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2009 global reputation pulse

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  • 1. 2009 Global Reputation Pulse The World’s Most Reputable Companies: Global Section The World’s Most Reputable Companies: An Online Study of Consumers in 32 Countries Copyright © 2009 Reputation Institute. All rights reserved.
  • 2. Global Reputation Pulse 2009 – key findings Consumers Still Have Trust In The Corporate World Although companies may be viewed with scrutiny these days, on a global scale, consumers still trust the largest corporations in their home markets. Of the over 400 companies that remained within the Global 600 in both 2008 and 2009 only 7% saw substantial movement in reputation with a change of +/- 10 Reputation Pulse points. 65% experienced a movement of less than +/- 5 Pulse points – indicating a higher than anticipated level of stability in corporate reputation with general consumers around the world. It’s Up to You - Country, Region or Industry Does Not Stop Companies from Being Trusted From food manufacturing to air travel, the ten most reputable companies included in the study run the gamete of industries, countries, challenges and triumphs. From Italy’s Ferrero to Singapore Airlines, these companies have executed varied business and communication strategies that are expertly tailored to the needs of the general public in their respective regions of the globe. In 2009, 22 companies stand out with excellent reputations indicated by a Reputation Pulse scores of 80 or above. The art of reputation management lies in turning scientific market knowledge into meaningful engagements with the unique stakeholders important to your business model. Corporate Trust Higher in Emerging Markets, Lower in Industrialized Markets Companies from the BRIC (Brazil, Russia, India and China) economies secure solid rankings among the largest global corporations. Even from struggling global industries such as energy, automotives and banking, strong companies like Brazil’s Petrobras, China Faw and State Bank of India rise to the top. Proportionally, the largest companies in Brazil, Russia, India and China enjoy a stronger emotional connection from consumers than the largest companies in the industrialized world – the U.S., Japan, United Kingdom, France and Germany. Corporate managers should look to companies in these markets for models to build stronger relationships with consumers. The Increasing Need for Transparency After delivering strong products and services (Products/Services), transparency and corporate ethics (Governance) and caring about society (Citizenship) are the best ways to improve reputation with the general public and increase support. Financial Performance and Leadership saw the greatest increase in importance from 2008, emphasizing that more than ever consumers recognize the impact of C-suite vision and identify the need for continued market success. Strong Relationship Between Reputation and Recommendation The Top 20 Most Reputable Global Corporations enjoy consumers as ambassadors: seven out of 10 people would assertively recommend their products and services. The 20 Least Reputable Global Companies potentially suffer the most, if they were faced with a crisis less than two out of 10 people would give them the benefit of the doubt compared to the roughly six of ten who would for the 20 Most Reputable Companies. Copyright © 2009 Reputation Institute. All rights reserved. 2
  • 3. The World’s Most Reputable Companies, 2009 The Top 50 Ferrero, IKEA and Johnson & Johnson have the best reputations among Rank Company Global the largest 600 companies in the world Pulse Score 1 Ferrero (Italy) 85.17 Based on perceptions in their home countries, Italian chocolate maker Ferrero, 2 Ikea (Sweden) 83.98 Swedish home furniture producer IKEA, and the US consumer product giant 3 Johnson & Johnson (U.S.) 83.58 4 Petrobras (Brazil) 82.37 Johnson & Johnson enjoy the most trust, admiration, good feeling and overall 5 Sadia (Brazil) 82.06 esteem in the world. 6 Nintendo (Japan) 81.63 7 C hristian Dior (France) 81.37 8 Kraft Foods (U.S.) 81.09 A group of 22 companies stand out with excellent reputations indicated by 9 Mercadona (Spain) 80.99 10 Singapore Airlines (Singapore) 80.97 Reputation Pulse scores of 80 or above. 11 Tata (India) 80.89 12 UPS (U.S.) 80.84 13 General Mills (U.S.) 80.80 60 Point Difference from the Top to the Bottom 14 El C orte Inglés (Spain) 80.80 Reputation scores for the 600 largest companies range from Ferrero at the top 15 Matsushita Electric Ind. (Japan) 80.31 16 FedEx (U.S.) 80.30 with a pulse score of 85.17 to UBS in Switzerland who dropped to a poor 17 Grupo Bimbo (Mexico) 80.22 reputation of 25.14. 18 Honda Motor (Japan) 79.86 19 Whirlpool (U.S.) 79.86 20 Votorantim (Brazil) 79.59 21 Walt Disney C o. (U.S.) 79.44 Look to Corporate India to Find Trust, Admiration and Good Feeling 22 C hina Faw (C hina) 79.35 Corporate India has the best reputed companies. Of the 27 Indian companies 23 Google (U.S.) 78.80 24 C hina Merchants Bank (C hina) 78.72 ranked among the 600 largest in the world, almost 90% received scores above 25 C aterpillar (U.S.) 78.69 the global mean, with five ranking among the Top 50. Only the United States had 26 C ostco Wholesale (U.S.) 78.53 27 Sberbank (Russia) 78.26 more in the Top 50 (17 companies) but they had five times the number of 28 Vale (Brazil) 78.18 companies on the list than India. 29 State Bank of India (India) 78.11 30 Microsoft (U.S.) 78.05 31 A.P. Møller-Maersk (Denmark) 78.04 BRIC Companies Lead the Way 32 3M (U.S.) 77.88 33 Philips (the Netherlands) 77.85 Of the 289 companies from the US, Japan, the UK, France and Germany, 45% 34 Haier (C hina) 77.80 have reputations below the global average, while only 34% of the 142 companies 35 Siam C ement (Thailand) 77.78 36 C olgate-Palmolive (U.S.) 77.65 from Brazil, Russia, India and China have below-average reputations, with 37 Will-Bill-Dann Foods (Russia) 77.51 Chinese companies dragging down the BRIC average substantially. These results 38 Kimberly-C lark (U.S.) 77.47 39 Infosys Tech. (India) 77.45 highlight that large companies in emerging countries have greater success in 40 Raiffeisen Gp. (Switzerland) 77.37 building relevance with the general public. It also points to the challenge of 41 Sharp (Japan) 77.29 42 William Morrison (U.K.) 77.16 redefining stakeholder interactions that many companies face in more developed 43 POSC O (South Korea) 77.11 markets. For example, despite significant presence on the list (31 companies), no 44 Procter & Gamble (U.S.) 77.08 45 Nokia (Finland) 76.75 German company was among the global Top 50. 46 PepsiC o (U.S.) 76.69 47 Larsen & Toubro (India) 76.58 Excellent/Top Tier above 80 All Global Pulse scores that differ by more than +/-0.5 are significantly different at 48 Sainsbury (U.K.) 76.43 Strong/Robust 70-79 the 95% confidence level. 49 Maruti Udyog (Suzuki) (India) 76.26 50 General Electric (U.S.) 76.20 Average/Moderate 60-69 Weak/Vulnerable 40-59 Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Poor/Lowest Tier below 40 Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). Copyright © 2009 Reputation Institute. All rights reserved. 3
  • 4. The World’s Most Reputable Companies, 2009 51 - 200 Global Global Global Rank Company Rank Company Rank Company Pulse Score Pulse Score Pulse Score 51 LG Electronics (South Korea) 76.19 101 Legend Holdings (C hina) 73.35 151 C hina C onstruction Bank (C C B) (C hina) 71.04 52 Apple (U.S.) 76.15 102 C anara Bank (India) 73.34 152 Grupo Maseca (Mexico) 70.89 53 Deutsche Lufthansa (Germany) 75.96 103 MTS (Russia) 73.31 153 Uni-President Enterprise C o. (Taiwan) 70.87 54 Kroger (U.S.) 75.89 104 IBM (U.S.) 73.25 154 Nestlé (Switzerland) 70.84 55 Amazon.com (U.S.) 75.74 105 Peugeot (France) 73.23 155 Wolseley (U.K.) 70.72 56 LVMH Group (France) 75.67 106 Dell (U.S.) 73.22 156 Dongfeng Motor (C hina) 70.66 57 Delhaize (Belgium) 75.64 107 C emex (Mexico) 73.17 157 Intel (U.S.) 70.53 58 FEMSA (Mexico) 75.62 108 GlaxoSmithKline (U.K.) 73.16 158 Tukiye Is Bankasi (Turkey) 70.51 59 Toyota (Japan) 75.60 109 Voestalpine (Austria) 73.14 159 Bosideng (C hina) 70.50 60 Inditex (Zara) (Spain) 75.36 110 Robert Bosch (Germany) 73.11 160 DuPont (U.S.) 70.46 61 Lowe's (Home Improvement) (U.S.) 75.33 111 Hindustan Petroleum (India) 73.08 161 Staples (U.S.) 70.40 62 L'Oreal (France) 75.26 112 Indian Oil (IOC ) (India) 73.01 162 KDDI (Japan) 70.35 63 Gerdau (Brazil) 75.14 113 Pão de Açúcar (Brazil) 72.94 163 Bharti Airtel . (India) 70.32 64 Bridgestone (Japan) 75.09 114 Formosa Petrochemi (Taiwan) 72.91 164 Office Depot (U.S.) 70.29 65 Berkshire Hathaway (U.S.) 75.03 115 ALDI (Germany) 72.84 165 Royal Bank of C anada (C anada) 70.26 66 Volkswagen (Germany) 75.03 116 Wipro (India) 72.77 166 George Weston Limited (Weston) (C anada) 70.25 67 Publix Super Markets (U.S.) 75.02 117 Eni (Italy) 72.75 167 Aflac (U.S.) 70.15 68 Lukoil (Russia) 75.01 118 Shanghai Automobile Industry Group (C hina) 72.72 168 Motorola (U.S.) 70.01 69 Hindustan Unilever (India) 74.99 119 Best Buy (U.S.) 72.44 169 Acer (Taiwan) 70.00 70 Michelin (France) 74.98 120 C oop (Italy) (Italy) 72.39 170 Mapfre (Spain) 69.97 71 Kamaz (Russia) 74.86 121 Severstal (Russia) 72.29 171 C OFC O (C hina) 69.88 72 EDF (France) 74.83 122 Tesco (U.K.) 72.29 172 Rite Aid (U.S.) 69.85 73 Texas Instruments (U.S.) 74.70 123 Toys 'R' Us (U.S.) 72.27 173 Boeing (U.S.) 69.84 74 Samsung (South Korea) 74.63 124 Banco do Brasil (Brazil) 72.26 174 Bank of Baroda (India) 69.81 75 Haci Omer Sabanci Holding (Turkey) 74.62 125 Volvo bilar (Sweden) 72.24 175 Bharat Petroleum (BPC L) (India) 69.79 76 Hewlett-Packard (U.S.) 74.59 126 Sony (Japan) 72.21 176 Nike (U.S.) 69.69 77 John Deere (U.S.) 74.47 127 Walgreen (U.S.) 72.21 177 Punjab National Bank (India) 69.67 78 Kohl's (U.S.) 74.37 128 Weyhaeuser (U.S.) 72.19 178 Shanghai Pudong Development Bank (C hina) 69.65 79 C oca-C ola C ompany (U.S.) 74.33 129 Bank of C ommunications (C hina) 72.17 179 Youngor (C hina) 69.60 80 Seven & I Holdings (Japan) 74.32 130 Medtronic (U.S.) 72.17 180 C SN (Brazil) 69.56 81 SAB Miller (U.K.) 74.25 131 Vimpel C ommunications (Russia) 72.05 181 Midea Group (C hina) 69.54 82 Hitachi (Japan) 74.24 132 Reliance Group (India) 72.03 182 Kookmin Bank (South Korea) 69.54 83 Air France-KLM (France) 74.23 133 Denso (Japan) 71.78 183 C ITIC (C hina) 69.47 84 Usiminas (Brazil) 74.10 134 StatoilHydro (Norway) 71.75 184 Garanti Bank (Turkey) 69.47 85 Meijer (U.S.) 74.05 135 Target (U.S.) 71.74 185 Sears (U.S.) 69.45 86 Wuliangye Group (C hina) 73.96 136 Rosneft (Russia) 71.72 186 Vodafone-Panafon (U.K.) 69.45 87 Kirin Holdings C ompany (Japan) 73.90 137 Mahindra & Mahindra (India) 71.61 187 Abbott Laboratories (U.S.) 69.40 88 Xerox (U.S.) 73.82 138 Baltika (Russia) 71.52 188 PTT (Thailand) 69.38 89 VTB Bank (Russia) 73.75 139 Union Pacific Railroad (U.S.) 71.40 189 C hina Southern Airline (C hina) 69.36 90 Pirelli (Italy) 73.71 140 Fujifilm (Japan) 71.39 190 Toshiba (Japan) 69.28 91 BHP Billiton (U.K.) 73.69 141 AstraZeneca (U.K.) 71.39 191 State Farm Insurance (U.S.) 69.21 92 JC Penney (U.S.) 73.68 142 C haroen Pokphand Gp. (Thailand) 71.37 192 C anon (Japan) 69.08 93 Unilever (U.K.) 73.60 143 Unilever (the Netherlands) 71.34 193 Bank of C hina (C hina) 69.07 94 LALA (Mexico) 73.52 144 Wilmar International (C hina) 71.33 194 Woolworths (Australia) 69.05 95 ITC Limited (India) 73.50 145 C RH (Ireland) 71.28 195 Ford Otomotiv Sanayi (Turkey) 69.05 96 Gazprom (Russia) 73.45 146 Ahold (the Netherlands) 71.27 196 Toronto-Dominion Bank (TD) (C anada) 68.99 97 Goodyear (U.S.) 73.45 147 IC BC (C hina) 71.26 197 Embraer (Brazil) 68.96 98 C isco (U.S.) 73.44 148 Norilsk Nickel (Russia) 71.24 198 New Hope Group (C hina) 68.94 99 Grupo Modelo (Mexico) 73.36 149 Home Depot (U.S.) 71.06 199 Koch USA (U.S.) 68.90 100 Bombardier (C anada) 73.36 150 Galanz (C hina) 71.05 200 Surgutneftegas (Russia) 68.89 Excellent/Top Tier above 80 All Global Pulse scores that differ by more than +/-0.5 are significantly different at Strong/Robust 70-79 the 95% confidence level. Average/Moderate 60-69 Weak/Vulnerable 40-59 Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Poor/Lowest Tier below 40 Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). Copyright © 2009 Reputation Institute. All rights reserved. 4
  • 5. What Changed for Companies? Reputation movements amongst the Top 50, 2008 - 2009 Reputations Remain Stable Despite Volatility Rank Global Pulse Score Of the over 400 companies that remained within the Global 600 in both 2008 Company 2009 2009 2008 Change and 2009 only 7% saw substantial movement in reputation with a change of Ferrero (Italy) 1 85.17 83.52 1.64 Ikea (Sweden) 2 83.98 84.14 -0.16 +/- 10 Reputation Pulse points – indicating a higher than anticipated level of Johnson & Johnson (U.S.) 3 83.58 83.48 0.10 stability in corporate reputation around the world. Petrobras (Brazil) 4 82.37 79.97 2.40 Sadia (Brazil) 5 82.06 - - • Industrial and Commercial Bank of China saw the largest gain Nintendo (Japan) 6 81.63 - - in reputation, 16.38 points from 2008 to 2009. C hristian Dior (France) 7 81.37 - - Kraft Foods (U.S.) 8 81.09 82.79 -1.70 • AIG lost the most reputation capital with a drop of 27.52 points. Mercadona (Spain) 9 80.99 78.90 2.09 Singapore Airlines (Singapore) 10 80.97 - - Tata (India) 11 80.89 82.84 -1.95 Reputations Decline in Industrialized Markets, UPS (U.S.) 12 80.84 81.05 -0.21 Rise in Emerging Markets General Mills (U.S.) 13 80.80 81.34 -0.54 El C orte Inglés (Spain) 14 80.80 80.00 0.80 In 2008 a number of companies, primarily in the developed world, saw large Matsushita Electric Ind. (Japan) 15 80.31 78.88 1.43 drops in reputation. Simultaneously, an equal number of companies, mostly FedEx (U.S.) 16 80.30 76.28 4.01 Grupo Bimbo (Mexico) 17 80.22 81.75 -1.53 from the developing world, saw impressive gains which balanced out the global Honda Motor (Japan) 18 79.86 77.79 2.07 average reputation. Whirlpool (U.S.) 19 79.86 74.41 5.45 Votorantim (Brazil) 20 79.59 76.10 3.49 Walt Disney C o. (U.S.) 21 79.44 81.22 -1.78 C hina Faw (C hina) 22 79.35 77.61 1.74 At the Top: Mix of Old and New Google (U.S.) 23 78.80 85.23 -6.44 The Top 3 companies; Ferrero, IKEA, and Johnson & Johnson have been C hina Merchants Bank (C hina) 24 78.72 - - C aterpillar (U.S.) 25 78.69 74.78 3.91 consistently in the top tier of the Global Reputation Pulse for the past 3 years. C ostco Wholesale (U.S.) 26 78.53 74.33 4.20 New to positions among the Top 10 are: Sadia the Brazilian food company, Sberbank (Russia) 27 78.26 75.56 2.70 Vale (Brazil) 28 78.18 77.39 0.80 Nintendo from Japan, Christian Dior from France, and Singapore Airlines. State Bank of India (India) 29 78.11 72.40 5.71 Each have an excellent reputations with scores above 80 in their home Microsoft (U.S.) 30 78.05 70.52 7.53 A.P. Møller-Maersk (Denmark) 31 78.04 77.35 0.69 markets. 3M (U.S.) 32 77.88 79.79 -1.90 Philips (the Netherlands) 33 77.85 78.72 -0.87 Haier (C hina) 34 77.80 81.19 -3.39 Toyota and Google Slip in Reputation Equity Siam C ement (Thailand) 35 77.78 - - In 2008 Toyota and Google were number 1 and 2 they now rank 59th and C olgate-Palmolive (U.S.) 36 77.65 78.04 -0.38 Will-Bill-Dann Foods (Russia) 37 77.51 - - 23rd out of the largest 600 companies in the world, respectively. This shows Kimberly-C lark (U.S.) 38 77.47 - - how strong reputations cannot be taken for granted, even in a company’s home Infosys Tech. (India) 39 77.45 81.18 -3.73 Raiffeisen Gp. (Switzerland) 40 77.37 - - market. Companies must continue to engage to earn the trust, and admiration Sharp (Japan) 41 77.29 80.44 -3.15 of the general public. Toyota has lost more than 10 reputation points with the William Morrison (U.K.) 42 77.16 74.32 2.84 POSC O (South Korea) 43 77.11 - - Japanese public, indicating a shaken platform in their home market. Procter & Gamble (U.S.) 44 77.08 72.85 4.23 Nokia (Finland) 45 76.75 69.03 7.72 PepsiC o (U.S.) 46 76.69 72.76 3.94 Larsen & Toubro (India) 47 76.58 - - All Global Pulse scores that differ by more than +/-0.5 are significantly different at Excellent/Top Tier above 80 Sainsbury (U.K.) 48 76.43 74.07 2.36 Strong/Robust 70-79 the 95% confidence level. Maruti Udyog (Suzuki) (India) 49 76.26 74.38 1.88 General Electric (U.S.) 50 76.20 76.82 -0.63 Average/Moderate 60-69 Weak/Vulnerable 40-59 Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Poor/Lowest Tier below 40 Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). Copyright © 2009 Reputation Institute. All rights reserved. 5
  • 6. What does it take to have an excellent reputation? Big difference in level of admiration, trust, and good feeling from the top of the 150 largest companies to the bottom You Have to Get 7 out of 10 people to Admire, Trust, and Feel Good about Your Company To be among the most reputed companies in the world, 97% of the general public must be positive or neutral about admiring, respecting, trusting, and having a feel good about your company. This leaves little room for mistakes, but the 20 Most Reputable Companies in the world have established this strong bond through active communication and engagement with customers and influencers. For the 20 Least Reputable Companies, only 15-17% admire, respect, trust, and feel good about them. And 35-37% definitely do not trust these companies. This outlines the advantage enjoyed by companies who manage their reputation. By focusing on what matters, top companies have gathered a loyal and supportive group of consumers and enjoy a positive emotional connection with them. Admire & Respect Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable C ompanies 2.4% 30.2% 66.8% 0.7% (Top 20) Least Reputable C ompanies 37.2% 46.8% 14.6% 1.4% (Bottom 20) Q: ‘Company’ is a company that I admire and respect Trust Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable C ompanies 2.1% 27.2% 70.1% 0.6% (Top 20) Least Reputable C ompanies 35.2% 47.5% 16.6% 0.7% (Bottom 20) Q: ‘Company’ is a company that I trust Good Feeling Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable C ompanies 1.7% 26.2% 71.8% 0.3% (Top 20) Least Reputable C ompanies 34.8% 48.1% 16.9% 0.3% (Bottom 20) Q: ‘Company’ is a company I have a good feeling about Copyright © 2009 Reputation Institute. All rights reserved. 6
  • 7. Having a strong reputation improves support Consumer Support for the strongest vs. weakest reputations Companies with a Strong Reputation Get All the Support Companies that have built a strong reputation spark positive word-of-mouth: 90-97% of the general public is positive or neutral about recommending, saying something positive and giving them the benefit of the doubt in a crisis. Improve Reputation by 5 points and Increase Support by 6.75% Companies can improve support through reputation. If companies improve their reputation pulse score by 5 points support will go up by 6.75% on average across the 32 countries. Some countries see a stronger effect others a weaker, but in all countries we see a direct link between reputation and support. Recommend Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable C ompanies 2.5% 28.7% 66.8% 2.0% (Top 20) Least Reputable C ompanies 38.6% 42.0% 15.1% 4.4% (Bottom 20) Q: I would recommend ‘Company’ to others Say Positive Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable C ompanies 1.9% 29.1% 67.3% 1.8% (Top 20) Least Reputable C ompanies 36.8% 43.3% 16.3% 3.6% (Bottom 20) Q: I say something positive about ‘Company’ Benefit of Doubt Negative (1-2) Neutral (3-5) Positive (6-7) Not sure Most Reputable C ompanies 4.6% 32.6% 56.6% 6.1% (Top 20) Least Reputable C ompanies 39.3% 41.5% 14.6% 4.6% (Bottom 20) Q: I would give the benefit of the doubt to ‘Company’ if the company was facing a crisis Copyright © 2009 Reputation Institute. All rights reserved. 7
  • 8. What Drives Reputation around the World? 2009 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. Each one alone accounts for over 12% of reputation across the 32 countries included in 13.2% 17.5% Global Reputation Pulse 2009. Products/Services, Governance, and Citizenship Stand Out as Key Drivers The most influential dimension on reputation is Product/Services, followed by Governance and Citizenship. In 2009, Governance takes over from Citizenship as the second 13.1% 12.4% most important driver. If companies can make the general public perceive them well on these dimensions overall reputation and support will go up; if companies do not perform on these dimensions stakeholder support will decrease. Financial Performance and Leadership Increase in Importance The public wants to see the companies lead the way with strong 14.7% 14.0% visions and stable performance. These two dimensions saw the largest increase in driver weight from 2008 to 2009 indicating that companies need to communicate about how they will ensure a successful future to the public. 15.1% What is your reputation platform? Leading companies address these seven dimensions through a reputation platform that makes them relevant to their stakeholders. 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 Factor Adjusted Regression Q: Workplace: 'Company' is an appealing place to work -- it treats its employees well n = 16,500 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 Adjusted R2 = 0.742 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 © 2009 Reputation Institute. All rights reserved. 8
  • 9. Global Leaders on the Seven Reputation Dimensions 2009 Products/Services Innovation Workplace Ferrero (Italy) 88.96 Nintendo (Japan) 86.28 Microsoft (U.S.) 80.69 Johnson & Johnson (U.S.) 82.67 Ferrero (Italy) 85.25 Walt Disney C o. (U.S.) 79.97 C aterpillar (U.S.) 82.59 Sharp (Japan) 82.51 Ferrero (Italy) 79.07 Samsung (South Korea) 82.51 Softbank C orp (Japan) 81.99 Google (U.S.) 78.96 Nintendo (Japan) 82.34 Sony (Japan) 81.58 Nintendo (Japan) 78.80 Governance Citizenship Leadership Ferrero (Italy) 82.71 Ferrero (Italy) 81.16 Ikea (Sweden) 87.95 Siam C ement (Thailand) 81.32 Ikea (Sweden) 79.42 Ferrero (Italy) 83.07 Tata (India) 80.75 Walt Disney C o. (U.S.) 78.79 Nintendo (Japan) 82.62 Walt Disney C o. (U.S.) 79.80 Microsoft (U.S.) 78.57 Tata (India) 82.23 Delhaize (Belgium) 78.58 Delhaize (Belgium) 78.38 Microsoft (U.S.) 81.93 Performance Having a Broad Reputation Platform Reduces Risk Ikea (Sweden) 87.89 Companies build their reputations on different platforms, but all platforms should communicate strength across a number of dimensions. A diverse image reduces reputation risk and provides a Nintendo (Japan) 87.35 stronger platform for support. El C orte Inglés (Spain) 86.39 16 companies excel across the various dimensions of reputation. Ferrero is the only company 84.94 that is in the top five on all seven dimensions which explains why the Italians trust, admire, and Ferrero (Italy) feel good about this company. Samsung (South Korea) 83.91 To break into the top five on any dimension, a company needed a score close to 80, which indicates exceptional strength in that area. 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 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 © 2009 Reputation Institute. All rights reserved. 9
  • 10. Global Top 20 within Products/Services & Innovation 2009 Strong Perceptions of High Quality Product/Services and Innovation All Top 20 companies within Product/Services have scores of 80 or above which indicates an excellent reputation with the general public for delivering high quality, excellent products and reliable services. Japanese companies top the innovation dimension - with the exception of Ferrero and some of the Scandinavian companies. Whirlpool in the U.S. rounds out the Top 20. Products/Services Innovation Ferrero (Italy) 88.96 Nintendo (Japan) 86.28 Johnson & Johnson (U.S.) 82.67 Ferrero (Italy) 85.25 C aterpillar (U.S.) 82.59 Sharp (Japan) 82.51 Samsung (South Korea) 82.51 Softbank C orp (Japan) 81.99 Nintendo (Japan) 82.34 Sony (Japan) 81.58 C hristian Dior (France) 82.21 Nokia (Finland) 81.46 Whirlpool (U.S.) 81.90 Ikea (Sweden) 80.81 Mercadona (Spain) 81.78 Apple (U.S.) 79.63 Tata (India) 81.64 Honda Motor (Japan) 79.56 LG Electronics (South Korea) 81.59 Walt Disney C o. (U.S.) 79.11 El C orte Inglés (Spain) 81.12 Singapore Airlines (Singapore) 79.06 LVMH Group (France) 81.00 Microsoft (U.S.) 79.04 Siam C ement (Thailand) 80.98 Google (U.S.) 78.81 Google (U.S.) 80.87 Samsung (South Korea) 78.71 Kraft Foods (U.S.) 80.78 Tata (India) 78.38 POSC O (South Korea) 80.77 Matsushita Electric Ind. (Japan) 78.15 Grupo Bimbo (Mexico) 80.67 Bombardier (C anada) 77.99 Ikea (Sweden) 80.38 Ericsson (Sweden) 77.95 3M (U.S.) 80.37 3M (U.S.) 77.69 Singapore Airlines (Singapore) 80.35 Whirlpool (U.S.) 77.62 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 © 2009 Reputation Institute. All rights reserved. 10
  • 11. Global Top 20 within Workplace, Governance, and Citizenship 2009 Opportunity to Stand Out Within Workplace, Governance, and Citizenship Workplace, Governance, and Citizenship account for 44% of reputation, indicating strong performance in these areas has a major impact on overall reputation and support. Within each of these dimensions, only two or three companies achieve scores in the low 80’s, and a score of 73.24 earned UPS the last seat among the Top 20 in Citizenship. This indicates a major opportunity for companies to develop a systematic strategy within these related dimensions as a key component in a reputation strategy. Workplace Governance Citizenship Microsoft (U.S.) 80.69 Ferrero (Italy) 82.71 Ferrero (Italy) 81.16 Walt Disney C o. (U.S.) 79.97 Siam C ement (Thailand) 81.32 Ikea (Sweden) 79.42 Ferrero (Italy) 79.07 Tata (India) 80.75 Walt Disney C o. (U.S.) 78.79 Google (U.S.) 78.96 Walt Disney C o. (U.S.) 79.80 Microsoft (U.S.) 78.57 Nintendo (Japan) 78.80 Delhaize (Belgium) 78.58 Delhaize (Belgium) 78.38 Tata (India) 78.74 Johnson & Johnson (U.S.) 78.07 William Morrison (U.K.) 77.73 William Morrison (U.K.) 77.46 Google (U.S.) 77.98 Tata (India) 75.85 Ikea (Sweden) 77.45 FedEx (U.S.) 77.94 Haci Omer Sabanci (Turkey) 75.73 Kraft Foods (U.S.) 77.15 C ostco Wholesale (U.S.) 77.38 C oop (Italy) (Italy) 75.32 Johnson & Johnson (U.S.) 76.49 PepsiC o (U.S.) 77.09 Siam C ement (Thailand) 75.18 PepsiC o (U.S.) 76.14 Kraft Foods (U.S.) 77.01 Johnson & Johnson (U.S.) 75.15 General Mills (U.S.) 76.13 General Mills (U.S.) 76.85 General Mills (U.S.) 74.86 Siam C ement (Thailand) 76.13 Haci Omer Sabanci (Turkey) 76.84 PepsiC o (U.S.) 74.78 EDF (France) 75.83 Infosys Tech. (India) 76.77 Infosys Tech. (India) 74.78 Raiffeisen Gp. (Switzerland) 75.62 Microsoft (U.S.) 76.72 Grupo Bimbo (Mexico) 74.77 Apple (U.S.) 75.41 Larsen & Toubro (India) 76.68 Google (U.S.) 74.14 C isco (U.S.) 75.29 UPS (U.S.) 76.65 Kraft Foods (U.S.) 73.64 Unilever (U.K.) 75.23 William Morrison (U.K.) 76.38 Larsen & Toubro (India) 73.60 BAE Systems (U.K.) 75.09 Procter & Gamble (U.S.) 76.26 Honda Motor (Japan) 73.59 Medtronic (U.S.) 74.96 C RH (Ireland) 76.18 UPS (U.S.) 73.24 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 © 2009 Reputation Institute. All rights reserved. 11
  • 12. Global Top 20 within Leadership and Performance 2009 High Demands for Top Companies in Performance and Leadership 26% of reputation is determined by how the general public perceive the leadership and performance of companies around the world. Strong, visible leaders and good financial results play a significant role in a strong platform for admiration and trust. IKEA leads both dimensions. To break into the Top 20 companies need a score close to 80, indicating high expectations. Leadership Performance Ikea (Sweden) 87.95 Ikea (Sweden) 87.89 Ferrero (Italy) 83.07 Nintendo (Japan) 87.35 Nintendo (Japan) 82.62 El C orte Inglés (Spain) 86.39 Tata (India) 82.23 Ferrero (Italy) 84.94 Microsoft (U.S.) 81.93 Samsung (South Korea) 83.91 C haroen Pokphand Gp. (Thailand) 81.43 Mercadona (Spain) 83.91 Walt Disney C o. (U.S.) 81.20 Tesco (U.K.) 83.37 Samsung (South Korea) 81.03 Inditex (Zara) (Spain) 82.61 A.P. Møller-Maersk (Denmark) 80.71 Walt Disney C o. (U.S.) 82.04 Toyota (Japan) 79.86 Microsoft (U.S.) 80.98 POSC O (South Korea) 79.82 Berkshire Hathaway (U.S.) 80.78 Singapore Airlines (Singapore) 79.76 Tata (India) 80.58 Berkshire Hathaway (U.S.) 79.60 StatoilHydro (Norway) 80.56 Apple (U.S.) 79.54 POSC O (South Korea) 80.50 Siam C ement (Thailand) 79.25 Singapore Airlines (Singapore) 79.81 Google (U.S.) 78.59 William Morrison (U.K.) 79.43 Infosys Tech. (India) 78.11 PepsiC o (U.S.) 79.41 Hon Hai Precision Ind. (Taiwan) 77.94 Shell (U.K.) 79.39 Honda Motor (Japan) 77.87 LVMH Group (France) 79.11 Mercadona (Spain) 77.85 Grupo Bimbo (Mexico) 79.07 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 © 2009 Reputation Institute. All rights reserved. 12
  • 13. Global Industry Reputations 2009 Is your industry helping or hurting you? C onsumer Products (16) 74.42 Companies are evaluated by the general public based on Beverage (9) 72.52 what they do. But the behavior of industry peers also impacts perceptions. C omputer (18) 71.85 Electrical & Electronics (28) 70.09 Some industries have cultivated a strong connection with Food Manufacturing (21) 69.99 the general public while others struggle against negative Industrial Products (13) 69.70 bias. Companies should be sensitive to these industry perceptions in tailoring communciation and actions. Retail - Food (24) 69.12 Retail - General (42) 68.51 Consumer Product Companies are Trusted Automotive (37) 67.34 Consumer product companies are generally trusted, Transport & Logistics (17) 67.24 admired, and respected. Corporate messages multiply in the form of recommendations and positive comments and C onglomerate (19) 67.08 recalls are mitigated by benefit of the doubt. Strong past Airlines & Aerospace (26) 66.84 performance has set the bar high for established veterans Raw Materials (26) 66.61 and fresh-faced challengers in this industry. Pharmaceuticals (16) 65.17 Global Mean 64.20 Financial Service and Tobacco companies are least Energy (52) 64.00 trusted C hemicals (5) 63.78 Financial Services finds itself at the bottom together with Services (12) 62.49 the Tobacco companies. The Financial Service companies Information & Media (11) 61.72 will have a challenging job communicating new initiatives since people are less willing to trust what they say. Financial - Bank (67) 61.57 Sophisticated communication strategies are needed, C onstruction/Engineering (13) 61.07 backed by third-party support, to regain credibility and Telecommunications (32) 60.76 trust from customers and the general public. Utilities (29) 60.71 Telecom and Utilities are two other industries that are Financial - Diversified (22) 59.12 struggling with trust, admiration and good feelings among Financial - Insurance (40) 58.11 the general public around the world. Tobacco (5) 55.47 Excellent/Top Tier above 80 All Global Pulse scores that differ by more than +/-0.5 are significantly different at Strong/Robust 70-79 the 95% confidence level. Average/Moderate 60-69 Weak/Vulnerable 40-59 Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Poor/Lowest Tier below 40 Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). Copyright © 2009 Reputation Institute. All rights reserved. 13
  • 14. Global 600: The largest companies around the world 1 - 120 3M (U.S.) Asustek C omputer Inc. (Taiwan) Bosideng (C hina) A.P. Møller-Maersk (Denmark) AT&T (U.S.) Bouygues (France) ABB (Switzerland) AutoNation (U.S.) BP (U.K.) Abbott Laboratories (U.S.) Aux Group (C hina) Bradesco (Brazil) Acciona (Spain) Aviva (U.K.) Brasil Telecom (Brazil) Acer (Taiwan) Avtovaz (Russia) Braskem (Brazil) AC S Group (Spain) AXA Insurance (France) Bridgestone (Japan) Adecco (Switzerland) BAE Systems (U.K.) Brightfood Group (C hina) Aegon (the Netherlands) Bailain Group (C hina) Brilliance Automobile (C hina) AEON (Japan) Baltika (Russia) Bristol-Myers Squibb (U.S.) Aeroflot (Russia) Banco do Brasil (Brazil) BT (U.K.) AES (U.S.) Banco Itaú (Brazil) BNSF Railway (U.S.) Aetna (U.S.) Banco Popolare (Italy) C amargo C orrêa (Brazil) Aflac (U.S.) Banco Santander (Spain) C anadian Imperial Bank of C ommerce (C anada) Agricultural Bank of C hina (C hina) Bank Austria (Austria) C anara Bank (India) Ahold (the Netherlands) Bank of America (U.S.) C anon (Japan) AIG (U.S.) Bank of Baroda (India) C apital One Financial (U.S.) Air C hina Group (C hina) Bank of C hina (C hina) C ardinal Health (U.S.) Air France-KLM (France) Bank of C ommunications (C hina) C arrefour (France) Airbus (France) Bank of Montreal (C anada) C asas Bahia (Brazil) Akbank (Turkey) Bank of Moscow (Russia) C asino Groupe (France) Alcoa (U.S.) Bank of New York Mellon (U.S.) C aterpillar (U.S.) ALDI (Germany) Barclays (U.K.) C BS Broadcasting (U.S.) Alfa (Mexico) BASF (Germany) C emex (Mexico) Allianz (Germany) Bayer (Germany) C emig (Brazil) Allied Irish Banks (Ireland) BBVA (Spain) C encosud (C hile) Allstate (U.S.) Bell C anada (C anada) C entres E. Leclerc (France) Altria (U.S.) Berkshire Hathaway (U.S.) C entrica (U.K.) Amazon.com (U.S.) Bertelsmann (Germany) C epsa (Spain) America Movil (Mexico) Best Buy (U.S.) C FE (Mexico) American Airlines (U.S.) Bharat Heavy Electricals (India) C hanghong (C hina) American Electric (U.S.) Bharat Petroleum (BPC L) (India) C haroen Pokphand Group (Thailand) American Express (U.S.) Bharti Airtel . (India) C hennai Petroleum C orporation (India) Amgen (U.S.) BHP Billiton (Australia) C herry Auto (C hina) Anglo American (South Africa) BHP Billiton (U.K.) C hevron (U.S.) Anglo American (U.K.) Bidvest (South Africa) C hina C onstruction Bank (C C B) (C hina) ANZ (Australia) BMW (Germany) C hina Eastern Airline (C hina) Apple (U.S.) BNP Paribas (France) C hina Faw (C hina) Archer Daniels Midland (U.S.) Boeing (U.S.) C hina Guangsha (C hina) AstraZeneca (U.K.) Bombardier (C anada) C hina Life Insurance (C hina) Copyright © 2009 Reputation Institute. All rights reserved. 14
  • 15. Global 600: The largest companies around the world 121 - 240 C hina Merchants Bank (C hina) C VS C aremark (U.S.) Erste Bank (Austria) C hina Minsheng Bank (C hina) Daihatsu Motor (Japan) Eureko (the Netherlands) C hina Mobile (C hina) Dai-Ichi Mutual Life Insurance (Japan) Eurobank Efg (Greece) C hina OC T (C hina) Daimler (Germany) Exxon Mobil (U.S.) C hina Southern Airline (C hina) Danske Bank (Denmark) FC C (Fomento de C onstrucciones y C ontratas) (Spain) C hina Telecom (C hina) Delhaize (Belgium) FedEx (U.S.) C hristian Dior (France) Dell (U.S.) FEMSA (Mexico) C hubb (U.S.) Delta Air Lines (U.S.) Ferrero (Italy) C hubu Electric Power (Japan) Denso (Japan) Ferrovial (Spain) C IC (C hina) Deutsche Bahn (Germany) FGC UES (Russia) C IGNA (U.S.) Deutsche Bank (Germany) Fiat (Italy) C isco (U.S.) Deutsche Lufthansa (Germany) Fondiaria-SAI (Italy) C ITGO (U.S.) Deutsche Post (Germany) Ford (U.S.) C ITIC (C hina) Deutsche Telekom (Germany) Ford Otomotiv Sanayi (Turkey) C itigroup (U.S.) Dexia (Belgium) Formosa Petrochemi (Taiwan) C NC (C hina) DirecTV (U.S.) Fortis (Belgium) C NP Assurances (France) Dogan Group (Turkey) Fortis (the Netherlands) C oca-C ola C ompany (U.S.) Dongfeng Motor (C hina) FPL GROUP (Florida Power & Light) (U.S.) C odelco (C hile) Dow C hemical (U.S.) France Telecom (France) C OFC O (C hina) DuPont (U.S.) Franz Haniel (C ELESIO) (Germany) C olgate-Palmolive (U.S.) E.ON (Germany) Fujifilm (Japan) C omcast (U.S.) East Japan Railway (Japan) Fujitsu (Japan) C ommerzbank (Germany) Edeka Zentrale (Germany) GAIL (India) (India) C ommonwealth Bank of Australia (Australia) EDF (France) Galanz (C hina) C ompal Electronics (Taiwan) EDISON (Italy) Galp Energia (Portugal) C omputer Sciences C orporation (U.S.) EDP - Energias de Portugal (Portugal) Gap (U.S.) C onocoPhillips (U.S.) El C orte Inglés (Spain) Garanti Bank (Turkey) C ontinental (Germany) El Puerto De Liverpool (Mexico) Gazprom (Russia) C ontinental Airlines (U.S.) Elektra (Mexico) GDF (France) C ontroladora C omercial Mexicana (Mexico) Eletropaulo (Brazil) General Dynamics (U.S.) C oop (Italy) (Italy) Eli Lilly (U.S.) General Electric (U.S.) C opec (C hile) Embraer (Brazil) General Mills (U.S.) C osmo Oil (Japan) Emerson Electric (U.S.) General Motors (U.S.) C ostco Wholesale (U.S.) EnC ana (C anada) Generali Group (Italy) C ouche-Tard (C anada) Endesa (Spain) George Weston Limited (Weston) (C anada) C PIC (C hina) Enel (Italy) Gerdau (Brazil) C redit Agricole (France) Eni (Italy) Ghuangzhou Pharma (C hina) C redit Suisse (Switzerland) ERG (Italy) GlaxoSmithKline (U.K.) C RH (Ireland) ERGO Insurance (Germany) Goldman Sachs (U.S.) C SN (Brazil) Ericsson (Sweden) Gome (C hina) Copyright © 2009 Reputation Institute. All rights reserved. 15
  • 16. Global 600: The largest companies around the world 241 - 360 Goodyear (U.S.) IC BC (C hina) Kookmin Bank (South Korea) Google (U.S.) IC IC I Bank (India) Kraft Foods (U.S.) Grasim Industries (India) Idemitsu Kosan (Japan) Kroger (U.S.) Groupama (France) Ikea (Sweden) KT (South Korea) Grupo Bimbo (Mexico) Indian Oil (IOC ) (India) La Poste (France) Grupo Financiero Banorte (Mexico) Inditex (Zara) (Spain) LALA (Mexico) Grupo Maseca (Mexico) Industrial Bank (C hina) Landesbank Baden-Wurttemberg (Germany) Grupo Modelo (Mexico) Infosys Technologies (India) Larsen & Toubro (India) GS Holdings (South Korea) ING (the Netherlands) Legal & General (U.K.) Guangdong Development Bank (C hina) Intel (U.S.) Legend Holdings (C hina) Guangzhou Automobile (C hina) Intermarche (France) LG Electronics (South Korea) Haci Omer Sabanci Holding (Turkey) International Paper (U.S.) Liberty Mutual Insurance (U.S.) Haier (C hina) Intesa San Paolo (Italy) Lloyds Tsb (U.K.) Hainan Airline (C hina) Inventec (Taiwan) Lockheed Martin (U.S.) Halliburton (U.S.) IRPC (Thailand) L'Oreal (France) HC L Infosystems (India) ISUZU Motors (Japan) Lowe's (Home Improvement) (U.S.) Hellenic Petroleum (Greece) Italmobiliare (Italy) Lukoil (Russia) Hess (U.S.) ITC Limited (India) LVMH Group (Moët Hennessy - Louis Vuitton) (France) Hewlett-Packard (U.S.) JAC Motors (C hina) Macy's (U.S.) Hindalco Industries (India) Japan Airlines (Japan) Magnitogorsk Iron and Steel Works OAO (Russia) Hindustan Petroleum (India) Japan Post Holdings (Japan) Mahindra & Mahindra (India) Hindustan Unilever (India) Japan Tobacco (Japan) Manpower (U.S.) Hisense (C hina) JC Penney (U.S.) Manulife (C anada) Hitachi (Japan) John Deere (U.S.) Mapfre (Spain) Holcim (Switzerland) Johnson & Johnson (U.S.) Marathon Oil (U.S.) Home Depot (U.S.) JPMorgan C hase (U.S.) Maruti Udyog (Suzuki) (India) Hon Hai Precision Industry (Taiwan) JSW Steel (India) Matsushita Electric Industrial (Japan) Honda Motor (Japan) Kamaz (Russia) Mazda Motor (Japan) Honeywell International (U.S.) Kansai Electric Power C o. (KEPC O) (Japan) McDonald's (U.S.) Hongdou (C hina) KBC (Belgium) McKesson (U.S.) Hongta Tobacco (C hina) KDDI (Japan) Medco Health Solutions (U.S.) Hongyun (C hina) KEPC O - Korea Electric Power (South Korea) Medtronic (U.S.) Hospital C orporation of America (HC A) (U.S.) KFW Bankengruppe (Germany) Meijer (U.S.) HSBC (U.K.) Kia Motor (South Korea) Mengniu (C hina) Huawei (C hina) Kimberly-C lark (U.S.) Mercadona (Spain) Humana (U.S.) Kirin Holdings C ompany (Japan) Merck (U.S.) HypoVereinskBank (Germany) Koc Holding (Turkey) MetLife (U.S.) Hyundai (South Korea) Koch USA (U.S.) Metro (Germany) Iberdrola (Spain) KOGAS - Korea Gas C orporation (South Korea) Michelin (France) IBM (U.S.) Kohl's (U.S.) Microsoft (U.S.) Copyright © 2009 Reputation Institute. All rights reserved. 16
  • 17. Global 600: The largest companies around the world 361 - 480 Midea Group (C hina) Pacific Gas and Electric C ompany (U.S.) Rosneft (Russia) Mitsubishi Electric (Japan) Pão de Açúcar (Brazil) Royal Bank of C anada (C anada) Mitsubishi Motors (Japan) PEMEX (Mexico) Royal Bank Of Scotland (U.K.) Mitsubishi UFJ Financial Group (Japan) PepsiC o (U.S.) Rusal (Russia) Mizuho (Japan) Petrobras (Brazil) RWE (Germany) Monte Dei Paschi Siena (Italy) Petro-C anada (C anada) RZD (Russia) Morgan Stanley (U.S.) Petrol Ofisi (Turkey) SAB Miller (South Africa) Motorola (U.S.) Peugeot (France) SAB Miller (U.K.) MTS (Russia) Pfizer (U.S.) Sadia (Brazil) Murphy Oil (U.S.) Philips (the Netherlands) Safeway (U.S.) National Australia Bank (Australia) PIC C (C hina) Sainsbury (U.K.) National Bank Of Greece (Greece) PIK Group (trademark KuPIKvartiru) (Russia) Samsung C &T (South Korea) National Grid (U.K.) Pingan Life Insurance (C hina) Samsung Electronics (South Korea) NEC C orp. (Japan) Pirelli (Italy) Sanofi-Aventis (France) Nestlé (Switzerland) Portugal Telecom (Portugal) SANYO Electric (Japan) New C hina Life (C hina) POSC O (South Korea) Sasol (South Africa) New Hope Group (C hina) Poste Italiane (Italy) Sberbank (Russia) News C orporation (U.S.) Power C orp. (C anada) Schwarz Group (Lidl) (Germany) Nike (U.S.) PPR - Pinault Printemps Redoute (France) Scotiabank - Bank of Nova Scotia (C anada) Nintendo (Japan) Procter & Gamble (U.S.) Scottish & Southern Energy (U.K.) Nippon Express (Japan) Progressive (U.S.) Sears (U.S.) Nippon Life Insurance (Japan) Prudential (U.K.) Seven & I Holdings (Japan) Nippon Oil (Japan) Prudential (U.S.) Severstal (Russia) Nippon Telegraph & Telephone (NTT) (Japan) PTT (Thailand) Shandong Liuhe (C hina) Nissan (Japan) Public Power C orporation (Greece) Shanghai Automobile Industry Group (C hina) NLMK (Russia) Publix Super Markets (U.S.) Shanghai Greenland Group (C hina) Nokia (Finland) Punjab National Bank (India) Shanghai Pudong Development Bank (C hina) Nordea (Sweden) Qantas (Australia) Shanghai Tobacco (C hina) Norilsk Nickel (Russia) Quanta C omputer (Taiwan) Sharp (Japan) Northrop Grumman (U.S.) Qwest C ommunications (U.S.) Shell (the Netherlands) Novartis (Switzerland) Raiffeisen Group (Switzerland) Shell (U.K.) Occidental Petroleum (U.S.) Raytheon (U.S.) Shinhan Financial Group (South Korea) Odebrecht (Brazil) Reliance Group (India) Shuanghui (C hina) Office Depot (U.S.) Renault (France) Siam C ement (Thailand) Oi (Brazil) Repsol (Spain) Siemens (Germany) Oil & Natural Gas C orp (India) Ricoh (Japan) Singapore Airlines (Singapore) OMV (Austria) Rio Tinto (U.K.) SingTel - Singapore Telecommunications (Singapore) ONEOK (U.S.) Rite Aid (U.S.) SK Holdings (South Korea) Oracle (U.S.) Robert Bosch (Germany) SNC F (France) Orkla (Norway) Roche (Switzerland) Societe Generale (France) Copyright © 2009 Reputation Institute. All rights reserved. 17
  • 18. Global 600: The largest companies around the world 481 - 600 Softbank C orp (Japan) Thai Oil (Thailand) Valero Energy (U.S.) S-Oil (South Korea) The Hartford Financial Services Group (U.S.) Vanke (C hina) Sompo Japan (Japan) ThyssenKrupp (Germany) Veolia Environnement (France) Sony (Japan) Tiens (C hina) Verizon C ommunications (U.S.) SORIANA (Mexico) Time Warner (U.S.) Viacom (U.S.) Southern C ompany (U.S.) TJX C ompanies (U.S.) Vimpel C ommunications (Russia) Sprint Nextel (U.S.) TNK BP (Russia) Vivendi (France) Standard Bank (South Africa) Tohoku Electric Power (Japan) Vodafone-Panafon (U.K.) Staples (U.S.) Tokio Marine (Japan) Voestalpine (Austria) State Bank of India (India) Tokyo Electric Power C ompany (Japan) Volkswagen (Germany) State Farm Insurance (U.S.) Tongwei (C hina) Volvo bilar (Sweden) StatoilHydro (Norway) Toronto-Dominion Bank (TD) (C anada) Votorantim (Brazil) Sterlite Industries (India) Toshiba (Japan) VTB Bank (Russia) Stora Enso (Finland) TOTAL (France) Wahaha (C hina) SUEZ (France) Toyota (Japan) Walgreen (U.S.) Sumitomo Mitsui Financial Group (Japan) Toys 'R' Us (U.S.) Wal-Mart (U.S.) Sun Life Financial (C anada) Travelers (U.S.) Walt Disney C ompany (U.S.) Suning (C hina) TUI (Germany) WellPoint (U.S.) Sunoco (U.S.) Tukiye Is Bankasi (Turkey) Wells Fargo (U.S.) SunTrust Banks (U.S.) Tupras-Turkiye Petrol (Turkey) Westfarmers (Australia) Supervalu (U.S.) Turkcell (Turkey) Westpac (Australia) Surgutneftegas (Russia) Tyco International Ltd. . (U.S.) Weyhaeuser (U.S.) Suzuki Motor (Japan) Tyson Foods (U.S.) Whirlpool (U.S.) Taiping Life (C hina) UBS (Switzerland) Will-Bill-Dann Foods (Russia) Talanx (Germany) Unibanco (Brazil) William Morrison Supermarkets (U.K.) Target (U.S.) Unicredit Group (Italy) Wilmar International (C hina) Tata (India) Unilever (the Netherlands) Wilmar International (Singapore) Tatneft (Russia) Unilever (U.K.) Wipro (India) TC L (C hina) Union Pacific Railroad (U.S.) Wolseley (U.K.) Telecom Italia (Italy) Unione Di Banche Italiane (Italy) Woolworths (Australia) Telefónica (Spain) Unipol (Italy) Wuliangye Group (C hina) Telenor (Norway) Uni-President Enterprise C o. (Taiwan) Wumart (C hina) Televisa (Mexico) United Airlines (U.S.) Wyeth (U.S.) Telmex (Mexico) United Technologies (U.S.) Xerox (U.S.) Telstra (Australia) UnitedHealth Group (U.S.) Yamada Denki (Japan) Tengelmann (Germany) UPS (U.S.) Yili (C hina) Tesco (U.K.) US Bancorp (U.S.) Youngor (C hina) Texas Instruments (U.S.) US Postal Service (U.S.) Yurun Group (C hina) Textron (U.S.) Usiminas (Brazil) ZTE (C hina) Thai Airways (Thailand) Vale (Brazil) Zurich Financial Services (Switzerland) Copyright © 2009 Reputation Institute. All rights reserved. 18
  • 19. 2009 Global Reputation Pulse Methodology The World’s Most Reputable Companies: An Online Study of Consumers in 32 Countries Copyright © 2009 Reputation Institute. All rights reserved.
  • 20. The Global Reputation Pulse 2009: Measuring The Reputations of the World’s Largest Companies Companies Rated The 2009 Global Reputation Pulse includes the world’s largest companies in each country based Defining Reputation on their ‘total revenues’. Rated companies had Research by Reputation Institute since 1999 to have significant consumer presence and be shows that strong reputations are based on four minimally familiar to the general public. All key concepts; Admiration, Trust, Good Feelings, companies are measured in their home country and Overall Esteem. only, and the results standardized to remove unique country-level variation and enable cross- The Reputation Pulse Model country comparisons. To help build a better The Reputation Pulse Model measures the profile of corporate reputation worldwide in some admiration, trust, and good feeling that countries additional companies – beyond the stakeholders have towards a company. The world’s largest 600 - were measured. Criteria for Reputation Pulse is the beating heart of a selection was based on both size and familiarity company’s reputation providing an overall with the general public. assessment of the health of a company’s reputation. Survey Methodology The Global Reputation Pulse 2009 was conducted Reputation Institute’s research indicates that a online in all countries, except South Africa. The reputation is built on 7 pillars from which a Global Pulse is a measure of corporate reputation company can create a strategic platform for calculated by averaging perceptions of 4 communicating and engaging with its indicators of trust, esteem, admiration, and good stakeholders. feeling obtained from a representative sample of at least 100 local respondents who were familiar The Global Reputation Pulse Study with the company. All Global Reputation Pulse The Reputation Pulse Model consists of 7 Measures Corporate Reputations scores are standardized on both the country and dimensions that were found from qualitative Worldwide global level. Scores range from a low of 0 to a and quantitative research to best explain the The Global Reputation Pulse 2009 is the fourth high of 100. reputation of a company. annual study of the reputations of the World's Largest Companies. The study was developed Questionnaire In the Global Reputation Pulse Study, by Reputation Institute to provide executives The Global Reputation Pulse 2009 questionnaire Reputation Institute measured, not only with a high-level overview of their company’s is a 10 minute online survey that invites perceptions of companies on the core reputation with consumers. Over 70,000 online respondents to describe their perceptions of Reputation Pulse attributes –the beating heart interviews with consumers in 32 countries on companies. Through rigorous statistical analysis, of the model-- but also asked respondents to six continents were conducted in late January Reputation Institute connects the Reputation rate the companies on the 7 key dimensions. and February 2009. More than 190,000 ratings Dimensions with the Reputation Pulse scores as were used to create reliable measures of the well as with a measure of overall public support, ‘corporate reputation’ of more than 1,300 in order to identify the drivers of corporate companies. reputation. Doing so enables companies to understand what matters to the general public. Copyright © 2009 Reputation Institute. All rights reserved. 20
  • 21. Interpreting Global Pulse Results The 2009 Global Distribution of Reputations The reputations of the largest companies in the world in 2009 range from a low of 25.14 (UBS in the Switzerland) to a high of 85.17 (Ferrero in Italy). The global mean is 64.2 and the largest concentration of companies have a Reputation Pulse score between 60 and 70. Based on the global data base all Global Reputation Pulse scores are standardized on both the country and global level. In interpreting results, note that all Global Reputation Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Based on analyzing the global distribution of scores, Reputation Institute proposes the following scale for benchmarking corporate reputation results internationally: Excellent/Top Tier above 80 Strong/Robust 70 – 79 Average/Moderate 60 – 69 Weak/Vulnerable 40 – 59 Poor/Lowest Tier below 40 Note: Graph represent Reputation Institute’s Global Normative Database. Copyright © 2009 Reputation Institute. All rights reserved. 21
  • 22. Respondents Profile Global Respondents Profile A total of 191,072 ratings were obtained from a global sample of 73,177 online members of the general public. Ratings are statistically significant at a 95% confidence level with a margin of error +/- 0.5. In other words, companies within countries have significantly different results when their Reputation Pulse is greater than 0.5 points apart. Respondents distribution was balanced to the country population on age and gender. Male Female General Education Level 10.7% 45-64 Low Middle High 35-44 Age Group 25-34 33.5% 55.9% 18-24 15000 10000 5000 0 5000 10000 15000 Count Copyright © 2009 Reputation Institute. All rights reserved. 22
  • 23. All Scores are Standardized Global Reputation Pulse Scores - Standardized and Comparable Market research shows that people are inclined to rate companies more or less favorably in different countries, or when they are asked questions directly or online. When asked in a personal interview, for example, it's known that people tend to give a company higher ratings than when they are asked by phone, or when they are asked to answer questions about the company online. This is a well-established source of 'systematic bias'. Another source of systematic bias comes from national culture --in some countries, people are universally more positive in their responses than in other countries. In statistical terms, it means that the entire distribution of scores in a 'positive' country is artificially 'shifted' because of this propensity for people in that country to give higher ratings to all companies, good or bad. The distribution of scores in that country may also be more 'spread out' than in another because people have more information and are able to make more subtle differences between companies. To overcome these sources of systematic bias, Reputation Institute's policy is to adjust reputation scores by standardizing them against the aggregate distribution of all scores obtained from the RI's annual Global Reputation Pulse study. Standardization has the effect of lowering scores in countries where consumers tend to over-rate companies, and has the effect of raising scores for companies in countries in which consumers tend to rate companies more negatively. Two adjustments are made for every Global Reputation Pulse Score Reputation Institute uses its cumulative database of reputation scores measured internationally to carry out two adjustments: 1) Country Adjustment: All scores derived from surveys are standardized by subtracting the country mean and dividing by the standard deviation of all known scores previously obtained in that country. In statistical terms, this adjustment 'normalizes' the distribution of scores in the country to a mean of 0 and a standard deviation of 1, producing a 'z-score' for the company. 2) Global Adjustment: A global mean and standard deviation are calculated from all of the country-adjusted ratings. A Global Reputation Pulse score is scaled back by multiplying each company's z-score by the global standard deviation and adding back the global mean. The resulting number is the Global Reputation Pulse or Dimension score that is reported. As additional global research comes in, Reputation Institute regularly updates the country and global distributions that are used to create our standardized RepTrak scores. All RepTrak results are therefore comparable across industries, countries, and over time. Copyright © 2009 Reputation Institute. All rights reserved. 23
  • 24. 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 more than 25 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. Reputation Institute’s Global Reputation Pulse is the largest study of corporate reputations in the world, identifying what drives reputation and covering more than 1,300 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 intangible stakeholder feelings. Visit ReputationInstitute.com to learn how you can unlock the power of your reputation. Reputation Institute Australia • Bolivia • Brazil • Chile • China • Croatia • Denmark • France • Germany www.reputationinstitute.com Greece • India • Italy • Japan • Netherlands • Norway • Portugal • Russia • South Africa Spain • Sweden • Switzerland • Turkey • Ukraine • United Kingdom • United States Copyright © 2009 Reputation Institute. All rights reserved. 24