The 2011 Edelman Trust Barometer found that: 1) South Korea had the highest levels of trust in NGOs compared to other Asian countries and globally, but only half of South Koreans trusted the government and business. 2) South Koreans were more trusting of NGOs than business, unlike most other Asian countries surveyed where business was more trusted. 3) Along with companies headquartered in emerging markets, only Singapore and South Korea trusted companies headquartered in South Korea. 4) While a majority of South Koreans agreed with Milton Friedman's view that the role of business is to increase profits, nearly seven in ten also believed corporations need to align shareholder value creation

1. 2011 Edelman Trust Barometer

2. Edelman Trust Barometer at a glance
Eleventh annual study
5,075 people in 23 countries of which 200 in South Korea
Ages 25 to 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
APAC Select Countries: India, China, Japan, South Korea,
Indonesia, Singapore, Australia (China N=375 aged 25-64; All others N=200
aged 25-64)
2

3. State of Trust
Shifting center of gravity

4. South Korea most trusting of NGOs; least trusting of business
Trust in Institutions
Global Asia Pacific S. Korea
100%
90%
80%
70%
64%
62% 62% 62% 61% 61%
60% 58%
54% 53%
50% 51%
50% 46%
40%
30%
20%
10%
0%
NGOs Business Government Media
A7-A10. I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On 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, how much do you trust [INSERT] to
do what is right? (Top 4 Box) Informed Publics ages 25-64 in 23 Countries, Asia Pacific and S. Korea.
4

5. South Korea has highest levels of Trust in NGOs
Trust in NGOs
Informed Publics ages 35-64
US UK/FR/GER S Korea China
80%
75%
70%
65%
63%
60%
55%
55%
53%
53%
50%
48%
45%
40%
36% 39%
35%
31%
30%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
A10. [Non-governmental organizations TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that
institution to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 35-64 in US, UK/FR/GER, S Korea and China
5

6. South Korea only APAC country where business is not trusted by a majority
Trust in Business (2010 – 2011)
2010 2011
100% +16 Trusters Neutral Distrusters
90%
80%
80% +2 -8
70%
70% 67% 67%
64% 63% 62% 61%
61%
58% 57% 53%
60% 54% 56% 54% 54%
50% 46% 47% 45% 46%
40%
30%
20%
10%
0%
Global APAC US Indonesia India Singapore China Australia Japan South
Korea
A9. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is
right. On 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, how much do
you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
6

7. South Korea more trusting of NGOs than business, in contrast to most other
APAC countries
Trust in Business and NGOs
100%
Business NGOs
90%
80%
80%
70%
70% 66% 67% 65%
64%
62% 61% 62% 61% 61% 63% 62%
58%
60% 55% 54% 53% 51%
50% 46% 46%
40%
30%
20%
10%
0%
Global APAC US Indonesia India Singapore China Australia Japan South
Korea
A7-10. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right. On
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, how much do
you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 in 23 countries
7

8. Just over half in South Korea trust media; trust stable since 2010
Trust in Media (2010 – 2011)
2010 2011 Trusters
+11
100% +17
Neutral Distrusters
90% 86%
+7
80%
80% 75%
+4
70%
63% 63%
+12
61%
60% - 11 59% 58%
54% 53%
49% 49% 50% 48%
50% 45%
38% 36%
40%
32%
30%
30% 27%
20%
10%
0%
Global APAC US Indonesia China Singapore South India Japan Australia
Korea
A8. [Media in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution
to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
8

9. Half in South Korea trust government; trust unchanged from 2010
Trust in Government (2010 – 2011)
2010 2011
100% +14
Trusters Neutral Distrusters
88%
90%
+5 84%
80% 74% 77%
+5 -6
70% 64% 62% 62% +11
59%
60%
52% 52% 51% 50% 50%
50% 47% 46%
42% 43% 44%
40% 41%
40%
30%
20%
10%
0%
Global APAC US China Singapore Indonesia Australia Japan South India
Korea
A7. [Government in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution
to do what is right. On 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, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 (Global excludes Singapore, UAE and Argentina)
9

10. Along with companies in BRIC, companies headquartered in South Korea are
least trusted
Most Trusted National Identity for Companies – Global
2010 2011
Trusted HQ Countries Distrusted HQ Countries
100%
90%
+3
80% 75% 76% 76% 75% 76% 73% 71%
73%
69% 69% 69% 69% 68%
64% 65%
70%
61% 63% +3 +4
60% +5 +5
50% 50%
50% 44%
42% 40%
39% 39%
40% 36% 34% 35%
30%
30%
20%
10%
N/A N/A
0%
A13-29. [TRACKING] Now I would like to focus on global companies headquartered in specific countries. Please tell me how much you TRUST global companies
headquartered in the following countries to do what is right. 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) Informed Publics ages 25-64 in 20 countries (excludes Singapore, UAE and Argentina)
10

11. Emerging markets, Singapore and South Korea the only countries to trust
companies headquartered in South Korea
Trust in Companies Headquartered in S. Korea
100% Trusted Distrusted
90%
83%
80%
80%
70% 66%
62% 60%
59% 57%
60% 55%
51%
50% 46% 46%
41% 41% 41%
38% 37% 37% 36% 36%
40% 34%
30% 28%
30% 24% 22%
20%
10%
0%
A13-29. (South Korea) Now I would like to focus on global companies headquartered in specific countries. Please tell me how much you TRUST global
companies headquartered in the following countries to do what is right. 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 23 Countries
11

12. Technology most trusted industry globally and in South Korea; Energy one
of top trusted industries in South Korea in contrast to global results
Asia
Trust in Industries Pacific
Technology 81% 87% 83% #1
Automotive 69% 77% 73% #3
Telecommunications 68% 78% 71% #4
Food and beverage 66% 66% 56%
Biotech 65% 67% 68% #5
Retail 65% 71% 58%
Entertainment 63% 67% 58%
Pharmaceuticals 63% 72% 64%
Energy 62% 68% 74% #2
Consumer packaged goods 59% 59% 56%
OTC personal health care products 57% 61% 53%
Brewing and spirits 57% 54% 56%
Media 54% 64% 58%
Insurance 52% 65% 51%
Banks 51% 75% 64%
Financial services 50% 66% 64%
Significant at 95%
confidence level
A30-45. [TRACKING] Now I would like to focus on your trust in different industry sectors. Please tell me how much you TRUST businesses in each of the
following industries to do what is right. Again, please use a nine-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) Informed publics ages 25-64 in in 23 countries, APAC and S. Korea.
12

13. Trust Index 2009 – 2011: South Korea’s trust composite score increases and
it edges up in the Trust Index ranking
2009 2011
China 61 Brazil 80
Brazil 58 Indonesia 74
India 58 China 73
Indonesia 58 Singapore 67
Global 49 India 56
Japan 49 Global 55
Australia 47 S. Korea 53
S. Korea 45 Australia 51
UK 42 Japan 51
Germany 42 France 50
France 41 Germany 44
US 36 US 42
Singapore N/A UK 40
Composite score is an average of a country’s trust in all four institutions
Ages 25-64 (Global excludes Singapore, UAE and Argentina)
13

14. Business and Society
Toward shared value

15. Seven out of 10 in South Korea agree with Milton Friedman’s assertion that
―the social responsibility of business is to increase its profits‖
Milton Friedman: “The social responsibility of business is to increase its profits”
% who agree
100%
90% 84%
80%
72% 70% 70%
70% 64%
60%
60% 57% 57% 56% 55%
52% 50%
49% 48%
50% 44% 44% 43% 43%
39% 37%
40% 35%
33%
30%
30%
20%
10%
0%
G124. Please tell me if you strongly agree, somewhat agree, neither agree nor disagree, somewhat disagree or strongly disagree with the following quote
from Milton Friedman: ―The social responsibility of business is to increase its profits‖? (Net: Strongly agree + somewhat agree) Informed Publics ages 25-64
in 23 countries
15

16. But nearly seven out of 10 also believe business must align with society’s
interests in creating shareholder value
Believe corporations need to create shareholder value in a way that aligns with
society’s interests, even if that means sacrificing shareholder value
100%
91% 89% 89% 89%
90% 85% 85% 85%
82% 81% 81% 80%
79% 78% 78%
80% 74% 73% 72%
71% 71%
70% 67%
63% 62%
60% 55%
50%
40%
30%
20%
10%
0%
G120. Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way in
which they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’s
interests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in 23 countries
16

17. Less than a majority in South Korea agree government needs to step in to
ensure business behaves responsibly
Believe that government needs to regulate corporations’ activities
to ensure that they are behaving in a responsible manner
100%
90%
82% 82%
80% 74% 73%
70% 69%
70% 67% 66%
63% 63% 62% 61% 61%
58% 57% 56%
60%
53% 53%
50% 49%
48%
50% 44% 42%
40%
30%
20%
10%
0%
G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible manner
OR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publics
ages 25-64 in 23 countries
17

18. Expectation for companies to consult multiple stakeholders
Importance of Stakeholders to a CEO’s business decisions – S Korea
100%
90%
80% 74% 74%
70%
70% 67%
61%
60%
50%
40%
30%
20%
10%
0%
Customers Employees Society Local Communities Government
E112-117. [TRACKING] Now I would like to read you a list of business stakeholders. When a CEO makes business decisions for his or her company,
please tell me how important you believe the interests of each of the following stakeholders should be to that CEO’s business decisions using a scale of 1 to
9 where 1 means that stakeholder’s interests should not be important at all to the CEO’s business decisions and 9 means that stakeholder’s interests
should be extremely important to the CEO’s business decisions. Let’s start with [INSERT FIRST]. How important should [INSERT FIRST]’s interests be to
CEO’s decisions? (Top 4 Box, Important) Informed Publics ages 25-64 in South Korea
18

19. High quality, trust, and frequent communication
most important to corporate reputation in South Korea
Reputation Factors Asia
Pacific
Offers high quality products or services 94% 93% 85% #1
Has transparent and honest business practices 92% 90% 77%
Is a company I can trust 92% 89% 85% #1
Treats employees well 92% 91% 82%
Prices its brands fairly and competitively 90% 91% 83% #2
Communicates frequently and honestly on the state of
its business 89% 90% 85% #1
Is a good corporate citizen 88% 88% 77%
Is an innovator of new products, services or ideas 87% 85% 82%
Delivers consistent financial returns to investors 79% 84% 74%
Has highly-regarded and widely admired top
leadership 78% 73% 72%
Significant at 95%
confidence level
B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? Please use a nine-point scale where one
compared to global
means that factor is ―not at all important‖ and nine means it is ―extremely important‖ to overall reputation. The first one is [INSERT FIRST]. How important
is this factor to overall reputation on a 9-point scale where one means ―not at all important‖ and nine means ―extremely important‖? (Top 4 Box, Important)
Informed Publics ages 25-64 in 23 countries, Asia Pacific and S. Korea
19

20. A CEO Renaissance

21. Spokesperson credibility increases for CEO, regular employee
and ―person like yourself‖
Credible Spokespeople – S. Korea
2010 2011
100%
90%
81%
80% 76% +13 +22
74%
71% +14
70% 67% 68%
63% 63%
59% 59%
60%
50% 50%
50% 45%
42%
40% 37%
30%
20%
10%
N/A
0%
Technical An academic A financial or NGO CEO Regular Person like Government
expert within or expert industry representative employee yourself official
the company analyst
D104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about
a company from that 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 S. Korea.
21

22. CEO credibility gaining in many APAC countries, including South Korea
Credible Spokespeople – CEO
APAC
100% +20 2010 2011
90%
+7 78%
+14 +13
80%
+10
70% 67% 66% +11
63%
58% 58% 58%
60%
51% 53% 53%
50% 50% 50% 50% 49%
50% 45%
40% 38%
40% 34%
31%
30%
20%
10%
0%
Global APAC US India Japan South Singapore China Indonesia Australia
Korea
D104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about
a company from that 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 (Global excludes Singapore, UAE and Argentina)
22

23. Depending on the crises situation, various voices required
Though CEO must lead the charge
S. Korea
Trusted spokesperson Preferred spokesperson Preferred spokesperson when the
during a company crisis during a product recall local community has been damaged
60% 60%
60%
54%
50% 50%
50%
43%
40% 40%
40%
30% 27% 30% 27%
30%
24%
21%
20% 20%
15% 20%
11% 12%
9%
10% 10% 7% 6% 9% 9% 9%
5% 10% 6%
4%
0% 0%
0%
D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest information about
that crisis. Informed Publics ages 25-64 in S. Korea.
D101. Keeping the same list of people in mind, when a company issues a product recall, which one person do you want to hear information from about that recall? Informed Publics ages 25-64
in S. Korea.
D102. Keeping the same list of people in mind, when a company’s actions have damaged the local community where it operates, which one person do you want to hear information from about
that damage? Informed Publics ages 25-64 in S. Korea
23

24. People go to online search engines first for news and information
about a company
Where Informed Publics go for company news and information – S. Korea
First Source Second Source
Online search engine 39% Online news sources 32%
Are these the same types of sources
you consult first for information
Online news sources 26% Social media 17% about a business crisis?
Print
(newspapers/magazines)
16% Broadcast (radio/TV) 15%
No,
16%
Social media 9% Online search engine 13%
Broadcast (radio/TV) 8%
Print
11% Yes,
(newspapers/magazines)
83%
Company website 1% Friends and family 6%
Friends and family 1% Company website 5%
0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%
(NETS) I139. There are a number of sources one could use to find general news or information about a company. When looking for general news or information about a company, which one type
of information source would you generally consult first? I140. And after [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking for
general news or information about a company? II141. Now, thinking about a business crisis, are [INSERT I139 AND I140 RESPONSE] the same types of sources you consult first for information
about a business crisis? Informed Publics ages 25-64 in S. Korea
24

25. South Korea most trusting of newspapers, TV and radio as sources of
information about a company
Trusted Information Sources – Trust a Great Deal
APAC
Television or television news 41%
25% #2
Traditional
Newspapers 40%
31% #1
Radio or radio news 28%
23% #3
Magazines or business magazines 23% 9%
Online search engines 25%
sources
Multiple
Online
17%
News/RSS feeds 18% 20%
Content-sharing sites, such as YouTube 10%
14%
Social Media
Social networking sites 10%
19%
Blogs 8%
8%
Microblogging sites, such as Twitter 7% 15%
Corporate
Corporate communications such as press releases 24% 21%
Corporate/product advertising 11%
12%
Significant at 95%
confidence level
H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me if you trust it – a great deal,
somewhat, not too much, or not at all as a source of information about a company? (Trust A Great Deal) Informed Publics ages 25-64 in APAC and S. Korea.
25

26. Informed publics need information from multiple sources, multiple voices
And need to hear it 3-5 times to believe it
S. Korea
Ten or more times
Six to Nine times (6-9), (10+), 2% Once (1), 6%
5%
Twice (2), 21%
Four or Five times (4 -
5), 25%
3-5 times
66%
Three times (3), 41%
H137. 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 give me a number.
Informed publics ages 25-64 in S. Korea.
26

27. The Benefits of Trust

28. Trust protects reputation
S. Korea
When a company is distrusted When a company is trusted
51% will believe
negative information
after hearing it 1-2 times
38%
will believe
positive information
will believe positive after hearing it 1-2 times
18%
information after 32%
hearing it 1-2 times
will believe negative information
after hearing it 1-2 times
-Think about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information)
about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in S. Korea.
-Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) about
that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in S. Korea.
28

29. Through personal action, trust has tangible benefits
Actions Taken Over Past 12 Months – S. Korea
Distrusted Companies
_+ Trusted Companies
85% 89%
Refused to buy products/services Chose to buy products/services
79% 83%
Criticized them to a friend/colleague Recommended them to a friend/colleague
56%
Paid more for products/services
60% 72%
Shared negative opinions online Shared positive opinions online
44% 47%
Sold shares Bought shares
F118. [TRACKING] Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please
answer yes or no to each action. (Percent ―Yes‖) Informed Publics ages 25-64 in S. Korea.
F119. [TRACKING] Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust?
Please answer yes or no to each action. (Percent ―Yes‖) Informed Publics ages 25-64 in S. Korea.
29

30. Conclusions
Business must collaborate with other institutions
Transparency and consultation increasing as
reputation drivers
Current media landscape plus increased
skepticism requires multiple voices and channels
Trust is a protective agent
30

31. The Transformation of Trust
Old Trust Framework New Trust Architecture
Control Information
Protect the Brand
Stand Alone
WHAT
Focus Solely on Profit Profit With Purpose
31