Employee Engagement

2016 Edelman Trust Barometer

64% Employed

Informed Public

‣ 8 years in 20+ markets

‣ Represents 15% of total global population

‣ 500 respondents in U.S. and China; 200 in all 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

General Population

‣ 5 years in 25+ markets

‣ Ages 18+

‣ 1,150 respondents per country

Methodology

28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).

Source: 2016 Edelman Trust Barometer Q206. Which of the following best describes your current employment status? (net of “full-time” and “part-time” employed), General Population, Informed Public and Mass Population, 28-country global total.

‣ 16 years of data

‣ 33,000+ respondents total

‣ All fieldwork was conducted between October 13th and November 16th, 2015

Online Survey in 28 Countries

Mass Population

‣ All population not including Informed Public

‣ Represents 85% of total global population

2

90% Employed

59% Employed

3

Management Level

Source: 2016 Edelman Trust Barometer Q421: Which of the following best describes your position or level within your company or organization? (Please select one response) General Population, 28-country global total

Percent of the 64% who are employed that holds each type of position

General Population

Executives13%

Mid-level mgt.16%

Lower-level mgt.17%

Non-manager30%

Entry level8%

Self-Employed8%

Other/Don’t Know7%

1 State of Trust

5

48

42

26

35

20

12

Trust MattersPercent who engage in each behavior based on trust

68

59

41

38

37

18

People who distrust companies… People who trust companies…

Refuse to buy products/services

Criticized companies

Shared negative opinions

Disagreed with others

Paid more than wanted

Sold shares

Chose to buy products/services

Recommended them to a friend/colleague

Shared positive opinions online

Defended company

Paid more

Bought shares

Source: 2016 Edelman Trust Barometer Q371-589. 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. General Population, 28-country global total, questions asked of half the sample. Q377-380. 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 Population, 28-country global total, question asked of half the sample.

General Population

most trusted media source: #1

Online Search Engines

most trusted content creators: #1

Friends and Family

6

6064 65

6366

5053 54

5155

1 2 3 4 5

4648

4548

51

3841

3942 43

1 2 3 4 5

54

58 5856

62

4750 49 49

53

Source: 2016 Edelman Trust Barometer Q11-14. 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 Public and General Population, 25-country global total.

Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2016

53

57

5351

56

46

49 4846

49

NGOs

Government

Media

Business

Trust at Post-Recession HighsInformed Public

GeneralPopulation

7

1 2 3 4 5

53

58

56 56

60

44

4746 46

48

A Significant Divide

Source: 2016 Edelman Trust Barometer Q11-14. 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 Public and Mass Population, 25-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K.

Percent trust in the four institutions of government, business, media and NGOs, 2012 to 2016 Informed

Public

MassPopulation

12pt Gap

9pt Gap

8

50%

Executives vs. Employees: Trust Inequality

Source: 2016 Edelman Trust Barometer Q421: Which of the following best describes your position or level within your company or organization? (Please select one response) General Population, 28-country global total.

Trust Index among respondents with each level of employment

General Population

among all non-executive level employees

51 Trust Index

among executives

64 Trust Indexnon-management employees are

at the same low trust levels as the mass population

48 Trust Index

9

The Inversion of Organizational Influence

Authority & Influence

Influence

Authority

Source: 2016 Edelman Trust Barometer Source: 2016 Edelman Trust Barometer Q11-14. 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) Q421: Which of the following best describes your position or level within your company or organization? (Please select one response). (“Employee Population” = Mid level management and below; “Upper Management” = Upper level management and above) (General Population, 28-country global total

87% of employedpopulation

51 Trust Index

13% of employedpopulation

64 Trust IndexExecutives

Employees

General Population

Source: 2016 Edelman. Trust Barometer Q130-587. 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) General Population, 27-country global total.

10

63 64

57

5048

41

50

39

33

6764 63

53 5249 48

44

35

Peers, Employees More Credible than LeadersPercent who rate each spokesperson as extremely/very credible

2015 2016

Technical expert

Academic expert

A person like

yourself

Financial industry analyst

Employee CEO NGO representative

Board of Directors

Government official/regulator

General Population

2 Trust in Employers

12

Japa

n

Russ

ia

Fran

ce

Swed

en

Aust

ralia

S. K

orea

Pola

nd U.K.

Italy

Hong

...

Irela

nd

Germ

any

Neth

erl..

.

Spai

n

Turk

ey

Cana

da U.S.

S. A

frica

Sing

apor

e

Mal

aysia

UAE

Indo

nesia

Braz

il

Arge

ntin

a

Chin

a

Indi

a

Colo

mbi

a

Mex

ico

4048 48 50 54 55

56 57 58 59 60 62 62 63 64 64 6472 73 76 76 77 77 78 79

83 85 89

50%

Significant Lack of Trust in Employers

Source: 2016 Edelman Trust Barometer Q525-526. Thinking about your own company and other companies in your industry, please indicate how much you trust each 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) General Population, 28-country global total.

Percent who trust the company for which they work

TrustedDistrusted Neutral

General Population

13

Aver

age

trust

...

Man

ufac

turin

g

Tran

spor

tatio

n

Heal

th C

are

Food

and

Be.

..

Auto

mot

ive

Cons

umer

P...

Educ

atio

n

Ener

gy

Reta

il

Tele

-com

mun

...

Ente

rtain

men

t

Fash

ion

Tech

nolo

gy

Prof

essio

nal .

..

Fina

ncia

l Ser

...

73 70 70 71 73 74 74 74 74 75 75 77 77 78 79 80

67 64 61 63 61 6165

5766

6064 62

75

63

52

Financial Services: Least-Trusted Sector is Most-Trusted EmployerPercent trust in own company within each industry by employees, and trust in that industry sector among the general population

General Population

General Sector Trust

Trust in Own Company

1313101063 31513159179 16

Source: 2016 Edelman Trust Barometer Q420. Which of the following industries best describes the company you work for…? Q525-526. Thinking about your own company and other companies in your industry, please indicate how much you trust each 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) Q206 Which of the following best describes your current employment status? (Net: “Employed full-time” and “Employed part-time”) General Population among those employed (Q206), 28-country global total. Q525-526 asked of half the sample. Q45-429. 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) General Population, 28-country global total.

28

IntegrityHas Ethical Business Practices 51 31 24

Takes Responsible Actions To Address An Issue Or A Crisis 54 31 23

Has Transparent And Open Business Practices 55 31 24

EngagementTreats Employees Well 58 33 25

Listens To Customer Needs And Feedback 58 33 25

Places Customers Ahead Of Profits 55 31 24

Communicates Frequently And Honestly On The State Of Its Business 48 29 19

ProductsOffers High Quality Products Or Services 58 35 23

Is An Innovator Of New Products, Services Or Ideas 41 32 9

PurposeWorks To Protect And Improve The Environment 50 30 20

Creates Programs That Positively Impact The Local Community 44 29 15

Addresses Society's Needs In Its Everyday Business 45 29 16

Partners With NGOs, Government And Third Parties To Address Societal Issues 34 24 10

OperationsHas Highly-Regarded And Widely Admired Top Leadership 39 27 12

Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired 36 27 9

Delivers Consistent Financial Returns To Investors 36 28 8

Employee Engagement Critical to Building Trust Among All StakeholdersCompany Importance vs. Performance

%Performance

%Importance Gap

General Population

14

Source: 2016 Edelman Trust Barometer Q80-95 How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where one means that attribute 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, Importance) 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, Performance) General Population, 28-country global total.

3 A Roadmap for Building Trust

16

Building TrustInside and Outside the Organization

Actions

ValuesEmployeeAdvocacy

EngagementTrust

ActionsBuilding Trust Through Leadership

18

Employees Agree: CEO Focus Misplaced

Source: 2016 Edelman Trust Barometer Q451-461. Thinking about CEOs, how strongly do you agree or disagree with the following statements? General Population. [‘CEOs do too much lobbying,’ ‘Given that the average tenure of CEOs is just four years, CEOs aren’t in their role long enough to make a positive impact,’ ‘CEOs are too focused on short-term financial results’ (Top 4 Box, Agree), ‘CEOs can be trusted to create jobs’ (Bottom 5 Box, Do Not Agree)], General Population, 28 country global total and among those employed (Q206. Which of the following best describes your current employment status? (net of “full-time” and “part-time” employed)).

Percent who agree with each statement about CEOs

Focus on short-term financial results

Lobbying

Too Much

68%

60%

Positive long-term impact

Job creation

Not Enough

59%

47%

General Population

Source: 2016 Edelman Trust Barometer Q496-506. How visible do you think a CEO should personally be in these different types of business situations? Please use a 9-point scale where one means that it is “not visible at all” and nine means that it is “extremely visible”. (Top 4 Box, Visible) General Population, 28-country global total, question asked of half the sample.

19

Purpose and Profits MatterPercent who agree that CEOs should be personally visible in discussing…

8 in10Societal Issues

‣ Income inequality‣ Public policy discussions‣ Personal views on

societal issues

7 in10Financial Results

General Population

20

Sharing their view on social media

Interviews with the media

Meetings with NGOs and community organizations

Discussions with government

Participation in industry conferences

Issuing communications through their company, such as press releases, newsletters, website updates and annual reports

Meetings with investors and analysts

Communications with employees

57%

68%

68%

68%

74%

74%

75%

81%

The Explosion in Communication Channels is Changing Expectations For CEOsPercent who agrees that each of the following activities is important in building trust in a CEO

Source: 2016 Edelman Trust Barometer Q507-514 Thinking about how a CEO communicates with a variety of groups and individuals, how important are each of the following activities a CEO could engage in? Please use a 9-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of half the sample.

General Population

Your most important audience

Employees

ValuesBuilding Trust Through Leadership

IntegrityExhibits highly ethical behaviors 50 24 26

Takes responsible actions to address an issue or crisis 53 33 20

Behaves in a way that is transparent and open 50 24 26

EngagementTreats employees well 52 25 27

Listens to customer needs and feedback 50 25 25

Places customer ahead of profits 47 23 24

Communicates frequently and honestly on the state of their company 46 23 23

ProductsPlaces a premium on offering high-quality products or services 48 34 14

Is focused on driving innovation and introducing new products/services/ideas 42 32 10

PurposeIs dedicated to protecting and improving the environment 41 22 19

Ensures that the company creates programs that positively impact the local community in which it operates 42 28 14

Ensures that the company addresses society's needs in its everyday business 43 26 17

Ensures that the company partners with NGOs, government and third parties to address societal issues 33 24 9

OperationsAttracts and retains a highly regarded and widely admired top leadership team 40 29 11

Is ranked on a global list of top CEOs, such as "The Best Performing CEOs in The World" 29 25 4

Manages the company in a way that delivers consistent financial returns 41 29 12

Integrity and Employee Engagement Key to Building Trust in LeadershipImportance vs. performance of 16 trust-building leadership attributes

% Performance

% Importance Gap

General Population

22

Source: 2016 Edelman Trust Barometer. Q462-478 How important is each of the following attributes to building your trust in CEOs? (Top 2 Box, Important) Q479-495 Please rate CEOs on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well.” CEO questions use the same scales as the business questions. (Top 2 Box, Performance) General Population, 28-country global total.

Desired Leadership QualitiesCharacteristics that make a CEO trustworthy, percent who selected each as one of the top five in each region

23

North AmericaHonest 59%

Ethical 48%

Competent 26%

Transparent 26%

Sincere 24%

Latin AmericaEthical 47%

Honest 44%

Competent 36%

Visionary 34%

Innovative 33%

EuropeHonest 53%

Competent 43%

Experienced 28%

Ethical 27%

Transparent 27%

APACHonest 39%

Visionary 35%

Decisive 31%

Ethical 31%

Competent 26%

General Population

Source: 2016 Edelman Trust Barometer Q515. Which of the following personal characteristics make a CEO trustworthy? Please select the five most important characteristics that make a CEO trustworthy. General Population, 28-country global total, question asked of half the sample.

Their education and

how it shaped them

Their personal success story

The obstacles they have overcome

Their personal values

62%65%70%

79%

64%68%

73%80%

Personal Values and History Matter

Source: 2016 Edelman Trust Barometer Q516-524. For you to trust a CEO, how important is it that you have information on each of the following aspects of the CEO’s personal life outside of their business? Please use a nine-point scale where one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust. (Top 4 Box, Important) General Population, 28-country global total and among those employed (Q206. Which of the following best describes your current employment status? (net of “full-time” and “part-time” employed)), question asked of half the sample.

Percent who agree that each type of information is important in building trust in a CEO, all respondents vs employed respondents

General Population

24

All respondentsEmployed respondents

EmployeeAdvocacy

Building Trust Through Leadership

26

25 27

19

2528

33

27 2824

28

37

3132 30

48

24 25 2621 21 22 23

2016

19 1914

19 18 18

8 9 813

10 11

Employees are Essential Advocates

Source: 2016 Edelman Trust Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611 a company’s business practices, both positive and negative, and its handling of a crisis? Q612 a company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613 a company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 a company’s innovation efforts and new product development? Q615 Who do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, 28-country global total.

Most trusted spokesperson to communicate each topic

Innovation effortsFinancial earnings & operational performance

Business practices/crisis handling

Treatment of employees/customer

Partnerships/Programs to address societal issues

Views on industry issues

Employees Most Trusted

General Population

Company CEO

Senior executive

Employee

Activist consumer

Academic

Media spokesperson

27

Employees at companies NOT engaged in societal issues

Employees at companies engaged in societal issues

Employee Advocacy Increases With Societal Issue Engagement

Source: 2016 Edelman Trust Barometer Q527-529 Does your company get involved in addressing broader societal issues beyond the core business, through programs or relationships with other companies? Q530-536. Thinking about your current company, please indicate how much you agree with each of the following statements using a nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample.

Percent who agree with each statement, comparing those who work at companies involved in addressing broader societal issues vs. those who do not

Recommend company as an employer

Stay working for the company

Confidence in the future of the company

Motivated to perform

Committed to achieving our strategy

Recommend products and services to others

Do the best possible job for the customer

82

83

84

84

87

87

90

57

61

60

62

68

66

78

Impact of Company

Engagement

12

21

19

22

24

22

25

Level of Employee Advocacy Commitment

General Population

28

Employees who DO NOT trust CEOs in general

Employees DO trust CEOs in general

Trust in Leadership Critical for Employee Advocacy

Source: 2016 Edelman Trust Barometer Q447 Again, thinking about company CEOs in general, please indicate how much you trust CEOs 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”.Q530-536. Thinking about your current company, please indicate how much you agree with each of the following statements using a nine-point scale where one means that you “strongly disagree” and nine means that you “strongly agree”. (Top 4 Box, Agree) General Population, 28-country global total, question was asked of half the sample.

Percent who agree with each statement, comparing those who trust CEOs in general and those who do not

Recommend company as an employer

Stay working for the company

Confidence in the future of the company

Motivated to perform

Committed to achieving our strategy

Recommend products and services to others

Do the best possible job for the customer

82

83

84

85

86

86

89

46

51

49

51

58

57

67

Impact of CEO Trust

22

29

28

34

35

32

36

Level of Employee Advocacy Commitment

General Population

EngagementBuilding Trust Through Leadership

1 2 3 4 5

58

53

44

63

46

Transformed Media Landscape

Source: 2016 Edelman Trust Barometer Q178-182. 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) General Population and Millennials, 25-country global total and among those employed (Q206. Which of the following best describes your current employment status? (net of “full-time” and “part-time” employed)).

*From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.”**From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.”

Percent trust in each source for general news and information

Employeeseven more trusting of digital media thangeneral population

2012 2013 2014 2015 2016

Search engines* 61 58 61 62 63

Traditional media 62 59 61 57 58

Online-only media** 46 44 47 45 53

Owned media 41 40 43 43 46

Social media 44 41 44 45 44

General Population

30

Employed

65

59

55

49

47

31

50%

My frie

nds a

nd fa

mily

An aca

demic

expe

rt

Compa

nies t

hat I

use

Emplo

yees

of a

compa

ny

A compa

ny C

EO

A jour

nalis

t

A well

-kno

wn onli

ne pe

rsona

lity

Electe

d officia

ls

Celebr

ities

Compa

nies I

don’t

use

7968 65 58 53 47 46 40 36 35

7866 62 55 50 45 43 37 33 31

Peer Voices More Influential

Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General Population, 28-country global total and among those employed (Q206. Which of the following best describes your current employment status? (net of “full-time” and “part-time” employed)), question asked of half the sample.

Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources

General Population

All respondentsEmployed respondents

4 Activating Employee Trust

Actions

ValuesEmployeeAdvocacy

Engagement

Activating Employee TrustTo Drive Advocacy1. CEOs must refocus their actions. They must stand for

more than profits and short-term financial gain with their internal and external audiences.

2. Leaders must be open and honest with employees, exhibit highly ethical behavior, take action when needed, and engage around their personal values and history.

3. Building trust in leadership - and CEO trust in particular - can raise productive outcomes such as employer advocacy and recommendation of products and services by 30-40 points

4. Use sharing platforms like Dynamic Signal to elevate the employee voice and make employee storytelling an important part of a company’s media ecosystem.

5. Programs and campaigns must be built for search and leverage peer credibility.

Influence

TRUST

33

Leadership

TRUST

Thank you