Business and Racial Justice in America

Global Report Special Report: Business and Racial Justice in America

2021 Edelman Trust Barometer U.S. Online Survey Special Report • 2,000 general population respondents Business and Racial • All data is nationally representative based on age, region, gender, ethnicity Justice in America • Racial and ethnic segments White n=1,159 Black n=500 Fieldwork: April 19 – April 26, 2021 Latinx n=500 Asian* n=500 • All racial and ethnic segments are nationally representative based on age, region and gender Demographic Composition Northeast 19% Male 49% Republican 28% Midwest 23% Female 51% Democrat 44% *Asian includes Native Hawaiian and Pacific Islanders South 36% Ind./Third-party 23% West 22% 18-34 30% Margin of error: 35-54 33% • U.S. total margin of error: +/- 2.2% (n=2,000) 55+ 37% • Ethnicity-specific data margin of error: Non-Hispanic White +/- 2.9% (n=1,159); Black, Latinx, and Asian +/- 4.4% (n=500) 2

RACIAL JUSTICE IN AMERICA Key findings from Employers 2020 Business only institution Media Edelman Trust seen as failing trusted with racism seen as Barometer Special to act response fueling racism Reports Brands and Workplace Brands and corporations racism corporations 2020 Reports both expected to harms the that take a stand Brands and Racial Justice in America take a stand employer- far more likely to fielded June 5 – June 7, 2020 Higher expectation for employee gain trust brands relationship than lose it The Fight for Racial Justice in America fielded August 14 – August 21, 2020; August 28 –August 31, 2020 3

A LACK OF SYSTEMIC CHANGE

ONLY 1 IN 3 SEE AMERICA MAKING PROGRESS ON RACIAL JUSTICE OVER THE LAST YEAR Percent who say How much progress do you feel the country has made over the U.S. general past year in addressing systemic racism and racial injustice? population 27% A very small amount of progress A lot 10% No progress at all 9% Some 18% Things have actually gotten worse 23% 32% 8% Not a problem in our country 7% Don’t know Some or a lot White 34 of progress Black 28 Latinx 31 Asian 32 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q13A. How much progress do you feel the country has made over the past year in addressing systemic racism and racial injustice? General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. “Some or a lot of progress” is a net of codes 4 and 5. 5

A NATION DIVIDED: The biggest challenge in solving the The biggest challenge in solving the problem of racial injustice in this OR problem of racial injustice is RACIST country is changing a changing the attitudes of INDIVIDUALS systemthat is racist peoplewho are racist OR A U.S. general RACIST SYSTEM? population 44% 56% Which do you agree with more? White 40 Black 58 Latinx 47 Asian 45 Age 18-34 51 Age 35-54 45 2021 Edelman Trust Barometer Special Report: Business and Age 55+ 37 Racial Justice in America. IDEAL. You are about to see a series of two choices. Please choose the one that you agree with more. General population, U.S., by age, and among Non-Hispanic White, 50% Black, Latinx and Asian populations. 6

MEDIA FAILS TO REPORT ROOT CAUSES Percent who agree Communities The media is failing to adequately examine 50 54 53 58 and report on the root causes of racism in this country White Black Latinx Asian Age Political Affiliation 51% 57 53 44 50 57 46 U.S. general population 18-34 35-54 55+ Rep Dem Ind/3rd 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. MED_AGR_RACE. Below is a list of statements. For each one, please rate how much you agree or disagree with that statement using a nine-point scale where one means “strongly disagree” and nine means “strongly agree”. 9-point scale; top 4 box, agree. General population, U.S., by age and political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. 7

MORE THAN 1 IN 4 DON’T TRUST ANY INFORMATION SOURCE ON RACIAL JUSTICE - 0 + Change, Aug 2020 to Apr 2021 Percent who say each information source is the best place to get the truth Most trusted source about racism and companies’ racism response within each community White Black Latinx Asian No trustworthy information sources -3 27 32 14 17 21 Advocacy/activist organizations -1 23 20 33 26 26 Major mainstream news organizations -2 20 19 25 21 22 Friends and family 0 19 18 29 23 27 Social media +1 16 14 26 21 26 Media produced by and for 0 14 12 25 17 19 my ethnic or racial community Official government sources 0 14 14 17 16 19 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q28. Which of the following information sources are the best places to go to get the truth about racism and racial injustice in this country, and how companies and institutions are responding to calls for change? Pick all that apply. General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. “Advocacy/Activist organizations” is an average of attributes 9 and 10. 8

BUSINESS FALLS SHORT ON CONCRETE ACTION AND SYSTEMIC CHANGE Percent who agree With few exceptions, the business community Brands and companies that issue a statement in has done very little in the way of concrete support of racial equality need to follow it up with actions to address systemic racism in our country concrete action to avoid being seen by me as exploitative or as opportunists U.S. - 0 + U.S. Change, Aug 2020 to Apr 2021 46%+2 53% 57 55 63 57 57 53 51 41 0 +4 +8 +6 White Black Latinx Asian White Black Latinx Asian 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q23. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. 9

MY EMPLOYER ONLY INSTITUTION TRUSTED WITH RACISM RESPONSE Percent who trust each institution to do what is right when it comes to racism - 0 + Distrust Neutral Trust Change, Aug 2020 to Apr 2021 (1-49) (50-59) (60-100) 73 53 50 50 46 +2 -3 0 Business fails to -1 +10 Government sees gain trust largest gains, but still distrusted Your employer NGOs Business Media Government % +/- White 77 +4 54 -2 52 +3 50 -1 47 +12 Black 68 +9 50 +1 48 +3 52 +4 44 +10 Latinx 71 +3 57 +7 50 +3 52 +10 47 +11 Asian 74 +3 59 +1 51 -2 47 -3 46 +6 Republican 74 -9 51 -9 55 -10 42 -11 47 -9 Democrat 75 +2 59 +1 54 +3 60 +3 54 +16 Ind/3rd 67 +4 44 -12 39 -4 36 -10 31 +4 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q7A. For each of the institutions and groups of people listed below, please indicate how much you trust them to do what is right when it comes to responding to the problem of systemic racism and racial injustice in this country. 9-point scale; top 4 box, trust. Question asked among those who believe systemic racism and racial injustice exists (Q7/1). General population, U.S., by political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. “Your employer” only asked to those who are an employee (Q43/1). 10

A RECKONING FOR BUSINESS

BRANDS AND CORPORATIONS THAT TAKE A STAND FAR MORE LIKELY TO GAIN TRUST THAN LOSE IT Percent who say actions taken by brands/corporations in response to racial injustice would result in trust gain or trust loss Brands/corporations Brands/corporations would earn/keep my trust would lose my trust 3x Difference, 3x 4.5x 3x 7x 3x 3.5x 3.5x 2x 5x 3.5x opportunity to gain trust vs 93 risk of trust loss 90 91 92 81 86 80 78 75 79 68 37 25 27 28 30 24 21 23 23 19 13 U.S. White Black Latinx Asian Age Age Age Rep Dem Ind/3rd 18-34 35-54 55+ 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q29/Q20. In general, how important is it to earning or keeping your trust that [brands – the specific products and services people buy and use / corporations -- organizations or companies that engage in industrial and commercial activities, including producing and selling products and services] - do each of the following in response to systemic racism and racial injustice in this country? 6-point scale; top 3 box, important; code 1, doing this would lose my trust. Each question asked of half 12 of the sample. General population, U.S., by age and political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. Data shown is a net of attributes 2-13.

HIGHER STAKES FOR TRUST: REACTION TO RACISM RESPONSE INTENSIFIES Percent who say actions taken by brands/corporations in response to racial injustice would result in trust gain or trust loss Brands/corporations Brands/corporations - 0 + Change, Aug 2020 to Apr 2021 would earn/keep my trust would lose my trust 93 90 91 92 81 86 80 78 75 79 68 37 25 27 28 30 24 21 13 23 23 19 +4 +7 +5 +8 +4 +9 +6 +9 +12 +2 +5 +15 +8 +7 +2 +1 +4 +4 +3 +12 +3 +4 U.S. White Black Latinx Asian Age Age Age Rep Dem Ind/3rd 18-34 35-54 55+ 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q29/Q20. In general, how important is it to earning or keeping your trust that [brands – the specific products and services people buy and use / corporations -- organizations or companies that engage in industrial and commercial activities, including producing and selling products and services] - do each of the following in response to systemic racism and racial injustice in this country? 6-point scale; top 3 box, important; code 1, doing this would lose my trust. Each question asked of half 13 of the sample. General population, U.S., by age and political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. Data shown is a net of attributes 2-13.

MORE PEOPLE BUY AND BOYCOTT OVER BRAND RACISM RESPONSE - 0 + Change, Aug 2020 to Apr 2021 Percent who agree Communities started Within the past year, I have 53 54 or stopped using a new brand 39 43 because of its response to the protests against systemic racism and +8 +6 +12 +4 calls for racial justice White Black Latinx Asian Age Political Affiliation +7 pts 59 51 55 42% 21 36 29 +5 +14 +3 +7 +10 -4 U.S. general population 18-34 35-54 55+ Rep Dem Ind/3rd 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q23. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. General population, U.S., by age and political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. Data is a net of attributes 2 and 9. 14

SIGNS OF PROGRESS, BUT NO SECTOR SEEN AS DOING WELL ON RACIAL JUSTICE Percent who say each sector is doing well in addressing racism - 0 + U.S. general population White Black Latinx Asian Change, Aug 2020 to Apr 2021 Sports n/a 44 44 52 41 51 Lowest performing sector within each community Healthcare n/a 42 44 41 42 41 Food and beverage +6 39 39 45 40 36 Technology n/a 37 35 43 43 43 Personal care +3 36 36 41 38 39 Automotive +7 35 36 36 40 34 Pharmaceutical +8 35 34 35 42 36 Financial services +7 33 31 36 40 33 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q15. How well are each of the following industry sectors currently doing when it comes to addressing the problem of systemic racism and racial inequality in their industry? 6-point scale; top 2 box, doing well. Industries shown to half of the sample. General population, U.S., and among Non-Hispanic White, Black, Latinx, and Asian populations. 15

CORPORATIONS OVERTAKE BRANDS ON RACISM RESPONSE Percent who say corporations and brands are performing well on each Change, 2020 brandsin the lead 2021 corporationsin the lead Aug 2020 to Apr 2021 Get your own Corporations 29 42 +13 house in order Brands 34 35 +1 Educate and 28 41 +13 influence change 32 35 +2 25 37 +12 Create change 28 32 +4 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q21. How well do you feel brands are currently doing each of the following in response to systemic racism and racial injustice in this country? 5-point scale; top 2 box, doing well. Question asked of half of the sample. Q22. How well do you feel corporations are currently doing each of the following in response to systemic racism and racial injustice in this country? 5-point scale; top 2 box, doing well. Question asked of half of the sample. General population, U.S. “Get your own house in order” is an average of attributes 5,7-11; “Educate and influence change” is an average of attributes 1-3; “Create change” is an average of attributes 4, 6, and 12. 16

FOR EMPLOYERS, HARD WORK AHEAD

DOUBLE-DIGIT GAINS ADDRESSING RACISM AT WORK Percent who feel their employer is making progress in redressing racism at their workplace U.S. White Black Latinx Asian Change, +17 +14 +12 +21 +9 Aug 2020 to Apr 2021 83 76 77 63 65 62 63 59 Is your organization 53 54 making progress? Someprogress A lot of progress Aug Apr Aug Apr Aug Apr Aug Apr Aug Apr 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q26. Do you feel that the organization you work for is making any progress in redressing these forms of racism that you are currently seeing? Question asked of employees who have seen some form of racism at work (Q43/1 AND Q24/1-16; 18-20). General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. 18

PROGRESS ON DIVERSITY; INCLUSIVE CULTURE NOW OF GREATEST CONCERN Percent who report seeing each type of racism at their employer - 0 + U.S. general population White Black Latinx Asian Change, Aug 2020 to Apr 2021 Highest concern within Lack of inclusive +4 each community workplace culture 37 33 45 42 37 Lack of diversity in its -5 35 30 47 35 49 Lack of diversity was workforce and leadership #1 concern in 2020 Bias in customer and +10 31 24 38 38 31 community engagement Bias in employee pay +4 21 18 27 22 22 and benefits 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q24. Within the organization you work for, what forms of racism, if any, do you currently see? Pick all that apply. Question asked of those who are employed (Q43/1). General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. “Inclusive workplace culture” is a net of attributes 7,9,12-14; “Diversity” is a net of attributes 1-4; “Bias in customer engagement” is a net of attributes 5,8,10, and 15; “Bias in employee pay” is a net of attributes 6, and11. 19

NEARLY 1 IN 4 LACK TRUSTED SOURCE OF DEI INFORMATION Percent who trust each to tell them the truth about racism, diversity, equity and inclusion within their organization U.S. general population White Black Latinx Asian I do not trust anyone in Most trusted source the organization 23 22 26 16 30 within each community My direct boss/supervisor 28 30 29 26 27 My racially diverse co-workers 27 27 36 24 36 Racially diverse co-workers most trusted among Head of HR 23 22 18 32 17 Black and Asian employees The CEO 22 28 14 21 18 Head of DEI 21 21 22 26 19 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. VOICES. Which of the following people do you trust to tell you the truth about racism, diversity, equity and inclusion matters within the organization you work for? Pick all that apply. Question asked of those who are employed (Q43/1). General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. 20

MORE THAN HALF SAY WORKPLACE RACISM HAS DAMAGED THEIR EMPLOYER RELATIONSHIP Percent of employees who agree - 0 + Change, Aug 2020 to Apr 2021 Communities Racism in my workplace has 68 damagedmy relationship 64 58 with my employer 45 +9 +1 +12 +13 Top three forms of damage to the employer relationship: White Black Latinx Asian • Less trust • Less loyalty • Less advocacy Age Political Affiliation +14 72 65 pts 53 49 55% 28 43 +19 +13 +6 +9 +17 +3 U.S. general population 18-34 35-54 55+ Rep Dem Ind/3rd 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q27. How does the presence of these forms of racism affect your relationship with your employer? Pick all that apply. Question asked of employees who have seen some form of racism at work (Q43/1 AND Q24/1-16; 18-20). General population, U.S., by age and political affiliation, and among Non- Hispanic White, Black, Latinx and Asian populations. Data shown is rebased to be among all employees. “Advocacy” is a net of attributes 3 and 4; “Loyalty” is a net of attributes 5 and 6. 21

THE MORE RACISM IN THE WORKPLACE, THE MORE DAMAGE TO THE EMPLOYER RELATIONSHIP Number of different types of racism seen in the workplace, and percent of employees who say their relationship with their employer has been affected in each way The more workplace racism, Number of types of racism seen in the workplace the more damage to employer-employee relationship One Two-to-three Four or more Trust Loyalty Advocacy 55 52 46 39 32 27 24 17 11 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q27. How does the presence of these forms of racism affect your relationship with your employer? Pick all that apply. Question asked of employees who have seen some form of racism at work (Q43/1 AND Q24/1-16; 18-20). General population, U.S., by how many forms of racism employees are seeing in their workplace asked at Q24 (43/1). “Advocacy” is a net of attributes 3 and 4; “Loyalty” is a net of attributes 5 and 6. 22

4 IN 10 WOULD AVOID EMPLOYERS THAT FAIL TO TAKE A STAND - + AGAINST RACISM 0 Change, Aug 2020 to Apr 2021 Communities Percent who agree I would not work for an organization 38 51 49 45 that fails to speak out publicly at this +2 +1 +6 +1 time to address racism in this country White Black Latinx Asian Age Political Affiliation +1 50 53 pt 47 28 31 41% 33 -2 +6 -2 +3 -2 -3 U.S. general population 18-34 35-54 55+ Rep Dem Ind/3rd 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. Q23. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. General population, U.S., by age and political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. 23

BUSINESS MUST DRIVE SYSTEMIC CHANGE

8 IN 10 EXPECT CEOS TO ACT; ZERO TOLERANCE FOR RACISM AT WORK Percent who believe that CEOs must do each action in response to systemic racism and racial injustice Percent who expect Top 5 expected actions, CEOs to do something U.S. general population U.S. White Black Latinx Asian Institute a policy of zero tolerance 37 35 41 32 47 of racism within their organization Getting their own house in order 30 28 39 27 35 when it comes to racial equality Ensure that there is 30 26 40 28 40 79% ethnic diversity on the company’s board Foster the career growth and development of 29 26 39 27 35 Black, Hispanic and Asian American employees Black respondents most concerned Consult with Black, Hispanic and Asian about having their American community leaders on what the 26 23 42 29 34 voices heard and organization should be doing acted upon 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. WCEO_RESP. Which of the following things do you believe that CEOs must do in response to the systemic racism and racial injustice in this country? Pick all that apply. General population, U.S., and among Non-Hispanic White, Black, Latinx and Asian populations. Data on the left is a net of attributes 1-12. 25

BROAD SUPPORT FOR CEOS TO ACT BEYOND THE BUSINESS Which do you agree with more? 26pt difference between Republicans and Democrats 68 64 66 U.S. general CEOs are acting appropriately 56 56 56 54 population boycott states 52 when they 51 because they believe the actions of state 40 government leaders/ 55%laws they pass are racially discriminatory VS starting to overstep CEOs are whenthey boycott states even if they feel the actions of state government leaders/laws they pass are racially discriminatory 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. IDEAL. You are about to see a series of two choices. Please choose the one that you agree with more. General population, U.S., by age and political affiliation, and among Non-Hispanic White, Black, Latinx and Asian populations. 26

REPUTATION GAINS FOR COMPANIES THAT GET THEIR HOUSE IN ORDER Percent who say that they would view each action by a company as… Negative Something I expect Exceed expectations Replacing a racist logo, jingle, symbol or product name -18 44 21 65 with one that is non-racist Apologizing for racist it had engaged in -23 38 20 58 actions decades ago Paying reparations to ethnic groups it had discriminated against -28 29 21 50 many year in the past 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. EXTRA_CREDIT. For each of the following actions a company could take to address racism, please indicate whether the action would lead you to see the company as going beyond your expectations when it comes to addressing racism, whether the action is something you would expect every company to do, or whether the action is something that would negatively impact your opinion of the company. 3-point scale; code 1, exceed expectations; code 2, something I expect; code 3, doing this will negatively impact my opinion. General population, U.S. “Replacing a racist logo, jingle” is an average of attributes 1 and 2. 27

REPUTATION GAINS FOR COMPANIES THAT ADVOCATE FOR RACIAL JUSTICE Percent who say that they would view each action by a company as… Negative Something I expect Exceed expectations Fund or support organizations that address racism in the criminal -18 37 24 61 justice system Create a campaign to raise awarenessregarding -19 38 24 62 systemic racism Create a campaign that condemns -21 34 25 59 killings of Black people by police 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. EXTRA_CREDIT. For each of the following actions a company could take to address racism, please indicate whether the action would lead you to see the company as going beyond your expectations when it comes to addressing racism, whether the action is something you would expect every company to do, or whether the action is something that would negatively impact your opinion of the company. 3-point scale; code 1, exceed expectations; code 2, something I expect; code 3, doing this will negatively impact my opinion. General population, U.S. 28

REPUTATION GAINS FOR COMPANIES THAT DRIVE SYSTEMIC CHANGE Percent who say that they would view each action by a company as… Negative Something I expect Exceed expectations Ahealth/beauty company working to make it illegal to discriminate against people -16 41 23 64 of color based on their hair style A restaurant creating a program to increase the number of Black -18 37 24 61 franchise owners Encourage people to order from in response to Asian restaurants -19 32 25 57 recent attacks on Asian Americans by those who blame them for COVID 2021 Edelman Trust Barometer Special Report: Business and Racial Justice in America. EXTRA_CREDIT. For each of the following actions a company could take to address racism, please indicate whether the action would lead you to see the company as going beyond your expectations when it comes to addressing racism, whether the action is something you would expect every company to do, or whether the action is something that would negatively impact your opinion of the company. 3-point scale; code 1, exceed expectations; code 2, something I expect; code 3, doing this will negatively impact my opinion. General population, U.S. 29

RACIAL JUSTICE IN AMERICA: FROM SMALL STEPS TO SYSTEMIC CHANGE 1 2 3 4 The stakes intensify A C-suite imperative Progress on Brands must move Businesses that don’t take CEOs must work to Diversity, falling beyond campaigns action to address racism combat systemic racism short on Equity and Consumers expect brands will lose customers and and promote equity both Inclusion to do more than talk. employees. Companies within and outside their While employers have Brands must demonstrate must commit to a organization. The majority made progress, hiring is their commitment through meaningful, long-term of consumers support not enough. Systemic substantive efforts to effort to drive systemic CEOs taking on an change requires sustained educate, advocate and change. expanded role to lead work across the drive change. societal change. organization’s culture, operations and business model. 30