Global Reputation Pulse U.S. Top-Line Summary

Transcription

1 Global Reputation Pulse 2010 U.S. Top-Line Summary

3 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. 3

4 Takeaways from U.S. Reputation Pulse 2010 Fact: Trend: Corporate Reputation has increased impact on business results Having a strong reputation in 2010 yields more recommendation, more benefit of the doubt and more purchasing behavior than ever before. Top 10 vs Bottom 10 comparison: 300% more likely to give the benefit of the doubt 200% more likely to consider products 350% more likely to purchase products Great investment - improve reputation 5 points and support goes up 6.5% Fact: Trend: General Public expectations are clear companies that meet those expectations are reaping the benefits Products & Services, Governance, and Citizenship continue to be the biggest drivers of reputation, but all seven dimensions of reputation are important Fact: Trend: Companies can impact their Reputation regardless of their current situation It pays to communicate, and direct engagement has an even bigger impact Tell your corporate story; it can t be just about your products and services Give your company a voice in the conversation Connect - future leaders (like Apple and McDonald s) seem to be addressing what matters Copyright 2010 Reputation Institute. All rights reserved. 4

5 Best Corporate Reputations in the U.S Rank Company Global Pulse Score 1 Johnson & Johnson Kraft Foods Inc Kellogg The Walt Disney Company PepsiCo Sara Lee Google Microsoft UPS Dean Foods General Mills Apple Publix Super Markets Inc Caterpillar Colgate-Palmolive Eastman Kodak Staples FedEx HJ Heinz M Amazon.com Hew lett-packard Intel The Coca-Cola Company Whirlpool IBM Low e's Home Improvement General Electric Marriott International JC Penney Rite Aid Xerox Texas Instruments Dell Motorola Toys 'R' Us Meijer Home Depot Procter & Gamble Goodyear Nike, Inc Berkshire Hathaw ay BJ's Wholesale Club, Inc Deere & Co Target Southw est Airlines Kroger Walgreen Kimberly-Clark Corporation Avon Products Johnson & Johnson Tops the List for the Second Year in a Row Of the 150 largest companies in the U.S., Americans have the strongest amount of trust, admiration, respect and good feeling for Johnson & Johnson. The company has maintained its first place ranking in the United States and improved its reputation 2.24 points to achieve an excellent Reputation Pulse score of Rounding out the top tier of most reputed companies in the U.S. are Kraft Foods, Kellogg, The Walt Disney Company, PepsiCo and Sara Lee, each earning excellent Reputation Pulse scores above 80. Select Few Move up in Trust, Admiration and Good Feeling Of the largest U.S. companies in 2009 and 2010, Chubb, McDonalds and Archer Daniels Midland saw the largest gains in reputation over 9 points each. From last year, 21 companies improved more than 5 points, including several Energy companies like ExxonMobil, Marathon Oil, CITGO, Chevron and Sunoco. Several retailers also saw gains of more than 5 points including AutoNation, Staples, Gap, Macy s and Rite Aid. Finance companies continue to see declines, including Bank of America, AIG, Wells Fargo and Citigroup, whose Pulse scores all dropped more than 5 points. Time Warner lost the most reputation collateral of any U.S. company (7.45 points); Costco s ranking fell from among the Top 10 to the middle tier due to a 5.54 point drop. The Bar is Higher in 2010 To be among the most highly regarded companies in the U.S. in 2010 required a stronger reputation than it did in The bar is higher for corporate America: companies now have to earn a Reputation Pulse score of over 73 to break into the Top 50, while in 2009 the threshold for the top tier was 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. 5

6 Reputations in the U.S Rank Company Global Pulse Global Pulse Global Pulse Rank Company Rank Company Score Score Score 51 Carnival Bristol-Myers Squibb Valero Energy Office Depot Nationw ide CIGNA Costco Wholesale Honeyw ell International Continental Airlines Southern Company BB&T The Bank of New York Mellon Corp Tyson Foods Constellation Energy Sprint Nextel Best Buy Aetna UAL - United Airlines Medtronic Verizon Communications DISH Netw ork McDonald s Merck Chevron Abbott Laboratories The Hartford Financial Services Group GMAC CVS Caremark MetLife Altria Group Kohl's Aflac Wells Fargo US Postal Service State Farm Insurance New s Corporation ConAgra Foods FPL GROUP (Florida Pow er & Light) UnitedHealth Group Boeing Marathon Oil JPMorgan Chase Cisco Systems Archer Daniels Midland US Bancorp Safew ay Allstate DirecTV Group DuPont Ford Time Warner Amgen Humana CITGO Corporation Macy's, Inc Sears Holdings Capital One Financial Oracle AMR - American Airlines Morgan Stanley Alcoa Dow Chemical General Motors Pfizer Sunoco Comcast Gap New York Life Insurance Company Bank of America Chubb Liberty Mutual Insurance Exxonmobil Nordstrom US Airw ays Group Goldman Sachs Baxter International Supervalu Citigroup Hess Delta Air Lines Fannie Mae Eli Lilly WellPoint Freddie Mac CBS Broadcasting Inc American Express Halliburton Starbucks Coffee Company Wal-Mart AIG - American International Group SunTrust Banks AutoNation Prudential Tyco International Ltd Progressive Exelon Travelers ConocoPhillips AT&T Viacom Inc 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. 6

7 Industry Reputations in the U.S. Food Manufacturing (9) Consumer Products (7) Transport & Logistics (3) Computer (9) Industrial Products (5) Retail - General (22) Retail - Food (6) Pharmaceuticals (6) Services (9) Utilities (4) Airlines & Aerospace (7) Telecommunications (3) Automotive (3) Information & Media (9) Financial - Insurance (12) Energy (8) Financial - Bank (7) Financial - Diversified (10) Global Mean 64.2 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. That said, a number of companies have differentiated from historically weak sectors to establish strong reputations with the general public in their country. Food Manufacturing and Consumer Products Companies Most Reputable in the U.S. As a group, Food Manufacturing companies improved their average Pulse score 5.23 points since 2009 and have reached the same high level of regard from Americans as the Consumer Products companies. Utilities and Telecommunications Companies Improve From 2009, Utilities and Telecom companies have seen their average Pulse score increase by 5.07 and 4.97 points, respectively. Both industries have had reputations below the Global Pulse average for years, but are now on par with or just ahead of the mean company score. Financial Diversified Sees Greatest Declines Though the U.S. economy is no longer in a recession, financial-services companies on average continue to post weak scores. The sector s average has dropped 6.27 points over the past year, which now ranks the industry in last place among American consumers. Energy companies used to be at the bottom of the U.S. list but have seen an average increase of 3.57 points over the past year. 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. 7

8 U.S. Winners Across the Dimensions of Reputation Products/Services Innovation Workplace Johnson & Johnson Apple Johnson & Johnson Kraft Foods Disney Microsoft Disney Microsoft Apple Apple Johnson & Johnson Disney Sara Lee Intel Kraft Foods Inc Governance Citizenship Leadership Johnson & Johnson Johnson & Johnson Apple Disney Disney Microsoft Apple PepsiCo Johnson & Johnson Kraft Foods Inc Microsoft Disney PepsiCo Kraft Foods Inc Kraft Foods Inc Performance Microsoft Apple Johnson & Johnson Disney Google 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 Copyright 2010 Reputation Institute. All rights reserved. 8

9 What Drives Reputation in the U.S.? Each of the Seven Dimensions of the RepTrak Model Drive Corporate Reputation For each company in the study, perception measures are taken of each of the factors in the model the four in the center form a single score (the Pulse Construct ) which is the dependent variable used in our driver analysis. When the full set of 150 companies dimension ratings are statistically analyzed against the Pulse, we find that to earn trust, admiration, good feeling and support companies need to address all seven dimensions of reputation. In the U.S. our analysis shows that each dimension alone accounts for over 12 percent of reputation. The same analysis for specific industries, other countries, and other stakeholders can show a dramatically different picture. Products/Services, Governance and Citizenship are Key Drivers The most influential dimension is Products/Services followed by Governance, then Citizenship. If companies can make the general public perceive them well on these dimensions overall reputation and support will improve. If companies do not perform well in these areas stakeholder support may suffer in the past year, we have seen the biggest crises develop from companies who s core products and services were tied to ethics or transparency issues (the components of Governance). 12.7% 18.1% 12.8% 13.2% 14.2% 13.3% 15.7% Building a Broad Reputation Platform Since all dimensions of reputation impact corporate reputation, top companies must exhibit strength in all seven areas. The corporate social responsibility dimensions of Citizenship, Governance and Workplace together account for over 40 percent of reputation. Factor Adjusted Regression n = 24,977 Adjusted R 2 = Copyright 2010 Reputation Institute. All rights reserved. 9

10 % Respondents who Would Recommend Improvement in Reputation Yields Greater Support Improve Reputation by 5 Points Increase Recommendation by 6.5% U.S. Pulse Score Adj-R 2 = Source: 2010 Global Reputation Pulse (U.S. Results) Copyright 2010 Reputation Institute. All rights reserved. 10

11 Strong Reputations Earn More Support From Consumers Risks and Opportunities with the General Public Positive word of mouth has significant impact on business sucess. The impact of corporate marketing initiatives are greatly improved when consumers carry positive messages through recommendations. Having the benefit of the doubt can be a strong competitive advantage when launching a new product, adjusting prices, or dealing with a negative public situation. For the Most Reputable Companies in the U.S., percent of the general public would recommend, say something positive or give them the benefit of the doubt, while percent of Americans refuse to support the companies with the weakest reputations. Recommend Most Reputable Companies (Top 10) Least Reputable Companies (Bottom 10) Negative (1-2) Neutral (3-5) Positive (6-7) Not sure 2.8% 26.0% 69.3% 1.9% 37.9% 38.1% 19.3% 4.6% Q: I w ould recommend Company to others Say Something Positive Most Reputable Companies (Top 10) Least Reputable Companies (Bottom 10) Negative (1-2) Neutral (3-5) Positive (6-7) Not sure 2.2% 26.0% 70.2% 1.5% 36.0% 40.6% 19.3% 4.1% Q: I say something positive about Company Benefit of Doubt Most Reputable Companies (Top 10) Least Reputable Companies (Bottom 10) Negative (1-2) Neutral (3-5) Positive (6-7) Not sure 3.1% 32.4% 59.3% 5.3% 37.3% 40.1% 18.3% 4.3% Q: I w ould give the benefit of the doubt to Company if the company w as facing a crisis Copyright 2010 Reputation Institute. All rights reserved. 11

12 Reputation Impact of Corporate Communications It Pays to Communicate Regardless of Reputation Ranking For the largest companies in the United States, awareness of corporate messages has a positive reputation effect, no matter the company s Reputation Pulse score. Even companies with weak reputations can gain from telling their side of the story. Most Reputable US Companies (top 30) Reputation Pulse Score +4.2 pts What Company Says/Does Branding Public Relations Marketing Social Responsibility Average US Companies (middle 30) Reputation Pulse Score +2.7 pts Least Reputable US companies (bottom 30) Reputation Pulse Score +3.4 pts Q: In the last 12 months I have come across [COMPANY 1] in the following ways. Please select all that apply. Copyright 2010 Reputation Institute. All rights reserved. 12

13 Two Ways to Get Started OPTION 1 Understand What Matters to Stakeholders OPTION 2 Starting a Systematic Approach to Reputation Management Get your company-specific results identifying strengths and weaknesses Map your reputation against global leaders in your industry and three select benchmarks Driver-analysis across your industry, locally, and globally Trend-analysis, identifying rational factors of your reputation, since 2007 In-person presentation and workshop to you/your executive staff Get your company-specific results from our global reputation repository Engage with our team to begin a Systematic Approach to Reputation Rely on existing information (our global database & your existing in-house research) Map your stakeholders, identify performance against expectations, knowledge-gaps and quick wins Develop your own system to gauge the impact of current activities Copyright 2010 Reputation Institute. All rights reserved. 13

15 Age Group U.S. Respondents Profile The Global Reputation Pulse Study Measures Corporate Reputations Worldwide The Global Reputation Pulse 2010 is the fifth annual study of the reputations of the World's Largest Companies. The study was developed by Reputation Institute to provide executives with a high-level overview of their company s reputation with consumers. Survey Methodology The RepTrak Pulse is a measure of corporate reputation calculated by averaging perceptions of four indicators of trust, esteem, admiration, and good feeling obtained from a representative sample of at least 100 local respondents who were familiar with the company. All Global Reputation Pulse scores are standardized on both the country and global level. Scores range from a low of 0 to a high of 100. United States Respondents Profile A total of 24,977 ratings of the 150 selected companies were obtained from a sample of 7,790 online consumers in the United States in January and February Each respondent was allowed to rate a maximum of five companies with which they were familiar. All companies were rated by at least 100 respondents. Ratings are statistically significant at a 95% confidence level with a margin of error +/ In other words, companies within countries have significantly different results when their Pulse is greater than 0.5 points apart. Respondent distribution was balanced to the country population on age and gender. U.S. companies selected for inclusion in the 2010 Global Reputation Pulse Study met the following criteria: 1. They were the largest companies in their country of origin based on revenue data from the 2009 Forbes Global 2000 published April 8, They engaged in commercial activities and had a reasonable amount of familiarity with the general public. 3. They were not wholly-owned subsidiaries of another company Male Female General Education Level 2.8% 21.1% Low Middle High 21.4% Region 17.7% US Northeast US Midw est US South US West % 33.6% 27.3% Count Copyright 2010 Reputation Institute. All rights reserved. 15

16 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 unlock the power of reputation. 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 Global Reputation Pulse is the largest study of corporate reputations in the world, identifying reputation trends and covering more than 1,500 companies from 32 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 their intangible assets by understanding and strengthening stakeholder relationships. Visit ReputationInstitute.com to learn how you can unlock the power of your reputation. For more information on Global Reputation Pulse, [email protected] 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