2014EDELMAN TRUST BAROMETERUK RESULTS

2

GLOBAL

ONLINE SURVEY IN 27 COUNTRIES

• 33,000 respondents

• 6 years in 20+ markets

• 9 years in 10+ markets GENERAL

POPULATION

• 1000 respondents per country surveyed

• Ages 18+

• 3 years in 25+ markets

INFORMED PUBLICS

• 500 respondents in U.S. and China & 200 in other countries

• Ages 25-64

• 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

• 14 years of data

Edelman’s 14th annual survey

Indicates UK dataThe 2014 Trust Barometer: UK Supplement was fielded from 9th – 13th January. The 15-minute questionnaire was completed online by 1,001 general public respondents.

Data from the UK Supplement is marked………….Data from the main study is marked………………..

JANOCT

3

ONE| Trust: the Gender Divide

Thinking about a company’s board of directors, a director of which gender do you trust more to do what is right?; Thinking about a CEO and gender, a CEO of which gender do you trust more to do what is right? General Publics

MEN AND WOMEN ARE BOTH GENDER-BLIND WHEN IT COMES TO TRUST IN A CEO

4

TRUST IN MEN VS. WOMEN ON A BOARD OF DIRECTORS AND AS A CEO

Trust men more Trust women more Neither / don’t know

8%14%

78%

11% 10%

80%

6%17%

77%On a board of directors

Trust men more Trust women more Neither / don't know

10% 12%

79%

14%9%

76%

6%14%

80%As a CEO

What does it say?

Women are trusted to do what is right more (14%) than men (12%) on a board of directors.

When asked to chose the most trusted gender of a CEO, four in five respondents (79%) said they did not prefer one over the other or that they did not know. This was the highest of the four questions.

Men WomenTotal

JAN

84% 83% 82% 80%

64%

53%

CEOS CAN BUILD TRUST BY TELLING THE TRUTH REGARDLESS OF HOW UNPOPULAR IT MAY BE

5

ACTIONS A CEO CAN TAKE TO BUILD TRUST IN THEMSELVES AND THEIR COMPANY - U.K.

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 Publics

JAN

THE UK GENERAL PUBLIC GIVES A TRUST BONUS OF 7 POINTS TO COMPANIES WITH A HIGHER PROPORTION OF WOMEN THAN MEN

6

TRUST IN COMPANIES WITH A HIGHER PROPORTION OF WOMEN VS. COMPANIES WITH A HIGHER PROPORTION OF MEN

39%

32%

17% 18%22%

14%

Male trust Female trustTotal

Thinking of the gender balance in different companies, please indicate how much you would trust a company to do what is right if they have a higher proportion of women than men or a higher proportion of men than women in the company. General Publics

JAN

TWO| The State of Trust

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

NGOS BUSINESS

GOVERNMENT

WHILE TRUST IN BUSINESS REMAINS CONSTANT, BOTH MEDIA AND GOVERNMENT SEE DECREASES IN TRUST IN 2014

8

U.K. TRUST IN THE FOUR INSTITUTIONS: GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014

TOTAL TRUST

TRUST A GREAT DEAL

MEDIA

2013 2014

19% 23%

61% 67%

#1

2013 2014

13% 12%

47% 42%

#3

2013 2014

17% 10%

56%56%

#2

2013 2014

13% 11%

47% 41%

#4

OCT

2008 2009 2010 2011 2012 2013 201420%

30%

40%

50%

60%

70%

80%

54%53%

51% 51%54%

61%

67%

36%

30% 31%22%

37%

47%

41%

48%

46%49% 44%

38%

56%56%

35%

40% 38%

43% 38%

47%

42%

NGOs Media Business Government

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

NGOS CONTINUE ON STRONG UPWARD TRUST TREND; MEDIA AND GOVERNMENT DROP TOWARDS 2012 LEVELSU.K. TRUST IN THE FOUR INSTITUTIONS SINCE 2008

9

OCT

HALF REPORT TRUSTING GOVERNMENT LESS THAN THEY DID IN 2013

10

REPORTED CHANGE IN TRUST IN GOVERNMENT OVER THE LAST YEAR

19%

31%

39%

9%2%

Thinking about everything you have read, seen or heard about each institution in the last year, please indicate how much your trust in each institution has changed over the past year. [GOVERNMENT] (excl. don’t knows) General Publics

TRUST INCREASED A LOT

TRUST INCREASED

STAYED THE SAME

TRUST DECREASED

TRUST DECREASED A LOT

50% REPORT

TRUSTING GOVERNMENT

LESS

JAN

AMONG THOSE WHO REPORTED TRUSTING GOVERNMENT LESS, THE MAIN REASON WAS POOR PERFORMANCE AND INCOMPETENCE

11

REASONS FOR TRUSTING GOVERNMENT LESS

Which of the following is the main reason why your trust in government decreased over the last year? [BASE: those reporting a decrease in [government/media] over the last year] (Excl. don’t knows) General Publics

39%

22% 20%

10% 8%

JAN

WHILE THOSE SAYING THEY TRUSTED MEDIA LESS THIS YEAR ASCRIBED THE DROP TO THE MEDIA BEING CORRUPT AND LACKING IN REGULATION

12

REASONS FOR TRUSTING GOVERNMENT AND MEDIA LESS

Which of the following is the main reason why your trust in [government/media] decreased over the last year? [BASE: those reporting a decrease in [government/media] over the last year] (Excl. don’t knows) General Publics

39%

22% 20%

10% 8%8%

18%

38%

13%

23%

GOVERNMENT

MEDIA

JAN

THREE| The Intersection Between Business and Government

37%

25%

15% 14%

5%

2% 3%

RESPONDENTS VIEW GOVERNMENT’S MAIN ROLE BEING TO FOCUS ON PROTECTING CONSUMERS FROM IRRESPONSIBLE BUSINESSES

14

MOST IMPORTANT ROLE FOR GOVERNMENT IN BUSINESS - U.K.

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

OCT

A MAJORITY BELIEVE THERE IS NOT ENOUGH GOVERNMENT REGULATION OF THE FINANCIAL SERVICES AND ENERGY INDUSTRIES

15

GOVERNMENT REGULATION OF BUSINESS AND SECTORS - U.K.

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

43%

64%

73%

38%

17%

4% 2%5%

Not Enough Too Much

OCT

HYGIENE FACTORS ASIDE, BEING AN ACTIVE PARTICIPANT IN FINANCIAL SERVICES AND ENERGY MEANS MAKING STRUCTURAL CHANGES TO THE INDUSTRYWHAT DOES BEING AN ACTIVE PARTICIPANT MEAN FOR EACH INDUSTRY?

What does the financial services industry being an active participant in the broader debate over the future of the United Kingdom’s banking system most mean to you?; What does the energy industry being an active participant in the broader debate over the future of the United Kingdom’s energy policy most mean to you?; What does the food and beverage industry being an active participant in the broader debate in the United Kingdom over solutions to food and nutrition policy most mean to you? General Publics

16

"The financial services industry should be a more active participant in the broader debate over the

future of the United Kingdom’s banking

system."

Don’t know

Lobbying government

Taking part in debates in the media

Advising government

Educating consumers

Working with government

Making structural changes to the industry

Providing an improved service or products

9%

2%

5%

6%

9%

19%

22%

27%

"The energy industry should be a more active

participant in the broader debate over the United

Kingdom’s energy policy."

Don’t know

Lobbying government

Advising government

Taking part in debates in the media

Educating consumers

Working with government

Making structural changes to the industry

Providing an improved service or products

8%

1%

4%

5%

7%

18%

21%

35%

"The food and beverage industry should be a more active participant in the broader debate in the United Kingdom over solutions to food and

nutrition policy issues."

Don’t know

Lobbying government

Taking part in debates in the media

Advising government

Making structural changes to the industry

Working with government

Educating consumers

Providing an improved service or products

6%

2%

5%

6%

12%

15%

20%

34%

JAN

FOUR| Politics in the UK

THE GENERAL PUBLIC SHOW A CLEAR DESIRE FOR A SINGLE-PARTY GOVERNMENT AT THE NEXT GENERAL ELECTIONS

18

PREFERENCE FOR A SINGLE PARTY OR COALITION GOVERNMENT

Thinking about the United Kingdom general election in 2015, please indicate whether you would prefer the resulting government to be a Coalition government or a Single party government. General Publics

20%

65%

15%

SINGLE PARTYGOVERNMENT

COALITIONDON’T KNOW

JAN

CAMERON AND MILIBAND ARE BOTH EQUALLY TRUSTED BY THE UK GENERAL PUBLIC, BUT BOTH ARE 10 POINTS OFF BORIS JOHNSON’S LEADTRUST IN POLITICAL PARTIES VS. THEIR LEADERS

Please indicate how much you trust the following political parties to do what is right using 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: 6-9] General Publics19

41%

33%

37%

33%31%

27%29%

25%23%

20%22%

11%

43%

POLITICAL PARTY PARTY LEADERS

JAN

Data privacy

Political developments in Europe

Economic developments in Europe

Whistleblowers exposing issues

Business not paying expected levels of tax

The continuation of ‘austerity’

Levels of unemployment

Pay rises for MPs

The cost of living debate

Immigration

7%

10%

10%

10%

17%

27%

32%

38%

41%

50%

IMMIGRATION AND THE COST OF LIVING SEEN AS MOST LIKELY TO IMPACT ON TRUST IN GOVERNMENT OVER 2014

20

THINGS LIKELY TO IMPACT ON TRUST IN GOVERNMENT IN 2014

Which of the following, if any, do you think will impact on trust in government in general in 2014? General Publics

JAN

BUSINESS, NOT GOVERNMENT, SEEN AS RESPONSIBLE FOR CURRENT ECONOMIC GROWTH; FEW THINK THEIR STANDARD OF LIVING WILL IMPROVE IN 2014

21

IS BUSINESS OR GOVERNMENT RESPONSIBLE FOR CURRENT ECONOMIC GROWTH IN THE UK?

Thinking about the recent news that the UK economy is set to grow the fastest in Europe in 2014, please indicate whether you believe Business in general or Government in general is responsible for this.; Do you feel your standard of living in terms of your level of wealth, comfort and access to material goods and necessities will get better, get worse or stay the same over the course of 2014? General Publics

52%

25%

23%

BUSINESS

GOVERNMENT

DON’T KNOW

Don’t know/ refused

My standard of living will get better

My standard of living will get worse

My standard of living will stay the same

7%

12%

36%

46%

But there is a lack of optimism about standards of living in 2014…

JAN

MORE THAN HALF OF THE PUBLIC WANTS SCOTLAND TO STAY PART OF THE UK; CONFLICT OVER WHETHER THE UK SHOULD STAY IN THE EU

43%

34%

22%

1%

53%

21%25%

1%

What do you THINK Scotland will vote for

What do you WANT Scotland to vote for

VIEWS ON THE REFERENDUM FOR SCOTTISH INDEPENDENCE AND UK MEMBERSHIP OF THE EUROPEAN UNION

Thinking about the referendum on Scottish independence in 2014, please indicate whether you THINK Scotland will vote to remain part of the United Kingdom or Scotland will vote for independence.; Thinking about the referendum on Scottish independence in 2014, please indicate whether you WANT Scotland to be independent or Scotland to remain part of the United Kingdom. General Publics

22

Other / Don’t know

The UK to remain part of the European Union

The UK to not be a part of the European Union

14%

40%

46%

Little difference between those that want the UK to be part of the EU and those that do not

JAN

FIVE| Trust in Business

WHY DOES TRUST MATTER?THE EFFECTS THAT BEING TRUSTED OR DISTRUSTED WILL HAVE ON A COMPANY’S BOTTOM LINE

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.; 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. General Publics

24

Series1 10%

32%

36%

51%

63%

CHOSE TO BUY PRODUCTS/SERVICES

RECOMMENDED THEM TO A FRIEND/COLLEAGUE

PAID MORE FOR PRODUCTS/SERVICES

SHARED POSITIVE OPINIONS ONLINE

BOUGHT SHARES

REFUSED TO BUY PRODUCTS/SERVICES

CRITICIZED THEM TO A FRIEND/COLLEAGUE

SHARED NEGATIVE OPINIONS ONLINE

SOLD SHARES

DISTRUSTED COMPANIES

TRUSTED COMPANIES

53%

56%

30%

6%

JAN

2013 vs. 2014

TRUST IN INDUSTRIES, 2013 VS. 2014 - U.K.

20142013

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

25

CPG, CONSUMER ELECTRONICS MANUFACTURING AND TECHNOLOGY POST LARGE GAINS; ENERGY DROPS 6 POINTS TO BECOME LEAST TRUSTED INDUSTRY

TECHNOLOGY

CONSUMER ELECTRONICS MANUFACTURING

BREWING AND SPIRITS

FOOD AND BEVERAGE

CONSUMER PACKAGED GOODS

ENTERTAINMENT

AUTOMOTIVE

CONSUMER HEALTH COMPANIES

TELECOMMUNICATIONS

PHARMACEUTICALS

CHEMICALS

FINANCIAL SERVICES

MEDIA

BANKS

ENERGY

79%

77%

71%

70%

69%

69%

64%

64%

62%

59%

49%

44%

43%

32%

32%ENERGY

BANKS

MEDIA

FINANCIAL SERVICES

CHEMICALS

PHARMACEU-TICALS

TELECOMMUNI-CATIONS

CONSUMER HEALTH COM-

PANIES

AUTOMOTIVE

ENTERTAINMENT

CONSUMER PACKAGED

GOODS

FOOD AND BEVERAGE

BREWING AND SPIRITS

CONSUMER ELECTRONICS

MANUFACTURING

TECHNOLOGY

38%

29%

36%

34%

47%

56%

55%

56%

65%

60%

57%

66%

62%

66%

72% +7

+11

+9

+4

+12

+9

-1

+8

+7

+3

+2

+10

+7

+3

-6 OCT

OF THOSE WHO REPORTED INCREASED TRUST IN FINANCIAL SERVICES, NEARLY TWO-THIRDS SAY THE INCREASE IS DUE TO BETTER REGULATIONS AND GOVERNMENT ENFORCING REGULATIONWHY IS TRUST IN FINANCIAL SERVICES UP IN THE UK?

Using a five-point scale where 1 means “not had an impact at all” and 5 means “had a very large impact”, how much of an impact have each of the following had on decreasing your trust in the financial services industry over the last year? [Top 2 box: 4-5] General Publics

26

A change in the corporate culture

Improved ethic in the industry

The industry has taken on a new role

Government enforcing regulation

Better government regulations

51%

54%

55%

61%

62%

JAN

27

U.K. TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES

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

UK PUBLIC TRUSTS WESTERN EUROPEAN COUNTRIES THE MOST, BRIC COUNTRIES THE LEAST

M O S T T R U S T E D

78% 77%73% 73% 72% 70%

67%

57%54%

47%43%

40%

32% 31% 29% 28%

21%

OCT

BLOGGER

BOARD OF DIRECTORS

ENTREPRENEUR

CEO

GOVERNMENT OFFICIAL OR REGULATOR

REGULAR EMPLOYEE

A PERSON LIKE YOURSELF

NGO REP-RESENTA-

TIVE

FINANCIAL OR INDUSTRY ANALYST

TECHNICAL EXPERT IN THE

COMPANY

ACADEMIC OR EXPERT

20%

36%

37%

39%

41%

52%

55%

57%

60%

64%

67%

BLOGGER

BOARD OF DIRECTORS

ENTREPRENEUR

CEO

GOVERNMENT OFFICIAL OR REGULATOR

REGULAR EMPLOYEE

A PERSON LIKE YOURSELF

NGO REPRE-SENTATIVE

FINANCIAL OR INDUSTRY AN-

ALYST

TECHNICAL EXPERT IN THE

COMPANY

ACADEMIC OR EXPERT

23%

34%

49%

39%

36%

55%

58%

50%

54%

62%

74%

2013 vs.2014

CREDIBILITY OF SPOKESPEOPLE - U.K.

20142013

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

28

ACADEMIC OR EXPERT DROPS 7 POINTS BUT STILL REMAINS MOST TRUSTED SPOKESPERSON; NGO REPRESENTATIVE UP 7 POINTS

-7

+2

+6

+7

-3

-3

+5

0

-12

+2

-3 OCT

Issues with supply chain

Levels of profit coming under fire

Poor treatment of staff

Whistleblowers exposing issues

Failing to keep consumers’ data private

Failing to pay expected levels of tax

Salaries of senior staff perceived to be too high

36%

53%

58%

59%

69%

69%

75%

HIGH SALARIES AND FAILURE TO PAY EXPECTED TAXES ARE THE ISSUES THOUGHT MOST LIKELY TO IMPACT ON TRUST IN BUSINESS IN 2014

29

THINGS LIKELY TO IMPACT ON TRUST IN BUSINESS IN 2014

How much of an impact do you think each of the following factors will have on trust in business in general over the course of 2014? Please use a five-point scale, where 5 means “will have a great impact” and 1 means “will not have an impact at all”. [Top 2 box: 4-5] General Publics

JAN

30

SIX | How to Build Trust

-36

-37

-34

-35

-34

-29

-33

-31

-24

-23

-22

-11

-14

-13

-14

-8CONSISTENT FINANCIAL RETURNS

PARTNERS WITH THIRD PARTIES

TOP GLOBAL COMPANY

ADMIRED TOP LEADERSHIP

INNOVATOR

ADDRESSES SOCIETY'S NEEDS

POSITIVELY IMPACTS COMMUNITY

PROTECTS ENVIRONMENT

COMMUNICATES OFTEN

IS ETHICAL

HIGH QUALITY PRODUCTS

ACTS RESPONSIBLY IN CRISIS

TRANSPARENT & OPEN

LOOKS AFTER EMPLOYEES

CUSTOMERS BEFORE PROFITS

LISTENS TO CUSTOMERS

19%

15%

16%

16%

22%

18%

17%

19%

19%

19%

25%

21%

21%

24%

22%

25%

27%

29%

29%

30%

33%

40%

40%

43%

50%

52%

54%

55%

56%

58%

59%

61%

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; 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) Informed Publics,

BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - U.K.

Gap

31

IMPORTANCEPERFORMANCE

ENGAGEMENT AND INTEGRITY ARE KEY TO BUILDING TRUST

INTEGRITY

PURPOSE

OPERATIONS

PRODUCTS & SERVICES

ENGAGEMENT

OCT

32

ONLINE SEARCH ENGINES

TRADITIONAL MEDIA

HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA

65% 65%

54%47% 45%

53%60%

41%34% 35%

51%

61%

47%

30% 28%

Global EU U.K.

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

U.K. TRUST IN DIFFERENT SOURCES OF INFORMATION

TRADITIONAL MEDIA MOST TRUSTED SOURCE OF INFORMATION; UK TRUSTS ONLINE SEARCH ENGINES 14PTS. LESS THAN GLOBAL AVERAGE

OCT

33

APPENDIX

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

FINANCIAL SERVICES INDUSTRY

FOOD & BEVERAGE INDUSTRY

ENERGY INDUSTRY

TRUST IN KEY INDUSTRIES AND THEIR SECTORS

34

U.K. TRUST IN INDUSTRY SECTORS

Banks

Financial services industry overall

Insurance

Financial advisory / Asset management

Credit cards / Payments

36%

37%

38%

40%

43%

Fast food restaurants

Food service

Food and beverage manufacturers

Food and beverage retailers

Food Industry overall

48%

67%

68%

69%

70%

Energy industry overall

Utilities

Oil

Natural Gas

Mining

Renewables

31%

35%

39%

42%

45%

58%

OCT

On the cover, from top left: Japanese Prime Minister Shinzo Abe: REUTERS/Toru Hanai; Malala Yousefzai: REUTERS/Darren Staples; Brazilian Oil and Gas Magnate Eike Batista: REUTERS/Fred Prouser; Anti-Government Protests in Turkey: REUTERS/Murad Sezer; Lord Justice Leveson, chair of The Leveson Inquiry: REUTERS/Stefan Wermuth; Hong Kong Protests in Favor of Edward Snowden: REUTERS/Bobby Yip; U.S. Government Shutdown: REUTERS/Mike Theiler