®

Better Business Bureau®

Start With Trust®

In Hawaii

2011 Annual ReportAloha,

Dwight Kealoha Susan L. IngChief Executive Officer ChairHawaii’s BBB BBB Board of Directors

Our VisionAn ethical marketplace wherebuyers and sellers can trusteach other.

Our MissionTo be the leader in advancingmarketplace trust.

Hawaii’s BBBAddress: 1132 Bishop St. #615

Honolulu, HI 96813

Website: hawaii.bbb.org

E-mail: info@hawaii.bbb.org

Phone: 808-536-69561-877-222-6551Neighbor Islands(toll free)

Fax: 808-628-3970

Susan L. IngChair

Bank of Hawaii

Nancy Daniels, APR1st Vice Chair

Outrigger EnterprisesGroup

Thomas W. Dixon, Jr.2nd Vice Chair

First Hawaiian Bank

Philip SammerSecretaryIlima Hotel

Dwayne S. Takeno, CPATreasurer

PKF Pacific Hawaii LLP

Hoyt H. ZiaImmediate Past ChairHawaiian Airlines, Inc.

Vic AngocoMatson Navigation Company

Fred BaduaServco Pacific, Inc.

Cleo BrownING Direct, Hawaii

Dave ErdmanPacRim Marketing

Group, Inc.

Jason HallKaiser FoundationHealth Plan, Inc.

Craig HamamotoKTA Super Stores

John HowellEaster Seals Hawaii

Wayne KiriharaCentral Pacific Bank

Stan MasamitsuTony Group

Kathy InkinenInkinen & Associates, Inc.

Maki KurodaE Noa Corporation

Myles Murakami

Laurice OtsukaAmerican Savings Bank

Atlas Insurance Agency

Margie SasakiHMSA

Bobby SenahaHawaii Business Magazine

Ed ShinodaUnited Parcel Service

Rachel R. Shimamoto, CTCTravel Ways, Inc.

Garrett SullivanSullivan & Associates

Robert TanakaBob Tanaka, Inc. Realtors

Lance TerayamaIsland Movers, Inc.

Pamela TumpapMaui Chamber of Commerce

Sam YeeFinance Factors, Ltd.

Dwight KealohaChief Executive O!cer

HAWAII’S BBB BOARD OF DIRECTORS

O!cers Directors

BBB FOUNDATION BOARD OF DIRECTORS

Milton K. GotoChair

Chuck HillVice Chair

Kapolei Property Development

Lawrence ChewTreasurer

PKF Pacific Hawaii LLP

Ed Kajiyama Mike LooSopogy

Bob Makahilahila

Dave BurgeKamehameha Schools

HAWAII’S BBB STAFF

Stephanie TomBusines Solutions Technology

Mark Murakami, Esq.Carlsmith Ball LLP

Ralph NakatsukaTerritorial Savings

Bonnie HoribataVice President

Kehau AbeController

Timothy CaminosCommunications Director

Lisa NakaoOperations Director

Bruce AllieBleydis BorgeJoanne DubieAdam Espiritu

Michael McKenzieBrenda PomphreyVangie Pontious

Elizabeth RamosLorie Sides

Troy SonnenbergRussell Subiono

Cheryl YoroSandra Youkers

Over the past three years the BBB system has made significant changes that include branding, ratings, the business review and the accreditation process. While some may believe that there would be some respite especially from the stress that normally accompanies change, according to Steve Cox, President and CEO of the Council of Better Business Bureaus, the volume of change will continue to be large and the pace of change even faster. One focus of this change is maintaining relevance by being competitive. What this means is continuing to integrate those traditional practices that have resulted from 65 years of trusted service with ever-evolving technology. A key element for BBB is its pursuit of a 21st century marketing strategy that will make it a key online information services provider. Hawaii’s BBB is going through this transition as it maintains traditional services while launching social media and other mobile applications. While the BBB continues to reach its traditional audiences, it needs to be relevant to everyone. While some of us “grew up” with the BBB and well understand its value, there are audiences that do not and reaching them will require some non-traditional approaches while sharing a story that began almost 100 years ago. The extent to which we are relevant to consumers and donors, will crossover to businesses and charities. Our focus will continue to be on connecting consumers and donors with trustworthy businesses and charities. What this means for Hawaii’s BBB is increased presence online and extending BBB’s reach.

BBB Business Reviews

Hawaii’s BBB Financial Overview

Hawaii’s 2011 BBB Torch AwardsCelebrating Standards

The BBB Torch Awards program promotes trust in themarketplace and recognizes local businesses and publiccharities for their outstanding commitment to fair, honestand ethical marketplace practices. BBB Torch Awards areopen to all Hawaii businesses and 501(c)(3) public charities.

Most Asked About Businesses (FY10 rank)

Rank Type of Business Number of Inquiries

Revenues Expenses Net Income

2006 1420384.06 1346711.45 73672.61

2007 1504953.14 1457169.59 47783.55

2008 1516691.60 1399507.20 117184.38

2009 1379074.85 1395290.27 -16215.42

2010 1324898.90 1244600.00 80298.90

2011

BBB Accredited Businesses

Hawaii’s BBB on the World Wide Web™

The BBB system introduced a new format of reports, called the BBB Business Review at the end of fiscal year 2011.BBB Business Reviews allow more user interaction to make it easier for consumers to:

Get to the information they need,

Request A Quote, and

BBB Business Reviews deliver the same factual information verified by BBB much more concisely in a visually appealing way. Added features, such as business’s logo, photos, and videos will help BBB Accredited Businesses to strengthen their online presence by allowing them to share more about their business with potential customers through BBB, the trusted information source.

With 12,513 reviews on local businesses available, consumers turned to Hawaii’s BBB for pre-purchase research and retrieved 392,667 local business reviews—a 60% increase from the year before. In addition, consumers looked for Hawaii’s BBB Accredited Businesses by requesting Accredited Business list 101,210 times in FY11—a 23% increase from the previous year.

During FY11, Businesses and consumers turned to Hawaii’s BBB website 425,141 times; approximately 1168 times per day. This is over seven times the amount of tra!c we were receiving in 2008. The increase in tra!c to Hawaii.bbb.org is due in large part to our website’s search engine optimization.

During FY11, we expanded our social media campaign. This is a growing area of focus for many businesses and consumers alike so, Hawaii’s BBB has joined the ranks of

LinkedIn. With an increasing number of active followers from across Hawaii and around the world; we are able to provide a frequent and consistent flow of consumer alerts and other marketplace related information.

The bottom line is we were out there! This increased visibility for the BBB can be seen in our monthly activity report published to hawaii.bbb.org. We are particularly

Hawaii’s BBB sta" works with consumers and businesses to help them amicably resolve local marketplace disputes. In FY11, 2,226 formal complaints were filed with Hawaii’s BBB to resolve over $6.7 million dollars in disputes – a 12% increase from the year before. Through Hawaii’s BBB assistance, 72% of complaints filed were resolved.

In addition, 629 instances of consumer concerns about local businesses were submitted without request for assistance from BBB for resolution. These types of concerns help Hawaii’s BBB to monitor local marketplace activities, and are shared with the referenced business in each case for their benefits as well.

In FY11, Hawaii’s BBB welcomed 460 new BBB Accredited Businesses and retained 88% of established BBB Accredited Businesses a three percent increase from the previous year. BBBOnLine extends consumer trust and confidence from traditional to online business activities. In FY11, the number of local BBBOnLine participants increased by 121%.

Hawaii Big Island

Outside of HI

Maui, Molokai, & Lanai

Kauai

Oahu

0%

12%

5%

71%12%

CountyOahuKauaiMaui, Molokai, & LanaiOutside of HIHawaii Big Island

Total1987

128344

5322

BBB Accredited

Hawaii’s 2011 BBB Torch Award presenters and recipients gather at the awards luncheon. Left to right: Dwight Kealoha, Hawaii’s BBB; ED and Cynthia Justus, Talk Story Bookstore; Bud Johnstone, KHON2 Action Line News; Judy Lenthall, Kauai Independent Food Bank; Johnny Hobayan, Aloha Air Cargo; Thomas Lee, Audio Visual Company; Susan Ing, Bank of Hawaii.

BBB accreditation is not required, however those nominated must be in good standing with Hawaii’s BBB.

On April 28, 2011 Hawaii’s BBB Torch Awards Luncheon

their operations and public charities with policies included

Accountability.

Hawaii’s 2011 BBB Torch Award recipients:

Hawaii’s BBB Torch Awards also honors individuals who have significantly advanced marketplace trust through demonstrated commitment to consumer advocacy, protection or education.

In 2011, the BBB Ka Mea O K#ko’o Award was presented to

providing information and education which helped their viewers become smarter consumers.

0

500000

1000000

1500000

2006 2007 2008 2009 2010 2011

1484955.45 1411388.37 73567.08

Dispute Resolution

Hawaii’s BBB In The NewsThrough the local media, Hawaii’sBBB alerts the community aboutmarketplace scams, providestimely and seasonal tips, andpromotes BBB events. In FY11,Hawaii’s BBB issued 47 newsreleases, and was included in 398news items in local broadcast andprint media, and syndicated online.

Fiscal Year MonthlyAverage

FY09FY10FY11

106254398

102133

0

100

200

300

400

FY09106

FY10254

FY11398

The BBB vision is to create an ethical marketplace where buyers and sellers can trust each other.

The BBB mission is to be the leader in advancing marketplace trust.

(previous year’s rank in parentheses)Top Complaint Issues

1. (1)

2. (2)

3. (3)

4. (4)

5. (5)

6. (6)

7. (7)

8. (8)

9. (9)

10. (10)

453

415

384

346

294

243

190

178

151

149

Refund or Exchange

Repair

Delivery

Top Complaints (previous year’s rank in parentheses)

Rank Type of Business omplaints Resolved

1. (1)

2. (3)

2. (2)

3. (8)

4. (5)

5. (8)

6. (7)

7. (–)

8. (6)

9. (6)

10. (7)

Airlines

Toys –$Retail

Restaurants

Hotels

Banks

129

88

88

73

55

53

50

47

44

40

33

90%

92%

100%

80%

53%

91%

30%

89%

100%

67%

89%

1. (1)

2. (10)

3. (5)

4. (3)

5. (6)

6. (4)

7. (8)

8. (2)

9. (7)

10. (25)

12,916

11,788

11,661

8,626

8,287

8,129

7,877

7,549

7,016

6,483

Travel Agencies & Bureaus

Electricians