The Burson-Marsteller/CNBC Corporate Perception Indicator

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GENERAL PUBLIC C-SUITE Sample

Size Margin of Error Sample Size

Margin of Error

Total Sample 25,012 ±0.62% 1,816 ±2.3%

United States 1000 ±3.10% 76 ±11.24%

Canada 1001 ±3.10% 75 ±11.32%

Brazil 1004 ±3.09% 77 ±11.17%

Mexico 1000 ±3.10% 76 ±11.24%

Colombia 1003 ±3.09% 54 ±13.34%

Germany 1010 ±3.10% 78 ±11.10%

France 1002 ±3.10% 77 ±11.17%

United Kingdom 1013 ±3.08% 75 ±11.32%

Russia 1015 ±3.08% 79 ±11.03%

Italy 1009 ±3.09% 76 ±11.24%

Spain 1000 ±3.10% 75 ±11.32%

Netherlands 1003 ±3.09% 75 ±11.32%

Poland 1000 ±3.10% 75 ±11.32%

China 1000 ±3.10% 75 ±11.32%

Japan 1000 ±3.10% 77 ±11.17%

South Korea 1000 ±3.10% 75 ±11.32%

India 1001 ±3.10% 75 ±11.32%

Indonesia 1000 ±3.10% 75 ±11.32%

GENERAL PUBLIC C-SUITE

Sample Size

Margin of Error

Sample Size

Margin of Error

Malaysia 1001 ±3.10% 75 ±11.32%

Singapore 1000 ±3.10% 77 ±11.17%

Hong Kong 1000 ±3.10% 75 ±11.32%

Turkey 1025 ±3.06% 60 ±12.65%

UAE 923 ±3.23% 75 ±11.32%

South Africa 1000 ±3.10% 34 ±16.81%

Australia 1002 ±3.10% 75 ±11.32%


Sample Size

Margin of Error

Sample Size

Margin of Error

North America 2001 ±2.19% 151 ±7.98%

Latin America 3007 ±1.79% 207 ±6.81%

Europe 8052 ±1.09% 610 ±3.97%

Asia 8002 ±1.10% 604 ±3.99%

Middle East 1948 ±2.22% 135 ±8.43%

Emerging Markets 11972 ±0.90% 830 ±3.40%

Developed Markets 13040 ±0.86% 986 ±3.12%

BRIC 4020 ±1.55% 306 ±5.60%

Penn Schoen Berland fielded the survey June 28 through August 15, 2014 using a sample provided by Kantar.

SAMPLE SIZES

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AUDIENCE DEFINITIONS General Public (GP): Individuals 18 years and older

C-Suite: Executives at companies with 50+ employees with job titles of at least director, often including vice presidents and above

Regions: North America: United States, Canada Latin America: Mexico, Brazil, Colombia Europe, Middle East, Africa: Germany, France, UK, Russia, Italy, Spain, Netherlands, Poland, Turkey, UAE, South Africa Asia-Pacific: China, Japan, Korea, India, Indonesia, Malaysia, Singapore, Hong Kong, Australia

Other groups highlighted throughout: Emerging Markets: Brazil, Mexico, Colombia, Russia, Poland, China, India, Indonesia, Malaysia, Turkey, UAE, South Africa Developed Markets: United States, Canada, Germany, France, United Kingdom, Italy, Spain, Netherlands, Japan, Korea, Singapore, Australia, Hong Kong* BRIC: Brazil, Russia, India, China *Hong Kong SAR included separately from China given economic distinctions

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Executive Summary

Survey conducted by Penn Schoen Berland.

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Six years after the 2008 Financial Crisis, Burson-Marsteller and CNBC surveyed 25,000 individuals in the general public and more than 1,800 corporate executives in 25 markets around the world. The objective was to understand the hopes, fears and expectations about corporations and corporate executives in society and the economy and how to strengthen their reputations.

PURPOSE

There are signs globally of positive attitudes towards corporations Corporations generally are viewed as playing a positive role in job creation,

economic growth and innovation Most major industries are viewed favorably in both developed and

emerging markets They tend to be seen as having become more socially and environmentally

responsible

KEY FINDINGS: SEVERAL KEY DETERMINATIONS EMERGE THAT SET THE CONTEXT FOR THE ENTIRE REPORT:

1. Survey finds significant strength of corporate reputations, but still real work to be done

Despite those positive attitudes, both the general public and business leaders retain reservations about the economic, political and social activities of corporations Large majorities in developed markets say the financial crisis did not humble

corporations, leaving them to act no more responsibly than in 2008 Challenges, most prominent in developed markets, include concerns about

whether corporations will play a positive role in the future, their influence over government and whether they pay a fair share of taxes

2. Where you sit shapes your views of corporations and CEOs

MAIN STREET VS. C-SUITE In developed markets, there is a sharp difference between how the general public (more skeptical) and how C-Suite business leaders (more positive) view corporations

DEVELOPED VS. EMERGING MARKETS The general public in emerging markets has a strongly positive view of the role corporations play, while the general public in developed markets tends to have less favorable views

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KEY FINDINGS (CONTINUED)

US VS. CHINA The US general public and the Chinese general public sit on opposite sides of the spectrum on their views of both corporations today and the role of corporations in the future (Chinese have far more positive opinions of corporations than Americans)

MILLENNIALS Pluralities of US Millennials (ages 18-34), along with Baby Boomers (ages 50-64), see corporations as a source of fear, while a plurality of Americans over 65 years sees them as a source of hope

2. Where you sit shapes your views of corporations and CEOs

CEOs are viewed as among the most “powerful” people in society, but not the most “respected” – recasting the role of the CEO in a positive light is essential

3. CEOs have great potential to reshape perceptions by redefining their own roles

Contributions to economic growth and job creation Social responsibility, especially related to the environment Policies toward employees Corporate purpose

4. Corporations and their CEOs have pathways for strengthening their reputations through greater communications about a range of activities that respondents say matter but don’t hear enough about, including:

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Survey finds real improvement of corporate reputations, but also significant work still to be done to dispel qualms about the corporate sector and its leaders


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An overwhelming majority of the global general public believes corporations play a positive role in economic growth, jobs and innovation In developed markets, corporations are not seen as a positive a force on taxes or inequality

Corporations play a positive role in…

83% 81% 81% 81% 78% 75% 69% 69% 66% 65%

61% 59% 58%

70% 66% 67%

73% 64%

58% 51%

55% 52% 45% 42% 40% 40%

Creatingeconomic

growth

Creating jobs Drivinginnovation

Providingconsumerproducts

Providingworkforce

training

Supportingfinancialmarkets

Providinghealthcarecoverage

Promotingdiversity

Providingretirement

benefits

Paying a fairshare of taxes

Address payinequality for

women

Helping thegovernment togovern fairly

and effectively

Addressingincome

inequality

Emerging GP Developed GP

Q: Do you think corporations generally play a positive role or a negative role in each of the following?

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Solid majorities of the public in both developed and emerging markets view most major industries favorably

Q: How favorable are you towards the following industries?

90 85 84 84 81 81

76 75 72 70 69 69 64 61

84 79 76 79

65 65 69

56 47

60 52

47 50 47


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Corporations are viewed as having become more socially responsible, particularly by respondents in emerging markets

24% 18%

11% 4%

65% 77%

GP C-Suite

Q: Do you think corporations have become more or less socially responsible over the past decade?

MORE SOCIALLY RESPONSIBLE

LESS SOCIALLY RESPONSIBLE

39% 30%

17% 7%

44% 62%

GP C-Suite

DON’T KNOW

EMERGING MARKETS DEVELOPED MARKETS Nearly 1/3 of C-

Suite in developed markets say they are becoming less socially responsible

52% of the

general public and C-Suite in Germany say less socially responsible GP C-SUITE

GP C-SUITE

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Corporations are overwhelmingly seen as becoming more environmentally responsible

29% 22%

7% 3%

64% 75%

GP C-Suite

Q: In general, do you think corporations are becoming more or less environmentally responsible?

26% 26%

14% 6%

60% 68%

GP C-Suite

MORE SOCIALLY RESPONSIBLE

LESS SOCIALLY RESPONSIBLE

DON’T KNOW

EMERGING MARKETS DEVELOPED MARKETS

GP C-SUITE GP C-SUITE

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Despite improvements, less than a quarter of the general public in developed markets says corporations have been humbled by the economic crisis

39%

23%

48%

44%

52%

55%

47%

41%

9%

22%

6%

15%

C-Suite

GP

C-Suite

GPEMERGING MARKETS

DEVELOPED MARKETS

CORPORATIONS GENERALLY WERE NOT HUMBLED BY THE ECONOMIC CRISIS THAT

BEGAN IN 2008 AND THEY DO NOT ACT MORE RESPONSIBLY THAN THEY DID

BEFORE

THE ECONOMIC CRISIS THAT BEGAN IN 2008 GENERALLY HUMBLED CORPORATIONS, AND

THEY NOW ACT MORE RESPONSIBLY DON’T KNOW

Q: Which is closer to your view?

The general public and C-Suite in Germany are most likely to say corporations have not been humbled (73% and 74%, respectively).

GP

C-SUITE

GP

C-SUITE

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In developed markets, no consensus among general public and C-Suite on whether corporations are a source of hope or fear Nearly half of the general public sees corporations as a source of hope in developed markets as well and 1 in 4 are not sure, indicating they could be swayed towards hope

58%

44%

70%

64%

32%

30%

23%

22%

11%

26%

7%

13%

C-Suite

GP

C-Suite

GP

CORPORATIONS ARE A SOURCE OF HOPE

CORPORATIONS ARE A SOURCE OF FEAR DON’T KNOW

Q: Thinking about the role of corporations in the future, which is closer to your view?

GP

C-SUITE

GP

C-SUITE

EMERGING MARKETS

DEVELOPED MARKETS

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The general public in developed and emerging markets strongly disagree whether strong corporations are a good thing General public and C-Suite are again more aligned in emerging markets than developed

51%

35%

61%

58%

42%

46%

35%

34%

7%

18%

4%

9%

C-Suite

GP

C-Suite

GP

IT IS A GOOD THING WHEN CORPORATIONS ARE STRONG AND INFLUENTIAL, BECAUSE THEY ARE THE ENGINES OF INNOVATION AND ECONOMIC GROWTH

IT IS A BAD THING WHEN CORPORATIONS ARE STRONG AND INFLUENTIAL, BECAUSE THEY RIG THE

SYSTEM SO THEY DO NOT HAVE TO ACT RESPONSIBLY DON’T KNOW

GP

C-SUITE

GP

C-SUITE

EMERGING MARKETS

DEVELOPED MARKETS

15 15

39%

24%

46%

40%

56%

62%

50%

52%

5%

14%

4%

9%

C-Suite

GP

C-Suite

GP

Globally, majorities of both the general public and business leaders see corporations as not paying what they owe in taxes – especially in developed markets

GP

C-SUITE

GP

C-SUITE

CORPORATIONS TEND TO PAY WHAT THEY OWE IN TAXES – ONLY A FEW TAKE

ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE

CORPORATIONS TEND TO TAKE ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE OF TAXES – ONLY A FEW PAY

WHAT THEY OWE DON’T KNOW

China is the outlier, with 63% of both audiences saying corporations tend to pay what they owe


EMERGING MARKETS

DEVELOPED MARKETS

16

13%

1% 11%

5% 14%

7%

19% 8%

17% 38% 19% 43%

19% 33%

26%

35%

70% 61%

69%

52%

68% 60% 56% 57%

GP C-Suite GP C-Suite GP C-Suite GP C-Suite

Corporations tend to take advantage of loopholes to avoid paying their fair share of taxes – only a few pay what they owe

Corporations tend to pay what they owe in taxes – only a few take advantage of loopholes to avoid paying their fair share

Don’t know

US CANADA UK NETHERLANDS


Markets where tax inversions are happening, including the US, tend to have negative views on corporate tax payment General public in the Netherlands is slightly more likely than others to say corporations tend to pay what they owe

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Perspectives diverge between “Main Street” and “C-Suite,” especially in developed markets


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24% 40%

14% 16%

72% 52%

86% 82%

EmergingCountries

DevelopedCountries

EmergingCountries

DevelopedCountries

C-Suite is more consistent than the general public globally, indicating a global consensus exists among corporate executives

Street and Suite tend to be more aligned in emerging markets, more divided in developed markets

Q: How favorable are you towards the following institutions? Corporations

35%

39%

44%

38%

48%

48%

30%

41%

11%

12%

9%

13%

DevelopedCountries

EmergingCountries

DevelopedCountries

EmergingCountries

TOO MUCH JUST THE RIGHT AMOUNT

TOO LITTLE

Q. Do corporations have too much, too little, or just the right amount of influence over our economic future?

Where you sit shapes your view of the role of corporations

EMERGING MARKETS

DEVELOPED MARKETS

EMERGING MARKETS

DEVELOPED MARKETS


EMERGING MARKETS

DEVELOPED MARKETS

GENERAL PUBLIC

EMERGING MARKETS

DEVELOPED MARKETS

C-SUITE

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General public in developed markets are the most negative audience C-Suite in developed markets look more like emerging markets than general public within their own

markets

There are significant differences in how the general public in developed and emerging markets talk about corporations

Q: What is the first thing that comes to mind when you think of corporations?

UNITED STATES UNITED KINGDOM

GENERAL PUBLIC

C-SUITE

DEVELOPED MARKETS

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(continued)


FRANCE GERMANY DEVELOPED MARKETS

GENERAL PUBLIC

C-SUITE

21

(continued)


AUSTRALIA

DEVELOPED MARKETS

GENERAL PUBLIC

C-SUITE

22

(continued)


CHINA BRAZIL

GENERAL PUBLIC

C-SUITE

EMERGING MARKETS

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(continued)


INDIA UNITED ARAB EMIRATES

GENERAL PUBLIC

C-SUITE

EMERGING MARKETS

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(continued)


SOUTH AFRICA

GENERAL PUBLIC

C-SUITE

EMERGING MARKETS

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There is a generational divide within the US general public over consumer priorities and perspectives


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35+

43%

41%

16%

I WILL SPEND MORE MONEY TO PURCHASE A PRODUCT MADE

DOMESTICALLY

I WILL PURCHASE THE LESS EXPENSIVE OPTION, NO MATTER

WHERE IT WAS MADE DON’T KNOW

18-34 55% 27%

18%

It is far more important to older Americans that products are made in America UNITED STATES

Q: Which of the following is closer to your view? Showing US General Public

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Q: If a corporation outsources its manufacturing to another country, does that tend to make you more or less favorable toward it?

Showing US General Public

32%

22%

17%

11%

36%

43%

6% 2%

Much more favorable

Somewhat more favorable

Somewhat less favorable

Much less favorable

Americans 35 years or older are more likely than Millennials to react negatively to outsourcing

UNITED STATES

35+ 18-34

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Q: How does a corporation’s philanthropic giving influence your purchase habits? Showing US General Public

Millennials are slightly more likely to consider a corporation’s philanthropic contributions when making purchasing decisions

32%

40%

44%

36%

25%

24%

35+

18-34

I’M MORE LIKELY TO PURCHASE A PRODUCT MADE BY A CORPORATION THAT MAKES

PHILANTHROPIC CONTRIBUTIONS

A CORPORATION’S PHILANTHROPIC CONTRIBUTIONS DO NOT INFLUENCE MY

PURCHASE HABITS DON’T KNOW

UNITED STATES

35+

18-34

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Q: Which of the following do you think is the main reason corporations undertake philanthropic efforts? Showing US General Public

The US general public doubts corporations’ philanthropic motivations – especially Americans over 35 years

37% 34%

15% 14%

27%

49%

10% 15%

Improve reputation Tax benefits Genuine belief in the cause Don't know35+

18-34

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Opposite Sides of the World: China and the US Out of Sync


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The general public in China has a significantly more positive opinion of corporations than the general public in the US

42% 21%

49%

75%

UnitedStates

China

Q: How favorable are you towards the following institutions? Corporations Showing General Public

FAVORABLE

UNFAVORABLE

UNITED STATES CHINA

32

73%

17% 12%

80%

15% 3%

Q: In your opinion, is government more on the side of average citizens or corporations? Showing General Public

CORPORATIONS AVERAGE CITIZENS

DON’T KNOW CORPORATIONS AVERAGE

CITIZENS DON’T KNOW

The US general public says the government is on the side of corporations; the Chinese general public says it is on the side of citizens

UNITED STATES CHINA

33 33

The US general public is more than ten times as likely as the Chinese general public to say that corporations have more power than the government

Q: Which of the following has more power? Showing General Public

Government, 51%

Don't know, 11%

Corporations, 38%

Government, 95%

Don't know, 1%

Corporations, 3%

UNITED STATES CHINA

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A majority in China says corporations pay what they owe in taxes, contradicting views in the US and globally

63%

63%

17%

38%

32%

36%

70%

61%

5%

1%

13%

1%

GP

C-Suite

GP

C-Suite


CORPORATIONS TEND TO PAY WHAT THEY OWE IN TAXES – ONLY A FEW TAKE ADVANTAGE OF

LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE

CORPORATIONS TEND TO TAKE ADVANTAGE OF LOOPHOLES TO AVOID PAYING THEIR FAIR SHARE

OF TAXES – ONLY A FEW PAY WHAT THEY OWE DON’T KNOW

UNITED STATES

CHINA

GP

C-SUITE

GP

C-SUITE

35 35

While there is uncertainty over the future of corporations in the US, the Chinese general public clearly sees corporations as a source of hope

84%

36%

7%

37%

9%

28%

China

United States

CORPORATIONS ARE A SOURCE OF HOPE CORPORATIONS ARE A SOURCE OF FEAR DON’T KNOW

Q: Thinking about the role of corporations in the future, which is closer to your view? Showing General Public

UNITED STATES

CHINA

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CEOs have an opportunity to reshape their corporations’ reputations by redefining their own


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Globally, people look to CEOs as some of the most powerful people in society, giving them a position of leadership

Q: Who among the following are the most powerful people in society?

58%

44%

32%

20% 16% 14% 11% 10% 6% 5% 1% 4%

44% 35% 38%

29%

11% 11% 7% 7% 3% 4% 1% 11%

Head ofgovernment

Politicians CorporateCEOs

Central Bankleaders

Journalists Labor unionleaders

Clergy Entertainers Universityleaders

ProfessionalAthletes

Other Don't know


In many developed markets, including the US (47%), Germany (43%) and the UK (42%), CEOs are identified as the most powerful people in society – more so than political leaders

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However, CEOs are not identified as the most respected people in society

Q: Who among the following are the most respected people in society?

32%

25% 23% 19% 19%

16% 13% 11% 10% 8%

3%

10% 14%

17% 22%

10%

16% 16%

6% 7% 6% 5% 4%

28%

Head ofgovernment

Clergy ProfessionalAthletes

CorporateCEOs

Universityleaders

Entertainers Politicians Journalists Central Bankleaders

Labor unionleaders

Other Don't know


Corporate CEOs are more respected by respondents in emerging markets than developed markets, most notably the BRIC nations, minus Russia

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Corporate executives tend to be seen as most motivated by their own compensation


Their compensation (such as salary, bonuses and stock options) 36 34 40 33

Satisfying the corporation’s shareholders 18 18 19 22

Power 19 19 18 14

Satisfying the corporation’s customers 10 11 6 10

Helping to shape society 5 9 3 8

Satisfying the corporation’s employees 5 7 3 8

Don't know 6 2 11 4

General Public in Russia, Germany and South Korea are the most likely to say compensation motivates CEOs, with at least 50% saying compensation motivates corporate executives

Q: What do you think most corporate executives are motivated by?

GP C-SUITE GP C-SUITE

40

There is concern that CEOs care more about growing their own wealth than income inequality

34%

20%

35%

23%

56%

60%

59%

64%

10%

20%

6%

12%

C-Suite

GP

C-Suite

GP

CORPORATE CEOS DO CARE ABOUT GROWING INCOME INEQUALITY EVEN IF THEY ARE

GETTING WEALTHIER BECAUSE IT IS BAD FOR BUSINESS AND THE ECONOMY

CORPORATE CEOS DON'T CARE VERY MUCH ABOUT GROWING INCOME INEQUALITY BECAUSE IT MEANS THEY ARE GETTING

WEALTHIER

Q: Which of the following is closer to your opinion?

EMERGING MARKETS

DEVELOPED MARKETS

DON’T KNOW

GP

C-SUITE

GP

C-SUITE

41

There is uncertainty about the role of CEOs – and, thus, an opportunity for CEOs to define their roles in a positive manner

7% 2%

20%

4% 1% 2%

2%

2%

19% 23%

12%

19%

24% 25% 21%

30%

24% 24% 23% 23%

26% 26% 22% 23%

GP C-Suite GP C-Suite

Communicating with internal andexternal stakeholders to buildsupport for the organisation

Solving issues that theorganisation is facing

Defining the purpose or mission ofthe corporation

Creatively identifying newopportunities

Other

Don't know

Q: Which of the following best describes the role of CEO?

DEVELOPED MARKETS

EMERGING MARKETS

42

Corporations can strengthen their reputations by communicating more on the issues the general public wants to know about more


43

General public has a strong appetite to hear more from corporations about social responsibility

Q: Do you think corporations generally communicate not enough, the right amount, or too much about each of the following issues?

Showing General Public

62%

61%

60%

54%

47%

30%

17%

18%

20%

21%

24%

28%

13%

11%

10%

16%

20%

35%

8%

10%

9%

9%

8%

7%

Social responsibility

Regulatory and legal issues

Employees

Financial performance

Their corporate purpose

New products and services

62%

56%

58%

47%

50%

27%

18%

19%

21%

26%

26%

39%

5%

7%

3%

10%

8%

20%

16%

18%

17%

17%

17%

14%

Social responsibility

Regulatory and legal issues

Employees

Financial performance

Their corporate purpose

New products and services


TOO MUCH NOT ENOUGH THE RIGHT AMOUNT DON’T KNOW

Business

The Burson-Marsteller/CNBC Corporate Perception Indicator