Key findings of the 2011 Edelman Trust Barometer for Ireland

1. 2011 Edelman Trust Barometer January 27th 2011 Ireland findings 1

3. Government

4. Business

5. Media and sources of information

6. NGOs

7. Look at the benefits of Trust

8. Panel Discussion and Q&A 2 Overview

9. Edelman Trust Barometer at a glance Eleventh annual study 5,075 people in 23 countries of which 200 in Ireland Ages 25 to 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 EU Select Countries: UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, Poland (Each country N=200 aged 25-64) 3

10. The Edelman Trust Barometer in retrospect Rising Influence of NGOs 2001 Fall of the celebrity CEO 2002 Earned media more credible than advertising 2003 U.S. companies in Europe suffer trust discount 2004 Trust shifts from “authorities” to peers 2005 “A person like me” emerges as credible spokesperson 2006 Business more trusted than government and media 2007 Young influencers have more trust in business 2008 Business must partner with government to regain trust 2009 Trust is now an essential line of business 2010 4

11. 2010 Another Challenging Year

12. Globally, trust increases in all institutions Trust in Institutions – Global +4 +5 +4 +2 6

13. Trust in institutions Ireland has significantly lower trust in government than in other institutions 7

14. 2009 2011 Trust Index: 2009 – 2011Ireland moves to last place in 2011 8

15. Government

16. Trust in Government (2010 – 2011) Trusters Distrusters (< 50%) +11 - 6 Ireland least trusting of government among all EU countries 2011 2010 - 10 10

17. And eight out of 10 believe government must step in to ensure business behaves responsibly 11

18. Business

19. +12 Trust in Business (2010 – 2011) +12 2011 2010 Trusters Distrusters (< 50%) Neutral +15 - 8 Ireland trust in business increased 15 points; now on par with levels in other EU countries 13

20. Since financial crisis, trust in banks takes big hit in the West Reverse is true in China, India, Japan, Brazil Trust in Banks - 46 - 30 - 20 - 21 - 10 +12 +21 +10 +12 14

21. Trust in Sectors Ireland less trusting than global peers of most sectors Significant at 95% confidence level compared to global 15

22. Perceptions of Ireland as a place to do business Trust in Companies Headquartered in Ireland + 15 - 18 + 12 + 33 + 16 - 10 - 12 - 14 - 13 - 23 - 11 N/A N/A N/A 16

23. Milton Friedman: “The social responsibility of business is to increase its profits” % who agree Majority agree Less than half agree with Milton Friedman 17

24. Reputation Factors Trust, high quality products/services, transparency, employee treatment and communication most important reputation factors in Ireland Significant at 95% confidence level compared to global 18

25. MEDIA

26. Trusters Distrusters (< 50%) Neutral Trust in Media (2010 – 2011) 2011 2010 +11 - 11 - 9 +16 Ireland has low trust in media, but on par with most other EU countries 20

27. Traditional sources and online search engines most trusted sources of information about a company Trusted Information Sources – Trust a Great Deal Traditional Online Multiple sources Social Media Corporate Significant at 95% confidence level compared to global 21

28. People go to trusted sources first for information about a company – online search engines and traditional print and broadcast media Where Informed Publics go for company news and information – Ireland Are these the same types of sources you consult first for information about a business crisis? First Source Second Source 22

29. Strong media brands rise to the top Most relied on source for company information (unaided) 23

30. NGO

31. Trust in NGOsInformed Publics ages 35-64 Emerging markets’ trust in NGOs caught up to developed markets’ trust 25

33. Businesses must begin to engage purposefully in order to gain trust

34. Government has an even bigger challenge – it must rebuild trust in an entire system

35. People are sceptical about media but organisations have the chance to become their own media company

37. The Transformation of Trust Old Trust Framework New Trust Architecture Control Information Transparency Engagement Protect the Brand Stand Alone HOW WHERE WHAT Focus Solely on Profit Profit With Purpose 28

38. Trust protects reputation Ireland When an organisation is distrusted When anorganisation is trusted 55% will believe negative information after hearing it 1-2 times 40% will believe positive information after hearing it 1-2 times 21% will believe positive information after hearing it 1-2 times 9% will believe negative information after hearing it 1-2 times 29

39. Informed publics need information from multiple sources, multiple voices And need to hear it 3-5 times to believe it Ireland 3-5 times 60% 30

40. Through personal action, trust has tangible benefits _ + Actions Taken Over Past 12 Months – Ireland Distrusted Companies Trusted Companies Chose to buy products/services Refused to buy products/services Criticized them to a friend/colleague Recommended them to a friend/colleague Paid more for products/services Shared positive opinions online Shared negative opinions online Sold shares Bought shares 31

43. Conclusions Business must align profit and purpose for social benefit Current media landscape plus increased scepticism requires multiple voices and channels Demand for authority and accountability set new expectations for corporate leadership Trust is a protective agent and leads to tangible benefits; lack of trust is barrier to change 34

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