2014 EDELMA ELMAN N TRU RUST T BAROMETE OMETER GLOBAL BAL - - PowerPoint PPT Presentation

2014

EDELMA ELMAN N TRU RUST T BAROMETE OMETER

GLOBAL BAL RES ESULTS TS

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

2014 BUSINESS TO LEAD THE DEBATE FOR CHANGE 2013 CRISIS OF LEADERSHIP 2012 FALL OF GOVERNMENT 2011 RISE OF AUTHORITY FIGURES 2010 TRUST IS NOW AN ESSENTIAL LINE OF BUSINESS 2009 BUSINESS MUST PARTNER WITH GOVERNMENT TO REGAIN TRUST 2008 YOUNG INFLUENCERS HAVE MORE TRUST IN BUSINESS 2007 BUSINESS MORE TRUSTED THAN GOVERNMENT AND MEDIA 2006 “A PERSON LIKE ME” EMERGES AS CREDIBLE SPOKESPERSON 2005 TRUST SHIFTS FROM “AUTHORITIES” TO PEERS 2004 U.S. COMPANIES IN EUROPE SUFFER TRUST DISCOUNT 2003 EARNED MEDIA MORE CREDIBLE THAN ADVERTISING 2002 FALL OF THE CELEBRITY CEO 2001 RISING INFLUENCE OF NGOS

3

EDELMAN TRUST BAROMETER IN RETROSPECT

GLOBAL 54

UAE 79 China 79 Singapore 73 Indon

• nes

esia 72 72 India 69 Malaysia 65 Canada 60 Netherlands 60 Mexico 59 Hong Kong 59 Australia 58 Brazil 57 Germany 57 Argentina 53 U.K. 52 Sweden 51

• S. Korea

51

• S. Africa

50 U.S. 49 France 46 Japan 44 Italy 43 Turkey 41 Spain 39 Ireland 39 Russia 37 Poland 35

GLOBAL 57

China 80 Singapore 76 India 71 Mexico 68 Hong Kong 67 UAE 66 Malaysia 64 Canada 62 Indon

• nes

esia 62 62 U.S. 59 Netherlands 59 Brazil 55 Germany 55 France 54 Sweden 54 U.K. 53 Italy 51 Australia 50 Poland 48

• S. Korea

47 Ireland 46 Argentina 45 Spain 42 Turkey 42 Japan 41 Russia 36

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).

4 BIG TRUST T INCREASE SES S FROM 2013 UAE +13 pts.

Indone

• nesi

sia +10 pts. ts.

Australia + 8 pts. Argentina + 8 pts.

THE TRUST INDEX: SLIGHT DECLINE IN TRUST OVER THE PAST YEAR WITH STRONG REGIONAL VARIATIONS – LEVELS OF TRUST IN INDONESIA HAVE INCREASED

2013 2014

BIG TRUST T DECREASES S FROM 2013 Poland -13 pts. U.S. -10 pts. Mexico -9 pts. TRUSTERS NEUTRAL DISTRUSTERS

A +10 pts.

• s. trust

rust rise ise for for Indon

• nes

esia sin ince la last t year

2014

TRUSTERS NEUTRAL DISTRUSTERS

GLOBAL TRUST DIFFERENCE OF

9 points nts

MARKETS WITH LARGEST PERCEPTION GAPS:

 UAE (15 pts.)  Australia (14 pts.)  Germany (13 pts.)  France (13 pts.)  Sweden (13 pts.)

GLOBAL 47

China 67 UAE 64 Singapore 64 Indon

• nes

esia 62 62 India 61 Malaysia 57 Canada 54 Mexico 53 Netherlands 51 Hong Kong 50 Brazil 49 Argentina 49 Australia 44 Germany 44

• S. Korea

43 U.K. 42

• S. Africa

42 U.S. 42 Italy 41 Japan 40 Turkey 39 Sweden 38 Spain 36 Ireland 35 France 33 Poland 32 Russia 31

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 27-country global total.

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SUBSTANTIALLY LOWER TRUST AMONG GENERAL PUBLIC THAN INFORMED PUBLIC – A 10 POINT GAP IN INDONESIA ALSO

2014

GLOBAL 56

UAE 79 China 79 Singapore 73 Indon

• nes

esia 72 72 India 69 Malaysia 65 Canada 60 Netherlands 60 Mexico 59 Hong Kong 59 Australia 58 Brazil 57 Germany 57 Argentina 53 U.K. 52 Sweden 51

• S. Korea

51

• S. Africa

50 U.S. 49 France 46 Japan 44 Italy 43 Turkey 41 Spain 39 Ireland 39 Russia 37 Poland 35

Why the big ig glo lobal dif iffere erence from rom in inform

• rmed

ed to genera eral publi ublic?

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 in 20- country global total.

NGOS BUSINESS GOVERNMENT

TRUST IN BUSINESS AND NGOS REMAINS STABLE, TRUST IN GOVERNMENT AND MEDIA DECREASES

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TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014

TOTAL TRUST TRUST A GREAT DEAL

MEDIA

63% 64% 22% 23%

2013 2014

#1

57% 52% 17% 16%

2013 2014

#3

58% 58% 17% 16%

2013 2014

#2

48% 44% 16% 15%

2013 2014

#4

50%

TRUST IN GOVERNMENT, 2013 VS. 2014

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SIGNIFICANT TRUST DECLINE FOR GOVERNMENT; LARGEST TRUST DROPS IN U.S., FRANCE AND HONG KONG

Q11-14. [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 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, 20-country global total. N.A.

LOWER/EQUAL TRUST IN 17 COUNTRIES HIGHER TRUST IN 9 COUNTRIES

2013 2014

48% 73% 43% 32% 47% 19% 40% 33% 48% 44% 29% 20% 62% 65% 57% 47% 81% 60% 58% 82% 35% 30% 32% 41% 53% 49% 63% 44% 17% 88% 56% 45% 53% 23% 43% 34% 49% 45% 27% 18% 60% 63% 53% 42% 76% 54% 51% 75% 24% 19% 21% 28% 37% 32% 45%

= HISTORIC LOW GLOBAL HISTORIC LOW (2009) = 43%

TRUST IN BUSINESS, 2013 VS. 2014

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TRUST IN BUSINESS STABILIZES; WESTERN SKEPTICISM ENTRENCHED, DEVELOPING MARKETS SOAR – INDONESIA SEES HIGHER TRUST

Q11-14. [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 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, 20-country global total. N.A. 58% 65% 48% 49% 48% 63% 31% 74% 64% 40% 58%

74% 52% 56% 44% 81% 44% 47% 62% 44% 77% 61% 58% 82% 60% 56% 56% 58% 63% 82% 59% 58% 57% 72% 39% 82% 70% 45% 62% 77% 53% 56% 43% 79% 41% 43% 58% 38% 71% 54% 51% 73% 49% 45% 45%

LOWER/EQUAL TRUST IN 15 COUNTRIES HIGHER TRUST IN 12 COUNTRIES

2013 2014

50%

50%

Q11-14. [BUSINESS IN GENERAL & 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 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, 20- country global total.

TRUST IN BUSINESS VS. GOVERNMENT

GOVERNMENT 9 BUSINESS

GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST IN BUSINESS AND GOVERNMENT

HIGHER TRUST IN GOVERNMENT HIGHER TRUST IN BUSINESS

58% 63% 73% 70% 58% 82% 45% 79% 45% 58% 38% 41% 45% 72% 56% 62% 43% 53% 57% 49% 59% 77% 43% 71% 54% 39% 82% 51% 44% 17% 28% 34% 23% 53% 19% 53% 24% 37% 18% 21% 27% 54% 42% 51% 32% 45% 49% 45% 56% 76% 43% 75% 60% 45% 88% 63%

20+ PT. HIGHER TRUST IN BUSINESS

29 POINT GAP IN INDONESIA

50% 54% 56% 53% 58% 58% 43% 47% 52% 43% 48% 44% 30% 40% 50% 60% 70% 2009 2010 2011 2012 2013 2014 BUSINESS GOVERNMENT

14 point

trust gap between business and 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 in 20-country global total.

HISTORIC GAP BETWEEN BUSINESS AND GOVERNMENT TRUST

GLOBAL TRUST IN GOVERNMENT AND BUSINESS SINCE 2009

10

11

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) Informed Publics, 27-country global total.

FAMILY-OWNED AND SMALL- AND MEDIUM-SIZED BUSINESSES HAVE A TRUST ADVANTAGE EXCEPT IN ASIA

TRUST IN DIFFERENT TYPES OF BUSINESS – BY REGION

71% 62% 76% 85% 73% 68% 65% 68% 78% 81% 63% 74% 48% 60% 91% 62% 62% 57% 63% 87% 61% 73% 47% 45% 90% 54% 63% 47% 46% 68%

GLOBAL APAC EU NORTH AMERICA INDONESIA

FAMILY-OWNED SMALL- & MEDIUM-SIZED PUBLICLY-TRADED PRIVATELY-HELD BIG BUSINESS STATE-OWNED

ASIA TRUSTS PUBLICALLY TRADED BIG FIRMS; WARY OF FAMILY OWNED OLIGARCHIES INDONESIA IS THE SAME; PUBLICALLY TRADED AND BIG BUSINESS IS MOST TRUSTED

50%

LOWER/EQUAL TRUST IN 21 COUNTRIES HIGHER TRUST IN 5 COUNTRIES TRUST IN MEDIA, 2013 VS. 2014

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GLOBAL TRUST IN MEDIA REVERTS TO 2010 LEVELS; NEARLY 80% OF COUNTRIES REPORT TRUSTING MEDIA LESS OVER THE LAST YEAR

Q11-14. [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 9-point scale where

• ne 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, 20-country global total.

N.A.

2013 2014

57% 59% 47% 42% 57% 77% 70% 49% 60% 81% 47% 43% 61% 66% 38% 66% 68% 47% 61% 26% 45% 79% 51% 54% 50% 50% 45% 52% 55% 70% 54% 48% 60% 78% 70% 48% 59% 79% 44% 40% 58% 63% 35% 61% 63% 41% 54% 19% 37% 71% 42% 45% 40% 40% 30%

4

13

KEY FACTORS SHAPE TRUST IN BUSINESS

LEADERSHIP/ CEO TRUST INDUSTRY SECTOR COUNTRY OF ORIGIN

(HEADQUARTERS)

ENTERPRISE TYPE

47% 43% 53% 55% 54% 56% 58% 76%

BANKS MEDIA PHARMACEUTICALS ENERGY CONSUMER PACKAGED GOODS FOOD AND BEVERAGE AUTOMOTIVE TECHNOLOGY

79% 70% 66% 65% 59% 59% 51% 51%

TECHNOLOGY AUTOMOTIVE FOOD AND BEVERAGE CONSUMER PACKAGED GOODS ENERGY PHARMACEUTICALS MEDIA BANKS

+3 +12 +10 +11 +4 +6 +8 +4 TRUST IN INDUSTRIES, 2009 VS. 2014

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

• ne 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, 20-country global total.

14

TECHNOLOGY CONTINUES TO LEAD, BANKS TRAIL

2014 2009

2009 VS. 2014

31% 36% 36% 76% 78% 81% U.K. Sweden Germany UAE China India 42% 43% 43% 76% 76% 79% Poland Russia Turkey UAE Mexico India 23% 23% 24% 70% 74% 76% Germany Ireland Spain India Indonesia China

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

• ne 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

15

FOOD & BEVERAGE INDUSTRY ENERGY INDUSTRY

THE TOP THREE AND BOTTOM THREE MARKETS FOR TRUST IN FINANCIAL SERVICES, FOOD & BEVERAGE AND ENERGY INDUSTRIES

LEVELS OF TRUST IN INDUSTRY – TOP THREE & BOTTOM THREE COUNTRIES FINANCIAL SERVICES INDUSTRY

2014

GLOBAL 2009 VS. 2014 CREDIBILITY OF SPOKESPEOPLE

2009

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- country global total.

16

FROM 2009 TO 2014, SIGNIFICANT GAINS FOR REGULAR EMPLOYEES, A PERSON LIKE

• YOURSELF. CEOS FLAT FROM 2013.

*Indonesia and Technical Expert Not Tested in 2009 +5 +5 +15 +4 +4 +9 +9 +20 +20 +12 +7 +7

36% 43% 52% 52% 53% 62% 66% 67% 31% 54% 42% 34% 62% 66% 76% 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% GOVERNMENT OFFICIAL OR REGULATOR CEO REGULAR EMPLOYEE NGO REPRESENTATIVE FINANCIAL OR INDUSTRY ANALYST A PERSON LIKE YOURSELF TECHNICAL EXPERT ACADEMIC OR EXPERT 29% 31% 32% 41% 49% 47% 62% 0% 20% 40% 60% 80% GOVERNMENT OFFICIAL OR REGULATOR CEO REGULAR EMPLOYEE NGO REPRESENTATIVE FINANCIAL OR INDUSTRY ANALYST A PERSON LIKE YOURSELF TECHNICAL EXPERT* ACADEMIC OR EXPERT

42% 53% 51% 48% 27% 16% 17% 12%

Government Regulation of Business Government Regulation of Financial Services Industry Government Regulation of the Energy Industry Government Regulation of the Food & Beverage Industry

NOT ENOUGH REGULATION TOO MUCH REGULATION BY A THREE-TO-ONE MARGIN INFORMED PUBLICS CALL FOR INCREASED GOVERNMENT REGULATION OF FINANCIAL SERVICES, ENERGY AND FOOD & BEVERAGE INDUSTRIES

17

GOVERNMENT REGULATION OF BUSINESS AND SECTORS – GLOBAL

• 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, 27-country global total. 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, 27-country global total. 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, 27- country global total. 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

• r the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.

UK: 73% SAY NOT ENOUGH REGULATION OF ENERGY INDUSTRY CHINA: 84% SAY NOT ENOUGH REGULATION OF FOOD & BEVERAGE INDUSTRY GERMANY: 66% SAY NOT ENOUGH REGULATION OF FINANCIAL SERVICES INDUSTRY

18

PERCENTAGE AGREEING WITH EACH OF THE FOLLOWING STATEMENTS

Q265-270. Please indicate how much you agree or disagree with the following statements? Informed Publics, 27-country global total.

BUSINESS HAS PERMISSION TO PLAY ROLE IN REGULATION AND DEBATE

The financial services industry should be a more active participant in the broader debate over the future of the [COUNTRY] banking system

71%

When policymakers are developing new regulations on businesses and industries, they should consult with multiple stakeholders (i.e. NGOs, academics, the affected businesses/industries, etc.) before making final decisions

79%

The energy industry should be a more active participant in the broader debate over [COUNTRY] energy policy

7 4%

The food and beverage industry should be a more active participant in the broader debate in [COUNTRY] over solutions to food and nutrition policy issues

7 4% 65% 89% 47%

BUSINESS TO LEAD THE DEBATE FOR CHANGE

19

Evaluate

Establish transparent metrics. Report

• frequently. Acknowledge performance

and amend as needed.

Advocate

Offer a clearly articulated strategy that delivers

• context. Engage and enable to amplify. Create

mass movement.

Participate

Partner, listen and build relationships to inform strategy.

2014

EDELMA ELMAN N TRU RUST T BAROMETE OMETER

INDONE DONESIA SIA RES ESUL ULTS TS

TRUS RUST T MAKES KES THE DIFFER ERENC ENCE. E.

Who to vote e for. What prod

• duc

uct to buy. Which h indu dust stry y to inves est in.

The Big News for this Year? Rapid Rise in Trust For Business and NGOs

Business as the most trusted institution at 82%, with a renewed leadership position and expectations of the public that business can play a central and positive role in shaping society.

• A startling 22% rise in the level of trust in NGOs amongst

informed publics, after years of decline.

• An also surprising rise in trust in government, up a total of 6%

from last year.

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.

BUSINESS MEDIA

TOTAL TRUST HAS INCREASED ACROSS ALL FOUR INSTITUTIONS, BIG INCREASE IN TRUST FOR BUSINESS AND NGOS

23

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

TOTAL TRUST TRUST A GREAT DEAL

GOVERNMENT

74% 82% 26% 30%

2013 2014

#1

51% 73% 14% 23%

2013 2014

#3

77% 78% 30% 26%

2013 2014

#2

47% 53% 14% 19%

2013 2014

#4

NGOS

HUGE RISE E +22% THERE E IS A BIG G DIFFEREN FERENCE IN THE LEVELS OF TRUS UST T IN DIFFEREN FFERENT T INSTITUT TITUTIONS S IN INDO DONESIA ESIA, COMPARED ARED TO THE GLOBAL RESUL ULTS TS

46% 52% 66% 53% 51% 73% 77% 75% 86% 80% 77% 78% 62% 64% 80% 78% 74% 82% 45% 62% 62% 40% 47% 53%

30% 40% 50% 60% 70% 80% 90% 100%

2009 2010 2011 2012 2013 2014

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.

A RISE IN TRUST ACROSS THE BOARD – WITH SURPRISE RISES FOR NGOS AND GOVERNMENT

INDONESIA TRUST IN THE FOUR INSTITUTIONS SINCE 2009

24

25

WHY A RISE IN GOVERNMENT TRUST? A NEW GENERATION OF POLITICAL LEADERS AND AN INCREASINGLY ASSERTIVE KPK.

46% 52% 66% 53% 51% 73%

30% 40% 50% 60% 70% 80% 90% 100%

2009 2010 2011 2012 2013 2014

NGOs Os

NGOs

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.

HUGE RISE IN TRUST FOR NGOS – A 22% INCREASE. WHY? BETTER STANDARDS AND THE RISE OF THE CORPORATE NGO.

INDONESIA TRUST IN NGOS SINCE 2009

26

A HUGE E TURN RNAR AROU OUND: D: WHY?

65% 65% 54% 47% 45% 72% 73% 65% 57% 54% 88% 81% 80% 74% 73%

ONLINE SEARCH ENGINES TRADITIONAL MEDIA HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA

Global APAC Indonesia

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.

INDONESIA TRUST IN DIFFERENT SOURCES OF INFORMATION

27

INDONESIANS TRUST ALL SOURCES OF INFORMATION HIGHLY. THIS INCLUDES OWNED CONTENT… 2014

50%

28

FROM THE 2013 EMERGING MARKET SUPPLEMENT, INDONESIAN HEADQUARTERED COMPANIES ARE THE MOST TRUSTED OF THE EMERGING MARKETS, BUT STILL LESS SO THAN DEVELOPED MARKET BASED MNCS

MOST TRUSTED NATIONAL IDENTITY FOR COMPANIES – INDONESIAN VIEW

• Q8. [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 Ages 25-64 in 9-country global total

91% 89% 89% 85% 85% 84% 71% 65% 65% 61% 55% 55% 51% 50% 50% 45% 45% G Germa many ny UK UK F France US US I Indon ndonesia sia Russ Russia ia Ch China ina B Brazil zil Me Mexico xico I Indi ndia So South th Af Africa ica

Developed Markets 87% Emerging Markets 57%

29 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) Informed Publics.

INDONESIANS TRUST PUBLICLY-TRADED, BIG BUSINESS AND PRIVATELY HELD COMPANIES THE MOST. STATE OWNED ENTERPRISES ARE THE LEAST TRUSTED.

INDONESIA TRUST IN DIFFERENT TYPES OF BUSINESSES

71% 68% 63% 62% 61% 54% 62% 65% 74% 62% 73% 63% 73% 81% 91% 87% 90% 68%

FAMILY-OWNED SMALL- AND MEDIUM- SIZED PUBLICLY-TRADED PRIVATELY-HELD BIG BUSINESS STATE-OWNED

Global APAC Indonesia

MUCH CH HIGHER ER THAN APAC

2013 vs. 2014 CREDIBILITY OF SPOKESPEOPLE , 2013 VS. 2014 - INDONESIA

2014 2013

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. 30

TECHNICAL EXPERTS AND ACADEMICS STILL MOST CREDIBLE, BUT HAVE SEEN A DROP. BIG RISE IN CREDIBILITY OF GOVERNMENT OFFICIALS AND REGULAR EMPLOYEES.

30% 31% 34% 42% 53% 54% 58% 62% 66% 70% 76%

BLOGGER GOVERNMENT OFFICIAL OR REGULATOR NGO REPRESENTATIVE REGULAR EMPLOYEE BOARD OF DIRECTORS CEO *ENTREPRENEUR FINANCIAL OR INDUSTRY ANALYST A PERSON LIKE YOURSELF ACADEMIC OR EXPERT TECHNICAL EXPERT IN THE COMPANY

26% 22% 31% 34% 48% 55% 60% 64% 67% 77% 80%

BLOGGER GOVERNMENT OFFICIAL OR REGULATOR NGO REPRESENTATIVE REGULAR EMPLOYEE BOARD OF DIRECTORS CEO *SUCCESSFUL ENTREPRENEUR FINANCIAL OR INDUSTRY ANALYST A PERSON LIKE YOURSELF ACADEMIC OR EXPERT TECHNICAL EXPERT IN THE COMPANY

• 4
• 7
• 1
• 2
• 2
• 1

+5 +8 +3 +9 +4

*Changed from “Successful Entrepreneur” in 2013

BIG GAINS

• Government

Official or Regulator +9 +9

• Regular Employees

+8 +8 BIG DROP

• Academic or Expert
• 7

2013 vs. 2014 TRUST IN INDUSTRIES, 2013 VS. 2014 - INDONESIA

2014 2013

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

• ne 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.

31

TRUST IN INDUSTRIES REMAINS LARGELY UNCHANGED, HOWEVER, THERE WAS A NOTABLE GAIN IN TRUST FOR BREWING AND SPIRITS

93% 90% 88% 88% 87% 83% 80% 79% 79% 78% 78% 77% 74% 74% 43%

TECHNOLOGY AUTOMOTIVE CONSUMER ELECTRONICS MANUFACTURING TELECOMMUNICATIONS BANKS PHARMACEUTICALS FOOD AND BEVERAGE ENERGY CONSUMER PACKAGED GOODS FINANCIAL SERVICES MEDIA ENTERTAINMENT CONSUMER HEALTH COMPANIES CHEMICALS BREWING AND SPIRITS

94% 93% 92% 89% 90% 87% 84% 84% 80% 84% 81% 78% 76% 71% 36%

TECHNOLOGY AUTOMOTIVE CONSUMER ELECTRONICS MANUFACTURING TELECOMMUNICATIONS BANKS PHARMACEUTICALS FOOD AND BEVERAGE ENERGY CONSUMER PACKAGED GOODS FINANCIAL SERVICES MEDIA ENTERTAINMENT CONSUMER HEALTH COMPANIES CHEMICALS BREWING AND SPIRITS

• 1
• 3
• 4
• 1
• 3
• 4
• 4
• 5
• 1
• 6
• 3
• 1
• 2

+3 +7

GLOBALL LLY, , TRU RUST IN BANKS KS IS AT 51% % DUE TO THE LEGACY CY OF THE FINA NANCIA IAL L CRISIS IS ; A CRISIS IS THAT BAREL ELY Y AFFECT FECTED ED INDO DONESIA NESIA

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

• ne 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 BREAKDOWN BY SECTOR

32

INDONESIA TRUST IN INDUSTRY SECTORS

60% 62% 65% 71% 79% Insurance Credit cards / Payments Financial advisory / Asset management Financial services industry overall Banks 60% 68% 74% 74% 76% Food and beverage retailers Fast food restaurants Food and beverage manufacturers Food Industry

• verall

Food service 66% 66% 67% 69% 74% 76% Mining Natural Gas Oil Utilities Energy industry

• verall

Renewables

48% 40% 27% 28% 48% 40% 29% 28%

CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS MAKE ETHICAL AND MORAL DECISIONS TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS SOLVE SOCIAL OR SOCIETAL ISSUES

INDONESIA TRUST IN BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING

GOVERNMENT LEADERS

33

BUSINESS LEADERS

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.

BUSINESS LEADERS ARE MUCH MORE TRUSTED THAN GOVERNMENT LEADERS – INDONESIANS BELIEVE THAT BUSINESS IS MORE LIKELY TO DO THE RIGHT THING. TRUST IN BUSINESS LEADERS IS CONSIDERABLY HIGHER THAN THE GLOBAL AVERAGE TOO.

16% 15% 12% 15% 14% 17% 15% 17%

CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS MAKE ETHICAL AND MORAL DECISIONS TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS SOLVE SOCIAL OR SOCIETAL ISSUES 3.4X X MORE 2.4X X MORE 2X MORE

2013 2014 2013 2014

TRUST IN BUSINESS LEADERS – ACROSS THE WORLD

34

INDONESI ESIA HAS A VERY HIGH TRUST LEVEL IN BUSINESS LEADERS COMPARATIVELY – A TOTAL AVERAGE OF 36%. AT THE OTHER END OF THE GLOBAL SCALE, POLAND HAS A VERY LOW LEVEL OF TRUST IN BUSINESS LEADERS – JUST 8%.

0% 10% 20% 30% 40% 50% 60% Brazil India Indonesia China UAE Japan Sweden Malaysia Mexico Hong Kong Turkey Singapore Argentina Italy

• S. Africa

Spain Russia

• S. Korea

U.S. Germany Canada UK Netherlands France Ireland Australia Poland TO WORK TO CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS TO MAKE ETHICAL AND MORAL DECISIONS TO TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS TO HELP SOLVE SOCIAL OR SOCIETAL ISSUES AVERAGE

TRUST IN GOVERNMENT LEADERS – ACROSS THE WORLD

35

LOOKING AT GOVERNMENT LEADERS, INDONESIANS TRUST THEM FAR LESS. INDONESIA’S AVERAGE IS 16%, MID-RANK GLOBALLY. COMPARATIVELY, THE UA UAE AND D SING NGAPOR ORE HAVE THE HIGHEST TRUST IN GOVERNMENT LEADERS AT 44% 4% AND ND 31% 1%, , WHILE IRELA LAND D AND ND FRAN ANCE E HAVE THE LOWEST TRUST LEVELS – THEY REALLY DON’T TRUST THEIR GOVERNMENT LEADERS – WITH AN AVERAGE OF 4% % AND D 6%.

0% 10% 20% 30% 40% 50% 60% UAE Singapore China India Sweden Malaysia Hong Kong Brazil Turkey Japan Indonesia

• S. Korea

Argentina Russia U.S. UK

• S. Africa

Australia Germany Canada Italy Spain Mexico Netherlands Poland France Ireland TO HELP SOLVE SOCIAL OR SOCIETAL ISSUES TO MAKE ETHICAL AND MORAL DECISIONS TO WORK TO CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS TO TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS AVERAGE

• 22

22

• 25

25

• 23

23

• 19

19

• 22

22

• 28

28

• 22

22

• 22

22

• 20

20

• 20

20

• 17

17

• 14

14

• 9
• 12

12

• 9
• 6

31% 39% 36% 42% 46% 45% 42% 44% 43% 44% 39% 45% 50% 46% 45% 49% 37% 48% 48% 51% 60% 62% 62% 64% 65% 66% 67% 67% 69% 69% 70% 71%

ADMIRED TOP LEADERSHIP TOP GLOBAL COMPANY PARTNERS WITH THIRD PARTIES CONSISTENT FINANCIAL RETURNS INNOVATOR ADDRESSES SOCIETY'S NEEDS CUSTOMERS BEFORE PROFITS COMMUNICATES OFTEN TRANSPARENT & OPEN POSITIVELY IMPACTS COMMUNITY PROTECTS ENVIRONMENT ACTS RESPONSIBLY IN CRISIS HIGH QUALITY PRODUCTS LOOKS AFTER EMPLOYEES IS ETHICAL LISTENS TO CUSTOMERS

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) Informed Publics.

BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - INDONESIA Gap

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IMPORTANCE PERFORMANCE

WHAT DRIVES TRUST IN INDONESIA? LISTENS TO CUSTOMERS, IS ETHICAL, LOOKS AFTER EMPLOYEES – INDONESIANS CARE MORE ABOUT THE SOCIAL ISSUES.

INTEGRITY PURPOSE OPERATIONS PRODUCTS & SERVICES ENGAGEMENT

37

GLOB OBAL AL IND NDON ONESIA ESIA

GLOBA BAL

1. 1. Offer ers Qualit ity Products ts Or Servic vice 2. 2. Listen ens To Custome tomers 3. 3. Looks ks After er Employee ees

INDON ONES ESIA IA

1. 1. Listen ens to to Custom tomer ers 2. 2. Is Ethic ical al 3. 3. Looks ks After er Employee ees

INDONESIANS WANT GOVERNMENT TO BUILD MORE INFRASTRUCTURE! GLOBALLY, PROTECTING CONSUMERS IS THE MOST IMPORTANT ISSUE

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MOST IMPORTANT ROLE FOR GOVERNMENT IN BUSINESS – GLOBAL AND INDONESIA

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

NUMBER BER 1 PRIORIT ORITY IN INDON DONES ESIA.: INFRAS FRASTR TRUC UCTUR TURE IMPERA ERATIV TIVE

INFRA RASTR TRUC UCTUR URE ONLY Y THE E THIRD RD PRIOR ORIT ITY GLOBA BALL LLY. . ALSO, O, BIG DIFFERENC ERENCE BETWEE EEN N INDONES ONESIA IA AND THE E GLOBA BAL L AVERA VERAGE GE IN TERM RMS OF FREE EE MARKET RKET ACCES CESSES AS A PRIORIT RITY

28% 23% 21% 18% 4% 5% 1% 26% 22% 45% 5% 1% 1% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% PROTECT CONSUMERS REGULATE BUSINESS ACTIVITIES BUILD INFRASTRUCTURE WORK TO ENSURE FREE MARKET ACCESS AND COMPETITION GIVE OR LOAN MONEY TO BUSINESS WHEN IT EXPERIENCES FINANCIAL CRISIS GOVERNMENT SHOULD NOT PLAY A ROLE IN BUSINESS DON'T KNOW Global Average Indonesia

nearly 30% of China’s

10 10 coun

untr tries ies

$2.4 .4 tril illi lion

• n GDP

GDP

600 00 Mil illio ion peopl

ple

So with h only 5% of Indone

• nesi

sian ans s wanting ing governmen ernment t to focus cus on free markets, ts, where e does s that t leave e the AEC?

THE ASEAN ECONOMIC COMMUNITY 2015

INDONESIANS WANT (SOME) MORE REGULATION. ACCOUNTABILITY AND QUALITY ARE KEY HERE, SIMILAR TO GLOBAL AVERAGE.

40

GOVERNMENT REGULATION OF BUSINESS AND SECTORS

• 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.

42% 38% 59% 52% 30% 17% 19% 13%

Government Regulation of Business Government Regulation of Financial Services Industry Government Regulation of the Energy Industry Government Regulation of the Food & Beverage Industry

Not Enough Too Much

45% 22% 35% 28%

Right amount/Don’t know 42% 53% 51% 48% 27% 16% 17% 12%

Government Regulation of Business Government Regulation of Financial Services Industry Government Regulation of the Energy Industry Government Regulation of the Food & Beverage Industry

INDONES ESIA IA GLOBAL BIG DIFFER ERENCE ENCE IN INDUSTRIES IES THAT SHOULD LD BE REGULATED ED MORE. INDONES ESIA IA – ENERGY Y SECT CTOR. GLOBAL – FINANCIA CIAL SECTOR OR.

31% 31% 32% 40%

WHAT CEOS SHOULD DO TO BUILD TRUST

41

ACTIONS A CEO CAN TAKE TO BUILD TRUST IN THEMSELVES AND THEIR COMPANY – GLOBAL AND INDONESIA

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) Informed Publics.

QUALITY Y NOT QUANTITY

82% 81% 80% 79% 69% 53% 88% 86% 82% 83% 79% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% COMMUNICATES CLEARLY AND TRANSPARENTLY TELLS 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 IS PERSONALLY INVOLVED IN SUPPORTING LOCAL CHARITIES AND GOOD CAUSES HAS AN ACTIVE MEDIA PRESENCE Global Average Indonesia

INDONESIANS WANT MORE INVOLVEMENT FROM INDUSTRY AND ALSO BELIEVE GOVERNMENT HAS A GREATER ROLE TO PLAY IN BUSINESS. WHAT DOES THIS MEAN? IT IS ALL ABOUT PARTNERSHIPS.

42

PERCENTAGE AGREEING WITH EACH OF THE FOLLOWING STATEMENTS - INDONESIA

Q265-270. Please indicate how much you agree or disagree with the following statements? Informed Publics.

88% 90% 89% 89%

The energy industry should be a more active participant in the broader debate over INDONESIA energy policy The food and beverage industry should be a more active participant in the broader debate in INDONESIA over solutions to food and nutrition policy issues The financial services industry should be a more active participant in the broader debate over the future of the INDONESIA banking system When policymakers are developing new regulations on businesses and industries, they should consult with multiple stakeholders (i.e. NGOs, academics, the affected businesses/industries, etc.) before making final decisions

LESSONS FOR BUSINESS

Business leaders are trusted more than government. Business is also expected to lead. It is expected to contribute to society and focus on social issues. Trust drivers for companies include acting ethically and looking after employees. In Indonesia, social issues and community involvement are mission critical for trust. Indonesians trust multiple information sources – including

• wned assets.

Businesses can capitalize by creating and curating great content.

43

KEY POINTS

44

Trust across the board in Indonesia remains strong. Business has a strong trust advantage and Indonesians expect business to lead, in part because government isn't. Media trust remains high, but will not be taken at face value. Integrity is needed to ensure this trust stays high, especially in a national election year. Trust in government is low, but has improved. Better transparency through the KPK and Indonesia’s new generation of political leaders might be driving trust upwards. Trust in NGOs has seen a significant gain from last year. More accountability, better standards and the rise of the ‘corporate NGO’ might be driving this. Trust drivers this year focus on listening to customers – consumers are demanding better service.

CONTACT CT US: Stephen Lock, CEO, Edelman Indonesia stephen.lock@edelman.com

TH THAN ANK YOU OU