2010 Global Reputation Pulse Study The Most Reputable Companies in the World

Size: px

Start display at page:

Download "2010 Global Reputation Pulse Study The Most Reputable Companies in the World"

Nelson Banks
6 years ago
Views:

1 2010 Global Reputation Pulse Study The Most Reputable Companies in the World The World s Most Reputable Companies: An Online Study of Consumers in 32 Countries Copyright 2010 Reputation Institute. All rights reserved.

4 Today s Agenda 45min 60min Introduction to Reputation Institute Defining and Managing Reputation Key Findings from the 2010 Global Reputation Pulse study Copyright 2010 Reputation Institute. All rights reserved. 4

5 Introduction ti to Reputation ti Institute t

7 Dual purpose Develop and disseminate knowledge about corporate reputations through our reputation approach to enable organizations be more effective and to create more value in their interactions with stakeholders Copyright 2010 Reputation Institute. All rights reserved. 7

8 Where Clients Seek Our Expertise Reputation Landscapes Competitive Analysis Qualitative Analysis Organizational Analysis Marketing/Communication Analysis Strategy Reputation Platforms Reputation Risk Architecture Employee Alignment Sales & Marketing Playbooks Insight Insight Activation Alignment Validation Multi-Stakeholder Research Research Research Closing the Stakeholder Gap Engagement Strategy Messaging & Communications Copyright 2010 Reputation Institute. All rights reserved. 8

10 Where We Operate: Below the line Impact Strategic Goals Business Results Corporate Initiatives Supportive Behaviors towards the company Perceptions of the company (Reputation) Purchase products Invest in company Recommend the company/products Work for company Benefit of fdoubt Products/Services Innovation Workplace Governance Citizenship Leadership Performance Copyright 2010 Reputation Institute. All rights reserved. 10

11 There is a link between reputation and support Responden nts who Would Recom mmend Score Global Pulse Score Adj-R 2 = Q: I would recommend 'Company' to others. Rated on a scale from 1 to 7 where 1 means Strongly disagree and 7 means Strongly agree. Copyright 2010 Reputation Institute. All rights reserved. 11

12 High reputable companies create highest level of support The General Public is Five Times More Likely to Support the Most Reputable Companies Re comm end Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable Companies (Top 20) Least Reputable Companies (Bottom 20) 2.7% 27.0% 67.6% 2.6% 43.3% 39.7% 12.7% 4.2% Q: I would recommend Company to others Say Something Positive Most Reputable Companies (Top 20) Least Reputable Companies (Bottom 20) Negative (1-2) Neutral (3-5) Positive (6-7) Not sure 2.1% 27.6% 68.1% 2.2% 40.8% 41.4% 4% 13.8% 4.0% Q: I say something positive about Company Benefit of Doubt Most Reputable Companies (Top 20) Least Reputable Companies (Bottom 20) Negative (1-2) Neutral (3-5) Positive (6-7) Not sure 4.2% 33.1% 56.2% 6.5% 43.2% 38.9% 12.8% 5.1% Q: I would give the benefit of the doubt to Company if the company was facing a crisis Copyright 2010 Reputation Institute. All rights reserved. 12

13 Defining i and Managing Reputation ti

you the benefit of the doubt The media looks for your point of view Your employees are

14 Defining Corporate Reputation An emotional bond that ensures Your customers are loyal Your customers recommend you Your partners support you Policy makers and regulators give you the benefit of the doubt The media looks for your point of view Your employees are engaged and deliver on your strategy Copyright 2010 Reputation Institute. All rights reserved. 14

15 How are Corporate Reputations Measured? Reputation is Driven by Seven Dimensions RepTrak measures them Emotional Rational explanation of the emotional Copyright 2010 Reputation Institute. All rights reserved. 15

How are reputations created Direct Experiences

Employment B h i Business Perceptions Business

Branding Public Relations Marketing Social

(Traditional, Social) Topic Experts, Leaders,

16 How are reputations created Direct Experiences Products Investments t Customer Service Employment B h i Business Perceptions Business Behavior Results What Company Says/Does Branding Public Relations Marketing Social Responsibility What Others Say MEDIA (Traditional, Social) Topic Experts, Leaders, Friends/Family Copyright 2010 Reputation Institute. All rights reserved. 16

17 Reputation Impact of Company Touch Points Direct Experiences Products Customer Service Investments Employment What Company Says/Does Branding Public Relations Marketing Social Responsibility What Others Say MEDIA (Traditional, Social) Topic Experts, Leaders, Friends/Family Q: In the last 12 months I have come across [COMPANY 1] in the following ways. Please select all that apply. Pulse Score when Yes Direct Experience 7.3 pts above Global Mean Corporate Actions & Initiatives 4.2 pts above Global Mean 3 rd Party Perspectivee 1.5 pts above Global Mean Excellent/Top Tier above 80 Strong/Robust Average/Moderate Weak/Vulnerable Poor/Lowest Tier below 40 Direct Experience with Companies Correlates with Strongest Reputation Respondents tend to rate a company higher if they have engaged directly (by purchasing products or using customer service) or if they have seen or heard something straight from the corporation. Corporate actions and initiatives positively impact the general public s perceptions, p as well, by an average of +4.2 points; respondents who have heard about a company from a third party tend to give only slightly higher than average ratings. Companies who want to improve their reputation ti should engage in reputing activities and demonstrate commitment to the key dimensions through direct consumer touch points where possible. At a minimum, the call to action for direct participation in the conversation is clear the general public wants to hear from companies. All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the Pulse score on a scale). Copyright 2010 Reputation Institute. All rights reserved. 17

18 Reputation Impact of Corporate Communications It Pays to Communicate Regardless of Reputation ti Most Reputable Global Companies (Top 30) Reputation Pulse Score pts yes vs. no What Company Says/Does Branding Public Relations Marketing Social Responsibility Average Global Companies (Middle 30) Reputation Pulse Score pts yes vs. no Q: In the last 12 months I have come across [COMPANY 1] in the following ways. Please select all that apply. Least Reputable Global Companies (Bottom 30) Reputation Pulse Score pts yes vs. no Copyright 2010 Reputation Institute. All rights reserved. 18

19 7 best practices Adopt a common model for reputation management across organizational functions Understand what the reputation dimensions and attributes mean to different stakeholders Align corporate messaging and reputing activities with key drivers for their stakeholders Create employee alignment with their reputation platform Create a cross-functional reputation committee to ensure coherent actions Monitor reputation with different stakeholders against relevant competitors Integrate reputation management into the business process Copyright 2010 Reputation Institute. All rights reserved. 19

20 2010 Global l Reputation ti Pulse Results

Reputable Companies Measurement of the 54 most reputable global corporations, which ranked highly in wave one General public in each

21 Global Reputation Pulse Study 2010 Wave 1: Country Rankings of the Largest Corporations Measurement of the largest 600 corporations in 32 countries General public in each company s headquarters country Online Survey: January and February, 2010 Wave 2: The World s Most Reputable Companies Measurement of the 54 most reputable global corporations, which ranked highly in wave one General public in each of 24 countries where the study was fielded Online Survey: April and May 2010 Copyright 2010 Reputation Institute. All rights reserved. 21

22 Reputation Institute media coverage Forbes our media partner on the Global l Reputation ti Pulse study and on May 24, Reputation Institute and Forbes released the results of the 2010 study of the World's Most Reputable Companies, the first ever study of its kind. Copyright 2010 Reputation Institute. All rights reserved. 22

24 Key Takeaways from Global Reputation Pulse 2010 Corporate Reputation ti has strong impact on business results. Having a strong reputation ti yields more recommendation, more benefit of the doubt and purchase than ever before Almost 80% of reputation is driven by other factors than a company s Products and Services Exporting a Strong Home Country Reputation is Difficult - Of the 28 companies with strong reputations, 10 companies have global reputations that are on par with or slightly better than their home country reputations. Google, Sony, The Walt Disney Company, Daimler, Apple, Nokia, Volkswagen, Intel, Microsoft, and IBM are all able to maintain i the same high h level l globally ll which h gives them a competitive advantage in the increasingly global marketplace. No companies break the 80 point mark globally when examined across a 24 market global reputation pulse scale - the threshold for excellence. Companies can impact their Reputation regardless of their current situation Direct experience with a company has the strongest impact on reputation; corporate communications has a positive effect both for companies with strong and weak reputations ti Highly reputable companies get best return on communications: respondents who have seen, read or heard something from top companies tend to give scores 4 points higher Even low-ranking companies see slightly higher scores from respondents who have seen, read or heard company communications Copyright 2010 Reputation Institute. All rights reserved. 24

25 The World s Most Reputable Companies 2010 Reputation Rank Company Pulse Score 1 Google Sony The Walt Disney Company BMW Daimler (Mercedes-Benz) Apple Nokia IKEA Volkswagen Intel Microsoft Johnson & Johnson Panasonic Singapore Airlines Philips Electronics L'Oreal IBM Hewlett-Packard Barilla Nestlé Ferrero Samsung Electronics FedEx Honda Motor The Coca-Cola Cola Company Carlsberg Procter & Gamble UPS Excellent/Top Tier above 80 Strong/Robust Average/Moderate Weak/Vulnerable Poor/Lowest Tier below 40 Copyright 2010 Reputation Institute. All rights reserved. 25

Top 5 Companies in Each Global Region Central Europe Asia 81.35 80.52 79.92 79.13 78.99 77.06 74.31 73.94 73.89 73.

26 Top 5 Companies in Each Global Region Central Europe Asia Daimler (Mercedes- Benz) Sony BMW Google Volksw agen Daimler (Mercedes- Benz) The Walt Disney Company BMW Sony Singapore Airlines North America Central & South America Northern Europe Johnson & Google Nestlé The Walt Sony Johnson Disney Company Nestlé Sony Google BMW Johnson & Johnson Google IKEA Sony The Walt Disney Company Singapore Airlines Excellent/Top Tier above 80 Strong/Robust Average/Moderate Weak/Vulnerable Poor/Lowest Tier below 40 All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the Pulse score on a scale). Copyright 2010 Reputation Institute. All rights reserved. 26

What Drives Reputation around the World?

Globally, each dimension alone accounts for over 12 percent of reputation.

If key international players can make the general public perceive them well on these dimensions overall reputation and support will improve.

Different Drivers Around the World Regionally, Governance was more of a focus in North America and Northern Europe, while Central & South America and Central Europe were more strongly influenced by

27 What Drives Reputation around the World? Each of the Seven Dimensions of the RepTrak Model Drive Corporate Reputation To earn trust, admiration, good feeling and support companies need to address all seven dimensions of reputation. Globally, each dimension alone accounts for over 12 percent of reputation. Products/Services, Innovation and Governance are Key Drivers The most influential dimensions for the most reputable global companies are Products/Services, Innovation and Governance. If key international players can make the general public perceive them well on these dimensions overall reputation and support will improve. If they do not perform well in these areas stakeholder support will suffer. Different Drivers Around the World Regionally, Governance was more of a focus in North America and Northern Europe, while Central & South America and Central Europe were more strongly influenced by Innovation when determining a company s reputation. This indicates that companies need to adapt to local needs in order to build excellent reputations and only the companies that understand how to be relevant on a local level will build strong reputations on a global scale. Building a Broad Reputation Platform Since all dimensions of reputation impact corporate reputation, top companies must exhibit strength in all seven areas. The future reputation battle will be fought on a platform that has more than just a focus on price and quality of products and services. Consumers want to understand companies behind their brands; and telling the corporate story leads to support. 13.2% 20.3% 12.1% 14.2% 13.5% 12.6% 14.1% Q: Product/Services: 'Company'' offers high quality products and services -- it offers excellent products and reliable services Q: Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business Q: Workplace: 'Company' is an appealing place to work -- it treats its employees well Q: Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings Q: Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment Q: Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectively Q: Performance: 'Company' is a high-performance company -- it delivers good financial results Factor Adjusted Regression n = 172,875 Adj R 2 = Copyright 2010 Reputation Institute. All rights reserved. 27

28 Reputation Drivers Across Vary across Countries Finland Greece United States 13.7% 14.9% 9.1% 25.1% 12.7% 18.1% 11.3% 10.9% 10.4% 15.8% 12.8% 13.2% 15.0% 15.1% 19.1% 1% 13.9% 13.4% 12.3% 14.2% 15.7% 13.3% 3% India China 15.4% 15.8% 12.7% 17.6% 14.4% 13.1% 13.1% 13.6% 13.0% 15.1% 13.2% 14.0% 14.7% 14.3% Copyright 2010 Reputation Institute. All rights reserved. 28

29 What Do Your Key Stakeholders Want From You? Employees Policy/Regulators Opinion Elites Key Influencers Business Customers Investment Community Copyright 2010 Reputation Institute. All rights reserved. 29

30 2010 Global Industry Reputations Consumer Products (15) Food Manufacturing (18) Retail - Food (24) Industrial Products (12) Computer (15) Electrical & Electronics (22) Retail - General (46) Beverage (13) Automotive (32) Pharmaceuticals (12) Conglomerate (19) Airlines & Aerospace (23) Raw Materials (27) Services (13) Transport & Logistics (15) Chemicals (6) Energy (54) Utilities (30) Construction & Engineering (15) Information & Media (11) Financial - Insurance (40) Financial - Bank (72) Telecommunications (37) Financial - Diversified (25) Tobacco (4) Is Your Industry Helping or Hurting You? Industry reputations can directly impact assumptions made about individual corporations, especially in industries where, historically, the key players have not engaged with the public. Even though perceptions of an industry can drag down reputation or boost it up, companies can differentiate from the pack by meeting or exceeding expectations in the areas most important to consumers Global Mean Consumer Products and Food Companies Most Reputable Overall in 2010, the general public reports the highest level of trust in the companies in the Food Manufacturing, Consumer Products and Retail Food industries. Industrial Products and Computer round out the top five industries. Companies in Food Industries Improve From 2009, Food Manufacturing and Retail Food companies have seen their average Pulse score increase by 4.69 and 3.17 points, respectively. Both industries had average reputations in the moderately-strong range in 2009 and now rank among the top three global industries. Tobacco and Beverage See Greatest Declines Again securing the last-place ranking, the global Tobacco industry s average Pulse score dropped 4.4 points. Beverage companies also saw their average Pulse score drop, 2.07 points, falling from the second place ranking in As the economy recovers, financial services companies and banks, on average, saw only slight declines (-.78 and -.65, respectively) while the global insurance industry actually improved 3 points from Excellent/Top Tier above 80 Strong/Robust Average/Moderate Weak/Vulnerable Poor/Lowest Tier below 40 All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the Pulse score on a scale). Copyright 2010 Reputation Institute. All rights reserved. 30

31 Top 10 Globally within Products/Services & Innovation Products/Services Innovation BMW Apple Volksw agen Google Sony Sony Apple Microsoft Google Intel Intel Nokia Nokia IKEA Vodafone BMW UPS Vodafone Microsoft Volksw agen All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Q: Product/Services: 'Company offers high quality products and services -- it offers excellent products and reliable services Q: Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business Copyright 2010 Reputation Institute. All rights reserved. 31

32 Top 10 Globally in Workplace, Governance, Citizenship Workplace Governance Citizenship Google Google Vodafone Microsoft Vodafone Google Apple BMW IKEA BMW Sony Microsoft Vodafone Apple Apple Sony IKEA Sony Volksw agen Volksw agen Jh Johnson &Jh Johnson Intel UPS Nokia IBM Nokia BMW UPS Microsoft UPS All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Q: Workplace: 'Company' is an appealing place to work -- it treats its employees well Q: Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings Q: Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment Copyright 2010 Reputation Institute. All rights reserved. 32

33 Top 10 Globally in Leadership and Performance Leadership Performance Microsoft Microsoft Apple Apple Google Google Vodafone Vodafone BMW Daimler (Mercedes-Benz) IKEA BMW Sony IKEA Volksw agen Intel Nokia Sony Intel Nokia All Global Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Q: Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectively Q: Performance: 'Company' is a high-performance company -- it delivers good financial results Copyright 2010 Reputation Institute. All rights reserved. 33

Case Study: Assicurazioni Generali (Italy) RepTrak kpulse & Dimension i Scores Assicurazioni Generali (2007-2010) 80 70 60 61.51 63.00 56.49 70.47 66.04 65.20 60.50 72.65 70.37 68.12 69.56 72.18 63.

34 Case Study: Assicurazioni Generali (Italy) RepTrak kpulse & Dimension i Scores Assicurazioni Generali ( ) RepTrak Pulse Products & Services Innovation Workplace Governance Citizenship Leadership Performance n = Copyright 2010 Reputation Institute. All rights reserved. 34

35 Case Study: Deutsche Bank (Germany) 75 RepTrak Pulse & Dimension Scores Deutsche Bank ( ) RepTrak Pulse Products & Services Innovation Workplace Governance Citizenship Leadership Performance n = Copyright 2010 Reputation Institute. All rights reserved. 35

Case Study: Mitsubishi Motors (Japan) 60 57.02 RepTrak Pulse & Dimension Scores Mitubishi Motors (2007-2010) 2010) 50 40 30 29.53 30.51 40.63 51.19 42.88 33.85 32.73 50.74 47.42 41.12 37.60 33.27 33.

36 Case Study: Mitsubishi Motors (Japan) RepTrak Pulse & Dimension Scores Mitubishi Motors ( ) 2010) RepTrak Pulse Products & Services Innovation Workplace Governance Citizenship Leadership Performance n = Copyright 2010 Reputation Institute. All rights reserved. 36

38 Start working with reputation in your organization

39 Get Started with Reputation Management Contact us to start a conversation and learn how we help companies build stronger relations with their stakeholders Find out if we already measured your company s reputation in the Global Reputation Pulse study - get your results and understand your reputational strengths and risks Engage with our team to begin a systematic approach to reputation management Copyright 2010 Reputation Institute. All rights reserved. 39

41 About Reputation institute Reputation Institute is the world s leading reputation consulting firm. As a pioneer in the field of brand and reputation management, Reputation Institute helps companies build better relations with stakeholders. With a presence in 30 countries, Reputation Institute is dedicated to advancing knowledge about reputation and shares best practices and current research through client engagement, memberships, seminars, conferences, and publications such as Corporate Reputation Review and Reputation Intelligence. Reputation Institute s Reputation Pulse is the largest study of corporate reputations in the world, identifying what drives reputation and covering more than 1,500 companies from 34 countries annually. Reputation Institute provides specific reputation insight from more than 15 different stakeholder groups and 24 industries, allowing clients to create tangible value from intangible stakeholder feelings. Visit ReputationInstitute.com to learn how you can unlock the power of your reputation. For more information on Global Reputation Pulse, info@reputationinstitute.com Australia Bolivia Brazil Canada Chile China Colombia Denmark France Germany Greece India Ireland Italy Japan Malaysia Netherlands Norway Peru Portugal Russia South Africa Spain Sweden Switzerland Turkey Ukraine United Arab Emirates United Kingdom United States Copyright 2010 Reputation Institute. All rights reserved. 41

The Results of the 2012 RepTrak Study What the Reputation Economy means for South Africa 2012

The Results of the 2012 RepTrak Study What the Reputation Economy means for South Africa 2012 South Africa s Most Reputable Companies: Part of the World s Largest Study on Corporate Reputation 1 Introduction