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WHO DO WE TRUST?

WHO DO WE TRUST?. Robert P hillips 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. Trust protects reputation. Business must partner with government to regain trust.

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WHO DO WE TRUST?

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

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

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

  4. celebrate complexity

  5. TRUST IN GOVERNMENT IS HIGHER IN RUSSIA & CHINA THAN US & UK 90% 80% 70% 72% 60% 50% 46% 39% 40% 37% 30% 20% 2001 2008 2003 2009 2004 2002 2010 2005 2011 2006 2007

  6. TRUST IN INSTITUTIONS 90% 80% 63% 70% 55% 63% 60% NGOs 54% 59% 45% 46% 50% BUSINESS 46% 36% GOVERNMENT 43% 46% 40% 40% 31% 38% 30% MEDIA 30% 27% 20% 2008 2009 2010 2011

  7. “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

  8. SHARED VALUESPAYS DIVIDENDS ENERGY COMPANY 70% 69% 65% FOOD & BEVERAGECOMPANY 65% 58% 60% 61% RETAIL COMPANY 56% 53% 55% 50% 45% 40% 2009 2010 2011

  9. Profit Needs Purpose

  10. NGOS ARE TRUSTED 70% 60% 59% 54% 53% 52% 53% 48% 50% 40% 36% 31% 2001 2008 2003 2009 2004 2002 2010 2005 2011 2006 2007

  11. 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

  12. celebrate complexity

  13. MEANINGFUL.CONTINUOUS.PARTICIPATION.

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

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