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Of reputation, roller coasters, and Wilde Rides on Wall St.

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Presentación de Charles Fombrun, Presidente del Reputation Institute, en le marco de la presentación del informe Reputation Pulse España 2010, el 7 de mayo 2010, en EOI, Escuela de Organización …

Presentación de Charles Fombrun, Presidente del Reputation Institute, en le marco de la presentación del informe Reputation Pulse España 2010, el 7 de mayo 2010, en EOI, Escuela de Organización Industrial.


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  • 1. Of Reputations, Roller Coasters, and Wild Rides on Wall St. Dr. Charles Fombrun Chairman, Reputation Institute Madrid, Spain 7 May 2010
  • 2. Huge Centripetal Economic Forces are Pulling Us Apart Copyright © 2010 Reputation Institute. All rights reserved. 2
  • 3. While Geological Forces are Taking their Toll Copyright © 2010 Reputation Institute. All rights reserved. 3
  • 4. Contributing to a Wild Ride in the Financial Markets Copyright © 2010 Reputation Institute. All rights reserved. 4
  • 5. Copyright © 2010 Reputation Institute. All rights reserved. 5
  • 6. And Putting “Reputation” On Everyone’s Mind Copyright © 2010 Reputation Institute. All rights reserved. 6
  • 7. Toyota is Reeling from Unintended Effects of Cost-Cutting Copyright © 2010 Reputation Institute. All rights reserved. 7
  • 8. BP is Reeling from a Huge Oil Spill in the Gulf of Mexico Copyright © 2010 Reputation Institute. All rights reserved. 8
  • 9. Clearly Reputations are Always at Risk "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” 'll d thi diff tl ” Warren Buffett Copyright © 2010 Reputation Institute. All rights reserved. 9
  • 10. RI has conducted Global Reputation Studies since 2000 34 Countries & 24 Industries –65,000 Consumers Airlines & Aerospace • Automotive • Beverage • Chemicals • Computer • Conglomerate • Construction & Engineering • Consumer Products • Electrical & Electronics • Energy • Financial – Bank • Financial – Diversified Services • Financial – Insurance • Food Manufacturing • Industrial Products • Information & Media • Pharmaceuticals • Raw Materials • Retail – Food • Retail – General • Services • Telecommunications • Transport & Logistics • Utilities Copyright © 2010 Reputation Institute. All rights reserved. 10
  • 11. Lesson #1: A Corporate Reputation is an Emotional Bond …and built on 7 Pillars Copyright © 2010 Reputation Institute. All rights reserved. 11
  • 12. Lesson #2: Reputation Operates “Below the Line” Strategic Goals Business Corporate Results Initiatives Supportive Perceptions Behaviors of Company Copyright © 2010 Reputation Institute. All rights reserved. 12
  • 13. Lesson # 3: Improving Alignment Increases Reputation What Companies Inconsistency Say Inconsistency How Companies are Perceived What Inconsistency Companies C i Do Copyright © 2010 Reputation Institute. All rights reserved. 13
  • 14. Lesson #4: Improving Reputation Increases Support Improve Reputation by 10% – Increase Support by 10% 80 72 64 ndents who Would Recommend 56 R 48 40 % Respon 32 24 16 8 26 36 46 56 66 76 86 2 U.S. Pulse Score Adj-R = 0.889 Source: 2010 Global Reputation Pulse (U.S. Results) Copyright © 2010 Reputation Institute. All rights reserved. 14
  • 15. Lesson #5: …and creates Financial Value Top 30 in Bottom 30 in Reputation Reputation Ratio of Market Value 3.79 1.42 to Book Value % Change in Market Value = 1.3 * % Change in Reputation So, on average: 13% 10% Improvement Improvement in Market in Reputation Value Copyright © 2010 Reputation Institute. All rights reserved. 15
  • 16. Lesson #6: So that Investing in Higher Reputation Firms Can Pay Off Cumulative Returns HIGH REPUTATION PORTFOLIO 4 0 .0 0 % 2 0 .0 0 % S&P 500 0 .0 0 % -2 0 .0 0 % -4 0 .0 0 % -6 0 .0 0 % Ju 00 Ju 01 Ju 02 Ju 03 Ju 04 Ju 05 Ju 06 A -0 0 J a -0 0 A -0 1 J a -0 1 A -0 2 J a -0 2 A -0 3 J a -0 3 A -0 4 J a -0 4 A -0 5 J a -0 5 A -0 6 6 O -0 0 O -0 1 O -0 2 O -0 3 O -0 4 O -0 5 O -0 6 -0 - - - - - - - pr pr pr pr pr pr pr ct ct ct ct ct ct ct l l l l l l l n n n n n n n Ja Copyright © 2010 Reputation Institute. All rights reserved. 16
  • 17. Lesson # 7: But Reputation Requires Vision & Governance Energy gy Auto Tobacco Banking Copyright © 2010 Reputation Institute. All rights reserved. 17
  • 18. Lesson #8: And a Focus on Products & Innovation Copyright © 2010 Reputation Institute. All rights reserved. 18
  • 19. Lesson #9: Companies have to Do the Right Thing “You can make money without doing evil You evil” Is Google a great place to work because its stock is at $483, or is its stock at $483 because it's a great place to work? --Business --Business Week, January 22, 2007 Copyright © 2010 Reputation Institute. All rights reserved. 19
  • 20. Lesson #10: As Well as Do Things Right Copyright © 2010 Reputation Institute. All rights reserved. 20
  • 21. So a Mind-Shift is Taking Place From Brand to Reputation Brand Reputation The promise a company makes The degree to which the company to its stakeholders fulfills its promises “Owned” by the company Owned “Owned” by stakeholders Owned A brand is a promise… when you li up to that promise you build R h live t th t i b ild Reputation t ti Copyright © 2010 Reputation Institute. All rights reserved. 2121
  • 22. Reputation Pulse 2010 Copyright © 2010 Reputation Institute. All rights reserved. 22
  • 23. The World’s Best Corporate Reputations (2010) Copyright © 2010 Reputation Institute. All rights reserved. 23
  • 24. Corporate Reputations in Spain? Copyright © 2010 Reputation Institute. All rights reserved. 24