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• 114 members of the PRCA’s database: 
• 55 in-house professional, 52 agency side, 4 freelance, 3 other 
• 52% male, 48% f...
How much do you believe your/your clients’ Board of Directors thinks reputation is linked to the overall financial 
perfor...
“In three years reputation has moved from vanity - pretty 
much just seeing ourselves in the papers - to one where 
reputa...
(open response) 
“I agree that an enhanced reputation builds trust in your business/product. This leads to more prominence...
Which three of the following 16 do you think are most directly linked to an improvement in corporate reputation? 
Top 3 sh...
Which three of the following do you think are most directly linked to an improvement in corporate reputation? 
Ability to ...
Which three of the following do you think are most directly linked to an improvement in corporate reputation? 
Ability to ...
Which of the following, if any, do you generally think of as direct benefits to a business that enjoys an enhanced reputat...
Which of the following, if any, do you generally think of as direct benefits to a business that enjoys an enhanced reputat...
q12. Which of the following, if any, do you generally think of as direct damage to a business that suffers from a poor 
re...
Against which of these, if any, is the performance of your Communications team measured? 
Base: All respondents (114) 
24%...
How much do you think each of these groups believes day-to-day management of your/their corporate reputation 
affects the ...
q15 To what extent do you agree or disagree with each of the following statements? 
9% 
4% 
3% 
25% 
49% 
21% 
29% 
33% 
1...
YouGov research for the BDO/QCA Sentiment Index, July 2014: 
• Of 119 listed small & mid-cap business, 44% have experience...
• Industry believes there is now a strong connection in senior management’s mind 
between reputation and financial perform...
18
The Economics of Reputation
The Economics of Reputation
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The Economics of Reputation

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A presentation on the Economics of Reputation by Oliver Rowe, YouGov Director of Reputational Research.

Published in: Leadership & Management
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The Economics of Reputation

  1. 1. • 114 members of the PRCA’s database: • 55 in-house professional, 52 agency side, 4 freelance, 3 other • 52% male, 48% female • Senior respondents: average age 44; average of 16 years in the industry Head of department/te am, 45% In-House (55) Other, 20% Director, 35% Partner/owner, 61% Other, 17% Director, 22% Agency (52)
  2. 2. How much do you believe your/your clients’ Board of Directors thinks reputation is linked to the overall financial performance of your/their organisation? Very strong 33% Base: All respondents (114) Reasonably strong 43% Reasonably weak 17% Very weak 7% Net: Strong link 76% Net: Weak/No link 24%
  3. 3. “In three years reputation has moved from vanity - pretty much just seeing ourselves in the papers - to one where reputation issues account for one third of our strategy and business plan.” In-house, Head of Department, transport sector
  4. 4. (open response) “I agree that an enhanced reputation builds trust in your business/product. This leads to more prominence in the market place, increased sales and more influence.” In-house, Head of Department, 20+ years of experience “If reputation is everything you say, everything you do and everything others say about you, I'd say it affects every aspect of your business.” Partner of multi-client agency Base: All respondents (114)
  5. 5. Which three of the following 16 do you think are most directly linked to an improvement in corporate reputation? Top 3 shown 34% 41% 61% Ability to recruit and retain the best staff More positive media coverage Greater likelihood of receiving benefit of the doubt from stakeholders if reputational damage incurred Base: All respondents (114)
  6. 6. Which three of the following do you think are most directly linked to an improvement in corporate reputation? Ability to recruit and retain the best staff Greater likelihood of receiving benefit of the doubt from stakeholders if reputational More effective marketing/sales activity Greater influence on Government Higher profitability Higher sales levels Higher quality commercial partnerships Higher share price (if a listed business) Higher pricing of products Ability to operate more easily outside the domestic market Improved financial ratios such as return of capital employed, earnings per share Base: All respondents (114) 1% 0% 0% 0% 4% 4% 4% 9% 15% 13% 19% 24% 24% 24% 34% 41% 61% Ability to raise capital or borrow money at better rates Negotiation of more favourable terms with suppliers More effective/better priced acquisitions Greater celebrity endorsement Don’t know damage incurred More positive media coverage Doing business External affairs Financial
  7. 7. Which three of the following do you think are most directly linked to an improvement in corporate reputation? Ability to recruit and retain the best staff More positive media coverage Greater likelihood of receiving benefit of the doubt from stakeholders if reputational damage incurred More effective marketing/sales activity Base: All respondents (114) 29% 22% 29% 18% 25% 15% 37% 39% 66% 13% 33% 25% 45% 56% Greater influence on Government Higher profitability Higher sales levels In-house Agency Doing business External affairs Financial
  8. 8. Which of the following, if any, do you generally think of as direct benefits to a business that enjoys an enhanced reputation? Which three of the following do you think are most directly linked to an improvement in corporate reputation? Ability to recruit and retain the best staff More positive media coverage Greater likelihood of receiving benefit of the doubt from stakeholders if reputational damage incurred More effective marketing/sales activity Greater influence on Government Higher profitability Higher sales levels Higher quality commercial partnerships Higher share price (if a listed business) Higher pricing of products Ability to operate more easily outside the domestic market Improved financial ratios such as return of capital employed, earnings per share Ability to raise capital or borrow money at better rates Base: All respondents (114) 4% 4% 4% 1% 0% 0% 24% 24% 19% 13% 9% 15% 24% 34% 41% 61% 33% 26% 29% 22% 37% 22% 50% 44% 64% 65% 51% 65% 75% 75% 92% 87% Negotiation of more favourable terms with suppliers More effective/better priced acquisitions Greater celebrity endorsement Any Top 3 Doing business External affairs Financial
  9. 9. Which of the following, if any, do you generally think of as direct benefits to a business that enjoys an enhanced reputation? Ability to recruit and retain the best staff More positive media coverage Greater likelihood of receiving benefit of the doubt from stakeholders if reputational damage incurred More effective marketing/sales activity Greater influence on Government Higher profitability Higher sales levels Higher quality commercial partnerships Higher share price (if a listed business) Higher pricing of products Ability to operate more easily outside the domestic market Improved financial ratios such as return of capital employed, earnings per share Ability to raise capital or borrow money at better rates Negotiation of more favourable terms with suppliers Base: All respondents (114) 33% 34% 32% 31% 41% 29% 36% 67% 61% 55% 56% 66% 75% 73% 73% 59% 81% 76% 83% 92% 93% 27% 16% 11% 40% 25% 15% 31% 56% 42% 69% 91% More effective/better priced acquisitions Greater celebrity endorsement In-house Agency Doing business External affairs Financial
  10. 10. q12. Which of the following, if any, do you generally think of as direct damage to a business that suffers from a poor reputation? 29% 43% 38% 45% 61% 61% 55% 63% 81% 76% Inability to recruit and retain the best staff More negative media coverage Lower sales levels Greater likelihood to not receive benefit of the doubt from stakeholders if incur reputational damage Less effective marketing/sales activity Less influence on Government Lower profitability Poorer quality commercial partnerships Lower share price (if a listed business) Inability to raise capital or borrow money at better rates Base: All respondents (114)
  11. 11. Against which of these, if any, is the performance of your Communications team measured? Base: All respondents (114) 24% 20% 15% 34% 31% 25% 56% 80% 18% 27% 20% 45% 53% 87% More positive media coverage More effective marketing/sales activity Greater influence on Government Higher sales levels Ability to recruit and retain the best staff Greater likelihood of receiving benefit of the doubt from stakeholders if reputational damage incurred Higher quality commercial partnerships In-house Agency Doing business External affairs Financial All others below 10%
  12. 12. How much do you think each of these groups believes day-to-day management of your/their corporate reputation affects the organisation’s bottom line? 14% 31% 41% 56% 25% 68% 47% 47% 39% 23% 36% 24% CEO CFO CMO Board Senior managers General staff Large amount Reasonable amount Base: All respondents (114)
  13. 13. q15 To what extent do you agree or disagree with each of the following statements? 9% 4% 3% 25% 49% 21% 29% 33% 15% 38% 51% 37% 39% 19% 10% 20% 26% 16% 35% 2% 2% 6% 3% 4% 5% CEO/ leader is big supporter of PR Crisis communications PR plan tested in last 12 months We/my clients are relatively weak on social media compared to competitors Employees comms more important than external comms Senior management care less about journalist criticism than they used to Strongly agree Slightly agree Slightly disagree Strongly disagree DK Base: All respondents (114)
  14. 14. YouGov research for the BDO/QCA Sentiment Index, July 2014: • Of 119 listed small & mid-cap business, 44% have experienced internet allegations or rumours • 71% were on bulletin boards or discussion forums, 49% on blogs and 41% on social media • Effects of the allegations or rumours: Positive impact Negative impact Share price 7% 28% Employee morale 6% 32% Investor confidence 3% 37% • 79% of those who have not yet experienced online allegations or rumours worry it will impact their share price at some point
  15. 15. • Industry believes there is now a strong connection in senior management’s mind between reputation and financial performance, but still a bit of a struggle with the CFO • Enhanced sales is the most spontaneously mentioned bottom line benefit of an enhanced reputation but ability to recruit and retain the best staff is the most chosen general business benefit • In-house cite less direct benefits of an enhanced reputation than agency professionals • Few businesses assess PR’s performance with key financial metrics, though ‘more effective marketing and sales activity’ cited by half and higher sales by a quarter, but positive media coverage is by far the leading measure
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