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September 2017

2017 Global CSR RepTrak® Reputa7on and Corporate Social Responsibility

Reputa7on Ins7tute is the world’s leading reputa7on- based research advisory firm, founded by Dr. Charles Fombrun and Dr. Cees van Riel in 1997. Reputa7on Ins7tute has created the worlds largest norma7ve reputa7on database.

•  RepTrak® Pulse Score •  7 Dimensions of Reputa8on •  23 Reputa8on A<ributes •  10+ Years of Data Indexed •  40 Countries Measured •  15 Stakeholder Groups •  7,000 Companies per Year •  8M+ Responses per Year

Our most prominent asset is the RepTrak® model for analyzing the reputa7on of companies, industries, countries, ci7es, and even people. We are best known for the Forbes-published Global RepTrak® 100 -- the world’s largest study of reputa7on.

We Specialize in the Science of Reputa7on

“We enable corporate communica8on leaders to make smart strategic business decisions that build on and protect reputa8on capital to drive compe88ve advantage.”

United Arab Emirates

Canada

United States

Colombia

Chile

Brazil

South Af rica Australia

India

Japan China

Portugal Spain

Russia

Ukraine

Germany

Norw ay

Sw eden

Greece Italy

Ireland United Kingdom

France Sw itzerland

Denmark

Netherlands

Argentina

Belgium

Finland

Poland

Ecuador

Peru

Mexico

Panama

Puerto Rico

How Corporate Social Responsibility (CSR) is an Economic Mul7plier

"Companies with their eye on the “triple-bo<om-line” outperform their less fas8dious peers on the stock market.

The Economist

What CSR and The Triple BoWom Line Means For Companies

Trifecta of Responsibility

Source: Wikipedia

CSR Also Creates License to Operate

CSR = the responsibility of enterprise for their impact on society.

“Enterprises should have in place a progress to integrate social, environmental, ethical, human rights and consumer concerns into their business opera6ons and core strategy in close collabora7on with stakeholders.”

CSR equates to good will and good business

It Explains Why Companies are More Ac7vely Engaged in CSR

Measuring Reputa7on and CSR: The RepTrak® Model

REPTRAK® PULSE Emo6onal Connec6on

PRODUCTS & SERVICES

INNOVATION

WORKPLACE

GOVERNANCE

CITIZENSHIP

LEADERSHIP

PERFORMANCE

REPTRAK® DIMENSIONS Cogni6ve Considera6ons

PURCHASE

RECOMMEND

CRISIS PROOF

VERBAL SUPPORT

WORK

INVEST

SUPPORTIVE BEHAVIORS Reputa6on Outcomes

THINK FEEL ACT

WORKPLACE

GOVERNANCE

CITIZENSHIP

+8.0%

+8.2%

+6.3%

+8.0%

+8.1%

+7.3%

Supports Good Causes Posi6ve Societal Influence Environmentally Responsible

Open & Transparent Behaves Ethically

Fair in Way It Does Business

Rewards Employees Fairly Employee Well-Being Equal Opportuni6es

Posi6ve Impact on Society

RepTrak CSR Index Defini7on

CSR RepTrak® reflects performance in Ci7zenship, Governance and Workplace dimensions

Companies with an Excellent CSR Index Engender More Support

BUY PRODUCTS

GIVE BENEFIT OF THE DOUBT

CSR Index Poor (0-39)

CSR Index Weak (40-59)

CSR Index Average (60-69)

CSR Index Strong (70-79)

CSR Index Excellent (80+)

Understanding Corporate Social Responsibility

Global CSR RepTrak® Global CSR RepTrak® is a study that Reputa7on Ins7tute conducts annually to measure the reputa7on of the world’s most socially responsible, highly-regarded and familiar global companies in 15 countries. Included firms must meet the following qualifica7ons:

1) Have a significant economic presence in the 15 largest economies 2) Have an above average reputa7on in its home country 3) Have global familiarity over 40%

It is the largest Global reputa7on study, with ~170,000 ra6ngs collected in Q1 2017. Respondent Screening: •  Familiarity: Respondents must be “somewhat” or “very” familiar The results tell us: •  Which companies are most highly regarded for CSR among the informed general public Study components include: •  CSR RepTrak® Pulse •  Dimensions of Reputa7on and Drivers of Reputa7on •  Business Impact of CSR •  Touchpoint Analysis

How Global CSR RepTrak® Industry Scores Are Similar

Industry Global CSR Index Technology 68.8 Hospitality 68.7

Pharmaceu6cals 68.7 Industrial 68.2 Consumer 67.7 Informa6on 67.6 Airlines 67.5 Transport 67.2 Retail 66.7

Automo6ve 66.4 Food & Beverage 66.3

Financial 65.2

•  Globally all industries now have an average CSR Index

•  But the financial industry increasingly lags behind in terms of its CSR Index

Rank Company Global CSR Index

2 Microsof 74.1 1.0

3 Google 73.9 1.5

49 Apple 67.9 -5.3

89 Samsung 64.5 -5.3

But there are discrepancies in CSR among companies

Significant change > 0.7

How the Financial Industry is Falling Behind on all Dimensions of CSR

TECHNOLOGY FINANCIAL

GOVERNANCE 69.0 65.6

CITIZENSHIP 68.4 64.2

WORKPLACE 69.6 65.9

Significant change > 0.8

3.4

4.2

3.7

Opportunity to Leverage Familiarity to Enhance CSR Index

The CSR gap exists between those who have a low level of knowledge of the company (61.1) and those who have an excellent level of familiarity(73.6)

Familiarity Poor Good Sufficient Excellent

CS R In de

+12.5pts

Proof of CSR is in the Purchase and Reinforced by Communica7on

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Touchpoint Reach (%)

To uc hp

oi nt C SR

Im pa

ct (d

el ta )

Customer service

Purchase

Company’s adver6sement on social media

Family, friends, colleagues

Tradi6onal media (earned impressions)

Company adver6sements on tradi6onal media Topic experts, websites, blogs

People pos6ng about Company on social media

From social media pos6ng by Company

Company website

Company’s annual report

Email Program/event

sponsored

Company’s press release No touchpoint recall has a

nega6ve impact on CSR (-6 pts)

CSR Strength Aligns with Being Genuine About What You Do and Say

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

50 55 60 65 70 75 80

CSR Index

A pp

ea rs g en

ui ne

(T 2)

Correla6on = 0.85

The Resurging Importance of Governance and Ci7zenship in CSR

15.4%

14.4% 14.4% 14.3% 14.5%

15.0%

14.2%

13.6% 13.4% 13.4%

13.6%

14.4%

13.4%

12.9% 13.1%

13.4% 13.1%

11.6%

2012 2013 2014 2015 2016 2017

Governance

Ci7zenship

Workplace

Factor Adjusted Regression N = 150,000 Adj-R² = 0.7

20.5%

13.1%

11.6%

15.0% 14.4%

12.5%

12.9%

Global RepTrak® 2017 CSR Dimensions Importance Evolu6on

Drivers of CSR are Defined by Ethics, Fairness, and Societal Impact

20.5%

13.1%

11.6%

15.0% 14.4%

12.5%

12.9%

Global RepTrak® 2017 GOVERNANCE

Weight Global Average

Behaves ethically 4.8% 68.0

Is fair in the way it does business 4.7% 69.4

Is open & transparent about the way it operates 4.3% 66.8

CITIZENSHIP

Weight Global Average

Has a posi6ve influence on society 5.4% 69.5

Acts responsibly to protect the environment 3.9% 64.8

Supports good causes 3.8% 66.1

WORKPLACE

Weight Global Average

Demonstrates concern for employees 3.6% 67.0

Rewards employees fairly 3.5% 67.5

Equal opportuni7es in the workplace 3.3% 68.6

CSR Weight = 41%

How CSR Importance Drive Reputa7on Across the Globe

20.5%

13.1%

11.6%

15.0% 14.4%

12.5%

12.9%

Global RepTrak® 2017

CSR Weight = 40.9%

CSR Weight = 41.2%

ASIA CSR Weight = 40.8%

NORTH AMERICA CSR Weight = 41.0%

EMEA

CSR Weight = 39.2%

LATIN AMERICA

2017 Global CSR RepTrak®100

2017 Global CSR RepTrak® 100: Most Socially Reputable Companies (1-50) Rank Company 2017 CSR RepTrak®

1 LEGO Group 74.4 2 Microsof 74.1

3 Google 73.9

4 The Walt Disney Company 73.5 5 BMW Group 71.5 6 Intel 71.1 7 Robert Bosch 71.0 8 Cisco Systems 71.0 9 Rolls-Royce Aerospace 70.7 10 Colgate-Palmolive 70.4 11 Barilla 70.0 12 SAP 69.8

13 IKEA Group 69.7

14 Rolex 69.7 15 Michelin 69.7 16 Sony 69.6 17 IBM 69.4 18 adidas 69.3 19 3M 69.3 20 BBC 69.3 21 Campbell Soup Company 69.2 22 Anheuser-Busch InBev 69.2 23 Canon 69.2 24 Toyota 69.1 25 Danone 69.0

Rank Company 2017 CSR RepTrak®

26 Siemens 68.9 27 Ferrero 68.9

28 Caterpillar 68.8

29 Airbus 68.8 30 Virgin Group 68.8 31 HP Inc. 68.8 32 Pirelli 68.7 33 Philips Electronics 68.6 34 Johnson & Johnson 68.6 35 Daimler 68.6 36 The Estée Lauder Companies 68.5 37 Honda Motor 68.4

38 Whirlpool 68.4

39 Oracle 68.3

40 Emirates 68.3

41 Bri6sh Airways 68.1 42 Goodyear 68.1 43 FedEx 68.1

44 Boeing 68.0

45 DHL 68.0 46 The Kraf Heinz Company 68.0 47 Bridgestone 68.0 48 Nintendo 68.0 49 Apple 67.9 50 Procter & Gamble 67.9

Sig diff > 0.8

2017 Global CSR RepTrak® 100: Most Socially Reputable Companies (51-100)

Sig diff > 0.8

Rank Company 2017 CSR RepTrak®

51 Kellogg's 67.9 52 Hershey Company 67.9 53 Mastercard 67.4 54 Heineken 67.3 55 Neqlix 67.3 56 Dell 67.1 57 Amazon.com 67.1 58 Fujifilm 67.1 59 Hugo Boss 67.0 60 Unilever 67.0 61 Panasonic 66.9 62 Levi Strauss & Co. 66.9

63 Visa 66.8

64 L'Oréal 66.8 65 Hitachi 66.8 66 Air France-KLM 66.8 67 Hilton Worldwide 66.8 68 LinkedIn 66.6 69 Giorgio Armani 66.5 70 General Electric 66.4 71 Xerox 66.4 72 Electrolux 66.4 73 Nissan Motor 66.3 74 Ford 66.1 75 Ralph Lauren Corpora6on 66.0

Rank Company 2017 CSR RepTrak®

76 LG Corpora6on 65.9 77 eBay 65.9 78 Delta Air Lines 65.8

79 PSA Peugeot-Citroën 65.7

80 ING 65.6 81 Nestlé 65.6 82 UPS 65.6 83 Ericsson 65.5 84 Groupe Renault 65.3 85 Toshiba 65.3 86 Fujitsu 65.2 87 Nike, Inc. 65.2 88 Nokia 65.1

89 Samsung Electronics 64.5 90 American Express 64.2

91 The Coca-Cola Company 64.2

92 Hyundai 63.9 93 Sharp 63.9 94 Bacardi 63.9 95 Starbucks Coffee Company 63.6 96 PepsiCo 63.4 97 General Motors 63.3 98 Fiat Chrysler Automobiles 63.2 99 Zara 62.4 100 Volkswagen 58.7

Top Company in CSR across the Major Markets

Rank Company 2017 CSR RepTrak®

1 LEGO Group 74.4 2 Microsof 74.1

3 Google 73.9

4 The Walt Disney Company 73.5 5 BMW Group 71.5 6 Intel 71.1 7 Robert Bosch 71.0 8 Cisco Systems 71.0 9 Rolls-Royce Aerospace 70.7 10 Colgate-Palmolive 70.4 11 Barilla 70.0

Sig diff > 0.8

Why the top companies have a strong CSR Index?

Leadership ac6vely engaged in CSR

CSR aligns with corporate brand purpose

CSR agenda is about ac6on, not just about rhetoric

CSR drives internal and external engagement

CSR focus on human and social interest

1. Leadership ac7vely engaged in CSR

Google

LEGO

Microsof

2. CSR aligns with corporate brand purpose

LEGO The Walt Disney Company

3. CSR Agenda is About Ac7on, not Just Rhetoric

Google’s values in ac6on

Colgate-Palmolive CSR ac6on plan

4. CSR Drives Internal and External Engagement

BMW Employee Charity Event Barilla Employee Volunteer Group

Bosch CSR ini6a6ve

5. CSR Focus on Human and Social Interest

BMW Group Social Commitment

Intel’s commitment to educa6on and innova6on

Cisco and women empowerment

Company CSR Spotlight

LEGO: Global Leader in Corporate Social Responsibility

•  LEGO tops the Global CSR list in 2017 with a strong score of 74.4

•  LEGO saw a slight increase since 2017, while a lot of the CSR top runners saw a significant decline

•  LEGO’s sustainability investments and partnerships rank the company at the top across all of the CSR aWributes, especially when it comes to governance, the key CSR driver

CSR ATTRIBUTES WEIGHT SCORE RANK IN ATTRIBUTE

Has a posi7ve influence on society 5.4% 77.7 #3

Behaves ethically 4.8% 74.9 #1

Is fair in the way it does business 4.7% 75.2 #1

Is open & transparent about the way it operates 4.3% 73.1 #1

Acts responsibly to protect the environment 3.9% 71.9 #1

Supports good causes 3.8% 73.5 #1

Demonstrates concern for employees 3.6% 72.9 #2

Rewards employees fairly 3.5% 72.6 #2

Equal opportuni7es in the workplace 3.3% 73.7 #2

CSR Index = 74.4

•  In 2017 ABInBev sees a significant increase in its CSR Index -- as well as through all of the related CSR dimensions

•  ABInBev has the opportunity to move its average CSR Index into the strong range by increasing communica7on around its ini7a7ves ( e.g. smart drinking, water conserva7on; celebra7ng local heritage and culture)

•  It could further improve by engaging “fencesiWers”

AB InBev: Growing the Poten7al to be a Leader in CSR

69.5 68.1

69.9

69.2

GLOBAL CSR 2017

GOVERNANCE

CITIZENSHIP

WORKPLACE

66.7 65.7

66.9

66.4

GLOBAL CSR 2016

GOVERNANCE

CITIZENSHIP

WORKPLACE

+2.8

Significant change > 0.7

+8.5

Average Impact of Touchpoints on AB InBev CSR Index

-11.8

Impact of No Touchpoints on AB InBev CSR Index

COMMUNICATION

>50% respondents are neutral/not sure on ABInBev’s work in key CSR aiributes*

UNCERTAINITY ON CSR ATTRIBUTES

*Fair in business, behaves ethically, open and transparent, posi8ve influence on society, supports good causes

Apple: Fast Losing Trac7on in CSR

Significant change > 0.7

•  Following the San Bernardino incident in 2016, Apple had one of the largest CSR Index drops year on year

•  Apple’s closed off approach prevents the general public from learning about Apple’s work beyond their products

DIMENSION 2016 % Neutral/Not Sure 2017 % Neutral/Not Sure

GOVERNANCE 41% 52%

CITIZENSHIP 48% 56%

WORKPLACE 43% 61%

55% respondents are neutral/not sure on whether Apple welcomes open discussion on its ac6vi6es

Volkswagen: Is S7ll in the CSR “Sin Bin” Post the Cheat Device Scandal

71.1

57.8 58.7

73.0

61.6 64.5

2015 2016 2017

CSR Score Leadership

•  Since 2015 Volkswagen’s CSR Index has dropped by 13 points since being named the most sustainable car brand in the world pre-Cheat Device scandal

•  Along with the drop in governance and ci7zenship, Volkswagen's leadership score saw a significant drop as well – the scandal revealed flaws in the company’s CSR agenda, leadership, and culture

•  In 2017, Volkswagen s7ll has overall weak scores in the key CSR aWributes

0% 1% 2% 3% 4% 5% 6%

Is open and transparent

Is fair in the way it does business

Behaves ethically

Has posi7ve influence on society 61.2

52.9

58.5

2017 Global AWribute Score AWribute driver weight:

53.5

Unilever: Talking About CSR, but Not Gexng the Credit

AGGRESSIVE CSR NARRATIVE WHAT THE PUBLIC THINKS VS.

67.0 Unilever has an average reputa6on

Expressiveness Neutral/Not Sure

Welcomes open discussion with outside audiences about its ac6vi6es

62%

Communicates ofen 57%

Provides sufficient informa6on about its ac6vi6es 56%

Delivers on promise 52%

Appears genuine about what it says and stands for 49%

60th in the Global CSR ranking Not easy to breakthrough

and create belief

Ques7ons?

At Reputa7on Ins7tute we Prac7ce what we Preach

STAND UP TO CANCER

Dona6ons - $6,950

Key Contacts For More Informa7on About Reputa7on Ins7tute

David Southwick Global Chief Sales Officer [email protected] Phone: +1 617-733-8875

Stephen Hahn-Griffiths Execu7ve Partner, Chief Research Officer [email protected] Phone: +1 617-758-0953 TwiWer: @shahngri

Thank you

2017 Global CSR RepTrak® 100: Most Socially Reputable Companies (1-50) Rank Company 2017 CSR RepTrak®

1 LEGO Group 74.4 0.6 2 Microsof 74.1 -1.0

3 Google 73.9 -1.5

4 The Walt Disney Company 73.5 -1.2 5 BMW Group 71.5 -2.4 6 Intel 71.1 -1.7 7 Robert Bosch 71.0 1.4 8 Cisco Systems 71.0 1.8 9 Rolls-Royce Aerospace 70.7 -2.4 10 Colgate-Palmolive 70.4 1.1 11 Barilla 70.0 2.8 12 SAP 69.8 2.2

13 IKEA Group 69.7 -0.2

14 Rolex 69.7 -3.3 15 Michelin 69.7 -1.7 16 Sony 69.6 -1.8 17 IBM 69.4 1.1 18 adidas 69.3 -1.9 19 3M 69.3 0.7 20 BBC 69.3 1.1 21 Campbell Soup Company 69.2 2.5 22 Anheuser-Busch InBev 69.2 2.8 23 Canon 69.2 -3.3 24 Toyota 69.1 0.2 25 Danone 69.0 0.3

Rank Company 2017 CSR RepTrak®

26 Siemens 68.9 1.5 27 Ferrero 68.9 -2.4

28 Caterpillar 68.8 1.7

29 Airbus 68.8 1.3 30 Virgin Group 68.8 N/A 31 HP Inc. 68.8 0.2 32 Pirelli 68.7 0.7 33 Philips Electronics 68.6 -0.4 34 Johnson & Johnson 68.6 -3.1 35 Daimler 68.6 -4.7 36 The Estée Lauder Companies 68.5 2.0 37 Honda Motor 68.4 0.9

38 Whirlpool 68.4 0.1

39 Oracle 68.3 0.6

40 Emirates 68.3 N/A

41 Bri6sh Airways 68.1 N/A 42 Goodyear 68.1 0.0 43 FedEx 68.1 1.5

44 Boeing 68.0 0.9

45 DHL 68.0 N/A 46 The Kraf Heinz Company 68.0 1.9 47 Bridgestone 68.0 -0.8 48 Nintendo 68.0 -2.8 49 Apple 67.9 -5.3 50 Procter & Gamble 67.9 0.7

Sig change > 0.7

2017 Global CSR RepTrak® 100: Most Socially Reputable Companies (51-100) Rank Company 2017 CSR RepTrak®

51 Kellogg's 67.9 -0.4 52 Hershey Company 67.9 -0.3 53 Mastercard 67.4 0.0 54 Heineken 67.3 1.4 55 Neqlix 67.3 N/A 56 Dell 67.1 -0.2 57 Amazon.com 67.1 -0.3 58 Fujifilm 67.1 0.9 59 Hugo Boss 67.0 -1.0 60 Unilever 67.0 1.2 61 Panasonic 66.9 -1.6 62 Levi Strauss & Co. 66.9 -0.5 63 Visa 66.8 -2.0 64 L'Oréal 66.8 -1.2 65 Hitachi 66.8 1.8 66 Air France-KLM 66.8 N/A 67 Hilton Worldwide 66.8 0.6 68 LinkedIn 66.6 1.7 69 Giorgio Armani 66.5 -1.6 70 General Electric 66.4 -0.1 71 Xerox 66.4 -1.1 72 Electrolux 66.4 -0.6 73 Nissan Motor 66.3 N/A 74 Ford 66.1 1.1 75 Ralph Lauren Corpora6on 66.0 0.1

Sig change > 0.7

Rank Company 2017 CSR RepTrak®

76 LG Corpora6on 65.9 -1.8 77 eBay 65.9 -0.9 78 Delta Air Lines 65.8 1.6 79 PSA Peugeot-Citroën 65.7 N/A 80 ING 65.6 1.1 81 Nestlé 65.6 -4.4 82 UPS 65.6 1.0 83 Ericsson 65.5 0.5 84 Groupe Renault 65.3 1.2 85 Toshiba 65.3 0.4 86 Fujitsu 65.2 0.2 87 Nike, Inc. 65.2 -4.2 88 Nokia 65.1 -0.7 89 Samsung Electronics 64.5 -5.3 90 American Express 64.2 N/A 91 The Coca-Cola Company 64.2 -2.6 92 Hyundai 63.9 1.3 93 Sharp 63.9 -1.3 94 Bacardi 63.9 -1.4 95 Starbucks Coffee Company 63.6 -2.0 96 PepsiCo 63.4 -1.3 97 General Motors 63.3 -0.3 98 Fiat Chrysler Automobiles 63.2 N/A 99 Zara 62.4 N/A 100 Volkswagen 58.7 -8.2 58.7