Corporate Citizenship Conference 2013 REPUTATION MANAGEMENT. By Oliver Freedman

Transcription

1 Corporate Citizenship Conference 2013 REPUTATION MANAGEMENT By Oliver Freedman

2 Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing. Abraham Lincoln 2

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4 4 Measuring Reputation: An Emotional Attachment

5 Reputation is strongly linked to product advocacy and attracting employees... Rank 1-5 Rank 6-15 Rank Product Advocacy Would work for the company 66% 49% 38% 43% 36% 30% 5

6 ...and a range of financial metrics Low Reputation (n=95) High Reputation (n=104) % Difference RepTrak Pulse % 37% Better equity performance (RoE; RoA) 27% Better operational performance (P/E; Market/Book; EV/EBITDA Accounting Performance 37% Return on Equity 12% 22% Return on Assets 5% 7% Market Performance 27% Price/Earnings (forward) Market/Book Enterprise Value/EBITDA

7 Drivers of Reputation for New Zealand Market RepTrak Pulse Model 8.1% 20.4% 12.1% 13.5% 14.4% 15.3% 12.1% 18.4% Factor Adjusted Regression n = 5020 Adj R 2 =.58 7

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9 Companies with the Best Global Reputations

10 Struggling to Adapt to changing market - Apple Reputation Score Apple nd 5th 12th If Apple was like everyone else a marketing message might be: We make great computers. They re user friendly. Want to buy one? Here s how Apple communicates: We believe in challenging the status quo...the way we challenge the status quo is by making our products beautifully designed, simple to use, and user friendly. We just happen to make great computers. Want to buy one? How Great Leaders Inspire Action, Sinek.S. 10

11 Best Overall Reputation in Australia

12 Adapting to Change - Redefining your WHY : Australia Post Reputation Score Australia Post Feb-10 Feb-11 Nov-11 Feb-12 Feb-13 6* Australia Post s Rank An organisation that helps Australians communicate with each other, whether that be through mail, parcels, electronic communications or whatever new methods of communication will be developed. 12 Ahmed Fahour, AICC Lunch March Shangri-La Hotel Sydney, Australia

13 Reputation Building in a Challenged Industry Creating the WHY Reputation Score NAB ANZ CBA Westpac Feb 11 Mar 11 Nov 11 Dec 11 Feb 12 Jul 12 Nov 12 Feb 13 13

14 Best Practice Reputation Management & Measurement 1. Cross-functional 2. Common model for reputation management 3. Integration 4. Drivers of reputation 5. Reputational Platform (WHY) 6. Alignment 7. Employees 8. Crisis management plans 14

15 Work with the community can be grouped into three activities (Prof. Mark Kramer) Corporate Philanthropy Supporting charities and not-for-profits Charity measures provided later in the report will deliver insight Corporate Responsibility Minimising harm to society and the company. It is key for ratings of governance. Shared value Finding business opportunities in social problems 15

16 Admitting you are making money by doing some good in the world is no longer a dirty little secret, it's called creating shared value the new catch phrase in corporate and philanthropic circles. Reuters February Source: Google Trends 1 6

17 Creating Shared Value Corporate Philanthropy (CP) Creating Shared Value (CSV) Contributes through sponsorships and donations Long-Term Focus: puts long-term needs of workers/customers ahead of short-term profit Considers Community: takes into account community needs when making decisions Contributes to building a better New Zealand Aims to help the communities in which it operates, as well as to deliver strong profits Contributes to building a better global community Based 17 on article in HBR Jan-Feb 2011 and Presentation from Prof Porter at ACBC 2011

18 CSR CP CSV CSV much more strongly linked to reputation than traditional philanthropy Corporate Philanthropy (CP) Creating Shared Value (CSV) CSR by Reputation Reputation PULSE CSV by Reputation Reputation PULSE Source: 18 Data collected by AMR in November 2011

19 Corporate Expressiveness: Tell your story 1. Companies are looking to link brands to corporate 2. Providing market with a consistent message 3. Helping consumers understand the company 4. Genuine about what it stands for 57% of US consumers say that they are increasingly checking product labels to see what company is behind the product they are buying* P&G and Unilever both launched corporate ad campaigns for the first time in the past months Over half of US consumers get annoyed when it is not obvious what company is behind a product* *Weber Shandwick survey - January

20 Nestle Spain: Corporate Expressiveness Campaign Context: Dropping Brand Awareness, No where to move on pricing, less associated with nutrition and losing brand attributes Urgency to deliver 3 messages A leader in nutrition Many product brands Quality of products Key campaign tagline/message A gusto con la vida At ease with life Strong results; increase association of brands with Nestle, increased association with quality, strong financial growth in

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22 And the company with the strongest reputation in New Zealand is

23 CONGRATULATIONS! TOYOTA NEW ZEALAND 2013 leader of: Innovation Products & Services Governance

24 New Zealand Reputation Rankings 2013 RANK COMPANY 1 Toyota New Zealand 2 Heinz/Watties 3 Air New Zealand 4 New Zealand Post 5 Fisher & Paykel 6 Foodstuffs 7 Hewlett-Packard New Zealand 8 The Warehouse 9 ASB 10 Goodman Fielder 11 Woolworths 12 Vodafone 13 Fulton Hogan RANK COMPANY 14 ZESPRI 15 BNZ 16 Westpac 17 Telecom New Zealand 18 Fonterra Cooperative 19 Fletcher Building 20 ANZ Bank 21 Sky Network Television 22 Chevron New Zealand 23 BP New Zealand 24 Exxon Mobil New Zealand 25 SkyCity 24

25 Telecom has shown a strong recovery over the past 3 years Reputation Score Telecom New Zealand Vodafone Australia This increase is accompanied by improvements in scores: Products: Leadership: +8.8 Governance:

26 Impact of Leadership Change 1: Air New Zealand 76.9 Reputation Score Air New Zealand Leadership Score Air New Zealand

27 Leadership Changes 2: The Warehouse 80.0 Leadership Score The Warehouse Reputation Score The Warehouse

28 Dimension Leaders...

29 CONGRATULATIONS! FONTERRA COOPERATIVE 2013 leader on PERFORMANCE

30 CONGRATULATIONS! AIR NEW ZEALAND 2013 leader on WORKPLACE & LEADERSHIP

31 CONGRATULATIONS! NEW ZEALAND POST 2013 leader on CITIZENSHIP

32 Author: Oliver Freedman P: