®

Better Business Bureau®

Start With Trust®

In Hawaii

BBB 2015 Annual Report CEO Letter

Gregory D. Dunn Myles MurakamiChief Executive Officer ChairHawaii’s BBB BBB Board of Directors

Our VisionAn ethical marketplace wherebuyers and sellers can trusteach other.

Our MissionTo be the leader in advancingmarketplace trust.

Hawaii’s BBBAddress: 1132 Bishop St. #615

Honolulu, HI 96813

Website: hawaii.bbb.org

E-mail: info@hawaii.bbb.org

Phone: 808-536-6956

1-877-222-6551Neighbor Islands(toll free)

Fax: 808-628-3970

Start With Trust

Aloha!

At its core, the mission of your BBB is to create marketplace trust. We achieve this through programs that allow us to remain the impartial resource that both customers and businesses can turn to before they decide to make a purchase, reach out to if something goes wrong during the transaction, and can tell others about their experiences by leaving a review at the end of the transaction.

In meeting that mission, we’re incredibly proud to report that over the past year our small sta� of 18 has delivered over 1.3 million instances of service to members in the community, education and arming them with information to help make sound marketplace decisions and to protect themselves from fraud. Our Hawaii Partnership Against Fraud PSA’s and our local media presence continue to reach the community on a weekly basis.

This past year we also stepped up our education e�orts for our Accredited Businesses. One of the best ways to improve a business’s performance in both service and profitability, is through consistent training. Your BBB o�ered 18 seminars, webinars and B2B networking events over the course of the last year.

All of these activities take place under BBB’s Brand, one of the most recognized in the marketplace as a hallmark of trust. We built value for our community this year though high-profile partnerships, like Porch.com. These strategic partnerships help us deliver more ways to feature our Accredited Businesses.

We have kicked o� a series of co-branded TV commercials featuring our Accredited Businesses, and have expanded the number of businesses we’ve invited to participate in our Search Engine Solutions online marketing program, and built our online capacity by o�ering businesses sponsored listing positions on our Accredited Business Directory.

We hope that over the past year you had positive experience interacting with Hawaii’s BBB. If you did, please tell a friend and encourage them to become a part of what we are creating, I you didn’t please contact us directly and let us know what we can do to improve your BBB.

Start With BBB

®

BBB Standards for Trust

BBB Code of Business Practices

The BBB Code of Business Practices represents sound advertising, selling and customer service practices that enhance customer trust and confidence in business. The Code is built on the BBB Standards for Trust, eight principles that summarize important elements of creating and maintaining trust in business. This Code also represents standards for business accreditation by BBB.

To be accredited by BBB a business or organization affirms that it meets and will abide by the following standards:

Build TrustEstablish and maintain a positive track record in the marketplace.

Advertise HonestlyAdhere to established standards of advertising and selling.

Tell the TruthHonestly represent products and services, including clear and adequate disclosures of all material terms.

Be TransparentOpenly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

Honor PromisesAbide by all written agreements and verbal representations.

Be ResponsiveAddress marketplace disputes quickly, professionally, and in good faith.

Safeguard PrivacyProtect any data collected against mishandling and fraud, collect personal information only as needed, and respect the preferences of consumers regarding the use of their information.

Embody IntegrityApproach all business dealings, marketplace transactions and commitments with integrity.

®

StandardsFor Trust

Strength of Hawaii’s BBB — FY 2014–2015 Results

Accredited Businesses by County

Range of Employees by Accredited Business Count

Fiscal Year 2015 Financial Information

Total Accredited Businesses: 2,673.New Accredited Businesses: 270.

County Businesses

Honolulu 1,937

Maui 313

Hawaii 298

Kauai 111

Other 140 750 1500 2250 3000

%

72

12

11

4

~0

Number of Employees % Accredited Business Count

1 - 4 51 1,338

5 - 9 19 492

10 - 14 9 228

15 - 19 4 110

20 - 29 5 128

30 - 49 4 114

50 - 99 4 98

100 - 149 2 43

150 - 299 2 47

300+ 2 462%

2%2% 4% 4% 5% 4%

9%

19%

51%

$100,000.00

$300,000.00

$500,000.00

$700,000.00

$900,000.00

$1,100,000.00

$1,300,000.00

$1,500,000.00

Fiscal Year 2015 Financial Information

Revenue $1,436,682.69

Expenses $1,476,084.78

Net Loss -$39,402.09

Instances of Service: 1.2 million

Business Reviews Provided 973,030

Accredited Business List provided 98,896

Complaints processed 2,261: with a reported value of $13,336,680.

Services Provided

Most Asked About IndustriesType of IndustryContractors — GeneralDating ServiceEletriciansPlumbersRoofing ContractorsConstructiong & Remodeling ServicesProperty ManagementReal EstateTravel Agencies & BureausAuto Repair & ServiceAttorneys & Lawyers

Inquiries40,81822,98520,12720,05220,01416,25015,69215,45813,65313,12312,592

Most Complained About IndustriesType of BusinessAuto Dealers — New CarsAirlinesAuto Dealers — Used CarsTravel ClubsProperty ManagementRestaurantsReal EstateBanksAuto Repair & ServiceTelevision Stations & Broadcast CompaniesPlumbersMovers

Complaints1048975585349454544443635

1.2 Million Instances of Service

0.18%8%

16%

76%

Business ReviewsIndustry InquiriesAccredited Business ListsBusiness Complaints

83 Media Interviews Given:

22% from Fiscal Year 2014.

831,232 Web Visitors:

23.2% over last year.

2,770 Social Media Followers.

2,832,864Social Impressions.

3,128Social Messages Sent.

582Social Media

Mentions and Tags.

BBB Business Reviews

BBB Accredited Business Directory

BBB Networking

BBB Customer Reviews

BBB Enhanced Directory Sponsorships

BBB Webinars

BBB Coupons

Search Engine Solution

BBB Seminars

In Fiscal Year 2014–2015 your BBB expanded the ways in which we help our Accredited

Businesses connect with customers searching for businesses they can trust.

Implemented an online Live Chat service to o�er an additional communication vehicle for consumers and businesses to contact us.

Upgraded to a modern database, that has helped streamline operational and communication processes.

Launched a star rating system for all businesses that factors in customer review trends (33%) and BBB rating (67%).

Launched BBB Scam Tracker which allows consumers to report and view scams online.

Launched Online Directory Sponsorship, providing Accredited Businesses with more opportunities to be noticed online.

Brought BBB’s Google AdWords Program in house, allowing us to deliver better localized search content for our Accredited Businesses.

Partnered with the Lanai Chamber of Commerce to develop programs that assisted local businesses.

Worked with Hawaii's Partnership Against Fraud to deliver a total of 5,862 PSA's valued at over $289,247.

Key Accomplishments

Top Scams

Sweepstakes and Prize Scams.

Phishing, Smishing and Vishing Scams.

Work At Home and Secret Shopper Job Scams.

Credit and Debt Related Scams, including questionable collection calls, advance fee loans, loan modification and mortgage foreclosure schemes.

Fake Check and Overpayment Scams.

Anti-Virus, Spy and Ransomware Frauds.

Educational and Government Grant Scams.

Auto Warranty Scams.

Phony Invoice Scams.

The Nigerian Letter Scam.

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There is a science to scams, and it may surprise you to know that scammers use many of the same techniques as sales professionals. The di�erence, of course, is that their “product” is illegal and could cost you a fortune. Here are the top 10 Scams of last year as reported to us by Hawaii Residents:

You can view and report scams impacting Hawaii at: www.bbb.org/scamtracker/hawaii

Top 10 Scams

HAWAII’S BBB BOARD OF DIRECTORS

HAWAII’S BBB STAFF

DirectorsO�cers

Myles MurakamiChair

Atlas Insurance Agency

Thomas W. Dixon Jr. Immediate Past Chair First Hawaiian Bank

Cleota G. Brown1st Vice Chair

Tek Consulting Services

Scott D. Williams2nd Vice Chair

Lex Brodie’s Tire Company

Rachel R. Shimamoto, CTC Secretary

Travel Ways, Inc

Dwayne S. Takeno, CPA Treasurer

N&K CPAs Inc.

Vic AngocoMatson Navigation

Company

Maria Borje-BonkowskiKaiser Permanente,

Hawaii Region

Ina ChangAloha Data

Services

Jackson ChengAlaka’i Mechanical

Corporation

Glenn K. C. ChingCentral Pacific Bank

Benson ChooFinance Factors, Ltd.

Nancy Daniels, APROutrigger Enterprises

Group

Richard EmeryHawaii First, Inc.

Dave ErdmanPacrim Marketing

Group, Inc.

Kimberly Miyazawa FrankLanai Resorts LLC.

Michael HanWedding Ring Shop

Kathy InkinenInkinen & Associates, INC.

Aaron KirkBonterra Solar

Thomas KiyabuUPS

Stan MasamitsuTony Group

Ryson MatsumuraBank of Hawaii

Scott MeichtryThe Hawaii Group

Terry O’ReilleyAmerican Savings Bank

Ken RewickHawaiian Airlines

Margie SasakiHawaii Medical Service

Association

Bobby SenahaHawaii Business

Magazine

Robert TanakaBob Tanaka, Inc.

Realtors

Juli TorigoeServco Insurance

Services Corp

Marian TsujiLanakila Pacific

Dawn Morais WebsterDawn Morais LLC

Communications & Issue Advocacy

Miles M. YoshiokaHawaii Island Chamber of

Commerce

Gregory D. DunnChief Executive O�cer

Kehau AbeController

Timothy CaminosDirector of Communications

Sherrie HillDirector of Recruitment &

Retention

Lisa NakaoDirector of Operations

Jose Cabauatan

Alex Delibas

Shelley Ericson

Adam Espiritu

Karl Nakagawa

Mick McKenzie

Liz Ramos

Ronalyn Reyes

Laura Saiki

Lorie Sides

Grant Trevena

Selena Vargas

Sandra Youkers

Start With Trust®