#EdelTrust AUSTRALIA

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1 #EdelTrust AUSTRALIA

2 A YEAR OF THE UNPREDICTABLE & UNIMAGINABLE

3 15 YEARS OF TRUST Business must partner with government to regain trust Trust shifts from authorities to peers Young influencers have more trust in business Fall of government TRUST IS ESSENTIAL TO INNOVATION Fall of the celebrity CEO U.S. companies in Europe suffer trust discount Business more trusted than government and media Rise of authority figures Business to lead the debate for change Rising influence of NGOs Earned media more credible than advertising A person like me emerges as credible spokesperson Trust is now an essential line of business Crisis of leadership

4 TRUST BAROMETER METHODOLOGY GLOBAL RESPONSE The 2015 Edelman Trust Barometer surveyed 33,000 people online across 27 countries between October November INFORMED PUBLICS 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 seven years of data with the informed public and four years of data with the general population. GENERAL ONLINE POPULATION There are 1,000 respondents surveyed per country including Australia. The online survey is conducted with general population aged 18 and over.

5 TRUST MATTERS Behavior based on trust in AUSTRALIA. DISTRUSTED COMPANIES TRUSTED COMPANIES - 57% Refused to buy products/services Chose to buy products/services 76% - 49% Criticized them to a friend/colleague Recommended them to a friend/colleague 59% Paid more for products/services 50% - 25% Shared negative opinions online Shared positive opinions online 37% Defended company 30% - 12% I sold shares I bought shares 27% Q 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. Informed Publics, Australia. Q 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, Australia.

6 TRUST AROUND THE WORLD

7 NGOs, BUSINESS, MEDIA ALL DECLINE LOWEST LEVEL OF TRUST SINCE 2008 Trust in the four institutions of Government, Business, Media and NGOs, Global 2014 vs NGOs Business Media Government 66% #1 63% 59% #2 57% 53% #3 51% 45% #4 48% Q [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 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, Trust) Informed Publics in 27-country global total.

8 NUMBER OF TRUSTER COUNTRIES AT AN ALL-TIME LOW 2015 Global 55 The Trust Index averages a country s trust in the institutions of Government, Business, Media and NGOs. TRUSTERS NEUTRAL DISTRUSTERS UAE 84 India 79 Indonesia 78 China 75 Singapore 65 Netherlands 64 Brazil 59 Mexico 59 Malaysia 56 Canada 53 Australia 52 France 52 U.S. 52 Germany 50 Italy 48 S. Africa 48 Hong Kong 47 S. Korea 47 U.K. 46 Argentina 45 Poland 45 Russia 45 Spain 45 Sweden 45 Turkey 40 Ireland 37 Japan 37 Trusters: From 30% to 22% in 2015 Distrusters: From 33% to 48% in 2015 The Trust Index is an average of a country s trust in the institutions of government, business, media and NGOs. 27-country global total.

9 THE NEW TRUST DEFICIT The Trust Index averages a country s trust in the institutions of Government, Business, Media and NGOs. Deficit nearly 10 points lower among general online population. TRUSTERS NEUTRAL DISTRUSTERS Global 55 UAE 84 India 79 Indonesia 78 China 75 Singapore 65 Netherlands 64 Brazil 59 Mexico 59 Malaysia 56 Canada 53 Australia 52 France 52 U.S. 52 Germany 50 Italy 48 S. Africa 48 Hong Kong 47 S. Korea 47 U.K. 46 Argentina 45 Poland 45 Russia 45 Spain 45 Sweden 45 Turkey 40 Ireland 37 Japan 37 Global 46 India 68 UAE 68 Indonesia 67 China 63 Singapore 60 Malaysia 53 Canada 52 Netherlands 52 Mexico 51 Brazil 50 Brazil 47 U.S. 44 Argentina 43 Australia 42 Germany 42 Italy 42 S. Africa 42 Russia 40 U.K. 39 France 38 S. Korea 38 Sweden 37 Poland 36 Spain 36 Turkey 35 Japan 34 Ireland 32 Nearly 2/3 of countries are now Distrusters among the general online population. The Trust Index is an average of a country s trust in the institutions of government, business, media and NGOs. 27-country global total.

10 TRUST IN NGOS: STILL MOST TRUSTED BUT NOW WANING Trust in the institution of NGO, Global 2014 vs Lower/Equal Trust in 19 Countries Q [NGOs IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution 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, Trust) Informed Publics, 27-country global total.

11 TRUST IN BUSINESS: HALF BELOW 50 PERCENT Trust in the institution of Business, Global 2014 vs Lower in trust in 16 countries Q [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution 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, Trust) Informed Publics, 27-country global total.

12 TRUST IN MEDIA: 60 PERCENT OF COUNTRIES DISTRUST MEDIA Trust in the institution of Media, Global 2014 vs Lower/Equal Trust in 15 Countries Q [MEDIA IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution 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, Trust) Informed Publics, 27-country global total.

13 TRUST IN GOVERNMENT: 19 OF 27 COUNTRIES DISTRUST GOVERNMENT Trust in the institution of Government, Global 2014 vs Lower/Equal Trust in 11 Countries Q [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution 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, Trust) Informed Publics, 27-country global total.

14 DEVELOPING COUNTRY MULTINATIONALS CHALLENGED Trust in companies headquartered in developed (U.S., U.K., Germany, France, Japan) vs. developing countries (China, India, Russia, Mexico, Brazil). Company s country of origin DEVELOPING Country multinational doing business... Type of market... In a developing country... In a developed country Percent in market who trust the company 57% 22% DEVELOPED Country multinational doing business In a developing country... In a developed country 77% 58% 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 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, Trust) Informed Publics, 27-country global total.

15 TRUST AROUND THE WORLD THE AUSTRALIAN STORY TOWARD TRUSTED INNOVATION BUILDING TRUST IN 2015

16 THE EVAPORATION OF TRUST IN AUSTRALIA: TRUST IN ALL FOUR INSTITUTIONS DECLINES Trust in the four institutions of Government, Business, Media and NGOs in AUSTRALIA, 2014 vs Government Business Media NGOs 56% 49% 59% 48% 48% 43% 70% 66% Q [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 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 Trust) Informed Publics in Australia.

17 TRUST IN GOVERNMENT DECLINES Trust in the institution of government in AUSTRALIA, informed public vs. general online population. 56% 41% 52% 47% 43% 56% 49% 33% 32% 38% 37% Federal Election Federal Election Q [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 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, Trust) Informed Publics, General Population in Australia.

18 GOVERNMENT FOR THE GREATER GOOD? Reasons trust in government decreased in AUSTRALIA. Reasons for decreased trust in government: FAILS TO CONTRIBUTE TO THE GREATER 75% GOOD 57% does not help me and my family live a fulfilling life 55% does not help me and my family live a healthy life Q Below is a list of institutions. For each one, please indicate how much your trust in that institution has increased or decreased over the last year using a 9-point scale where one means that your trust has decreased, nine means that your trust has increased and five means that your trust has not changed. Q330/Q331. [TRUST DECREASED] For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year?

19 TRUST IN BUSINESS DRAMATICALLY DOWN Trust in the institution of business in AUSTRALIA, informed public vs. general online population. 43% 47% 54% 57% 45% 48% 44% 59% 49% 48% 46% Q [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 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, Trust) Informed Publics, General Population in Australia.

20 RANKING OF SECTORS BY TRUST Trust in businesses in each of these industries in AUSTRALIA. 74% 72% 72% 71% 66% 65% 64% 58% 58% 56% 51% 49% 48% 45% 41% TRUST IN TECHNOLOGY DECLINED in 70% of countries including Australia TRUST IN CONSUMER TECH DECLINED in 74% of countries including Australia TRUST IN TELECO DECLINED in 67% of countries including Australia Q [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again please 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, Trust) Informed Publics, AUSTRALIA.

21 TRUST AROUND THE WORLD THE AUSTRALIAN STORY TOWARD TRUSTED INNOVATION BUILDING TRUST IN 2015

22 New inventions and things that customers like are usually good for business. Jeff Bezos, Founder, Chairman & CEO of Amazon.com

23 New inventions and things that customers like are usually good for business. Jeff Bezos, Founder, Chairman & CEO of Amazon.com NOT SO FAST...

24 THE PACE OF INNOVATION The pace of development and change in business and industry in AUSTRALIA today is... Too Fast 53% Too slow 23% Just right 20% Q Below are a number of statements. For each, please think about the pace of development and change in business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, in Australia.

25 INNOVATION SEEN TO BE DRIVEN BY BUSINESS TARGETS AND GREED Drivers of change in business and industry today In AUSTRALIA are perceived to be: 74% 72% 64% 41% 19% 14% Business Growth Targets Greed/Money Technology Personal Ambition Improve People's Lives Make the World a Better Place Q353. From the list below, what do you believe are the top three drivers of change in business and industry today? Informed Publics, Australia.

26 AUSTRALIANS DON T TRUST INDUSTRY TO IMPLEMENT THESE INNOVATIONS Trust in industries abilities to responsibly develop and release industryspecific developments, compared to trust in industries in AUSTRALIA Trust industry sector Financial Services Industry Electronic Payments Health Industry Personal Health Trackers Trust industry to implement each development 48% 56% 58% 55% Gap Technology Industry Cloud Computing 46% 74% - 28 Food & Beverage Industry Genetically Modified Foods 38% 72% - 34 Energy Industry Hydraulic Fracturing 36% 49% - 13 Q : Now thinking specifically about each of the following industries, how much do you trust them to responsibly develop and release each of these recent developments? (Showing % who trust, rated 6-9). Informed Publics, in Australia. Q Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please 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. Informed Publics, in Australia.

27 TRUST IN INSTITUTIONS (TRUST INDEX) HIGHER TRUST CREATES THE OPPORTUNITY FOR FASTER INNOVATION Relationship of trust in institutions (Trust Index) and average trust in recent business developments IND UAE 75 INDO CHI 65 NETH SING GER GLOBAL CAN AUS US MEX S.AF FRA ITA HK MAL SWE RUS S.KO U.K. TUR POL SPA ARG BRA 35 JAP IRE 25 25% 35% 45% 55% 65% 75% 85% TRUST IN RECENT BUSINESS INNOVATIONS (AVERAGE) Q Below are a number of recent developments in business and industry. To what degree do you trust each of these recent developments? Informed Publics, 27-country global total. Q Below is a list of institutions. For each one, please indicate how much you trust that institution 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. Informed Publics, 27-country global total.

28 BUILDING TRUST IN INNOVATION REQUIRES TRANSPARENCY AND PARTNERSHIP Actions that increase trust in industry to implement technology changes in AUSTRALIA Make test results available publicly for review 77% Partner with an academic institution 69% Run a clinical trial or beta test 64% Partner with an NGO 59% 57% AGREE: New developments are not tested enough Partner with government 52% Q Below is a number of actions that could impact your trust in business and industry to develop and implement technology-led changes such as those you just evaluated. What impact would each of these actions have on your trust? Informed Publics, in Australia. Q Below are a number of statements. For each, please think about the pace of development and change in business and industry today, and select the response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, in Australia.

29 TRUST AROUND THE WORLD THE AUSTRALIAN STORY TOWARD TRUSTED INNOVATION BUILDING TRUST IN 2015

30 16 KEY ATTRIBUTES TO BUILDING TRUST Edelman Trust Barometer research reveals 16 specific attributes that build trust. These can be grouped into five performance clusters listed here in rank order of importance. INTEGRITY Has ethical business practices Takes responsible actions to address an issue or crisis Has transparent and open business practices ENGAGEMENT Treats employees well Listens to customer needs and feedback Places customers ahead of profits Communicates frequently and honestly on the state of its business PRODUCTS & SERVICES Offers high-quality products or services Is an innovator of new products, services or ideas PURPOSE Works to protect and improve the environment Creates programs that positively impact the local community Addresses society s needs in its everyday business Partners with NGOs, government and 3 rd parties to address societal needs OPERATIONS Has highly-regarded and widely-admired top leadership Ranks on a global list of top companies Delivers consistent financial returns to investors

31 INTEGRITY AND ENGAGEMENT THE PRIORITY Of these 16 Trust building attributes, there is a large gap between how important the actions are to building trust and the perceived performance of companies on these issues. INTEGRITY Has ethical business practices Takes responsible actions to address an issue or crisis Has transparent and open business practices ENGAGEMENT Treats employees well Listens to customer needs and feedback Places customers ahead of profits Communicates frequently and honestly on the state of its business PRODUCTS & SERVICES Offers high-quality products or services Is an innovator of new products, services or ideas PURPOSE Works to protect and improve the environment Creates programs that positively impact the local community Addresses society s needs in its everyday business Partners with NGOs, government and 3 rd parties to address societal needs OPERATIONS Has highly-regarded and widely-admired top leadership Ranks on a global list of top companies Delivers consistent financial returns to investors 24% 59% 23% 56% 22% 55% 24% 57% 24% 58% 20% 57% 19% 48% 27% 57% 22% 32% 20% 18% 19% 14% 45% 42% 40% 29% 19% 37% 16% 28% 21% 29% Performance Importance 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) General Public, Australia.

32 LEADERSHIP CRISIS: CEO CREDIBILITY CONTINUES TO DECLINE CEO credibility as a spokesperson, , global and in AUSTRALIA 40% 50% 49% 41% 43% 43% 41% 31% 38% 38% 34% 39% 33% 19% Q [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, Trust) Informed Publics, 20-country global total and Australia.

33 LEADERSHIP BOLSTERED BY CHORUS OF VOICES Credibility of spokespersons when forming an opinion of a company in AUSTRALIA More Trust Less Trust 66% 61% 55% 55% 48% 44% 37% 33% Academic or Industry Expert Company Technical Expert A Person Like Yourself NGO Representative Financial or Industry Analyst Regular Employee Government Official or Regulator CEO Q [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, Trust) Informed Publics, in Australia.

34 SEARCH ENGINES NOW MORE TRUSTED Trust in each source for general news and information, in AUSTRALIA. 64% 61% 54% 63% 56% 62% 55% Online Search Engines Traditional Media 45% 39% 50% 51% 41% 43% Digital-first Media 37% 33% 26% 31% 34% 33% Social Media Owned Media 18% QQ When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-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, in Australia.

35 NEWSPAPER AND SEARCH ENGINES NOW USED FIRST AND MOST What is the first source you go to for general news and information about business; breaking news; validate news in AUSTRALIA The First Source for General Information Newspaper Television Online search The First Source for Breaking News Source Used Most to Confirm/Validate News 34% 32% 23% 21% 20% 20% 28% 25% 20% 30% 30% 29% 28% 21% 19% 26% 23% 21% 36% 24% 18% 29% 2 21% 30% 30% 16% Q183. On a typical day, what is the first source that you go to for general information about business? Informed Publics, Informed Publics, in Australia. Q184. What is the first source you go to for breaking news about business? Informed Publics, in Australia. Q185. Which of the following sources do you turn to MOST often to confirm/validate information on breaking news about business? Informed Publics, in Australia.

36 FRIENDS/FAMILY MOST TRUSTED CONTENT CREATORS HOWEVER, COMPANIES I USE ALSO GET MY TRUST Trust in information created by each author on social networking sites, content sharing sites and onlineonly information sources. TRUSTED My friends and family An academic expert Companies I use Employees of a company 43% 49% 62% 70% A journalist 42% DISTRUSTED A company CEO Elected officials A well-known online personality 33% 33% 31% Brands I don't use Celebrities 24% 23% Q Thinking about the information you consume on social networking sites, such as Facebook, MySpace, LinkedIn, Meebo, Orkut, Qzone, RenRen, how much do you trust the information posted from each of the following authors or content creators? (Top 4 Box, Trust) Informed Publics, in Australia. Q Thinking about the information you consume on content sharing sites, such as YouTube, how much do you trust the information posted from each of the following authors or content creators? Informed Publics, in Australia. Q Thinking about the information you consume on online-only news and information sources, such as The Huffington Post, Buzzfeed, Techcrunch, etc., how much do you trust the information posted from each of the following authors or content creators? Informed Publics, in Australia.

37 TRUST MATTERS Behavior based on trust in AUSTRALIA. Distrusted companies Trusted companies -57% Refused to buy products/services Chose to buy products/services 76% -49% Criticized them to a friend/colleague Recommended them to a friend/colleague Paid more for products/services 50% 59% #1 most trusted content creators: -25% Shared negative opinions online Shared positive opinions online 37% FRIENDS AND FAMILY Defended company 30% #1 most trusted media source: -12% I sold shares I bought shares 27% ONLINE SEARCH ENGINES Q 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. Informed Publics, Australia. Q 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, Australia.

38 #EdelTrust AUSTRALIA