1. ALL CONTENTS OF THIS PRESENTATION REMAIN THE INTELLECTUAL PROPERTY OF EDELMAN AND MAY NOT BE REPLICATED WITHOUT PRIOR PERMISSION Employee Insights from the 2013 Edelman Trust Barometer Employee Engagement Practice

2. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com About the 2013 Edelman Trust Barometer 13 th annual survey and the largest global exploration of trust, with 31,000+ respondents in 26 countries crisis of leadership, inclusive management This year’s data reveals a crisis of leadership, indicating the need for organizations to rebuild executives’ internal credibility, reinforce ethical behavior and adopt an inclusive management approach 2

3. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Employees with technical expertise are far more trusted than top executives Employees continue to be a steady, reliable source of information, especially compared to the CEO 2013 2012 3

4. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Regular employees have three times the credibility of the CEO on working conditions Who is Trusted MOST to provide you with credible and honest information about: Company’s CEO Company’s Employee Activist ConsumerAcademic Media Spokesperson A company’s employee programs, benefits & working conditions 21% 63% 16%13%11% How a company serves its customers and prioritizes customer needs ahead of company profits 19%30% 44% 16%15% A company’s situation in a time of crisis 30% 35% 18%22%23% A company’s innovation efforts and new product development 31% 27%25%13% How a company uses its resources and influence to support the environment 21%26% 34% 27%13% How a company supports programs that positively impact the local community 22%27% 35% 20%23% Partnerships with NGO’s and effort to address societal issues 25% 20% 25% 23%15% A company’s financial earnings & operational performance 34% 27%23% 12% A company’s business practices, both positive & negative 23% 36% 29%21%15% Accomplishments about a company’s senior leadership 35%34% 17%19% Employees are one of the most credible voices on a variety of topics, especially work environment 4

5. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Companies are largely perceived as failing to treat employees well Gap Importance Performance Biggest gap in survey between expectations vs. performance in study 5 -22 -32 -37 -36 -30 -33 -31 -33 -27 -23 -24 -11 -15 -16 -10 -18

6. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Executives and regular employees disagree on the importance of treating employees well 1Listens to customer needs and feedback56% 1High quality products or services56% 3Has ethical business practices54% 3Takes actions to address issue or crisis54% 5Places customers ahead of profits53% 5Treats employees well53% 7Communicates frequently and honestly51% 7Has transparent and open business51% 7Works to protect/improve environment51% 10 Addresses society's needs47% 10Positively impacts the local community47% 12Innovator of new products45% 13Highly regarded, top leadership44% 14Delivers consistent financial returns40% 15Ranks on a global list38% 16 Partners with third parties35% 1High quality products or services63% 2Listens to customer needs and feedback62% 3Treats employees well61% 4Places customers ahead of profits58% 5Has ethical business practices57% 5Takes actions to address issue or crisis57% 7Has transparent and open business56% 8Communicates frequently and honestly53% 8Works to protect/improve environment53% 10 Addresses society's needs47% 11Positively impacts the local community46% 12Innovator of new products43% 13Highly regarded, top leadership39% 14Partners with third parties36% 14Ranks on a global list36% 14 Delivers consistent financial returns36% Executives Employees Executives rank it 5 th, while employees rank it 3 rd in prioritization of trust attributes 6

7. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Regular employees are far more skeptical than executives of all sources of information Executives more likely to trust the CEO and regular employees 7

8. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Executives and employees blame different issues for their distrust in business Employees point to wrong incentives, while executives blame fraud, transparency issues 8

9. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Three key actions to build trust Use storytelling to demonstrate integrity in action Employees with employees Employees with world Employees with company Encourage a culture of inclusive management Leverage employees ambassadors strategically where they have credibility 9

10. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Use storytelling to demonstrate integrity in action Employees with company Pair key messages with key stories from leaders’ actual experiences Coach executives to mine their professional lives for anecdotes that demonstrate what company strategy, values and culture mean to them Storytelling on ethics, compliance and integrity reinforces culture without lecturing Storytelling prompts Talk about a situation where you were faced with a difficult decision and used your values to make a choice. Describe a time your parents taught you the meaning of an important value. Tell us about one of your role models and something specific they did to earn your respect. Storytelling prompts Talk about a situation where you were faced with a difficult decision and used your values to make a choice. Describe a time your parents taught you the meaning of an important value. Tell us about one of your role models and something specific they did to earn your respect. 10

11. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Encourage a culture of inclusive management Invite a variety of voices to the decision-making table and listen to them Allow employees to have a say in decisions that affect them Regularly monitor employee sentiments internally and externally (Yammer, online focus groups, employee user groups, job-rating rates When possible, act on feedback Employees with employees 11

12. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Leverage employee ambassadors strategically where they have credibility Tap employees as ambassadors on their company experience, benefits programs, culture and working conditions Leverage employees in recruiting; enlist volunteers to interact with candidates via the company’s digital and social channels Showcase the “people behind the products” for innovation storytelling Employees with world 12

13. © Edelman Employee Engagement Practice, 2013. All rights reserved. For more information, contact employee.engagement@edelman.com.employee.engagement@edelman.com Edelman’s Employee Engagement Practice helps companies create employee connections that deepen engagement, increase trust and accelerate business performance. Contact us: employee.engagement@edelman.comemployee.engagement@edelman.com On the web: ee.edelman.comee.edelman.com Complete information on the Trust Barometer: trust.edelman.comtrust.edelman.com For more information 13