Global Corporate Reputation Index

Burson-Marsteller
Burson-MarstellerBurson-Marsteller
Global Corporate Reputation Index
WHAT IS THE GLOBAL CORPORATE
REPUTATION INDEX?
Using BrandAsset Valuator data

         6                         40,000+              6,000+
      countries                   consumer            companies
                                  interviews           evaluated


And Penn Schoen Berland’s proprietary model of corporate reputation


                      Corporate Reputation


                    Performance         Citizenship




                                                                      1
HEADLINES

Consumers rank performance of global consumer brands higher than
citizenship, but the size of that gap point to potential problems

Companies with the strongest reputations are better at citizenship, but
their citizenship scores also lag performance

Tech leads industry reputation, while oil and gas bring up the rear

China has global brands in highest regard; Japan and Brazil are the most
critical

While newcomers have broken in, average age of top companies shows
strong reputations need to stand the test of time

Top 25 consumer companies with the best reputations revealed

                                                                           2
CHINA POSTS THE STRONGEST REPUTATIONS;
JAPAN AND BRAZIL THE MOST CRITICAL
Certain attributes—‖innovative,‖ ―high quality,‖ and ―leader‖—are
prominent among top reputations regardless of country.



                      Overall Reputation By Country
75
70
65
       64
                 60           58
60                                       58            56       56
55
50
45
40


     China     Germany       USA       Russia         Brazil   Japan




                                                                       3
CITIZENSHIP LAGS PERFORMANCE
ACROSS THE BOARD

                     Performance vs. Citizenship – Pillars by Country
80
                69                             67        68
70    66                  64        65
                                                              60   60
60         54                            54         56                  54
                     50        51
50
                                                                             Performance
40
                                                                             Citizenship
30

20

10

0

     Overall    Russia    Japan     USA       Germany    China     Brazil




                                                                                       4
TOP COMPANIES BETTER AT CITIZENSHIP

85
                   Top Companies vs. Industry Average - Citizenship
80

75      +17             +15           +13          +9        +8
                        70            69
70
       66
                                                   64                  Top
65
                                                             60        Companies
60
                              55            56          55
55
                                                                       All
                                                                  52
              49                                                       Companies
50

45

40


     Apparel &         Food &      Personal Care   Tech      Auto
     Accessories      Beverage




                                                                              5
TECH LEADS INDUSTRY REPUTATION,
WHILE OIL AND GAS BRING UP THE REAR

              Average Reputation Score by Industry


  62
         58          57          56         56
                                                       51      0

                                                                   46




 Tech   Auto      Personal   Apparel &   Food &      Banking   Oil & Gas
                    Care     Accessories Beverage




                                                                           6
TECH GETS A PASS ON CITIZENSHIP
DUE TO HALO OF STRONG INNOVATION

      Pillar Scores:             Tech Attribute Strengths
  Tech Sector Leads on            (relative to average across
      Performance                          industries)


   72
        55
                   Performanc   Innovative            +22
                   e


                                Visionary             +22
    Tech




                                                                7
PERSONAL CARE OWNS CUSTOMER
CENTRICITY, BUT FALLS BEHIND ON VISION

        Personal Care Attribute Strengths and
                    Weaknesses
           (relative to average across industries)


        Cares for Customers                 +10

        Friendly                             +9

        Good Value                          +17

        Visionary                            -16



                                                     8
FOOD AND BEVERAGE INDUSTRY WELL-
LIKED BUT TRUST IS A CONCERN

        Food & Beverage Attribute Strengths
                 and Weaknesses
           (relative to average across industries)

        Friendly                          +17

        Kind                              +17

        Trustworthy                         -6

        Reliable                            -9

        High Quality                        -9



                                                     9
ATTITUDES TOWARDS BANKING VARY BY GEO;
NEGATIVITY STRONGEST IN U.S. AND RUSSIA

             Banking Industry Reputation by Country
80



70
      63
60
               53
                           49
50                                    47
                                                  42
40
                                                        39


30


     China    Brazil    Germany      Japan        US   Russia




                                                                10
REPUTATION BY INDUSTRY: CHINA
                                 100
                                                 Average Reputation Score: 64
                                  90

                                  80
Average Reputation by Industry




                                       70       69
                                  70                      63
                                                                   60       60
                                  60                                                    55           55
                                  50

                                  40

                                  30

                                  20

                                  10

                                  0
                                       Tech   Food &     Banking   Auto   Personal   Apparel &     Oil & Gas
                                              Beverage                     Care      Accessories



                                                                                                               11
REPUTATION BY INDUSTRY: GERMANY
                                  100
                                               Average Reputation Score: 60
                                  90

                                  80
 Average Reputation by Industry




                                  70    63     62        60
                                  60                                  55
                                                                                 52
                                                                                            49         48
                                  50

                                  40

                                  30

                                  20

                                  10

                                   0
                                        Auto   Tech   Apparel &     Personal   Oil & Gas   Banking   Food &
                                                      Accessories    Care                            Beverage



                                                                                                                12
REPUTATION BY INDUSTRY: USA
                                   100
                                                    Average Reputation Score: 58
                                    90

                                    80
  Average Reputation by Industry




                                    70     64
                                                      61       60
                                    60
                                                                      58
                                                                                52
                                                                                             48
                                    50
                                                                                                        42
                                    40

                                    30

                                    20

                                    10

                                    0
                                         Personal   Food &     Tech   Auto   Apparel &     Oil & Gas   Banking
                                          Care      Beverage                 Accessories




                                                                                                                 13
REPUTATION BY INDUSTRY: RUSSIA
                                   100
                                                     Average Reputation Score: 58
                                    90

                                    80
  Average Reputation by Industry




                                    70     64
                                                       60         60
                                    60                                   55
                                                                                  51         51
                                    50
                                                                                                        39
                                    40

                                    30

                                    20

                                    10

                                    0
                                         Personal   Apparel &     Tech   Auto   Food &     Oil & Gas   Banking
                                          Care      Accessories                 Beverage



                                                                                                                 14
AVERAGE AGE OF TOP COMPANIES SHOWS
STRONG REPUTATIONS STAND TEST OF TIME



Average age of top 25 companies   87 years


Oldest company among the top 25   147 years


% of top 25 founded before 1950   80%




                                              15
TOP 25 CORPORATE
REPUTATIONS
TOP 25 CORPORATE REPUTATIONS
These companies' combined performance and citizenship strengths
  earned them top scores in overall reputation in the 2012 Global
  Corporate Reputation Index:
DRIVERS OF REPUTATION:
LEADERSHIP BRAND
EXAMPLES
FORD
The only major US car maker not to accept government help during the recent
recession, Ford was the top auto company among US survey respondents
Scores relatively high on performance attributes such as
―reliable" and ―high quality"—shown to be critical for
success in the auto industry
                                                              Ford Performance Strengths
Award-winning vehicles like 2012 F-150 and the Ford        (relative to average attribute score across
                                                                            industries)
Focus reinforce perceptions of Ford’s commitment to
quality and innovation                                       Reliable                         +7
                                                           High Quality                       +6
Environmentally friendly technology and products, non-
traditional marketing and commitment to customer            Innovative                        +6
satisfaction all contribute to strong brand performance                                       +6
                                                           Good Value
                                                                                  (relative to industry average)
New hybrid cars, leading in-car infotainment
technology, a global water-reducing strategy for
2015, and its first “global car” help assure Ford’s
reputation as a responsible industry leader

In its twelfth year, FordSocial continues to honor Ford
and Lincoln dealerships that excel in giving back to the
community and worthy causes

                                                                                                            19
MCDONALD'S
McDonald’s has long differentiated itself through corporate
citizenship
2011’s top performer on the Dow Jones Industrial
Average with +30.47% in value
                                                            McDonald’s Citizenship Strengths
Diversified menu-offering, continuously improving             (relative to average attribute score across
in-store experience and global consistency deliver on                          industries)
core brand promise                                               Friendly                       +48
Internal and external citizenship efforts have paid off;            Kind                        +43
very high marks on “cares for customers,” “friendly,”
“kind,” and “socially responsible” drove some of the       Cares for Customers                  +40
highest overall citizenship scores in the Index
                                                           Socially Responsible                 +22
The Ronald McDonald House Charities, now in 53
countries, remain a textbook example of authentic,
relevant, corporate citizenship for 37 years

Industry leader in sustainability with greener
packaging, LED lighting, and annual sustainable land
management evaluations



                                                                                                            20
COCA-COLA

Coca-Cola has created a legacy of giving and image of citizenship

 The company has invested $2 billion on sustainable
 growth in India and donated $9.6 million to Africa for
 medical supplies, equipment, and medicine

 Coca-Cola is also dedicated to the
                                                                         Coca-Cola Attribute Strengths
 environment, developing PlantBottle packaging              (relative to average attribute score across industries)
 technology created entirely from plant-based materials
                                                                    Friendly                        +38
 Their well-rounded citizenship efforts also include a
 partnership with the World Wildlife Fund to launch a
 campaign to protect the polar bears                              Good Value                        +26

 Their focus, however, is not limited to the environment.            Leader                         +24
 Coca-Cola has cemented itself as one of the most
 lucrative stocks in which to invest, with a highly
 diversified portfolio of over 3,500 products in over 200
 countries, resulting in strong scores for ―leadership‖




                                                                                                                 21
SPECIAL GUESTS


Clyde Tuggle – SVP, Global Public Affairs & Communications
Beatriz Perez – Chief Sustainability Officer



Peter Brabeck-Letmathe – Chairman of the Board
CORPORATE CITIZENSHIP AND
YOUR BRAND

Authentic, effectively managed citizenship programs drive
reputation and create brand differentiation
   Visible, relevant, and consistently delivered citizenship initiatives build
   corporate reputations (and brands) that stand the test of time
   Innovation helps young companies build citizenship credibility
   quickly, especially in the technology category
   Active, local community involvement a major contributor to strong brand
   reputations
   Making good citizenship a cornerstone of the corporate vision, values and
   actions can elevate both brand reputation and performance




                                                                                 23
CORPORATE CITIZENSHIP AND
YOUR BRAND

In short… good corporate citizenship really is good business
  But in an increasingly transparent world, isolated programs and
  insufficient, insincere commitment will undermine, not build, corporate
  reputations
  The world’s most reputable brands set high corporate responsibility standards
  for themselves and their partners… and deliver consistently over time


Put simply, “A brand is as a brand does!”




                                                                                  24
Global Corporate Reputation Index
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Global Corporate Reputation Index

  • 2. WHAT IS THE GLOBAL CORPORATE REPUTATION INDEX? Using BrandAsset Valuator data 6 40,000+ 6,000+ countries consumer companies interviews evaluated And Penn Schoen Berland’s proprietary model of corporate reputation Corporate Reputation Performance Citizenship 1
  • 3. HEADLINES Consumers rank performance of global consumer brands higher than citizenship, but the size of that gap point to potential problems Companies with the strongest reputations are better at citizenship, but their citizenship scores also lag performance Tech leads industry reputation, while oil and gas bring up the rear China has global brands in highest regard; Japan and Brazil are the most critical While newcomers have broken in, average age of top companies shows strong reputations need to stand the test of time Top 25 consumer companies with the best reputations revealed 2
  • 4. CHINA POSTS THE STRONGEST REPUTATIONS; JAPAN AND BRAZIL THE MOST CRITICAL Certain attributes—‖innovative,‖ ―high quality,‖ and ―leader‖—are prominent among top reputations regardless of country. Overall Reputation By Country 75 70 65 64 60 58 60 58 56 56 55 50 45 40 China Germany USA Russia Brazil Japan 3
  • 5. CITIZENSHIP LAGS PERFORMANCE ACROSS THE BOARD Performance vs. Citizenship – Pillars by Country 80 69 67 68 70 66 64 65 60 60 60 54 54 56 54 50 51 50 Performance 40 Citizenship 30 20 10 0 Overall Russia Japan USA Germany China Brazil 4
  • 6. TOP COMPANIES BETTER AT CITIZENSHIP 85 Top Companies vs. Industry Average - Citizenship 80 75 +17 +15 +13 +9 +8 70 69 70 66 64 Top 65 60 Companies 60 55 56 55 55 All 52 49 Companies 50 45 40 Apparel & Food & Personal Care Tech Auto Accessories Beverage 5
  • 7. TECH LEADS INDUSTRY REPUTATION, WHILE OIL AND GAS BRING UP THE REAR Average Reputation Score by Industry 62 58 57 56 56 51 0 46 Tech Auto Personal Apparel & Food & Banking Oil & Gas Care Accessories Beverage 6
  • 8. TECH GETS A PASS ON CITIZENSHIP DUE TO HALO OF STRONG INNOVATION Pillar Scores: Tech Attribute Strengths Tech Sector Leads on (relative to average across Performance industries) 72 55 Performanc Innovative +22 e Visionary +22 Tech 7
  • 9. PERSONAL CARE OWNS CUSTOMER CENTRICITY, BUT FALLS BEHIND ON VISION Personal Care Attribute Strengths and Weaknesses (relative to average across industries) Cares for Customers +10 Friendly +9 Good Value +17 Visionary -16 8
  • 10. FOOD AND BEVERAGE INDUSTRY WELL- LIKED BUT TRUST IS A CONCERN Food & Beverage Attribute Strengths and Weaknesses (relative to average across industries) Friendly +17 Kind +17 Trustworthy -6 Reliable -9 High Quality -9 9
  • 11. ATTITUDES TOWARDS BANKING VARY BY GEO; NEGATIVITY STRONGEST IN U.S. AND RUSSIA Banking Industry Reputation by Country 80 70 63 60 53 49 50 47 42 40 39 30 China Brazil Germany Japan US Russia 10
  • 12. REPUTATION BY INDUSTRY: CHINA 100 Average Reputation Score: 64 90 80 Average Reputation by Industry 70 69 70 63 60 60 60 55 55 50 40 30 20 10 0 Tech Food & Banking Auto Personal Apparel & Oil & Gas Beverage Care Accessories 11
  • 13. REPUTATION BY INDUSTRY: GERMANY 100 Average Reputation Score: 60 90 80 Average Reputation by Industry 70 63 62 60 60 55 52 49 48 50 40 30 20 10 0 Auto Tech Apparel & Personal Oil & Gas Banking Food & Accessories Care Beverage 12
  • 14. REPUTATION BY INDUSTRY: USA 100 Average Reputation Score: 58 90 80 Average Reputation by Industry 70 64 61 60 60 58 52 48 50 42 40 30 20 10 0 Personal Food & Tech Auto Apparel & Oil & Gas Banking Care Beverage Accessories 13
  • 15. REPUTATION BY INDUSTRY: RUSSIA 100 Average Reputation Score: 58 90 80 Average Reputation by Industry 70 64 60 60 60 55 51 51 50 39 40 30 20 10 0 Personal Apparel & Tech Auto Food & Oil & Gas Banking Care Accessories Beverage 14
  • 16. AVERAGE AGE OF TOP COMPANIES SHOWS STRONG REPUTATIONS STAND TEST OF TIME Average age of top 25 companies 87 years Oldest company among the top 25 147 years % of top 25 founded before 1950 80% 15
  • 18. TOP 25 CORPORATE REPUTATIONS These companies' combined performance and citizenship strengths earned them top scores in overall reputation in the 2012 Global Corporate Reputation Index:
  • 20. FORD The only major US car maker not to accept government help during the recent recession, Ford was the top auto company among US survey respondents Scores relatively high on performance attributes such as ―reliable" and ―high quality"—shown to be critical for success in the auto industry Ford Performance Strengths Award-winning vehicles like 2012 F-150 and the Ford (relative to average attribute score across industries) Focus reinforce perceptions of Ford’s commitment to quality and innovation Reliable +7 High Quality +6 Environmentally friendly technology and products, non- traditional marketing and commitment to customer Innovative +6 satisfaction all contribute to strong brand performance +6 Good Value (relative to industry average) New hybrid cars, leading in-car infotainment technology, a global water-reducing strategy for 2015, and its first “global car” help assure Ford’s reputation as a responsible industry leader In its twelfth year, FordSocial continues to honor Ford and Lincoln dealerships that excel in giving back to the community and worthy causes 19
  • 21. MCDONALD'S McDonald’s has long differentiated itself through corporate citizenship 2011’s top performer on the Dow Jones Industrial Average with +30.47% in value McDonald’s Citizenship Strengths Diversified menu-offering, continuously improving (relative to average attribute score across in-store experience and global consistency deliver on industries) core brand promise Friendly +48 Internal and external citizenship efforts have paid off; Kind +43 very high marks on “cares for customers,” “friendly,” “kind,” and “socially responsible” drove some of the Cares for Customers +40 highest overall citizenship scores in the Index Socially Responsible +22 The Ronald McDonald House Charities, now in 53 countries, remain a textbook example of authentic, relevant, corporate citizenship for 37 years Industry leader in sustainability with greener packaging, LED lighting, and annual sustainable land management evaluations 20
  • 22. COCA-COLA Coca-Cola has created a legacy of giving and image of citizenship The company has invested $2 billion on sustainable growth in India and donated $9.6 million to Africa for medical supplies, equipment, and medicine Coca-Cola is also dedicated to the Coca-Cola Attribute Strengths environment, developing PlantBottle packaging (relative to average attribute score across industries) technology created entirely from plant-based materials Friendly +38 Their well-rounded citizenship efforts also include a partnership with the World Wildlife Fund to launch a campaign to protect the polar bears Good Value +26 Their focus, however, is not limited to the environment. Leader +24 Coca-Cola has cemented itself as one of the most lucrative stocks in which to invest, with a highly diversified portfolio of over 3,500 products in over 200 countries, resulting in strong scores for ―leadership‖ 21
  • 23. SPECIAL GUESTS Clyde Tuggle – SVP, Global Public Affairs & Communications Beatriz Perez – Chief Sustainability Officer Peter Brabeck-Letmathe – Chairman of the Board
  • 24. CORPORATE CITIZENSHIP AND YOUR BRAND Authentic, effectively managed citizenship programs drive reputation and create brand differentiation Visible, relevant, and consistently delivered citizenship initiatives build corporate reputations (and brands) that stand the test of time Innovation helps young companies build citizenship credibility quickly, especially in the technology category Active, local community involvement a major contributor to strong brand reputations Making good citizenship a cornerstone of the corporate vision, values and actions can elevate both brand reputation and performance 23
  • 25. CORPORATE CITIZENSHIP AND YOUR BRAND In short… good corporate citizenship really is good business But in an increasingly transparent world, isolated programs and insufficient, insincere commitment will undermine, not build, corporate reputations The world’s most reputable brands set high corporate responsibility standards for themselves and their partners… and deliver consistently over time Put simply, “A brand is as a brand does!” 24

Editor's Notes

  1. 6 countries=US, China, Germany, Japan, Brazil, and Russia
  2. Suggesting these are attributes that any company must deliver on in order to have a strong reputation
  3. Gaps between performance and citizenship indicate citizenship is acting as a drag on companies, and honesty and trustworthiness are in doubt.
  4. Top companies typically outperform their industry averages on citizenship by a more significant margin than they outperform their industries on performance.Reinforcing that citizenship can be an important differentiator for company successNote: Banking and Oli & Gas industries are not included in this chart since none of the top 25 companies come from those sectors
  5. Average reputation scores for oil and gas companies trail the leading industry, technology, by more than 25%.
  6. Despite citizenship lagging performance, tech still rises to the top of industry reputation.The bulk of its reputation stems from attributes like “innovative” and “visionary,” suggesting a performance glow is driving the image of the tech industry.
  7. The personal care industry has the highest overall citizenship scores, primarily shaped by the perception that companies in this category are customer-centric.Product innovation is a potential differentiator in this space, with the industry currently trailing on perceptions of “visionary.”
  8. Food and beverage companies are viewed as very “friendly” and “kind.”However, there are signs of industry trust issues, with these companies lagging on attributes like “trustworthy,” “reliable,” and “high quality.”
  9. Banking attitudes show notable regional differences.Banks suffer the most on both performance and citizenship in the US and Russia, while scoring comparatively strongly in China and Brazil.
  10. 20 of the top 25 companies were founded before 1950, with the oldest tracing its roots to 1865. The top companies have an average age of 87 years, suggesting the ability to withstand the test of time translates well into overall reputation.