Edelman goodpurpose® 2012GLOBAL CONSUMER SURVEY – Portada – Miami, June 7, 2012

GOODPURPOSE

PURPOSEis an organization’s reason for being beyond profits, executed through a variety of strategies from sustainability and CSR to Brand Attitude, cause branding, corporate citizenship and NGO collaboration.

+

3

Purpose, now serving 7 Billion.

WHY? OUR CONNECTED WORLD

Consumer Expectation

s

Talent

Social Issues

Globalization

Environment

TrustRadical

Transparency

5

hungry concerned vocal empowered

An Evolving “Consumer”

6

Societal Performance Builds Future Trust

7 © Edelman, 2012. All rights reserved.

1) Delivers consistent financial returns

2) Innovator of new products

3) Highly regarded, top leadership

3) Ranks on a global list

5) Partners with third parties

CURRENT TRUST BUILDING FUTURE TRUST

1) Listens to customer needs and feedback

1) High quality products or services

4) Places customers ahead of profits

4) Takes actions to address issue or crisis

3) Treats employees well

9) Works to protect/ improve environment

6) Has ethical business practices

7) Has transparent and open business

12) Innovator of new products

8) Communicates frequently and honestly

10) Addresses society's needs

11) Positively impacts the local community

15) Ranks on a global list

13) Highly regarded, top leadership

14) Delivers consistent financial returns

16) Partners with third parties

Societal

Operational

47% TRUST BUSINESS

Business: from license to operate to license to lead

SOCIETAL ATTRIBUTES MORE IMPORTANT TO BUILDING FUTURE TRUST

CURRENT TRUSTDRIVEN BY OPERATIONAL ATTRIBUTES

Fifth Global Consumer Study 2012What consumers have to say…

UK500

FRANCE500

CANADA500

BRAZIL500

NETHERLANDS500

BELGIUM500

SINGAPORE500

GERMANY500

ITALY500

INDIA500

CHINA500

JAPAN500

UAE500

US500

INDONESIA500

MALAYSIA500

StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+

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The License to Lead

The NewPurpose Bull Markets

The Reengineeringof Brand Marketing

The Me in We

5 Years ofgoodpurpos

e

The New “Purpose Bull Markets”

11

Who are the Purpose Bull Markets?

CHINAINDIAMALAYSIA

BRAZIL

UAEVS

US UK

FRANCENETHERLAND

S

ITALYBELGIUM

JAPAN INDONESIA GERMANY

12

91% of Brazilian consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests.

Globally: 86%.

Re:Purpose

of new

Supporting the creative arts

Encouraging tolerance for people who are different

Helping to raise people's self-esteem

Supporting animal rights

Fighting the spread of global disease and pandemics

Aiding in disaster relief

Supporting human and civil rights

Ensuring access to safe drinking water

Reducing poverty

Alleviating hunger and homelessness

Equal opportunity to education

Improving the quality of healthcare

Protecting the environment

Stopping relationship violence and abuse

85%

85%

87%

88%

88%

91%

91%

93%

93%

93%

94%

94%

96%

96%

In Brazil, “all demands” are important

14

0.37

0.29

0.56

0.63

Purpose Bull Markets Purpose Bear Markets

Empowered to Make a Difference

COMPARED TO FIVE YEARS AGO, ‘PEOPLE LIKE ME’ NOW HAVE MORE POWER AND INFLUENCE TO MAKE A

DIFFERENCE

THE RESPONSIBILITY OF ‘PEOPLE LIKE ME’ HAS INCREASED

15

Consumers will praise…and punish

Series1 44%

45%

57%

73%

76%

76%

53%

48%

44%

44%

44%

INVEST IN IT

SHARE POSITIVE OPINIONS AND EXPERIENCES

BUY ITS PRODUCTS/SERVICESREFUSE TO BUY PRODUCTS/SERVICES

RECOMMEND ITS PRODUCTS/SERVICESCRITICIZE IT TO OTHERS

NOT WANT TO WORK FOR IT

NOT INVEST IN IT

WANT TO WORK FOR IT

Company that does NOT actively support a good

cause

_ + Company that actively supports a good cause

PAY A PREMIUM FOR ITS PRODUCTS/SERVICES

SHARE NEGATIVE OPINIONSAND EXPERIENCES

86%

87%

83%

75%

+ 7

+ 11

+ 7

+ 7

+ 5

Increase from 2010

BRAZIL

58%

55%

GLOBAL

5 Years of PurposeThe Reengineering of Brand Marketing

Profit + Purpose: The New Normal

17

2008 2009 2010 201220%

30%

40%

50%

60%

70%

80%

90%

57%

68%70%

76%

69%

81%75% 76%

It is OK for brands to support good causes and make money at the same time

Global Brazil

2008 2009 2010 201220%

30%

40%

50%

60%

70%

80%

42% 43%41%

53%

63%

71%

56%

67%

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Growth from 2010• Japan (100%)• China (79%)• Netherlands (43%)• Germany (36%)• India (43%)

Social Purpose as Purchase TriggerWhen quality and price are the same, Social Purpose most important factor

Global

Brazil

19

20102009

2012

PROMOTE

SWITCH

Global and Brazilian Consumers Prefer Purpose

20082009

20102012

53%

59%

62%

71%

67%

63%

73%

20082009

20102012

RECOMMEND52%

64%

63%

72%

GLOBAL BRAZIL

20082009

20102012

71%

81%

80%

85%

20082009

20102012

70%

82%

80%

83%

20092010

2012

83%

74%

84%

20

Purpose is Pervasive

Building Future Trust on Societal Actions

License to Lead

Global

France

Germ

any

Indones

ia

Canad

a

Belgiu

m UK

Brazi

lIta

ly US

Nether

lands

Singap

ore

Japan

Mal

aysi

a

China

UAEIn

dia

87%90%

87%94%

89% 87%84%

91%87% 86% 84% 84%

79%

90%87% 85% 83%

28%

13% 15%

25%21% 20% 18%

26% 23% 23% 22%

30%27%

42% 42%

49%58%

Business is performing well in addressing societal issues

Business is Struggling to Meet ExpectationsPerformance Gap in Addressing Societal Issues

Business should place at least equal weight on society's interests and business' interests

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DONATING A PORTION OF PROFITS

DONATING PRODUCTS OR SERVICES

CREATING NEW PRODUCTS OR SERVICES THAT HELP ADDRESS A SOCIETAL ISSUE

PROVIDING EDUCATIONAL INFORMATION

WORKING WITH THE GOVERNMENT

OFFERING PROGRAMS FOR EMPLOYEES TO PARTICIPATE IN ADDRESSING A SOCIETAL ISSUE

PARTNERING WITH NON-GOVERNMENTAL ORGANIZATIONS

ENABLING EMPLOYEES TO HAVE THE TIME TO VOLUNTEER

ORGANIZING EVENTS THAT CONSUMERS CAN PARTICIPATE IN

COLLABORATING WITH OTHER COMPANIES THAT PRODUCE SIMILAR PRODUCTS OR SERVICES

HAVING A PAGE ON A SOCIAL NETWORKING SITE, SUCH AS FACEBOOK, MYSPACE, LIVEJOURNAL, LINKEDIN, MEEBO, ORKUT, QZONE, MIXI, WEIBO, QQ, YOUKU, RENREN ETC., THAT ALLOWS CONSUMERS TO PARTICIPATE IN ADDRESSING A SOCIETAL ISSUE

OFFERING PROGRAMS FOR EMPLOYEES TO RAISE MONEY

CREATING SOFTWARE APPLICATIONS OR MOBILE 'APPS' THAT ALLOW CONSUMERS TO RAISE FUNDS FOR A SOCIETAL ISSUE

CREATING SOFTWARE APPLICATIONS OR MOBILE 'APPS' THAT ALLOW CONSUMERS TO COMMUNICATE WITH OTHER SUPPORTERS OF A SOCIETAL ISSUE

47%51%

60%66%

30%61%

58%46%

56%49%

45%18%

24%26%

What Should Companies be Doing?In Brazil, it’s important to engage inside out

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Glo

bal

China

India

Brazi

l

Indones

ia

Mal

aysi

aUAE

Italy

Singap

ore

Canad

aUS

France

Ger

man

y

Japan UK

Belgiu

m

Nether

lands

80%

92% 90% 88% 87% 87% 86% 84% 84%80%

76%73% 73% 73% 72% 70% 68%

The More You KnowIt is critical for companies to make consumers aware of their efforts

Who is meeting the expectations?

1 2 3 4 5

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5 Years of Learning

Purpose key driver in reengineering brand marketing

Purpose definitive purchase trigger

Corporations earn License to Lead via Purpose

Largest growth markets bullish on Purpose

Operational excellence + societal performance rewarded

1

2

3

4

5

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Paul Polman on Trust

“I think this is a great time for brands which can provide a beacon of trust for consumers. These days, CEOs don’t just get judged by how well their share prices are doing, but by what impact they are having on society. “

The Power of Purpose

From product innovation and R&D, to supply chain optimization and 360 marketing, the power of Purpose drives consumer preference.

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What’s Your Purpose?

Carol.Cone@Edelman.comTwitter@carolcone