JUSTCapital SurveyReport2018

From InsIght to ActIon JUST Capital’s 2018 Survey Results & Roadmap for Corporate America OCTObeR 2018 ’ AsM C i O R e s M T A COMPAnies

Contents 1. Executive Summary 1 2. Voice of the American People 3 3. Methodology 4 4. America’s Views on Business 5 6. The Roadmap for Corporate America 15 7. JUST Scorecard 24 2 | JUST CAPITAL

1. ExEcutIvE summAry The Findings We have some good news. The country is not as divided as you might think. In a year roiled by polarizing politics and social discord, we found there is unity among Americans when it comes 79% of Americans believe that to how they want companies to behave and what a more just economy could look like. JUST Capital’s annual survey research asks the American public to identify the issues that are people can be effective when they most important in de昀椀ning just business behavior today. The results – presented in this report – work together to change companies’ underpin everything we do. They power our Rankings, our research, and our thematic analysis. behaviors. They drive the tools and products we bring to market – like the recently launched JUST ETF – in order to incentivize more just corporate behavior. And they provide a detailed and timely benchmark of popular sentiment on key issues of the day. 78% said that they had taken In 2018, we surveyed more than 9,000 respondents, bringing the total number of people taking action to show their support for a part in our survey research over the last four years to more than 81,000. To our knowledge, this company’s positive behavior. is one of the most comprehensive bodies of public opinion research ever compiled and utilized to measure companies. Overall, Americans in 2018 have more positive Views on Business than we found in 2017. They believe that companies can be a force for greater good and have the potential to play a crucial role in addressing social challenges in our country. 76% of working Americans said that 63% of people think when considering accepting a job, they would CeOs of large companies have opt to work at a more just company, even if it paid a responsibility to take a stand on less. In fact, the majority of working Americans important social issues. say they would accept 20% less pay. JUS JUST CT CAPITAPITAL | 1AL | 1

1. ExEcutIvE summAry One of the distinguishing features of JUST Capital’s survey work is 2018 Prioritized Issues that it provides companies with clear insight into what the American public values most – asking respondents to identify the business 25% Workers behaviors companies should prioritize to be more just, and then rate those priorities by importance. Americans came to the same conclusion that they did in last year’s survey: across demographics – high-income, 18% Customers low-income, men, women, millennials, boomers, Democrats, and Republicans – worker issues remain the most important aspect 14% Products of just business behavior, making up 25% of our total Ranking model. Taken together, these Issues present an up-to-date and highly 13% environment detailed Roadmap for Corporate America to help build a more just economy where businesses and their stakeholders win together. 12% Jobs They also represent a new way to foster business success and build a marketplace more in tune with American values in the 21st century. 11% Communities 0 Leadership 8% & Shareholders 2 | JUS2 | JUST CT CAPITAPITALAL

2. voIcE oF thE AmErIcAn PEoPlE deFining JUsT Since 2015, JUST Capital has surveyed more than 81,000 Americans – representative of the Our focus group and survey U.S. adult population – asking them to de昀椀ne just business behavior. For this year’s survey work, respondents de昀椀ne a just we partnered again with NORC at the University of Chicago, engaging over 9,000 respondents company as follows: who represent a cross section of America today. We captured perspectives across generational A just company is ethical, and ideological divides, varying income and education levels, race, gender, and more. honest, and fair, and Survey Demographics behaves this way when it comes to its employees, housEhold IncomE AgE rEgIon customers, shareholders, 29% Less than $30,000 31% 18-34 18% Northeast and the environment, as 38% $30,000 to $74,999 24% 35-49 21% Midwest well as the communities it 22% $75,000 to 124,999 25% 50-64 37% South impacts locally and around 12% $125,000+ 20% 65+ 24% West the world. EducAtIon IdEology rAcE/EthnIcIty 11% Less than high school 6% Very conservative 64% Non-Hispanic White 29% High school equivalent 24% Conservative 12% Non-Hispanic black 29% Some college/Associate degree 36% Moderate 16% Hispanic 19% bachelor's degree 17% Liberal 3% Non-Hispanic Asian/Paci昀椀c Islander 12% Graduate degree 6% Very liberal 5% Non-Hispanic Other 11% None of the above gEndEr InvEstor stAtus EmPloymEnt stAtus 48% Male 50% Yes 56% Working 52% Female 50% No/not sure 35% Not working/not looking for work 9% Not working/looking for work Note: Numbers might not sum to 100% due to rounding. JUS JUST CT CAPITAPITAL | 3AL | 3

3. mEthodology JUST Capital partnered with NORC Results of both surveys were weighted at the University of Chicago to to U.S. Census parameters for gender, MORe On MAxdiFF design and execute the two surveys age, education, and race/ethnicity MaxDi昀昀 (Maximum Di昀昀erence Analysis) derives relative featured in this report. Both surveys to ensure representativeness. All importance scores to just business behavior, which we use as weights in our company Rankings model. The survey were conducted using NORC’s margins of error include “design questions present respondents with a set of items, from AmeriSpeak online panel, a nationally e昀昀ects” to adjust for the e昀昀ects of which they are then asked to identify the most and least representative probability-based weighting. Some questions were important. In our implementation, we presented respondents survey panel in which respondents asked of random subsets of the total with a random selection of three (of seven) Issues at a time, and repeated the question until the respondent had are recruited using traditional sample, which increases the margins answered for all combinations of the seven Issues. As probability methods, and those without of error. More information about respondents go through these choice tasks, their strength internet access complete surveys NORC’s AmeriSpeak panel can be of preference, based on the consistency of their choices, by telephone. The 昀椀rst survey was found at AmeriSpeak.NORC.org. The is developed. Sawtooth software implements a statistical model – Hierarchical Bayes – to summarize the information conducted May 1 to 16, 2018, and relative importance weights for the and calculate how much of the relative importance each Issue consisted of 3,582 respondents (375 Issues and Components were derived receives, summing to 100 percent. These relative importance by telephone and 3,207 online) with a using a MaxDi昀昀 design and Sawtooth measures become the weights we then use in our Rankings. margin of error of +/- 2.2 percentage software. Our full body of survey We repeated the MaxDi昀昀 process on the 3-9 Components within each issue to obtain the relative importance weights for points, and the second was conducted work this year also includes 14 focus the Components within each issue. June 7 to July 1, 2018, and consisted of groups conducted by NORC and a 4,083 respondents (626 by telephone YouGov survey of 1,500 respondents, The MaxDi昀昀 surveys for Issues and Components were conducted separately. The MaxDi昀昀 surveys for Issues and 3,457 online) with a margin of error which was used for internal research consisted of 3,582 respondents, and these estimates have of +/- 2.1 percentage points. purposes and is not included in a margin of error of +/- 2.2 percentage points. The MaxDi昀昀 this report. All di昀昀erences between surveys for Components were conducted separately: numbers reported in this document Environment and Communities each consisted of 1,070 respondents (MOE +/- 4.2%), Company Leadership & are statistically signi昀椀cant at the 95% Shareholders consisted of 1,071 respondents (MOE +/- 4.2%), con昀椀dence level. Customers and Products each consisted of 932 respondents (MOE +/- 4.5%), and Workers and Jobs each consisted of 1,010 respondents (MOE +/- 4.3%). 4 | JUST CAPITAL

4. AmErIcA’s vIEws on BusInEss How do AmericAns perceive tHe stAte of business todAy? WheRe We’Re heAding ❱ MessAges TO CeOs Overall, Americans have a less negative attitude That said, the percentage of Americans who believe As part of our survey, we asked toward corporations than they did in 2017 – what companies are heading in the right direction did not Americans: “If you could send one message to the CEOs of America’s some might consider to be a cautious optimism. Last signi昀椀cantly change – 27% last year versus 30% this largest companies on any topic, what year, 47% of Americans thought companies were year. The di昀昀erence seems to be made up by those would your message be?” heading in the wrong direction, whereas this year, who say they don’t know, suggesting that, while Overwhelmingly Americans want only 38% shared this view. fewer Americans see business heading in the wrong companies to prioritize workers, with direction, they’re still not sure it’s heading in the 1,500 respondents speaking speci昀椀cally right direction. about employee treatment. Here are just a few of those messages: Right Direction A business is only as strong as its weakest link – take care of every 30% employee from the bottom up. — Female, 29, White, Democrat, CA 27% If you take care of your employees, they Wrong Direction will take care of your growth. — Male, 31, Hispanic, Democrat, PA 38% Value your employees. It’s not all about 47% the dollar. — Female, 30, White, Republican, VA Don’t Know Invest in your people. — Male, 47, White, Republican, FL 32% Look out for all your employees. 25% They create the backbone and heart of your company. n 2018 | n 2017 — Male, 47, Hispanic, Republican, CA Treat your workers well! They ARE the company. Q: In general, do you think the behavior of companies is going in the right direction or in the wrong direction? — Female, 45, Black, Democrat, MD Base: Total Respondents, N = 3,582 (unweighted), MOE +/- 2.2 percentage points. Note: Numbers might not sum to 100% due to rounding. JUST CAPITAL | 5

4. AmErIcA’s vIEws on BusInEss How do AmericAns perceive tHe stAte of business todAy? PRiORiTizing shARehOldeRs In the last two years, over 80% of Americans said that companies do not share enough of their success with employees.* Speci昀椀cally, the survey results clearly signaled that Americans felt companies were prioritizing shareholder interests above employees and customers. However, the percentage of Americans who perceived employees as the top priority for corporations more than doubled – from 9% in 2017 to 20% in 2018 – while those who saw shareholders as the top priority fell from 69% to 59% (customers stayed the same). The Top Priority for Companies 2018 2017 59% of Americans believe the top priority 69% of Americans believe the top priority for companies is their Shareholders for companies is their Shareholders 21% see Customers as top priority 22% see Customers as top priority 20% see employees as top priority 9% see employees as top priority Q: Do you think the top priority for companies in this country right now is their shareholders (2018)/stockholders (2017), their employees, or their customers? Base: Total Respondents, N = 3,582 (unweighted), MOE +/- 2.2 percentage points. Note: Numbers might not sum to 100% due to rounding. * Q: Which one of the following statements comes closest to your view? Companies do not share enough of their success with their employees; Companies generally share a fair amount of their success with their employees; Companies share too much of their success with their employees. Base: Total Respondents, N = 3,582 (unweighted), MOE +/- 2.2 percentage points. Note: Numbers might not sum to 100% due to rounding. 6 | JUS6 | JUST CT CAPITAPITALAL

4. AmErIcA’s vIEws on BusInEss How do AmericAns perceive tHe stAte of business todAy? iMPACT Americans see companies as having a generally positive impact on society – particularly for their shareholders, as well as in how they support local communities, create jobs in the U.S., and provide quality products and services. On issues like environment and international communities, however, the majority of Americans do see corporate impact as negative. POSITIVe IMPACT ISSUeS NeGATIVe IMPACT 72% Shareholders 19% 68% Quality of Products & Services 27% 65% Quality of Jobs in the U.S. 32% 62% Local Communities 32% 58% Society Overall 36% 50% employees’ Work-life balance 43% 40% Communities Outside the U.S. 46% 38% The environment 57% Q: Do you think large companies are having a very positive impact, a somewhat positive impact, a somewhat negative impact, a very negative impact, or no impact on: [ISSUE]? Base: Varies by issue, range N = 932 to 1,070 (unweighted), MOE +/- 4.5 percentage points; N = 4,083 (unweighted), MOE +/- 2.1 percentage points for “society overall.” Note: Numbers might not sum to 100% due to rounding. JUS JUST CT CAPITAPITAL | 7AL | 7

4. AmErIcA’s vIEws on BusInEss How do AmericAns perceive tHe stAte of business todAy? TAking A sTAnd More and more, CEOs are taking a stand on issues like gender pay, discrimination, immigration, climate change, gun control, and more. We asked the public what they think about CEOs acting on important social issues. 63% of people think 35% think they do not 56% of people think 42% think CeOs should CeOs of large companies have a have that responsibility CeOs should take a stand – but take a stand – no matter what responsibility to take a stand only if the issues are related to the issue on important social issues their business Q: Which one of these two perspectives comes closest to your opinion? Some Q: Which one of these two perspectives comes closest to your opinion? Some people think CEOs of large companies do have a responsibility to take a stand people think CEOs of large companies should take a stand on important social on important social issues. Other people think CEOs of large companies do issues – no matter what the issue. Other people think that CEOs of large not have a responsibility to take a stand on important social issues. Base: Total companies should take a stand on important social issues – but only if the issues Respondents/Split Sample, N = 1,834 (unweighted), MOE +/- 3.2 percentage points. are related to their business. Base: Total Respondents/Split Sample, N = 1,748 Note: Numbers might not sum to 100% due to rounding. (unweighted), MOE +/- 3.3 percentage points. Note: Numbers might not sum to 100% due to rounding. 8 | JUST CAPITAL

5. AmErIcA’s commItmEnt to chAngE In an e昀昀ort to better understand their willingness to encourage and incentivize just business behavior, we asked Americans what they have done to show support for a company’s positive behavior. CAn PeOPle dRiVe ChAnge? To gauge their sense of empowerment in the market, we asked Americans how e昀昀ective they think people can be when they act together to try to change companies’ behavior: believe that people are believe that people are 79% somewhat or very effective 21% not very or not at all effective The response indicates a modest upswing from the same question in 2017, which yielded the following: believed that people are believed that people are 71% somewhat or very effective 28% not very or not at all effective This augurs well for those trying to in昀氀uence corporate behavior in one direction or another, but when it comes down to taking action, what precisely are Americans willing to do to help encourage and support more just companies? Q: How e昀昀ective do you think people can be when they act together to try to change the behavior of large companies? Base: Total Respondents, N = 3,582 (unweighted), MOE +/- 2.2 percentage points. Note: Numbers might not sum to 100% due to rounding. JUS JUST CT CAPITAPITAL | 9AL | 9

5. AmErIcA’s commItmEnt to chAngE sUPPORTing JUsT COMPAnies We asked Americans if they had ever purchased products or services, applied for a job, invested, posted on social (or other) media, signed a petition, collaborated with an advocacy group, or attended a community gathering to show their support for a company’s positive behavior. 78% said they had taken at least one of these actions previously, with 59% saying Among all respondents, they had done so in the last 12 months. Of that 59%: 74% 65% 40% 37% 35% 34% 33% began purchasing mentioned a invested in a signed a petition collaborated attended a applied for a job or started company in social company with or became community purchasing more (or other) media a member of meeting, a rally, of a company’s an advocacy or other similar products or or activist gathering services organization Q. Which of the following, if any, have you ever done to show your support for a company’s positive behavior? BASE: Total Respondents (N= 3,582), MOE +/- 2.2 percentage points. Q. Which of the following, if any, have you done in the past 12 months to show your support for a company’s positive behavior? BASE: Have ever done activity, n = 2,777 unweighted, MOE +/- 2.5 percentage points (individual activities range from n = 1,856 unweighted to n = 245 unweighted). Note: Numbers might not sum to 100% due to rounding. 10 | JUST CAPITAL

5. AmErIcA’s commItmEnt to chAngE WORking FOR JUsT COMPAnies In 2017, we asked survey respondents what they would sacri昀椀ce to work for a just company. Four out of 昀椀ve respondents (79%) said they would be willing to accept at least a little less pay to work at a company that is more just. In 2018, we explored this issue in greater depth, and this time presented only working Americans with the following hypothetical scenario: Remember that a just company is ethical, honest, and fair and behaves this way when it comes to its employees, customers, shareholders, and the environment, as well as the communities it impacts locally and around the world. Imagine you’re considering accepting a job and have to choose between two companies. The companies are similar in many ways, but di昀昀er in how just the company is, and how much the job pays. Company A, the more just company, pays less. Company B, the less just company, pays more. Which company would you choose? 76% said they would choose Company A: Only 24% said they would choose Company b: the company that was More Just but Paid Less the company that was Less Just but Paid More Q. Imagine you’re considering accepting a job and have to choose between two companies. The companies are similar in many ways, but di昀昀er in how just the company is, and how much the job pays. Company A, the more just company, pays less. Company B, the less just company, pays more. Which company would you choose? Base: Working Respondents (N = 1,602 unweighted), MOE +/- 3.2 percentage points. Note: Numbers might not sum to 100% due to rounding. JUS JUST CT CAPITAPITAL | 11AL | 11

5. AmErIcA’s commItmEnt to chAngE We then expanded our exploration by adding two versions of the question – to dig into the amount of pay ❱ MeThOdOlOgY that was at stake. When the amount of pay was speci昀椀ed, the majority of respondents were still signi昀椀cantly Results this year are based on only those more likely to select Company A over Company B – even when Company B paid 20% more than Company A. respondents in the workforce: paid The results do show, however, that respondents were sensitive to the di昀昀erence in pay: when 10% of pay was employees and self-employed workers, as well as those temporarily laid o昀昀 and at stake, 77% chose Company A; when 20% of pay was at stake, 71% chose Company A. currently looking for work. Excluded were respondents who were retired or not working due to a disability. 77% chose Company A: 71% chose Company A: Respondents were randomly assigned More just, but pays 10% less More just, but pays 20% less to one of three versions of the question: (1) pay not speci昀椀ed, (2) pay 10% more/ 23% chose Company B: 29% chose Company B: less, (3) pay 20% more/less. Less just, but pays 10% more Less just, but pays 20% more The choice of Company A or Company B was made personally relevant by asking each respondent to identify their annual salary range for the type of work they do, or have done. Those responses were then used, in the two versions that speci昀椀ed the amount of pay, to estimate Q. See page 11. Base: Working Respondents (N = 1,602 unweighted), MOE +/- 3.2 percentage points. Note: Numbers might not sum to 100% due to rounding. salary 昀椀gures for 10% less/more and 20% less/more, based on the individual respondent’s annual salary range. 12 | JUS12 | JUST CT CAPITAPITALAL

5. AmErIcA’s commItmEnt to chAngE deMOgRAPhiC diFFeRenCes When looking at di昀昀erent demographic groups, we see additional nuance in the results. Across gender, age, and household income ranges, the majority of respondents chose Company A – but di昀昀erences emerged when we looked at the demographic sub-groups and compared to the 10% and 20% less pay scenarios. GeNDeR CHOSe COMPANY A Women were more likely than men to choose 10% LeSS PAY 20% LeSS PAY Company A – the more just company that pays less – at both the 10% and 20% levels. Women 81% 75% Men were among the demographic groups least Men 73% 67% likely to select Company A when the pay was 20% less (67%). Q. See page 11. Base: Working Respondents (N = 1,602 unweighted), MOE +/- 3.2 percentage points | Women/10% = 379 (unweighted) MOE +/- 5.0 percentage points, Men/10% = 422 (unweighted) MOE +/- 4.8 percentage points | Women/20% = 371 (unweighted) MOE +/- 5.1 percentage points, Men/20% = 430 (unweighted) MOE +/- 4.7 percentage points. AGe CHOSe COMPANY A Respondents 40+ years old were more likely than 10% LeSS PAY 20% LeSS PAY those under 40 to choose Company A – but only when the pay was 20% less. Under 40 78% 65% 40+ 76% 76% those under 40 were more sensitive to the amount of pay. 78% of respondents under 40 said they would choose Company A over Company B when they were paid 10% less, but only 65% would opt for Company A if it meant 20% less salary. Q. See page 11. BASE: Working Respondents (n = 1,602 unweighted), MOE +/- 3.2 percentage points | Under 40/10% = 400 (unweighted) MOE +/- 4.9 percentage points, 40+/10% = 401 (unweighted) MOE +/- 4.9 percentage points, Under 40/20% = 363 (unweighted) MOE +/- 5.1 percentage points, 40+/20% = 438 (unweighted) MOE +/- 4.7 percentage points. Note: Numbers might not sum to 100% due to rounding. JUS JUST CT CAPITAPITAL | 13AL | 13

5. AmErIcA’s commItmEnt to chAngE HOUSeHOLD INCOMe CHOSe COMPANY A When pay was 20% less, Workers from low income households (

’ AsM C i O R e s M T A COMPAnies 6. thE roAdmAP For corPorAtE AmErIcA Just cApitAl | from insigHt to Action JUST CAPITAL | 15

6. thE roAdmAP For corPorAtE AmErIcA Every year, we ask Americans to identify what actions companies In 2018, when asked to determine the importance of each Issue, can take to be more just. This collection of business performance Americans prioritized: Issues, and their underlying Components, comprise a data-driven WORKERS (25%) Roadmap for Corporate America, which can be used as a holistic How a company treats its employees and contractors, including fair pay, system for business leaders to better balance priorities between good bene昀椀ts, and safe working conditions. key stakeholders. CUSTOMERS (18%) How a company treats its customers, including providing positive experiences, protecting their privacy, and providing fair sales terms. PRODUCTS (14%) How products and services a昀昀ect the daily lives of those who interact with them, including fair pricing and quality, as well as overall bene昀椀t or harm. ENVIRONMENT (13%) How a company impacts the environment, including overall environmental responsibility, using resources e昀케ciently, and minimizing pollution. JOBS (12%) How a company impacts the job market in the U.S., including the number of people the company employs and the number of new jobs created. COMMUNITIES IN THE U.S. AND ABROAD (11%) How a company manages risks to human rights internationally, including using forced labor or operating in countries with oppressive governments, and how it engages with local communities. COMPANY LEADERSHIP & SHAREHOLDERS* (8%) How a company’s leadership acts ethically and with integrity, achieves long-term 昀椀nancial growth, and creates value for its shareholders. * In 2018, we updated the name of this issue from Management & Shareholders to Company Leadership & Shareholders. 16 | JUST CAPITAL

6. thE roAdmAP For corPorAtE AmErIcA The Issues ❱ MessAges TO CeOs WORkeRs Please invest more in your workers and in the 25% Workers common people of this country. They are the backbone of America. — Male, 38, White, Democrat, IA 18% Customers CustoMeRs Put customers 昀椀rst. — Female, 48, Black, Independent, WI 14% Products PROdUCTs Deliver better products to your consumers. Foster innovation. 13% environment — Male, 50, White, Democrat, OR enViROnMenT Be more aware of your impact on our 12% Jobs environment. — Female, 61, White, Republican, CA 11% Communities JOBs Create jobs that people want. — Female, 59, White, Republican, CO 0 Leadership and COMMUniTies 8% Build up the communities you bene昀椀ted from. Shareholders — Female, 49, Black, Democrat, PA leAdeRshiP The above percentages represent the importance that Americans placed on each Issue, on average, when asked to choose what is most Lead ethically, with integrity. important to just business behavior in our MaxDi昀昀 exercise (see Methodology for details. In our 2018 Rankings, 25% of a company’s score is — Male, 60, White, Independent, OH determined by how they treat their workers, 18% by how they treat their customers, and so on. The scores have to add to 100%, which means that, to increase the importance of one issue, something else must decrease. The same applies to the Components within each issue – such as “pays a living wage” and “provides a safe workplace.” Note: Numbers might not sum to 100% due to rounding. JUST CAPITAL | 17

6. thE roAdmAP For corPorAtE AmErIcA These Issues and underlying Components were identi昀椀ed by Americans as being most important in evaluating just business behavior today, prioritized in the following order. They underpin our Rankings of America’s Most JUST Companies, in which companies are scored according to the priorities of the American public. WORkeRs (25%) Provides workers with a good bene昀椀ts package 16% Pays a living wage 15% Provides a safe workplace 14% Does not discriminate in pay 13% Pays a fair wage for industry and job level 13% Adheres to equal opportunity workplace policies 12% Provides training and opportunities for career development 6% Promotes work-life balance 6% Creates a responsive and transparent workplace culture 4% CUsTOMeRs (18%) Treats customers fairly 30% Protects customer privacy 25% Is truthful in advertising 24% Provides positive customer service experiences 21% PROdUCTs (14%) Makes quality products 31% Makes products that are bene昀椀cial to health, environment, or society 30% Provides fair pricing 21% Is accurate in labeling 18% 18 | JUST CAPITAL

6. thE roAdmAP For corPorAtE AmErIcA enViROnMenT (13%) Has policies and practices to protect the environment 36% Uses natural resources ef昀椀ciently and reduces waste 35% Minimizes pollution 29% JOBs (12%) Creates jobs in the U.S. 50% Number of Jobs in the U.S. 36% Creates jobs globally 13% COMMUniTies (11%) Does not do business with companies with abusive conditions 27% Does not work with governments or authorities that oppress people 22% Maintains strong relationships with communities 14% Uses local products and resources 13% Contributes to charitable causes and gives back to communities 13% Does not cause or contribute to international con昀氀icts 11% leAdeRshiP & shARehOldeRs (8%) Follows laws and regulations 23% Leadership acts and communicates with integrity 21% Maintains integrity in 昀椀nancial reporting 20% Pays fair share of taxes 15% Makes a pro昀椀t over the long term 8% Pays CeO fairly compared to workers 8% Provides investor return over the long term 6% JUST CAPITAL | 19

6. thE roAdmAP For corPorAtE AmErIcA A UniFied FRAMeWORk 2018 Issues | 2017 Issues One of the more heartening results of our work is that, as a country, 25% Workers we are less divided than one might assume when it comes to what companies should prioritize to become more just. Across many 23% demographics – liberal, conservative, high-income, low-income, men, women, millennials, and boomers – Americans value and prioritize more 18% or less the same issues. Most importantly, they want to see improved Customers worker pay and treatment at the heart of just business practices. 19% Also encouraging is the fact that, despite the social and political upheavals of the past year, the priorities of the American public 14% Products remained largely unchanged from 2017 to 2018. Last year, when asked 17% the same questions, Americans placed 33% of the overall importance on workers and jobs combined. This year, workers and jobs together 13% environment represent 37% of the total weighting, more than four times the importance of company leadership and shareholders. 13% 12% Jobs 10% 11% Communities 11% 0 Leadership and 8% Shareholders 6% 20 | JUS20 | JUST CT CAPITAPITALAL

6. thE roAdmAP For corPorAtE AmErIcA FOCUs On WORkeRs As they did last year, Americans placed the most importance – 25% – on worker pay and treatment in this year’s survey, and therefore this issue will comprise a quarter of a company’s overall score in our 2018 rankings model. Across all demographics, there is striking and indisputable unity, with all groups prioritizing the needs of workers at roughly 25%. DeMOCRAT INDePeNDeNT RePUbLICAN OTHeR 26% 25% 25% 25% WHITe HISPANIC bLACK ASIAN 26% 25% 25% 24% Age: 18-29 Age: 30-44 Age: 45-59 AGe: 60+ 25% 26% 26% 25% HOUSeHOLD INCOMe: HOUSeHOLD INCOMe: HOUSeHOLD INCOMe: HOUSeHOLD INCOMe: UNDeR $25K $25-$50K $50-$100K OVeR $100K 24% 26% 26% 26% LeSS THAN HIGH SCHOOL HIGH SCHOOL eQUIVALeNT SOMe COLLeGe bACHeLOR’S DeGRee OR AbOVe 24% 25% 26% 26% MeN WOMeN 25% 26% INVeSTOR NOT INVeSTOR/NOT SURe 26% 25% Note: Numbers might not sum to 100% due to rounding. JUS JUST CT CAPITAPITAL | 21AL | 21

6. thE roAdmAP For corPorAtE AmErIcA ❱ The iMPORTAnCe OF gOOd WhAT Rises TO The TOP When iT COMes TO WORkeR TReATMenT? BeneFiTs Within the Workers Issue area, Americans placed the most importance on bene昀椀ts – including quality health When asked to rank order the most insurance, retirement planning (401k or other), and paid time o昀昀 via sick, parental, vacation, and bereavement important just business behaviors related to bene昀椀ts, Americans prioritized: leave policies – followed, in order of importance by these Components of just business behavior: 1. Health insurance options 2018 Worker Components 2. Retirement planning (401k or other options) 3. Sick leave policy 16% Provides workers with good bene昀椀ts package 4. Parental leave policy 5. Vacation policy 15% Pays a living wage 6. Bereavement leave policy Q Please rank the following from 1-6, with 1 being 14% Provides a safe workplace most important to just company behavior and 6 being least important to just company behavior. Base: Total Respondents (N = 3,073 unweighted). 13% Does not discriminate in pay ❱ FAiR WAge And A liVing WAge 13% Pays a fair wage for industry and job level A living wage is de昀椀ned as the minimum income necessary to pay for basic Adheres to equal opportunity workplace policies needs – like food, housing, and medical 12% care – in a speci昀椀c, local community. Provides training and career A fair wage should be in line with 6% development opportunities industry averages – de昀椀ned as being appropriate for location, job level, quali昀椀cations, experience, 6% Promotes work-life balance and performance. 4% Creates a responsive and transparent workplace culture Note: Numbers might not sum to 100% due to rounding. 22 | JUST CAPITAL

6. thE roAdmAP For corPorAtE AmErIcA de-POliTiCizing WORkeR issUes OVeRALL DeMOCRAT INDePeNDeNT RePUbLICAN Americans have encountered a steady stream of polarizing political Bene昀椀ts 16% 15% 15% 18% messaging throughout this midterm election year. But when looked Living wage 15% 15% 15% 14% at through the lens of just business behavior, the public is more Safe workplace 14% 14% 13% 16% aligned than politicians and pundits might think on key issues relating Nondiscrimination in pay 13% 14% 13% 10% to worker treatment. Fair wage 13% 13% 13% 15% Democrats, Republicans, and Independents all agree on the relative equal opportunity 12% 14% 11% 9% importance of key issues like providing good bene昀椀ts that include quality health insurance, retirement planning (401k), and paid time o昀昀, Training opportunities 6% 6% 6% 8% paying a living wage that covers local needs for food, housing, and Work-life balance 6% 5% 7% 6% medical care, providing a safe workplace that protects its workers, Responsive culture 4% 4% 5% 4% paying a fair wage for industry and job title, providing opportunities for career advancement, skills development, and educational attainment, promoting work-life balance, and creating a responsive and transparent workplace culture. JUS JUST CT CAPITAPITAL | 23AL | 23

7. Just scorEcArd FROM insighT TO ACTiOn: BenChMARk PeRFORMAnCe currEnt goAl For WiTh The JUsT sCOReCARd IssuEs PErFormAncE ImProvEmEnt In our analysis of the 昀椀nancial performance of JUST Capital ranked workers (25%) companies, we’ve found that the companies that perform well on the Pay Issues that matter most to the American public also tend to outperform What percentage of workers are making a living wage? their peers in the markets. We believe that just business practices Bene昀椀ts are good not only for workers, customers, communities, and the Are we providing quality, a昀昀ordable health environment, they’re good for business. insurance options? What about best-in- class sick, parental, and bereavement leave policies? With this in mind, we encourage companies to use the priorities of the Pay public to benchmark their own corporate practices – as a jumping o昀昀 Have we conducted a pay equity analysis to point for questions like: Where are we taking the lead on just business ensure equal opportunity for all? If yes, how are we disclosing the results? behavior? Where is there room for improvement? Below, we’ve included an abbreviated version of the JUST Scorecard – customers (18%) a set of questions, built from our survey results and the metrics we Nondiscrimination Do we treat all customers fairly and equally use to evaluate just business behavior in our Rankings, and which also regardless of background? How many form the basis for products like the JUST ETF. Companies can utilize customer discrimination controversies do we have each year? the Scorecard to evaluate their current performance on Issues of just Privacy business behavior, as well as set goals for improvement. Do we have a policy to protect customer and general public privacy and integrity? The full Scorecard, which details JUST Capital’s comprehensive list of Issues and Metrics developed through our survey and ranking process, products (14%) is available upon request from [email protected]. Quality Are we creating products that are bene昀椀cial and non-harmful to health, environment, and/or society? Fair Pricing Do we provide products and services that are of good value? 24 | JUST CAPITAL

7. Just scorEcArd currEnt goAl For currEnt goAl For IssuEs PErFormAncE ImProvEmEnt IssuEs PErFormAncE ImProvEmEnt environment (13%) leAdersHip (8%) Pollution CEO Pay What e昀昀orts are we taking to minimize What is our CEO-to-median worker pay ratio? pollution? Is executive compensation based in any way Management on ESG risks and performance? What environmental management systems do Board Leadership we have in place? What percentage of our Board is made up How are we measuring and disclosing them? of women? People of color? What about Independent Outside Directors? Jobs (12%) Creation What is the total U.S. headcount of our workforce? Number What is the percentage change in our U.S. workforce over the past 昀椀ve years? communities (11%) Human Rights Have we conducted a formal human rights impact assessment of our entire business operations? Have we disclosed our 昀椀ndings? Local Communities Have we disclosed a policy, commitment, or e昀昀ort to source from local suppliers or support local businesses? Charitable Giving Do we provide opportunities for employees to take paid time o昀昀 for volunteering? Do we match their charitable donations? JUST CAPITAL | 25

44 East 30th Street 11th Floor New York, NY 10016 justcapital.com ’ AsM C i O R e s M T A COMPAnies About Just CApitAl JUST Capital, an independent, nonpro昀椀t research organization, makes it easier for people, companies, and markets to do the right thing by tracking the business behaviors Americans care about most. Our research, rankings, and data-driven tools help people make more informed decisions about where to invest, work, and buy to direct capital towards companies advancing a more just future. Companies that believe in fair pay and equal treatment for all workers. Companies that create good jobs and understand the value of strong communities. Companies that are committed to a healthy planet. America’s Most JUST Companies, including the groundbreaking JUST 100 list, is published annually in the December issue of Forbes and on justcapital.com. 26 | JUST CAPITAL