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A u s t r a l i a | # E d e l Tr u s t

#EdelTrust

ABOUT EDELMAN’S 14TH ANNUAL TRUST BAROMETER SURVEY

GLOBAL RESPONSE

GENERAL POPULATION

INFORMED PUBLICS

The 2014 Edelman Trust Barometer surveyed 33,000 people online across 27 countries between October 16 – November 2013.

There are 1,000 respondents surveyed per country including Australia. The 20 minute online interviews are conducted with general population aged 18 and over.

Edelman surveys an informed public demographic which meet the following criteria: university educated; household income in top quartile for age; read or watch business/news media at least several times a week; follow public policy issues several times per week. 500 respondents interviewed in the U.S. and China and 200 in other markets including Australia.

AUSTRALIA RESPONSE

In Australia we have collected six years of data with the informed public and three years of data with the general population.

Legend

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EDELMAN TRUST BAROMETER IN RETROSPECT

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Rising influenceof NGOS

Earned mediamore credible

than advertising

Fall of thecelebrity CEO

“A person like me”emerges as credible

spokespersonRise of

authority figuresCrisis of

leadership

Truts shiftsfrom “authorities”

to peers

Young influencershave more trust

in business

Trust is nowan essential line

of business

BUSINESS TO LEADTHE DEBATE FOR CHANGE

Business mustpartner withgovernment

to regain trustU.S. companiesin Europe suffertrust discount

Business more trustedthan government

and mediaFall of

government

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2013

21%17%

64%

70%

+6% +6%+11% +13%

2014 2013

8%11%

48%

59%

2014 2013

12% 16%

43%

56%

2014 2013

9%12%

42%

48%

2014

TOTAL TRUST TRUST A GREAT DEAL

REVERSAL OF FORTUNE: TRUST INCREASES ACROSS THE BOARD

NGOS Business Government Media

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 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics.

Trust in the four institutions

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20%

30%

40%

50%

60%

70%

80%

2009 2010 2011 2012 2013 2014

70%

59%56%

48%

TRUST IN EVERY INSTITUTION AT ITS HIGHEST POINT SINCE 2009

NGOS Government Business Media

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'. (4 Box, Trust) Informed Publics.

Australia trust in the four institutions since 2009

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DISTRUSTERS

2013 2014

TRUSTERS

UAECHINA

SINGAPOREINDONESIA

INDIAMALAYSIA

CANADANETHERLANDS

U.S.FRANCE

JAPANITALY

TURKEYSPAIN

IRELANDRUSSIA

POLAND

79 pts.79 pts.73 pts.72 pts.69 pts.65 pts.60 pts.60 pts.

MEXICOHONG KONGAUSTRALIA

BRAZILGERMANY

ARGENTINAU.K.

SWEDENS. KOREAS. AFRICA

59 pts.59 pts.58 pts.57 pts.57 pts.53 pts.52 pts.51 pts.51 pts.50 pts.

49 pts.46 pts.44 pts.43 pts.41 pts.39 pts.39 pts.37 pts.35 pts.

NEUTRAL

50 pts.

60 pts.

+8 pts.

50

58

AUSTRALIA IS ONE OF THE FEW COUNTRIES

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE). Informed Public

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to see a significant lift in trust

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BUT ALSO REVEALS A GROWING DIVIDE

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE). Informed Public and General Public. 7

DISTRUSTERS

2013 2014

TRUSTERS

UAECHINA

SINGAPOREINDONESIA

INDIAMALAYSIA

CANADANETHERLANDS

U.S.FRANCE

JAPANITALY

TURKEYSPAIN

IRELANDRUSSIA

POLAND

79 pts.79 pts.73 pts.72 pts.69 pts.65 pts.60 pts.60 pts.

MEXICOHONG KONGAUSTRALIA

BRAZILGERMANY

ARGENTINAU.K.

SWEDENS. KOREAS. AFRICA

59 pts.59 pts.58 pts.57 pts.57 pts.53 pts.52 pts.51 pts.51 pts.50 pts.

49 pts.46 pts.44 pts.43 pts.41 pts.39 pts.39 pts.37 pts.35 pts.

NEUTRAL

50 pts.

60 pts.

+8 pts.

50

39

58

GAP 14 pts.

+5 pts. 44

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THE BUSINESS GOVERNMENT DYNAMIC

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34%

10%

47%34%58%

11% 12%

24%

RENEWED OPTIMISM TEMPERED BY DESIRE FOR MORE REGULATION

Government Regulation of Business

Government Regulation of Financial Services Industry

Government Regulation of the Energy Industry

Government Regulation of the Food and Beverage Industry

Government regulation of business and sectors

Not enough Too much

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. 9

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AUSTRALIANS WANT GOVERNMENT TO PROTECT US

Protect consumers from irresponsible business

Regulate business Build business infrastructure

Ensure free market access and open

competition

Most important role for government in business

from irresponsible business practice

Financially help business during

crises

32% 27% 19% 11% 3%

59%

Q149. [TRACKING] Which of the following is the most important role that government should play in business? General Publics, Australia 10

#EdelTrust

1% 5% 23% 30% 26%

AUSTRALIANS WANT GOVERNMENT TO PROTECT US

Protect consumers from irresponsible business

Regulate business Build business infrastructure

Ensure free market access and open

competition

Most important role for government in business

from irresponsible business practice

Financially help business during

crises

32% 27% 19% 11% 3%

53%

Q149. [TRACKING] Which of the following is the most important role that government should play in business? General Publics, Informed Public, Australia 11

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TRUST IN BUSINESS

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ENERGY AND TELCO INDUSTRIES LEAD OVERALL INCREASE IN TRUST

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one 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.

TechnologyConsumer electronic manufacturing

Brewing and spiritsFood and beverage

EntertainmentConsumer packaged goods

AutomotiveConsumer health companies

PharmaceuticalsTelecommunications

Financial servicesBanks

EnergyChemicals

Media

77%75%72%71%71%70%67%63%62%58%54%53%53%49%42%

(+12)

(+09)

(+14)

(+08)

(+13)

(+14)

(+11)

(+08)

(+07)

(+15)

(+11)

(+13)

(+20)

(+07)

(+11)

10% 20% 30% 40% 50% 60% 70% 80%

2013 2014vs.

Trust businesses in industries

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ENERGY AND TELCO INDUSTRIES LEAD OVERALL INCREASE IN TRUST

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one 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.

TechnologyConsumer electronic manufacturing

Brewing and spiritsFood and beverage

EntertainmentConsumer packaged goods

AutomotiveConsumer health companies

PharmaceuticalsTelecommunications

Financial servicesBanks

EnergyChemicals

Media

77%75%72%71%71%70%67%63%62%58%54%53%53%49%42%

(+12)

(+09)

(+14)

(+08)

(+13)

(+14)

(+11)

(+08)

(+07)

(+15)

(+11)

(+13)

(+20)

(+07)

(+11)

46%46%

(+8)

(+8)

10% 20% 30% 40% 50% 60% 70% 80%

2013 2014vs.

Trust businesses in industries

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NUANCE WITHIN EACH INDUSTRY SECTOR

Financial Services Industry Food and Beverage Industry Energy Industry

Financial Services Industry overall

Banks

Financial Advisory/ Asset Management

Insurance

Credit Cards/Payments

Food Industry overall

Food and Beverage Retailers

Food Service

Food and Beverage Manufacturers

Fast Food Restaurants

Renewables

Natural Gas

Utilities

Mining

Energy Industry overall

Oil

46%

46%

43%

38%

38%

68%

63%

62%

61%

45%

71%

51%

45%

44%

41%

39%

Trust businesses in each industry sector

Q61A-64A. [SPLIT SAMPLE] Now thinking about specific sectors within the [TYPE OF INDUSTRY], please indicate how much you trust businesses in each of the following sectors 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”. Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. [RANDOMIZE. SELECT ONE RESPONSE] (Top 4 Box, Trust) General Publics. 15

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LOW TRUST IN CHINA

China Japan U.S. South Korea

Trust in companies headquartered in the following countries

despite being Australia’s largest two-way trading partner

U.K.

26% 68% 62% 50% 74%

Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. 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. Australia's Top Two Way Trading Partners, DFAT Trade at a Glace 2012 Report based on ABS trade data

1 2 3 4 6

16

TWO-WAY TRADE PARTNERS

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FAMILY-OWNED AND SMALL-AND MEDIUM-SIZED BUSINESSES

Family-owned Small-and medium-sized

Privately-held Publicly- traded

Trust in different types of businesses

have a trust advantage as Aussies prove skeptical of big business

Q15-17C. Thinking about different types of businesses, please indicate how much you trust each type of business 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 Publics.

Big business

17

State- 0wned

42% 49% 51% 57% 67% 76%

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PUBLICLY TRADED COMPANY SEEN AS HAVING MORE POLITICAL INFLUENCE

and being less responsive to customer

Phrases associated with publicly-traded & privately-held businesses

Q296-311. [SPLIT SAMPLE] Based on the information you know about PRIVATELY-HELD BUSINESSES OR COMPANIES, please tell us how much you associate each statement with PRIVATELY-HELD BUSINESSES OR COMPANIES. Please use a 9point scale, where nine means you strongly associate that statement with PRIVATELY-HELD BUSINESSES OR COMPANIES and one means you do not associate that statement at all with PRIVATELY-HELD BUSINESSES OR COMPANIES. (Top 4 Box, Associate) General Publics. 18

RESPONSIVE TO CUSTOMER NEEDS HAVE TOO MUCH POLITICAL INFLUENCE

Privately-held: 65%

Publicly-traded: 55%

Privately-held: 41%

Publicly-traded: 57%

Family-owned Small-and medium-sized

Privately-held Publicly- traded

Big business

State- 0wned

42% 49% 51% 57% 67% 76%

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TRUST IN LEADERS

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-2

0

+20

+11

+1

-2

+20

Academic or expert

Technical expert in the company

Financial or industry analyst

Regular employee

A person like yourself

NGO representative

Government official or regulator

CEO

70%

54%

33%

41%

47%

45%

19%

68%

65%

54%

53%

52%

48%

43%

39%

RISE IN CREDIBILITY OF INTERNAL SPOKESPEOPLE

Employees continue to be more credible than CEOs

Credibility of spokespeople

GAP 2009 2014

Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) Informed Publics. 20

*Not tested in 2009

*  

#EdelTrust

Tell you the truth, regardlessof how complex or unpopular it is

Tell you the truth, regardlessof how complex or unpopular it is

Government leaders

Somewhattrust

30%

Do nottrust at all

60%

Trust agreat deal

07%Trust on a

global scale

13%Trust on aglobal scale

20%

Somewhattrust

41%

Do nottrust at all

48%

Trust agreat deal

07%

Business leaders

THERE IS VERY LITTLE TRUST IN BUSINESS OR GOVERNMENT LEADERS

to tell the truth and act with integrity

Australia trust in business and government leaders to do the following

Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following?; Q144B-147B. [SPLIT SAMPLE] How much do you trust government leaders to do the following? (Top Box, Trust a great deal) General Publics.

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BUILDING TRUST

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ACTIONS CEOS CAN TAKE TO BUILD TRUST

Communicate clearly and transparently

Tell the truth, regardless of how complex or unpopular it is

Engages with employees regularly to discuss the

state of the business

Is front and center during challenging times (products recall, lawsuits, etc…)

Actions a CEO can take to build trust in themselves and their company

Is personally involved in supporting local charities and good causes

88% 87%

84% 83%

72%

Q254A-261A. [SPLIT SAMPLE ] Thinking about the following actions a CEO can take, how important is each of the following to building your TRUST in that CEO? (Top 4 Box, Total Important) General Population.

Has an active media presence

56%

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IT TAKES A CHORUS LEAD BY YOUR EMPLOYEES

Q197-201. We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select which person you trust MOST to provide you with credible and honest information about a company. General Publics.

seen as most credible for customer service, business practices

Most trusted to provide credible and honest information

Customer service How a company serves

its customers and prioritises customer

needs ahead of company profits.

Leadership Accomplishments

and information about a company’s senior

leadership.

Business practices A company’s

business practices, both positive &

negative

24

Crisis A company

situation in a time of crisis

Innovation A Company’s

innovation efforts and new product

development.

17% 17%

36%

31%

28% 25% 25%

19%

30% 29%

18%

33%

24% 23%

21%

32% 30%

15%

32%

24%

Company’s CEO Company’s employee Activist consumer Academic

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A DIVERSIFIED CHANNEL ENGAGEMENT STRATEGY

Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal”. (Top 4 Box, Trust) Informed Publics.

is reinforced by the levels of trust across the different media sources

Trust in different sources of information

25

31%SOCIAL MEDIA

41%OWNED MEDIA

51%HYBRID MEDIA

63%TRADITIONAL MEDIA

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MAKE IT FINDABLE: THE POWER OF SEARCH

Online search Television Newspaper

31%

Q183. On a typical day, what is the first source that you go to for general information about business? ; Q184. What is the first source you go to for breaking news about business? ; Q185. Which of the following sources do you turn to MOST often to confirm/ validate information on breaking news about business? Q178-182. [TRACKING] When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal”. (Top 4 Box, Trust) General Population

First sources of information

21% 23%

Online search Television Newspaper

22% 35% 18%

Online search Television Newspaper

34% 27% 18%

First source to turn to for GENERAL BUSINESS

information

First source to turn to for BREAKING NEWS

about business

First source to turn to for CONFIRM/VALIDE

breaking news about business

26

56% trust online search

#EdelTrust

Listen to customer

Is ethical

Treats employees well

High quality products

Acts responsibly in crisis

Customers before profits

Transparent & open

Communicates often

Positively impacts community

Addresses society needs

Protects environment

Admired top leadership

Innovator

Partners with NGOs

Consistent financial returns

Top global company

62% Importance

61% Importance

61% Importance

60% Importance

59% Importance

59% Importance

57% Importance

52% Importance

46% Importance

45% Importance

45% Importance

34% Importance

33% Importance

33% Importance

30% Importance

29% Importance

23% Performance

22% Performance

22% Performance

26% Performance

23% Performance

20% Performance

19% Performance

19% Performance

18% Performance

17% Performance

17% Performance

17% Performance

25% Performance

14% Performance

22% Performance

16% Performance

-39

-39

-39

-34

-36

-39

-38

-33

-28

-28

-28

-17

-08

-19

-08

-13

BUSINESS HAS A LONG WAY TO GO TO MEET AUSTRALIAN EXPECTATION

Q80-Q95. [TRACKING] 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) Informed Publics, 27-country global total.; Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performing Extremely Well) General Publics.

Business importance vs. business performance on 16 trust drivers

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A u s t r a l i a | # E d e l Tr u s t

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