% 55% 50% 45% 40% 2009 2010 2011

Profit Needs Purpose

NGOS ARE TRUSTED 70% 60% 59% 54% 53% 52% 48% 40% 36% 2001 31% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

SIX MACRO TRENDS 1. Shift from Shareholder to a Stakeholder Society 2. The oscillating fortunes of Governments 3. The continued rise of Civil Society & Citizenship 4. The continued dispersion of authority 5. Transparency & Accountability 6. The convergence of everything

celebrate complexity

MEANINGFUL. CONTINUOUS. PARTICIPATION.

transparency HIGH QUALITY quality TRUST products or services Communicates FREQUENTLY & HONESTLY on state of its business. CITIZEN GOOD CORPORATE A COMPANY I CAN TRUST prices its brands Delivers consistent financial returns to investors TRUST innovator of new products, services & ideas employee welfare Treats employees well fairly & competitively transparent & HONEST business practices HIGHLY-REGARDED & widely ADMIRED top leadership