The China market study results of the 2012 Edelman Trust Barometer.

1. 2012
EDELMAN TRUST BAROMETER
CHINA RESULTS
1 © Edelman, 2012. All rights reserved.

2. 2012 Edelman Trust Barometer – China Findings
METHODOLOGY OVERVIEW
GENERAL INFORMED INFORMED
PUBLIC PUBLIC PUBLIC
Twelfth annual study 25-64 35-64
Online survey in 25 countries Indicates Global Data
30,000+ respondents
Indicates Asia Pacific
APAC Region Data
1,000 general population respondents per country
Ages 18+ Indicates China Data
Oversample of informed publics*
500 respondents in U.S. and China & 200 in
all other countries
Ages 25-64
 (Trending data among Ages 35-64)
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
Asia Pacific (APAC) select countries:
India, China, Japan, South Korea, Indonesia, Singapore,
Australia, Hong Kong** and Malaysia**
China Sample:
1,000 general population respondents
& an oversample of 500 Informed Publics
* This year Informed Publics were surveyed via online methodology instead of telephone
** New country included in this year’s study
2 © Edelman, 2012. All rights reserved.

3. 3 © Edelman, 2012. All rights reserved.

4. China tops the ‘Trust Index’ in 2012; However, nearly twice as many countries
are now skeptics, including South Korea & Japan
2011 2012
GLOBAL 55 GLOBAL 51
Brazil 80 > China 76
UAE 78 UAE 68
Indonesia 74 Singapore 67
China 73 India 65 TRUSTERS
Netherlands 73 Indonesia 63
Mexico 69 Mexico 63
Netherlands 61
Singapore 67
Argentina 62 Hong Kong 61
Canada 58
India 56
Malaysia 57
Italy 56
Italy 56 NEUTRAL
Canada 55 Argentina 54
South Korea 53 Australia 53
Sweden 52 < Brazil 51
Japan 51 > Sweden 49
Australia 51 U.S. 49
Spain 51 > South Korea 44
France 50 Poland 44
Poland 49 U.K. 41 DISTRUSTERS
Ireland 41
Germany 44
France 40
U.S. 42
Germany 39
U.K. 40 < Spain 37
Russia 40 < Japan 34
Ireland 39 Russia 32
Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and
UAE) and across 25 countries in 2012
4 © Edelman, 2012. All rights reserved.

5. Globally, NGOs and business fall to 2009 trust level – government record decline
TRUST IN INSTITUTIONS – 18-COUNTRY GLOBAL TOTAL
NGOs
Media
Business
Government
80%
70%
59%
60% 57%
53% 54% 54%
52% 53%
53%
52% 49%
50% 51% 47%
46% 49%
47%
48% 46% BUSINESS
44% 46%
44% 45%
40% 43%
40% 38%
GOVERNMENT
30%
20%
2007 2008 2009 2010 2011 2012
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 4 Box, Trust) Informed Publics ages 35-64 in 18 country global total (excludes Argentina, Australia,
Hong Kong, Indonesia, Malaysia, Singapore and UAE)
5 © Edelman, 2012. All rights reserved.

6. Trust in business, NGOs & media increases after sharp declines among Chinese
older informed publics
TRUST IN INSTITUTIONS – CHINA
NGOs
Media
Business
Government
90%
80% 81%
78% 79%
80% 77% 79%
73% 72% 75%
GOVERNMENT
68%
70% 66%
71%
63%
67% 66%
65% 59%
60% BUSINESS
55%
56% 56%
50% 54% 53% 53%
40%
38%
30%
20%
2007 2008 2009 2010 2011 2012
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 4 Box, Trust) Informed Publics ages 35-64 in China
6 © Edelman, 2012. All rights reserved.

7. Majority of countries now distrust government; trust declines
significantly in China
TRUST IN GOVERNMENT
2011
Informed Public
2012
Informed Public
Trust Trust Steady Trust
88% 88%
85%
77% 78%
75% 75%
73%
64%
62% 61% 62% 62%
56%
53% 52% 54%
52% 52% 51%
50% 49% 49%
50%
44% 47% 45%
43% 43% 43% 42% 42% 43%
40% 39% 40%
38%
35% 35% 36%
33% 33% 33%
31% 31% 32%
28%
26%
25%
20% 20%
N/A N/A
Q11-14. [Government in General 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 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes
Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries
7 © Edelman, 2012. All rights reserved.

8. Several mature economies see double-digit drops in business trust;
Conversely, China is the only country where trust in business increased
TRUST IN BUSINESS
2011
Informed Public
2012
Informed Public
Trust Trust Steady Trust
80% 81% 81%
78% 77% 78%
74%
71% 70% 69%
67% 67%
66% 65% 65%
64% 63% 63%
61% 62%
56% 56% 57% 57%
54% 54% 53% 53%
53% 52% 52%
50% 50%
50% 46%
48%
46% 46% 46% 44% 47% 47%
44% 43%
41% 41%
38%
34% 32%
31%
28%
N/A N/A
Q11-14. [Business in General 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 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total
(excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries
8 © Edelman, 2012. All rights reserved.

9. In China, trust in consumer packaged goods, energy, brewing & spirits and
food & beverage increases significantly; Trust in four other industries declines
TRUST IN INDUSTRIES – CHINA
2011 2012
Technology 98% Technology 91% - 7
Banks 90% Media 82%
Telecommunications 88% Automotive 81%
Automotive 82% Banks 78% - 12
Media 81% Telecommunications 78% - 10
Pharmaceuticals 79% Consumer packaged goods 76% + 35
Financial services 74% Energy 76% + 24
Brewing and spirits 55% Financial services 76%
Energy 52% Brewing and spirits 70% + 15
Food and beverage 52% Pharmaceuticals 65% - 14
Consumer packaged goods 41% Food and beverage 59% + 7
Q16-26. [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 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 China
9 © Edelman, 2012. All rights reserved.

10. Media only institution to see trust rise; though Chinese trust steady
TRUST IN MEDIA
2011
Informed Public
2012
Informed Public
Trust Trust Steady Trust
86%
80% 79% 80%
72% 73%
70% 69%
67%
65% 65% 65%
61% 60% 61% 61%
59%
57%
54% 53% 53%
52%
50% 49% 50% 48% 49% 48%
46% 46% 45% 47%
45% 45% 43% 45% 42% 45%
41%
37% 37% 38% 38% 37%
37% 36%
35%
32% 33%
27%
22%
N/A N/A
Q11-14. [Media in General 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 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina,
Hong Kong, Malaysia, Singapore and UAE) and across 25 countries
10 © Edelman, 2012. All rights reserved.

11. Diversification of Media
TRUST IN INFORMATION SOURCES – CHINA
2011
Informed Public
2012
Informed Public
- 12
45%
33%
+ 19 +19 +13
29%
21%
18%
10%
5%
2%
TRADITIONAL ONLINE MULTIPLE SOCIAL MEDIA CORPORATE
SOURCES
Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or
not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in China
11 © Edelman, 2012. All rights reserved.

12. NGOs still most trusted institution, despite some drops; China is the only
country where trust increased
TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)
2011
Informed Public
2012
Informed Public
Trust Trust Steady Trust
85%
79% 80%
78%
75% 74%
72% 72% 72%
70% 70% 70%
67% 67% 65% 68%
65% 64% 64% 66% 66% 66%
63% 62%
61% 61% 60% 60%
58% 58% 58% 59%
55% 56% 55%
54% 53% 53% 55% 53% 53%
51% 51% 51%
50% 48% 49%
42%
41%
30%
28%
N/A N/A
Q11-14. [Non-governmental organizations (NGOs) 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 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total
(excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and across 25 countries
12 © Edelman, 2012. All rights reserved.

13. 13 © Edelman, 2012. All rights reserved.

14. Business not meeting public’s expectations in China
CHINA
Gap
Business
OFFERS HIGH QUALITY PRODUCTS OR SERVICES 64% - 15
Importance 49%
Company
Performance HAS ETHICAL BUSINESS PRACTICES 62% - 20
42%
LISTENS TO CUSTOMER NEEDS AND FEEDBACK 60%
43% - 17
TREATS EMPLOYEES WELL 59% - 22
37%
PLACES CUSTOMERS AHEAD OF PROFITS 58% - 24
34%
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 57% - 19
38%
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 56% - 19
37%
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 56% - 23
33%
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS 54% - 13
41%
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 53% - 18
BUSINESS 35%
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 47% - 13
34%
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 46% -9
IN WHICH THE COMPANY OPERATES 37%
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 45% - 12
33%
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 42% -9
SOCIETAL ISSUES 33%
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BEST 42%
COMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES' 41% -1
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 42%
42% 0
Q52-69. 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 Population in China (excludes ‘Don’t Know’
responses);Q103-118. Please rate [INSERT COMPANY] 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”. (Top 2 Box, Performing Very/ Extremely Well) General Population in China
14 © Edelman, 2012. All rights reserved.

15. Similarly, government not meeting public’s expectations in China
GOVERNMENT IMPORTANCE VS. PERFORMANCE – CHINA
Government
Importance
Government
Performance
Gap
64% -40
HAS TRANSPARENT AND OPEN PRACTICES
24%
63% -38
LISTENS TO CITIZENS' NEEDS AND FEEDBACK
25%
62% -36
COMMUNICATES FREQUENTLY AND HONESTLY
26%
61% -35
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
26%
EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 53% -26
COUNTRY 27%
PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 50% -25
ADDRESS SOCIETAL ISSUES 25%
PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 47% -23
EMPLOYMENT OPPORTUNITIES 24%
CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 47%
LOCAL COMMUNITIES -22
25%
Q132-139. How important is each of the following actions to building your trust in government? Please 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'. (Top 2 Box , Very/Extremely Important) General Population in China; Q140-147. Please rate your government on how well you think they
are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well". (Top 2 Box ,
Performing Very/Extremely Well) General Population in China
15 © Edelman, 2012. All rights reserved.

16. Asia Pacific markets, including China, are more likely than other regions to
trust both business and government leaders to tell the truth
Business
Leaders
Government
Leaders
% WHO DO NOT TRUST THEM AT ALL TO TELL THE TRUTH
73%
69% 69%
66% 66% 65%
60%
51% 53%
50% 51% 50%
50% 48%
46% 47% 46% 46% 46%
44% 43% 43%
42%
41% 40%
40% 38%
36% 36%
34% 36% 34% 34%
30%
27% 28% 29%
26%
23% 24% 24%
21%
17% 17%
14% 15%
13% 14%
10% 11% 9%
10%
5%
Q126A. [SPLIT SAMPLE] How much do you trust business leaders to tell you the truth, regardless of how complex or unpopular it is? (% who say they do not trust them at all) General
Population in 25 country global total and across 25 countries; Q126B. [SPLIT SAMPLE] How much do you trust government leaders to tell you the truth, regardless of how complex or
unpopular it is? (% who say they do not trust them at all) General Population in 25 country global total and across 25 countries
16 © Edelman, 2012. All rights reserved.

17. Despite lack of trust in government, calls for increased regulations—especially
in China
% WHO BELIEVE GOVERNMENT DOES NOT REGULATE BUSINESS ENOUGH
77%
70%
68%
64%
61%
58%
54% 54% 54% 53%
51% 50%
50% 49%
48% 48% 46%
45%
40% 40%
38%
36% 35%
34%
30% 30%
25%
Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (% who selected ‘not
enough’) Informed Publics ages 25-64 in 25 country global total and across 25 countries
17 © Edelman, 2012. All rights reserved.

18. Calls for greater protection and responsible behavior
THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS:
China
Business
31% PROTECT CONSUMERS from irresponsible business practices can address
on its own
27% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly
13% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities
20% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries
6% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis
3% Government SHOULD NOT PLAY A ROLE in business
Perceived drivers of irresponsible behavior:
• Poor management (Global - 29%, APAC - 27%, China - 28%)
• Unethical business practices (Global - 28%, APAC - 31%, China - 24%)
• Shortcuts that lead to poor quality (Global - 21%, APAC - 23%, China - 26%)
Q127. Which of the following items do you think makes people in a company most likely to engage in risky and irresponsible behavior that could damage a company? Informed
Publics ages 25-64 in 25 country global total, Asia Pacific region and China; Q131. Which of the following is the most important role that government should play in business? Informed
Publics ages 25-64 in China
18 © Edelman, 2012. All rights reserved.

19. 19 © Edelman, 2012. All rights reserved.

20. BUSINESS
CAN EARN LICENSE TO LEAD 2008-2009
Low trust in
business and CEOs
Business has
flexibility and speed
THE DYNAMIC OF
TRUST BETWEEN Call for increased
regulation
BUSINESS & protection from
Business leaders GOVERNMENT irresponsible
behavior sought
more trusted than
government leaders
business has advantage
in 24 out of 25 markets
2011
Government
responds
Dwindling trust
in government
policy paralysis
20 © Edelman, 2012. All rights reserved.

21. Business: from license to operate to license to lead
CHINA
CURRENT TRUST BUILDING FUTURE TRUST
Attributes that Correlate with Current Trust Most Important Attributes that Build Trust
62% TRUST BUSINESS 1) High quality products or services
1) Innovator of new products SOCIETAL ATTRIBUTES 2) Has ethical business practices
MORE IMPORTANT TO
2) Ranks on a global list BUILDING FUTURE 3) Listens to customer needs and feedback
TRUST
4) Treats employees well
3) Partners with third parties
5) Places customers ahead of profits
CURRENT TRUST 6) Takes actions to address issue or crisis
DRIVEN BY OPERATIONAL
ATTRIBUTES 7) Has transparent and open business
7) Works to protect/improve environment
9) Addresses society's needs
10) Communicates frequently and honestly
11) Delivers consistent financial returns
12) Positively impacts the local community
13) Highly regarded, top leadership
Societal
Operational
14) Innovator of new products
14) Ranks on a global list
14) Partners with third parties
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 4 Box, Trust) General Population in China; Q52-69. 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 Population in China (excludes ‘Don’t Know’ responses)* ‘Current Trust’ results based on regression analysis of the general population
21 © Edelman, 2012. All rights reserved.

22. A “People like me” rises from the bottom to the most trusted
spokesperson; a regular employee also experienced a dramatic increase
CREDIBLE SPOKESPEOPLE – CHINA
2011 2012
Academic or expert 73% A person like yourself 71% + 48
CEO 50% Technical expert in the company 67% + 31
Government official or regulator 47% NGO representative 61% + 19
NGO representative 42% Academic or expert 60% - 13
Financial or industry analyst 39% CEO 53%
Technical expert in the company 36% Regular employee 50% + 43
A person like yourself 23% Financial or industry analyst 40%
Regular employee 7% Government official or regulator 37% - 10
Q119-126. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64
in China
22 © Edelman, 2012. All rights reserved.

23. In China, skepticism requires repetition
MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE
NUMBER OF TIMES NEEDED TO HEAR INFORMATION – CHINA
Ten or more times (10+),
Once (1), 2%
12%
Twice (2), 14%
Six to Nine times (6-9),
5%
Three times (3), 41%
Four or Five times (4 - 5),
27% Three to Five times
68%
Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be
exposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses)
Informed publics ages 25-64 in China
23 © Edelman, 2012. All rights reserved.

24. Earn License to Lead
Exercise principles-based leadership, not rules based performance
Recognize that operational factors responsible for current trust won’t
build future trust, societal and engagement behaviors will
Practice radical transparency: speak first to employees; report on goals
Shape the public discourse on issues of importance to business
24 © Edelman, 2012. All rights reserved.

25. 25 © Edelman, 2012. All rights reserved.