2010 Global Reputation Pulse Webinar 23jun2010

2010 Global Reputation Pulse StudyThe Most Reputable Companies in the World2010 Global Reputation Pulse Study

Copyright © 2010 Reputation Institute. All rights reserved.The World’s Most Reputable Companies: An Online Study of Consumers in 32 Countries

Technical Information/House-Keeping

Copyright © 2010 Reputation Institute. All rights reserved. 2

Today’s Speaker

Nicolas Georges TradManaging Partner


Today’s Agenda – 45min – 60min

• Introduction to Reputation Institute

• Defining and Managing Reputation

• Key Findings from the 2010 Global Reputation Pulse study


I t d ti t R t ti I tit tIntroduction to Reputation Institute

Global Reputation Knowledge and Advice

Knowledge Center

Publications Insight

Advice Group

Publications

Conferences

Training

Insight

Strategy

Alignment


Dual purpose

Develop and disseminate knowledge p gabout corporate reputations

through our reputation approach to enable organizations be more effective

and to create more value in theirand to create more value in their interactions with stakeholders


Where Clients Seek Our Expertise

Strategy Reputation Platforms• Reputation Risk Architecture• Employee Alignment

Reputation LandscapesCompetitive Analysis

Strategy• Employee Alignment• Sales & Marketing Playbooks

• Competitive Analysis• Qualitative Analysis• Organizational Analysis • Marketing/Communication

Analysisy

Insight

Insight Alignment

gActivation

ValidationClosing the Stakeholder Gap• Engagement Strategy

M i & C i ti

Research


Research• Multi-Stakeholder Research • Messaging & Communications

Creating Strategic Alignment

Vision

ReputationReputation Platform

Capabilities Expectations


Where We Operate: “Below the line” Impact

Strategic Goals

Business Results

CorporateInitiatives

P tiPerceptions of the

company(Reputation)

Supportive Behaviors

towards the company

• Products/ServicesI ti

• Purchase products• Innovation• Workplace• Governance• Citizenship• Leadership

• Invest in company• Recommend the

company/products• Work for company

B fit f d bt


p• Performance• Benefit of doubt

There is a link between reputation and support

80

90

70

80

mm

end

Scor

e

50

60

nts

who

Wou

ld R

ecom

30

40

Res

pond

en

Adj-R2 = 0.905

2020 30 40 50 60 70 80 90

Global Pulse Score


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”.

High reputable companies create highest level of support

The General Public is Five Times More Likely to Support the Most Reputable Companies

Recommend Negative (1-2) Neutral (3-5) Positive (6-7) Not sure

The General Public is Five Times More Likely to Support the Most Reputable Companies

Most Reputable Companies (Top 20)

2.7% 2.6%

Least Reputable Companies (Bottom 20)

43.3% 4.2%

Q: I would recommend ‘Company’ to others

27.0%

39.7%

67.6%

12.7%

Say Something Positive


2.1% 2.2%

Least Reputable Companies (B tt 20)

40.8% 4.0%

27.6%

41 4%

68.1%

13 8%

Negative (1-2) Neutral (3-5) Positive (6-7) Not sure

(Bottom 20)

Benefit of Doubt


4.2% 6.5%

Q: I say something positive about ‘Company’

41.4% 13.8%

33.1% 56.2%

Negative (1-2) Neutral (3-5) Positive (6-7) Not sure

( p )

Least Reputable Companies (Bottom 20)

43.2% 5.1%

Q: I would give the benefit of the doubt to ‘Company’ if the company was facing a crisis

38.9% 12.8%


D fi i d M i R t tiDefining and Managing Reputation

Defining Corporate Reputation

… that ensuresAn emotional bond…

• Your customers are loyaly• Your customers recommend you• Your partners support you• Policy makers and regulators give y g g

you the benefit of the doubt• The media looks for your point of

view• Your employees are engaged and

deliver on your strategy


How are Corporate Reputations Measured?

Reputation is Driven by Seven DimensionsRepTrak™ measures them

Emotional Rational explanation of the emotional


How are reputations created…

P d t I t t

Direct Experiences

B h i BusinessProductsCustomer Service

InvestmentsEmployment

Wh t C

Perceptions Behavior Business Results

BrandingPublic Relations

MarketingSocialResponsibility

What Company Says/Does

p y

What Others Say

MEDIA (Traditional, Social)

Topic Experts, Leaders,Friends/Family


Reputation Impact of Company Touch Points

Pulse Score when ‘Yes’

Products Investments

Direct ExperiencesDirect Experience with Companies Correlates with Strongest ReputationRespondents tend to rate a company higher if they have engaged directly (by

Direct ExperienceCustomer Service

Employment

Wh t C

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,

7.3 pts above Global Mean

BrandingP bli

MarketingS i l


p g p p 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 t ti h ld i ti

Corporate Actions & Initiatives

4.2 pts above Global MeanPublic

RelationsSocialResponsibility

reputation should engage in reputingactivities 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

3rd Party Perspecti e

Global Mean

MEDIA (TraditionalSocial)

Topic Experts, Leaders,F i d /F il

What Others Saythe general public wants to hear from companies.Perspective

1.5 pts aboveGlobal Mean


Excellent/Top Tier above 80 Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 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 0-100 scale).

Q: In the last 12 months I have come across [COMPANY 1] in the following ways. Please select all that apply.

, Social) Friends/Family

Reputation Impact of Corporate Communications

It P t C i t R dl f R t tiIt Pays to Communicate – Regardless of Reputation

Most Reputable Global Companies

(Top 30)

Reputation Pulse Score

+ 4.0 pts ‘yes’ vs. ‘no’

Average Global C i

yes vs. no



Companies(Middle 30) + 2.8 pts

‘yes’ vs. ‘no’BrandingPublic Relations

MarketingSocialResponsibility

Least Reputable Global Companies

(Bottom 30)


+ 1.2 pts ‘ ‘


Q: In the last 12 months I have come across [COMPANY 1] in the following ways. Please select all that apply.

(Bottom 30) ‘yes’ vs. ‘no’

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 platformCreate 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

2010 Gl b l R t ti P l R lt2010 Global Reputation Pulse Results

Global Reputation Pulse Study 2010

Wave 1: Country Rankings of Wave 2: The World’s MostWave 1: Country Rankings of the Largest Corporations• Measurement of the largest 600

corporations in 32 countries

Wave 2: The World s Most Reputable Companies

• Measurement of the 54 most reputable global corporations, p

• General public in each company’s headquarters country

p g p ,which ranked highly in wave one

• General public in each of 24

• Online Survey: January and February, 2010

countries where the study was fielded


• Online Survey: April and May 2010

Reputation Institute media coverage…

F b di t th Gl b l R t ti P l t d dForbes our media partner on the Global Reputation 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.


The World’s Most Reputable Companies 2010


Key Takeaways from Global Reputation Pulse 2010

C t R t ti h t i t b i lt H i t t ti i ld• Corporate Reputation has strong impact on business results. Having a strong reputation 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 ll bl t i t i th hi h l l l b ll hi h i th titi d t iIBM are all able to maintain the same high level globally which 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 h iti ff t b th f i ith t d k t tihas a positive effect both for companies with strong and weak reputations

• 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

The World’s Most Reputable Companies 2010Reputation

Rank Company Pulse Score1 Google 78.62

2 Sony 78.47

3 The Walt Disney Company 77.97

4 BMW 77.77

5 Daimler (Mercedes-Benz) 76.83

6 Apple 76.29

7 Nokia 76.00

8 IKEA 75.60

9 Volkswagen 75.55

10 Intel 75.39

11 Microsoft 74.47

12 Johnson & Johnson 74.12

13 Panasonic 73.67

14 Singapore Airlines 73.54

15 Phili El t i 73 3115 Philips Electronics 73.31

16 L'Oreal 73.17

17 IBM 73.03

18 Hewlett-Packard 72.67

19 Barilla 72.45

20 Nestlé 72 37

Excellent/Top Tier above 80 Strong/Robust 70-79 Average/Moderate 60-69

20 Nestlé 72.37

21 Ferrero 72.36

22 Samsung Electronics 71.62

23 FedEx 70.84

24 Honda Motor 70.82

25 The Coca Cola Company 70 40


gWeak/Vulnerable 40-59

Poor/Lowest Tier below 40

25 The Coca-Cola Company 70.40

26 Carlsberg 70.31

27 Procter & Gamble 70.21

28 UPS 70.07

Top 5 Companies in Each Global Region

AsiaCentral Europe

81.35 80.52 79.92 79.13 78.99 77.0674.31 73.94 73.89 73.62

Sony BMW Google Volksw agen Daimler(Mercedes

The WaltDisney

Daimler(Mercedes-

BMW Sony SingaporeAirlines

(Mercedes-Benz)

Company Benz)

Northern EuropeCentral & South AmericaNorth America

82.5280.22 79.39 79.10 77.86 80.10 79.62 79 24 78 49 78 20

81.93 81.18 79.22 79.05 77.63

Johnson & Google Nestlé The Walt Sony

79.24 78.49 78.20

Google IKEA Sony The WaltDisney

SingaporeAirlines




Johnsong

DisneyCompany

yNestlé Sony Google BMW Johnson &

Johnson

DisneyCompany

Airlines


What Drives Reputation around the World?

Each of the Seven Dimensions of the RepTrak™ Model Drive Corporate ReputationTo 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.

13.2% 20.3%Products/Services, Innovation and Governance are Key DriversThe 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.

12.1% 14.2%

13 5% 12 6%

Different Drivers Around the WorldRegionally, 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

14.1%

13.5% 12.6%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 PlatformSince 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

Q Prod ct/Ser ices 'Compan ' offers high q alit prod cts and ser ices it offers e cellent prod cts and reliable ser icesF acto r A djusted R egressio n

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.


Q: Product/Services: 'Company' offers high quality products and services -- it offers excellent products and reliable servicesQ: Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does businessQ: Workplace: 'Company' is an appealing place to work -- it treats its employees wellQ: Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealingsQ: Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environmentQ: Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectivelyQ: Performance: 'Company' is a high-performance company -- it delivers good financial results

n =Adj R2 =

172,875

0.719

Reputation Drivers Across Vary across Countries

14.9%13.7%

Finland

18.1%12.7%

United States

25.1%9.1%

Greece

10.9%11.3%

19 1%15 0%

18.1%12.7%

13.2%12.8%

13 3%14 2%

25.1%9.1%

15.8%10.4%

12 3%13 9%19.1%15.0%

15.1%

India

13.3%14.2%

15.7%

China

12.3%13.9%

13.4%

15.8%15.4% 17.6%12.7%

13.1%14.4%

13.2%13.0%

15.1%

13.6%13.1%

14.3%14.0%

14 7%


14.7%

What Do Your Key Stakeholders Want From You?

Policy/Regulators Opinion ElitesEmployees

K I fl CBusiness CustomersKey Influencers Investment Community


2010 Global Industry Reputations

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

Consumer Products (15)

Food Manufacturing (18)

Retail - Food (24)

Industrial Products (12)

Computer (15)

75.47

74.43

72.28

72.24

71.90 up, companies can differentiate from the pack by meeting or exceeding expectations in the areas most important to consumers.

Consumer Products and Food Companies Most ReputableOverall in 2010, the general public reports the highest level of trust in the companies in the Food Manufacturing, Consumer

p ( )

Electrical & Electronics (22)

Retail - General (46)

Beverage (13)

Automotive (32)

Pharmaceuticals (12)

71.22

67.50

67.49

70.65

70.32

Products and Retail – Food industries. Industrial Products and Computer round out the top five industries .

Companies in Food Industries ImproveFrom 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

Conglomerate (19)

Airlines & Aerospace (23)

Raw Materials (27)

Services (13)

Transport & Logistics (15)

67.30

67.26

66.06

66.04

65.87points, 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 DeclinesAgain securing the last-place ranking, the global Tobacco industry’s average Pulse score dropped 4.4 points. Beverage

Chemicals (6)

Energy (54)

Utilities (30)

Construction & Engineering (15)

Information & Media (11)

65.29

64.96

63.58

62.71

62.35

Global Mean64.20

companies also saw their average Pulse score drop, 2.07 points, falling from the second place ranking in 2009. 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 2009.

Financial - Insurance (40)

Financial - Bank (72)

Telecommunications (37)

Financial - Diversified (25)

Tobacco (4)

61.84

61.07

60.88

58.11

51.24





Top 10 Globally within Products/Services & Innovation

InnovationProducts/Services

AppleBMW 84.04 82.52

Volksw agen

Sony

Google

Sony

Apple Microsoft

83.26

82.93

82.13

80.00

79.23

78.89

Nokia

IKEA

Intel

Nokia

Google Intel81.99

81.15

80.62

78.08

77.39

76.89

Microsoft Volksw agen

Vodafone BMW

VodafoneUPS 79.50

79.12

80.48

76.16

74.62

76.74



Q: Product/Services: 'Company‘ offers high quality products and services -- it offers excellent products and reliable servicesQ: Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business

Top 10 Globally in Workplace, Governance, Citizenship

CitizenshipGovernanceWorkplace

Google Google Vodafone72.86 74.40 69.44

Microsoft

Apple

BMW

Vodafone

BMW

Sony

Google

IKEA

Microsoft

70.42

69.80

69.26

73.51

73.19

73.04

68.76

68.46

67.91

Vodafone

Sony

V lk

y

Apple

IKEA

V lk

Apple

Sony

J h & J h

68.90

68.08

67 97

72.93

72.30

71 60

66.29

65.99

65 82

Nokia

Volksw agen

Intel

IBM BMW

Volksw agen

UPS

Johnson & Johnson

Nokia

66.92

67.97

67.43

71.44

71.60

71.48

65.11

65.82

65.34

UPS UPSMicrosoft66.68 71.25 64.76



Q: Workplace: 'Company' is an appealing place to work -- it treats its employees wellQ: Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealingsQ: Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment

Top 10 Globally in Leadership and Performance

PerformanceLeadership

MicrosoftMicrosoft

Apple Apple

80.31

79.09

81.38

80.15

Google

Vodafone

Daimler (Mercedes Benz)

Vodafone

BMW

Google78.48

76.90

76 75

80.11

78.90

78 63

BMW

IKEA

IKEA

Daimler (Mercedes-Benz)

Sony

BMW 76.75

75.92

75.81

78.63

77.78

77.73

Intel Nokia

SonyNokia

Volksw agen Intel

74.72

74.41

75.76

76.76

76.54

76.86



Q: Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectivelyQ: Performance: 'Company' is a high-performance company -- it delivers good financial results

Case Study: Assicurazioni Generali (Italy)

R T k P l & Di i SRepTrak Pulse & Dimension ScoresAssicurazioni Generali (2007-2010)

65.2066.04

60.50

72.65

61.9963.87

56 97

70.37

59.23

65.1068.12 69.56

66.00

60.22

72.18

62.0162.70

68.0571.01 71.07

63.80

75.75

68.0 70.6

63.5

78.4

61.5163.00

70.47

70

80

56.97 56.19 56.2856.49

30

40

50

60

2007 2008 2009 2010n = 121 130 97 105

RepTrak Pulse Products & Services Innovation Workplace Governance Citizenship Leadership Performance

20

30

2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010

n 121 130 97 105


Case Study: Deutsche Bank (Germany)

RepTrak Pulse & Dimension ScoresDeutsche Bank (2007-2010)

75

60.83

53.59 54.99

58.2555.62

54.1455.88

58.64

54.8357.71 56.63 56.86

64.50

70.0

64.4

69.1

54.59 55.44

65

40.83

51.28

40.12

51.6050.03

39.45

36.72

51.74 51.57

45.9547.86 49.0

51.30

45.0445

55

2007 2008 2009 2010n = 137 117 88 91


352007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010


Case Study: Mitsubishi Motors (Japan)

RepTrak Pulse & Dimension ScoresMit bi hi M t (2007 2010)Mitubishi Motors (2007-2010)

42 88

50.74

47.42

57.02

47.3549.65

48.33

44.08

51.1549.5

51.19

50

60

32.73

33.85

42.8841.12

37.60

33.27 33.67

38.62

32.7434.31

38.84

29.9027.17

37.87 37.24

34.3735.8

35.0

41.1

29.5330.51

40.63

30

40

2007 2008 2009 2010


202007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010

2007 2008 2009 2010n = 111 106 110 107


You can’t manageYou can t manage what you don’t measure...


Start working with reputation in your organization

Get Started with Reputation Management

• Contact us to start a conversation and learn how we help companies build stronger relations with their stakeholderscompanies 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 p y g yunderstand your reputational strengths and risks

• Engage with our team to begin a systematic approach to reputation management


t d@ t ti i tit t


[email protected]

About Reputation instituteReputation 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 b tt l ti ith t k h ldbetter 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. p p p g

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 feelingsvalue 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, e-mail [email protected]

www.ReputationInstitute.com

Australia • Bolivia • Brazil • Canada • Chile • China • Colombia • Denmark • France • Germany • GreeceIndia • Ireland • Italy • Japan • Malaysia • Netherlands • Norway • Peru • Portugal • Russia • South Africa

Spain • Sweden • Switzerland • Turkey • Ukraine • United Arab Emirates • United Kingdom • United States


p

Documents

2010 Global Reputation Pulse Webinar 23jun2010