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6 countries=US, China, Germany, Japan, Brazil, and Russia
Suggesting these are attributes that any company must deliver on in order to have a strong reputation
Gaps between performance and citizenship indicate citizenship is acting as a drag on companies, and honesty and trustworthiness are in doubt.
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
Average reputation scores for oil and gas companies trail the leading industry, technology, by more than 25%.
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.
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.”
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.”
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.
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.
Global Corporate Reputation Index
WHAT IS THE GLOBAL CORPORATEREPUTATION
INDEX?Using BrandAsset Valuator data 6 40,000+ 6,000+ countries consumer companies interviews evaluatedAnd Penn Schoen Berland’s proprietary model of corporate reputation Corporate Reputation Performance Citizenship 1
HEADLINESConsumers rank performance of global
consumer brands higher thancitizenship, but the size of that gap point to potential problemsCompanies with the strongest reputations are better at citizenship, buttheir citizenship scores also lag performanceTech leads industry reputation, while oil and gas bring up the rearChina has global brands in highest regard; Japan and Brazil are the mostcriticalWhile newcomers have broken in, average age of top companies showsstrong reputations need to stand the test of timeTop 25 consumer companies with the best reputations revealed 2
CHINA POSTS THE STRONGEST REPUTATIONS;JAPAN
AND BRAZIL THE MOST CRITICALCertain attributes—‖innovative,‖ ―high quality,‖ and ―leader‖—areprominent among top reputations regardless of country. Overall Reputation By Country757065 64 60 5860 58 56 5655504540 China Germany USA Russia Brazil Japan 3
CITIZENSHIP LAGS PERFORMANCEACROSS THE BOARD
Performance vs. Citizenship – Pillars by Country80 69 67 6870 66 64 65 60 6060 54 54 56 54 50 5150 Performance40 Citizenship3020100 Overall Russia Japan USA Germany China Brazil 4
TOP COMPANIES BETTER AT CITIZENSHIP85
Top Companies vs. Industry Average - Citizenship8075 +17 +15 +13 +9 +8 70 6970 66 64 Top65 60 Companies60 55 56 5555 All 52 49 Companies504540 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
CITIZENSHIPDUE 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 CUSTOMERCENTRICITY, 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 Country8070 6360 53 4950 47 4240 3930 China Brazil Germany Japan US Russia 10
REPUTATION BY INDUSTRY: CHINA 100
Average Reputation Score: 64 90 80Average 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
SHOWSSTRONG REPUTATIONS STAND TEST OF TIMEAverage age of top 25 companies 87 yearsOldest company among the top 25 147 years% of top 25 founded before 1950 80% 15
FORDThe only major US car
maker not to accept government help during the recentrecession, Ford was the top auto company among US survey respondentsScores relatively high on performance attributes such as―reliable" and ―high quality"—shown to be critical forsuccess in the auto industry Ford Performance StrengthsAward-winning vehicles like 2012 F-150 and the Ford (relative to average attribute score across industries)Focus reinforce perceptions of Ford’s commitment toquality and innovation Reliable +7 High Quality +6Environmentally friendly technology and products, non-traditional marketing and commitment to customer Innovative +6satisfaction all contribute to strong brand performance +6 Good Value (relative to industry average)New hybrid cars, leading in-car infotainmenttechnology, a global water-reducing strategy for2015, and its first “global car” help assure Ford’sreputation as a responsible industry leaderIn its twelfth year, FordSocial continues to honor Fordand Lincoln dealerships that excel in giving back to thecommunity and worthy causes 19
MCDONALDSMcDonald’s has long differentiated itself
through corporatecitizenship2011’s top performer on the Dow Jones IndustrialAverage with +30.47% in value McDonald’s Citizenship StrengthsDiversified menu-offering, continuously improving (relative to average attribute score acrossin-store experience and global consistency deliver on industries)core brand promise Friendly +48Internal and external citizenship efforts have paid off; Kind +43very high marks on “cares for customers,” “friendly,”“kind,” and “socially responsible” drove some of the Cares for Customers +40highest overall citizenship scores in the Index Socially Responsible +22The Ronald McDonald House Charities, now in 53countries, remain a textbook example of authentic,relevant, corporate citizenship for 37 yearsIndustry leader in sustainability with greenerpackaging, LED lighting, and annual sustainable landmanagement evaluations 20
COCA-COLACoca-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
CORPORATE CITIZENSHIP ANDYOUR BRANDAuthentic, effectively
managed citizenship programs drivereputation 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 ANDYOUR BRANDIn 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 timePut simply, “A brand is as a brand does!” 24