2017 Edelman Trust BarometerHong Kong Report

28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000+). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).

2017 Edelman Trust Barometer Methodology

Informed PublicGeneral Online Population

17 years of data

33,000+ respondents

All fieldwork was conducted between October 13th and November 16th, 2016

Online Survey in 28 Countries

Mass Population

‣ 9 years in 20+ markets

‣ Represents 13% of total global population

‣ 500 respondents in U.S. and China; 200 in all other countries

Must meet 4 criteria:

‣ Ages 25-64‣ College educated‣ In top 25% of household

income per age group in each country

‣ Report significant media consumption and engagement in business news

‣ All population not including Informed Public

‣ Represents 87% of total global population

‣ 6 years in 25+ markets

‣ Ages 18+

‣ 1,150 respondents per country

All slides show General Online Population unless otherwise noted

2016: The Inversion of Influence

Source: 2016 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs. Informed Public and Mass Population, 28-country global total.

Influence& Authority Influence

Authority

MassPopulation

85%of population

48 Trust Index

15% of population

60 Trust IndexInformed

Public

12 point trust gap

The Inversion of Influence in Action

Trust Barometer Supplement: Post-U.S. Election Flash Poll, 1,000+ General Population Respondents, Nov. 28 to Dec. 11, 2016

Trump Voters

Clinton Voters

Trust Barometer Supplement: UK Supplement, 1,150 General Population Respondents, December 23, 2016 to January, 7 2017

Remainin the EU

Leavethe EU

Source: 2017 Edelman Trust U.S. Flash Poll Q14. Who did you vote for? Audience: U.S. General Population, grouped by “system failing” segments and level of fear from the Trust Barometer. For details on how systemic distrust and societal fears were measured, please refer to the Technical Appendix. Respondents were labeled as “fearful” if they were fearful of at least one of the following societal issues: corruption, immigration, globalization, eroding social values, and pace of innovation.Source: 2017 UK Trust Supplement Q15. Did you vote…? Audience: UK General Population, grouped by ‘system failing’ segments and level of fear from the Trust Barometer. For details on how the societal fears and the “system failing” measure were calculated, please refer to the Technical Appendix. Respondents were labeled as ‘fearful’ if they were fearful of at least one of the following societal issues: corruption, immigration, globalization, eroding social values, and pace of innovation.

67% are fearful

45% are fearful

54% are fearful

27% are fearful

Percent who hold various societal and economic fears

Trust IndexA World of DistrustAverage trust in institutions, General Population, 2016 vs. 2017

47 Global72 India69 Indonesia67 China60 Singapore60 UAE53 Netherlands52 Mexico52 U.S.50 Colombia49 Canada48 Brazil48 Italy48 Malaysia45 Argentina44 Hong Kong44 Spain43 Turkey42 Australia42 S. Africa41 Germany40 France40 U.K.38 S. Korea37 Sweden36 Ireland35 Japan35 Poland34 Russia

2016 2017

50 Global 73 China 66 UAE 65 India 64 Singapore 62 Indonesia 60 Mexico 56 Canada 55 Colombia 52 Netherlands 51 Argentina 51 Malaysia 50 Brazil 49 Australia 49 Italy 49 U.S. 47 Hong Kong 46 Spain 45 S. Africa 42 Germany 42 S. Korea 42 U.K. 41 France 41 Ireland 41 Turkey 39 Russia 38 Japan 37 Sweden 35 Poland

Trusters (60-100)

Neutrals (50-59)

Distrusters (1-49)

Source: 2017 Edelman Trust Barometer. The TrustIndex is an average of a country's trust in the institutionsof government, business, media and NGOs. General Population, 28-country global total.

3 point decrease in the global Trust Index

Trust declines in 21 of 28 countries—the broadest declines since beginning General Population tracking in 2012

2 in 3 countries are now distrusters

Trust IndexA World of Distrust

48 Global72 India69 Indonesia67 China60 Singapore60 UAE53 Netherlands52 Mexico52 U.S.50 Colombia49 Canada48 Brazil48 Italy48 Malaysia45 Argentina44 Hong Kong44 Spain43 Turkey42 Australia42 S. Africa41 Germany40 France40 U.K.38 S. Korea37 Sweden36 Ireland35 Japan35 Poland34 Russia

45 Global69 China62 Singapore57 UAE 56 Mexico55 India54 Indonesia53 Hong Kong53 Malaysia51 Canada49 Argentina48 Netherlands47 Italy46 Brazil40 Australia40 U.S.39 S. Korea38 Poland36 France36 Spain36 Sweden35 U.K.34 Germany34 Ireland32 Japan30 Russia

Source: 2017 Edelman Trust Barometer. The TrustIndex is an average of a country's trust in the institutionsof government, business, media and NGOs. General Population, 25-country global total.

2012 2017

Trusters (60-100)

Neutrals (50-59)

Distrusters (1-49)

Average trust in institutions, General Population, 2012 vs. 2017

Trust in Government

“People in this country have had enough of experts.” – Michael Gove, Member of Parliament, U.K.

Distrusted in 75% of countries

Government Trust Declining Globally

Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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, Trust) General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K.

Percent trust in government, and change from 2016 to 2017

Declines in 14 countries

50%

Glob

al 2

8

GDP

5

S. A

frica

Pola

nd

Braz

il

Mex

ico

Fran

ce

Spai

n

S. K

orea

Italy

Colo

mbi

a

Irela

nd

Arge

ntin

a

U.K.

Aust

ralia

Japa

n

Mal

aysia

Germ

any

Hong

Kon

g

Cana

da

Russ

ia

Swed

en U.S.

Neth

erla

nds

Turk

ey

Sing

apor

e

Indo

nesia

Indi

a

UAE

Chin

a

4147

1520

24 24 25 25 28 31 32 32 33 36 37 37 37 38 40 43 44 45 4751 51

69 7175 75 76

0 +8 +2 +9 +13

+100+700+1+1+3+1+1 -1 -7 -2 -2 -1 -5 -10 -9 -5 -5 -3-1 -8 -8-1

Y-to-Y Change+−

NeutralDistrust Trust

Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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, Trust) General Population, Hong Kong.

Percent trust in government, 2012 vs. 2017Trust in Government: All-Time Low

2012 2013 2014 2015 2016 2017

55

53

42

4445

40

Source: 2017 Edelman Trust Barometer Q130-747. 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, Very/Extremely Credible) General Population, Hong Kong, question asked of half the sample.

Percent who rate each spokesperson as very/extremely credible

Government Official Credibility: All-Time Low

Government Officials

41% Credible

Government Officials

29% Credible

2016 Credibility

2017 Credibility

10 pointgap between Informed and Mass

Government Should Rein in Business

Source: 2017 Edelman Trust Barometer Q667-670. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) Q661-664. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) Q658. For the statement below, please indicate how much you agree or disagree. (All respondents except Top 4 Box, Agree) General Population, Hong Kong, question asked of one-fifth the sample.

Regulation

88%agree that the

pharmaceutical industry needs

more regulations

Tax Policy

73%agree that policy makers should

tax foods that negatively impact health

Reform

47%do not agree that

financial market reforms have increased

economic stability

Media “The global village that was once the internet was has been replaced by digital islands of isolation that are drifting further apart each day.”

- Mostafa M. El-Bermawy, Vice President, WorkZone

Source: 2017 Edelman Trust Barometer Q709-718. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) Q749. When someone you know provides you with some information that supports a position that you do NOT believe, which of following do you typically do with it? Question asked of half the sample. Q752. How often do you read or listen to information or points of view from people, media sources or organizations with whom you often disagree? (Sum of “Never”, “Almost Never”, “Several Times a year”, “Once or Twice a Month”), question asked of half the sample. General Population, Hong Kong.

“I would support politicians I trust to make things better for me and my family even if they exaggerated the truth”

Nearly

3in5 agree 54%Do not regularly listen to people or organizations with whom they often disagree

to ignore information that supports a position they do not believe in

Nearly

3x more likely

The Echo Chamber in Action: Facts matter less. Bias is our filter.

2012 2013 2014 2015 2016 2017

5455 55

50

47

42

Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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, Trust) General Population, Hong Kong.

Percent trust in media, 2012 vs. 2017Hong Kong Trust in Media: All-Time Low

Search engines*

Traditional media

Online-only media**

Social media

Owned media

Traditional Media Shows Steepest Decline

Source: 2017 Edelman Trust Barometer Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you “do not trust it at all” and nine means that you “trust it a great deal.” (Top 4 Box, Trust) General Population, Hong Kong, question asked of half the sample. *From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.” **From 2012-2015, “Hybrid Media” was included as a media type. In 2016, this was changed to “Online-Only media.”

Percent trust in each source for general news and information

Search engines now most trusted

Traditional media down 21 points since 2012

2012 2013 2014 2015 2016 2017

55

41

59

36

Trust in Business

I and the public knowWhat all schoolchildren learn

Those to whom evil is doneDo evil in return

 - W. H. Auden

Global Business on Brink of Distrust

Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using 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, Trust) General Population, 28-country global total.GDP 5 = U.S., China, Japan, Germany, U.K.

Percent trust in business, and change from 2016 to 2017

Distrusted in 13 countries

50%

Glob

al 2

8

GDP

5

S. K

orea

Hong

...

Russ

ia

Pola

nd

Irela

nd

Japa

n

Germ

any

Turk

ey

Arge

ntin

a

U.K.

Spai

n

Swed

en

Aust

ralia

Fran

ce

Cana

da

Italy

Mal

aysia

S. A

frica

Sing

apor

e

U.S.

Neth

erl..

.

Braz

il

Colo

mbi

a

UAE

Chin

a

Mex

ico

Indi

a

Indo

nesia

52 51

2934

39 40 41 41 43 43 45 45 46 46 48 50 5055 56 56 58 58 60 61 64 64 67 67

74 76

-4 +4 -2 -2 -4 -2 +7 +4 -3 -6 -3 -3 -9 +5 +5-4 -5-1 0-8 -1 -2+1-2 -2 +1+1 +2 -6+1

Declines in 18 countries

Y-to-Y Change+−

NeutralDistrust Trust

Hong Kong Business: All-Time Low

Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you Trust that institution to do what is right using 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, Trust) General Population, Hong Kong.

Percent trust in business, 2012 to 2017

2012 2013 2014 2015 2016 2017

42

43

41

38

39

34

CEO Credibility in Crisis

Source: 2017 Edelman Trust Barometer Q130-747. 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, Very/Extremely Credible) General Population, 28-country global total and Hong Kong, question asked of half the sample.

Percent who rate each spokesperson as very/extremely credible

19% decline since 2016 – most significant decline globally

10pt. below global average

Hong Kong

27% Credible

Global

37% Credible

66% agree

“A company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”

Citizens Expect Business to Address Societal Issues

Source: 2017 Edelman Trust Barometer Q249-757. Please indicate how much you agree or disagree with the following statements? (Top 4 Box, Agree). General Population, Hong Kong, question asked of half the sample..

Corruption Globalization Pace of Innovation

Citizen Concerns Percent of respondents who are concerned regarding each issue

65%64% 54%

46% globalization 50% the pace of change

is taking us in the wrong direction

62% lack of training or skills

50% automation

50% foreign competitors

50% jobs moving to cheaper markets

Population worries about losing their jobs due to:

in business and industry is too fast

Source: 2017 Edelman Trust Barometer. Corruption Q686-687, Globalization Q681-684, Pace of innovation Q677. For details on how the societal fears were measured, please refer to the Technical Appendix. Q693-762. Some people say they worry about many things while others say they have few concerns. We are interested in what you worry about. Specifically, how much do you worry about each of the following? Please indicate your answer using a nine point scale where one means “I do not worry about this at all” and nine means “I am extremely worried about this”. (Top 4 Box, Worried) Q709-718. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree) Q349-671. For the statements below, please think about the pace of development and change and select the response that most accurately represents your opinion. (Top 4 Box, Too Fast), question asked of half the sample. General Population, Hong Kong.

Source: 2017 Edelman Trust Barometer Q732. What can businesses do that would cause the most damage to your trust in a better future? (Please select up to five.) General Population, 28-country global total and Hong Kong, question asked of half the sample.

Do No HarmActions business can take that would most damage trust (top 6 most-selected)

Move jobs from this country to cheaper labor markets

Reduce costs by lowering product quality

Pay top executives much more than the average worker

Reduce employees’ benefits

Pay bribes to government officials to win contracts

Reduce costs by cutting jobs

33%

43%

44%

46%

50%

50%

36%

40%

44%

36%

51%

39%

Hong KongGlobal

Sold shares

Shared negative opinions online

Criticized companies

Refused to buy products/services

21%

29%

50%

59%

Trust MattersPercent who engage in each behavior based on trust

Behaviors for Distrusted Companies

Refused to buy products/services

Criticized companies

Shared negative opinions

Sold shares

Source: 2017 Edelman Trust Barometer Q371-589. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust/do not trust? (Yes Summary) General Population, Hong Kong, question asked of half the sample.

How to Drive Trust in Business

Purpose Drives Trust in Business Top trust drivers in Hong Kong

43%

41%

36%

35%

31%

26%

25%

20%

Treats employees well

Has ethical business practices

Works to protect and improve the environment

Addresses society's needs in its everyday business

Places customers ahead of profits

Is an innovator of new products, services or ideas

Delivers consistent financial returns to investors

Ranks on a global list of top companies, such as best to work for or most admired

Source: 2017 Edelman Trust Barometer Q80-639. How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where one means that attribute 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, Importance) General Population, Hong Kong.

Important Drivers of Trust Less Important Drivers of Trust

Employee Advocacy not Leveraged

Source: 2017 Edelman Trust Barometer Q610. Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611. A company’s business practices, both positive and negative, and its handling of a crisis? Q612. A company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613. A company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614. A company’s innovation efforts and new product development? Q615. A company’s stand on issues related to the industry in which it operates? Question asked of one-quarter of the sample. Q130-747. 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, Very/Extremely Credible) General Population, Hong Kong, question asked of half the sample.

Most trusted spokesperson to communicate each topic

Company CEO

Senior executive

Employee

Activist consumer

Academic

Media spokesperson

56% a person like yourself

15 16 1519

24

15

24

16 1722 22

17

48

33 3127 27 27

20

27 2924 22 21

18

28 2824

32 33

1014 12

1916 17

Partnerships/programs to address

societal issues

Business practices/

crisis handling

Financial earnings & operational

performance

Innovation effortsTreatment of employees/customers

Views on industry issues

2012 2013 2014 2015 2016 2017

5455 55

50

47

424243

4138

39

34

5553

4244

45

40

6163

64

57 5759

Partner with NGOs

Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you Trust that institution to do what is right using 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, Trust) General Population, Hong Kong.

Percent trust in the four institutions of government, business, media and NGOs, 2012 vs. 2017

NGOs

Media

Government

Business

How to Gain Trust in Today’s Environment

A New Modelfor Earning Trust

Engage with the people that can best

help achieve your purpose – NGOs

and your employees

Build operations and policies that

make your purpose a reality

Define your purpose in society and put it at the core of your business

Craft your story for today’s media environment: earned, social and search

Thank You