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2019 EDELMANTRUST BAROMETERSpecial Report: California#TrustBarometer

METHODOLOGY 2019 EDELMAN TRUST BAROMETERSPECIAL REPORT: CALIFORNIAStatewide - General PopulationN 1,500; MOE: 2.5%January 4-20, 2019San Francisco Bay AreaN 500MOE: 4.4%Other groupsLos Angeles AreaRest of CaliforniaN 500MOE: 4.4%N 500MOE: 4.4%Bay Area Tech WorkersN 423MOE: 4.8%*Edelman Intelligence conducted an online statewide survey of 1,900 California residents, with 1,500 General Population respondents and an oversample of 400 Bay Area Tech Workers. The statewidegeneral population results were weighted to the Census to be representative of the CA adult population.23 respondents from the General Population sample qualified as Bay Area Tech Workers, for a total of 423 BATW respondents. Bay Area Tech Worker defined as: reside in Bay Area county, work for a company in thetechnology industry (self-selected). Includes General Population and Oversample members meeting these criteriaSome of the California data is compared to the data from the Global Trust Barometer among US General Population: (N 500) /- 4.4%2

CALIFORNIANS ARE SKEPTICSPercent trust in each institutionTrust %32%-9USCA-11-10US CAUS CA-8USCAAverage Trust in CA: 39%-10 compared to USFooterSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q3CA: Below is a list of institutions and people. For each one, please indicate how much you trust that institution or person to do what is right using a 9-point scale where 1means that you “do not trust them at all” and 9 means that you “trust them a great deal.” Showing % Trust 6-9. General Population, CA“Average trust” is the average trust of the 4 institutions.33

CALIFORNIANS ARE AMBIVALENT TOWARD THEIR ENGINESOF PROSPERITY, EVEN AS THE ENVY OF OTHERSPercent trust in each sectorΔ Since 201861% -12 vs. USTechnology-1Startupcompanies-247%The“sharing economy” 247%Social mediacompanies-433%Source: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q11G. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where onemeans that you “do not trust them at all” and nine means that you “trust them a great deal.” (Trust 6-9). General Population, CA4

GOLDEN STATEWORRIERS5

GOLDEN STATE WORRIERS: CALIFORNIANS SEECALIFORNIA PAST ITS PRIME62%feel that the best days ofliving in Californiaare behindvs. are aheadSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19 N: Do you feel that the best days of living in California are ahead or behind? General Population, CA6

LOCAL ISSUES LOOM LARGE: CALIFORNIANS SEE ASERIOUS HOUSING CRISIS72%of Californians saycost and availability ofhousing is a very seriousissue for California76% Bay Area62%53%of Californians areconsidering movingout of state because ofthe high cost of living 4 since 2018Millennials are especially at riskof leaving CA (63%)of Californians sayhomelessness is avery serious issuefor California62% Bay AreaSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q18 P. How serious of a problem for California are each of the following issues? Very serious, somewhat serious, not very serious, not at all seriousGeneral Population, CAQN66: Please indicate whether you agree or disagree with the following. I am considering moving away from California because of the high cost of living. General Population, CA7

HOUSING CRISIS THREATENS CALIFORNIA’S ECONOMY% who chose each issue as most likely to hold back CA’s economy and hamper growth40%Housing costs4x than thenext threatOver 6x for BAresidents (49%Housing vs. 8%High Health CareCosts)10% 5 Since 2018for BAHigh housing costsHigh health care costs7%7%Crime/securityLack of affordable highereducation/college debtSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q8CA M. Which of the following do you think is the most likely to hold back California’s economy and hamper growth?Not shown: failing schools (5%), transportation system (including roads) is overloaded and stretched too thin (4%), not enough trained workers (3%), lack of innovation bybusinesses (2%), problems in agriculture/inability to grow food (2%), other, don’t know. General Population, CA5%The drought8

LOCAL BUSINESS’ROLE IN IMPROVINGCALIFORNIA9

EVERYONE SHOULD BE DOING MORE TO IMPROVECALIFORNIA – INCLUDING BUSINESS LEADERS% feel that groups should be doing more to improve California72%66%70%in the Bay Areavs. 64% LA, 67% RCAElected representativesBusiness leaders in generalSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19 D: For the following groups, what is your opinion when it comes to the role and responsibility they should be taking in improving California? Theyshould be doing much more, somewhat more, somewhat less, much less, or about the same to improve California. General Population, CA. Showing %much more somewhat more.10

BUSINESS HAS AN OBLIGATION TO HELP SOLVE LOCALISSUES, AND CAN DO SO WITHOUT SACRIFICING PROFIT% Agree (6-9)63%Agree businesses make large profits whiledraining our local resources and straining ourinfrastructure. They owe it to the public tocontribute more to solving our local problems.69%Agree that a company can takespecific actions that both increaseprofits and improve the economic andsocial conditions in the communitieswhere it operates.68% of the Bay Areavs. 62% in LASource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19: Please indicate how much you agree or disagree with the following statements 1 to 9 scale where 1 means strongly disagree and 9 meansstrongly agree. Showing % agree 6-9. General Population, CA11

BUSINESS HAS LICENSE TO TACKLEPROBLEMS AND IMPROVE CAWho do you trust more to .?56%Improve the area in which you live44%Business LeadersFederal Government47%Fix California's problems53%Source: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19 E: Who do you trust more to do each of the following? General Population, CA12

TAKING RESPONSIBILITY AND ACTION BUILDS TRUST% trust a company more if they ACCEPT RESPONSIBILITYDO SOMETHING ABOUT IT59%58%62% BAvs. 58% LACommunicates transparently about its role in localissues (such as traffic, housing and environmentalimpact) and societal issues (such as income inequalityand diversity & inclusion)Donates money, time and/or other resources to helpaddress issues in its own communitySource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19 C: If a company did the following, would it make you trust them more, the same, or less? General Population, CA13

TECH’S ROLE INIMPROVING CALIFORNIA14

EXPECTATIONS FOR TECH TO SOLVE LOCAL ANDSOCIETAL ISSUES ESPECIALLY HIGH AND GROWINGEXPECTATIONS FOR TECH GROWING 6% think they should be doing lessShowing % Agree (Strongly Somewhat)201827% think they should201981%be doing the same76%75%71%67% thinkbusiness leaders in thetech industry shouldbe doing more toimprove California 6 5Given their impact on the local areas inGiven their impact on society, techwhich they operate, tech companies have companies have an obligation to improvean obligation to improve local issuessocietal issuesCA Gen PopSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19 D: For the following groups, what is your opinion when it comes to the role and responsibility they should be taking in improving California? They should be doing QN54: Please indicate whether you agree or disagree with each of the following. General Population, CA15

TECH PARTICULARLY RESPONSIBLE TOIMPROVE PROBLEMS IT IS SEEN AS CREATINGShowing % Agree (6-9)Responsibility to prepareCalifornians for future issues JOB CREATION BY TECHPERCEIVED TO BE LOWONLYJob displacement due to advancements intechnology44%of Californians feel thattechnology will create morejobs than it will kill65%35%60%Lack of technical skills for jobs of the future40%Business LeadersFederal GovernmentSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q19 F. Whose responsibility is it to ensure that people in California are prepared for the following potential issues in the future? General Population, CADRV TEC AGR: For each of the statements below, please indicate how much you agree or disagree. General Population, CA16

A CALL FOR CHANGE17

AMONG CALIFORNIANS, DEMAND FOR TECHREGULATION IS CLIMBING CALIFORNIANS INCREASINGLY CALL FOR TECH REGULATION68%62%58%56% 6 1246%from 2018201720182019from 201820182019The technology industryhas been under-regulatedThe technology industryshould be more regulatedvs “over-regulated”vs “the same” or “less”By region: 72% BA ( 5 Δ), 70% LA ( 9 Δ),61% RCA ( /-0)By region: 62% BA ( 9 Δ) , 59% LA ( 15Δ), 52% RCA ( 9 Δ)Source: 2019 Edelman Trust Barometer Special Report: California (January 2019)QN51. For each, please select which statement is closer to your view. General Population, CAQ18 A: Moving forward, do you think the tech industry should be more regulated, less regulated, or face about the same level of regulations as it does now?General Population, CA18

AND TECHEMPLOYEESHAVE EVENGREATEREXPECTATIONSFOR THEIREMPLOYERS86% 5ptsof Tech Workers say thatgiven their impact on local areas in whichthey operate, tech companies have anobligation to improve local issuesvs. CA85% 9ptsof Tech Workers say thatgiven their impact on society, techcompanies have an obligation toimprove societal issuesvs. CA75%of Tech Workers say thatbusiness leaders in tech should bedoing more to improve CA 8ptsvs. CASource: 2019 Edelman Trust Barometer Special Report: California (January 2019)QN54: Please indicate whether you agree or disagree with each of the following. Tech Workers, Bay Area, CAQ19 D: For the following groups, what is your opinion when it comes to the role and responsibility they should be taking in improving California? They should be doing Tech Workers, Bay Area, CA19

TECH WORKERS WANT CHANGE AND CALL FOR REGULATION69%Of Tech Workers saythe technology industryhas been under-regulatedvs “over-regulated”Source: 2019 Edelman Trust Barometer Special Report: California (January 2019)QN51. For each, please select which statement is closer to your view. Tech Workers, Bay Area, CA20

DATA PRIVACY AT THE TOP OF BAY AREA TECH EMPLOYEECONCERNSTop Tech Industry ConcernsAmong Tech WorkersTECH HAS AN OBLIGATIONTO PROTECT94%of Tech Workers agreetech companies have anobligation to protect theirusers’ dataLack of privacy/my data is shared too much57%Failure to protect from data security threats57%It is increasing housing costs43%People are too focused on their technology and gadgetsrather than real lifeTech CEOs and employees make a lot of money, whileregular people struggle to make ends meet37%36%It is creating a society of “haves” and “have-nots”32%It is creating traffic30%The tech bubble crashing and many people losing theirjobs28%It is moving too fast, without safeguards25%Lack of diversity at tech companiesNone of theseSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)QN54: Please indicate whether you agree or disagree with each of the following. Tech Workers, Bay Area, CAQN17. What are your top concerns about the technology industry? Please select all that apply. Tech Workers, Bay Area, CA24%2%21

DESPITE TECH’S CHALLENGES, TECH EMPLOYERS MOSTTRUSTED INSTITUTION AMONG TECH WORKERS% Trust in Institutions (6-9), Among Tech Workers 4 compared to CA78%63%59%55%48%Your employerNGOsBusiness in generalMedia in generalSource: 2019 Edelman Trust Barometer Special Report: California (January 2019)Q3CA: Below is a list of institutions and people. For each one, please indicate how much you trust that institution or person to do what is right using a 9-point scalewhere 1 means that you “do not trust them at all” and 9 means that you “trust them a great deal”. Tech Workers, Bay Area, CAGovernment in general22