In the Age of Earned Trust, companies need a holistic approach to build a strong reputation that can facilitate success over time. The MSLGROUP Reputation Impact Indicator Study China edition highlights the China findings and provides insight into what drives the views held by the general public of some of the world’s best-known global corporate brands. We hope you enjoy reading it and invite you to share your feedback and tips with us on Twitter @msl_group. Follow #ReputationImpact on Twitter for insights from the report.

1. The Age of
Earned Trust:
MSLGROUP’s Reputation
Impact Indicator Study
[China Edition]

2. The MSLGROUP
Reputation Impact Indicator
A major global survey and report that
combines both intuitive and rational
dimensions when studying the
reputation of leading multinationals.

3. The MSLGROUP
Reputation Impact Indicator
A major global survey and report that
combines both intuitive and rational
dimensions when studying the
reputation of leading multinationals.
Anders Kempe
EMEA President for MSLGROUP
Foreword
The reputation of a corporation is its license to
operate. It has a decisive impact on the success
of the organization and is generally regarded as
one of its most important assets. And yet, we
would argue, there is clearly a need for a much
deeper understanding of the multifaceted
elements that contribute to corporate reputation
than currently exists today.
MSLGROUP has chosen to take a somewhat atypical approach to the
study of reputation. Moving beyond simple rankings, or analyses of
‘drivers’ of reputation alone, we take a more holistic look at how a
company must act to build a strong reputation that can facilitate success
over time. The result of our research is this, the Reputation Impact
Indicator study, part of MSLGROUP’s ongoing efforts to create better
knowledge and tools for corporations to better understand how they can
influence their reputation.
In the study, we have chosen to look at corporate reputation among a
global general public. General public, because how they, as consumers
and citizens, view corporations has a substantial and increasingly
important impact on how other audiences view them. Global, because we
live in an ‘always on’ and ‘on-demand’ world, where different audiences
are constantly connected to each other. Today, more than ever, a multi-
stakeholder perspective is necessary.
Among many new findings, the study also confirms a long-held
assumption: actions speak louder than words. The factor with the largest
impact on an organization’s reputation is simply how well it delivers its
products and services, and if they are delivered in an ethical manner (you
can of course follow rules and legislation, yet still fail in the court of the
public opinion). In short, the study confirms that being perceived as a
company that consistently delivers high-quality products and services in
an ethical way is what matters most when it comes to building and
maintaining a reputation.
If actions do speak louder than words then does this mean that
communication is of less importance in the building of reputations than
we may have thought? No, on the contrary – communication has a very
significant role that should not be underestimated. Not least when we
consider, as our study shows, that while brands may be global, corporate
reputation is most definitely local. Assuming broad brand awareness
across multiple countries for the well-known global brands covered in the
study, it seems clear that how a company communicates with people in
different countries or regions influences what those people think of a
company, how robust its local reputation is. In this sense, we should think
of global corporate reputation as the sum of a company or brand’s local
reputations.
1
The MSLGROUP
Reputation Impact Indicator
A major global survey and report that
combines both intuitive and rational
dimensions when studying the
reputation of leading multinationals.

4. Foreword
Our study findings
underline that it is this more
qualitative approach to
brand awareness that is key
to establishing a robust
reputation. And authenticity
and engaging storytelling
are undoubtedly at the heart
of any such approach.
Underlining our commitment to a more holistic view of corporate
reputation, we analyzed how people retrieve the information that they then
use to form an opinion about a company. What we found is that this is
largely an intuitive process, and that abstract knowledge about a
company is not enough to engender a strong reputation in the public’s
mind’s eye. A significant part of a company’s reputation is a matter of
instinct, based on how ‘relatable’ that company feels. We refer to this as
the ‘Mind Space’ the company occupies. Here, communication plays an
important role, as an organization needs to communicate its actions
repeatedly and engage with its stakeholders, so as to build clear
associations – linked to its core business – that can easily be held in a
person’s mind. Our study findings underline that it is this more qualitative
approach to brand awareness that is key to establishing a robust
reputation. And authenticity and engaging storytelling are undoubtedly at
the heart of any such approach.
That an organization’s reputation is shaped most by intuitive, gut-felt
pieces does not however mean that reputations can be quickly built.
Instead it means that we have to think in advance: always have the
communicative aspect in mind when making business decisions.
MSLGROUP’s Reputation Impact Indicator study is an attempt to ‘dissect’
corporate reputation, to study the components of which it is made up, and
to then take a holistic view of each one’s relative impact on reputation at
both a global and industry level. I hope you find the report to be inspiring
and thought-provoking reading.
Kindly,
Anders Kempe
21

5. Introduction
Globalization has eliminated many boundaries
to create a more interconnected world. It has
also played a part in enabling companies to
become global brands and conduits of these
connections.
We live in an era where McDonald’s, Coca-cola, and Starbucks could be
found just about anywhere in the world, and the companies work very
hard to make sure the same product and quality of service can be found
regardless of location.
Cultural differences aside, though, local, highly personal experiences can
greatly affect perceptions of those very same global brands. This is the
premise in the first-of-its-kind MSLGROUP Reputation Impact Indicator
study in which China is included.
China, along with our ‘new world’ peers India, Brazil and South Africa,
tops the charts with our significantly higher Reputation Core scores, that
is we are more optimistic about companies than the developed Western
‘old world’. When a nation is growing and prospering, it’s understandable
its people would have a more positive outlook. But that doesn’t mean we
are less demanding.
A more confident China means companies face greater pressure to earn
the trust of its people. Across the four industry clusters targeted in the
study (pharmaceutical, Internet, FMCG and consumer electronics), China
rated delivering on promises and good customer service as the top drivers
of corporate reputation with respect to customer relationships.
Furthermore, all industries in China offered some level of participation for
customers to create new products and services. None of these items were
significant at the global level.
The Chinese public is also rigorous about corporate behavior with acting
ethically and being a positive influence on society the primary drivers of
reputation. Environmental care is particularly important in China, too.
The groundbreaking piece in this study is ‘Mind Space’ and the
relatability of companies. We can all agree that a company’s ‘hardware’ –
the products and services – drive much of our opinions about an
organization but it’s the ‘software’ – the vision, the social responsibility,
the relationships – that turns customers into admores or adversaries.
From the study we see that Chinese consumers are demanding better
corporate ‘software’ and leading the charge in some industries.
3
Daisy Zhu
Managing Director
for MSLGROUP China

6. Introduction
Overall this study validates some ideas about corporate reputations and
provides a fresh perspective on Chinese views about companies and
brands. More importantly, it provides us with a more plausible metric for
communicators to achieve business goals. This fulfills our
Business-Driven Communications positioning. Communications may be
an art but the Reputation Impact Indicator and Mind Space provides the
science. Through our study we can advise communications practitioners
and stewards of corporate reputations on the why and how they can
preserve or enhance their reputations in dynamic China, foster enduring
relationships with stakeholders and contribute to the betterment of
Chinese society.
I hope you enjoy this report and it stimulates new thinking and actions for
you!
Kindly,
Daisy Zhu
4

7. Executive Summary
In the Age of Earned Trust companies need a
holistic approach to build a strong reputation
that can facilitate success over time. The
MSLGROUP Reputation Impact Indicator is
the first-of-its-kind global study of the general
public to find reputation trends on a macro and
industry level, as well as lay the foundations of
a reputation framework for additional future
research and insight.
This report highlights the China findings and summarizes the global
study1
. The results provide insight into what drives the views held by the
general public of some of the world’s best-known global corporate brands.
MSLGROUP also carried out in-depth analysis of reputation drivers within
four industry clusters, to study the relative impact of each for a given
industry, and the differences between the four industries. The selected
industries cover the pharmaceutical, consumer electronics, FMCG and
Internet-based businesses sectors.
The key findings from the global study include:
The main dimensions driving corporate reputation today are the
perception of a company’s products and services, and that company’s
business behavior: How well is the company delivering on its core
business promise - represented by the products and services - and is it
seen to be doing so in an ethical, transparent way.
At the industry level there are clear differences in the relative impact of
different reputation drivers within each dimension, e.g. corporate
behavior is significantly more important in the pharmaceutical industry
compared to the other three industry clusters studied, underscoring the
importance of fact-based input for reputation management.
The findings provide
insight into what drives the
general public’s views of
some of the world’s
best-known global
corporate brands.
1.
The field research was conducted during the last
quarter of 2014, by means of a survey on a
statistically validated sample of the general public in
10 countries, totaling 26,467 qualified respondents.
The survey was complemented with analysis of
social media content for 10 selected companies.
5

8. Executive Summary
Reputation drivers linked to actual consumer experience have greater
significance than corporate reputation when evaluating Net Promoter
Score (NPS). Unsurprisingly, there is a clear correlation between
corporate reputation and NPS, and the most important driver for both is
how well a company is perceived to deliver its products and services.
A strong ‘Mind Space’ can engender a robust corporate reputation.
There is a correlation between how easy it is for respondents to mentally
associate with a specific company or brand – its ‘relatability’ - and
reputation. High brand awareness alone is not enough. The ideas,
images, feelings one associates with a given company need to be easy
and quick to draw upon, positive in sentiment, and linked to that
company’s products and services. Companies that have this clearly
defined ‘Mind Space’ will enjoy a more robust corporate reputation, while
companies that do not easily invoke such mental associations, or invoke
neutral rather than positive associations, will have a weaker reputation.
There are also differences for which factors have the largest impact on
reputation between respondents with positive, neutral and negative
associations. For the former, the perception of products and services is
most important, but for the latter group aspects of corporate behavior play
a more significant role.
Important discoveries from the research:
• An optimistic ‘new world’ versus a skeptical ‘old world’. Contrary to
traditional thinking, China, along with ‘new world’ peers Brazil, India
and South Africa, has a more positive perception of companies than
counterparts in North America, and particularly Europe, where
respondents can be said to demonstrate greater skepticism towards
companies in general.
• Brands are global, corporate reputation is local. There are large
variances in the reputation of individual companies at a country level.
Even though a brand is recognized globally, the reputation of the
company is local.
• Social media content reflects the relative importance of the
reputation dimensions. A large majority of discussions online are
about topics related to company products and services, and this is also
the area with most un-aided engagement. A majority of negative posts
online are related to corporate behavior, confirming the negative impact
of this dimension.
6

9. The Study
Anders Kempe
President, EMEA, MSLGROUP
“…and yet, we would argue, there
is clearly a need for a much
deeper understanding of the
multifaceted elements that
contribute to corporate reputation
than currently exists today.”
7

10. The Study
Given the sheer volume of
data that now washes across
our screens, it would stand to
reason that a customer’s
view of a company or brand
is now necessarily arrived at
more quickly, and therefore
intuitively, than in days past.
A New Age, A New Charter for Reputation
With the ever-increasing volume of communication and number of
information channels around us, it is crucial that companies use
fact-based input to evaluate which elements have the largest impact on
their reputation. These factors will of course vary across industries and
markets, and also depend on the audience.
Given the sheer volume of data that now washes across our screens, it
would stand to reason that a customer’s view of a company or brand is
now necessarily arrived at more quickly, and therefore intuitively, than in
days past. Most reputation modelling or reporting assumes a rational,
deliberative model. None have tried to quantify a more intuitive approach,
let alone figure out how first impressions turn into long-held views. And
this is one issue at the heart of MSLGROUP’s Reputation Impact Indicator
study: How does the intuitive, gut-feeling view an individual holds about a
company impact upon that company’s reputation?
1
8

11. A New Reputation
Framework Combining
Rational Response with
Intuitive Associations:
The MSLGROUP
Reputation Impact
Indicator
The MSLGROUP Reputation Impact
Indicator is one of the first studies to
examine the link between spontaneous,
intuitive associations with companies
and a more deliberate and rational
response to statements about
companies. We aim to layer intuitive
brand associations and expectations
over a more traditional, ‘deliberate’
reputation measurement approach with
this study.
2
Robert Gelmanovski
The research also sheds light on the
drivers of corporate reputation and the
challenges of managing corporate
reputation from a global perspective.
This has been achieved through a
detailed exploration of the drivers of
reputation and the relative significance
of each driver across industries and
markets.
The resulting model, the Reputation
Impact Indicator, is based on a
Reputation Core consisting of three
questions:
• Do you like company x?
• Do you trust company x?
• Do you respect company x?
ABOUT THE RESEARCH
The research behind the Reputation Impact
Indicator was designed by Robert
Gelmanovski, a researcher in reputation
management at the Royal Institute of
Technology in Stockholm (KTH) – who is
affiliated with MSLGROUP in the Nordics, and
Dominic Payling, Director and Head of
Planning & Insight at MSLGROUP in London,
alongside a reference group of senior
consultants from MSLGROUP’s global
network.
The research was then conducted by Robert
Gelmanovski.
A statistically validated sample of the general
public aged 16–65 in 10 countries was
surveyed in the last quarter of 2014 in online
panels provided by CINT, a company with a
presence in more than 60 countries. A total of
26,467 interviews in 10 countries were
conducted, at least 2,500 interviews per
country. Countries covered: United States,
Canada, United Kingdom, France, Germany,
Sweden, China, India, Brazil, and South Africa.
The questionnaire consisted of 38 questions on
reputation, plus background questions on
media consumption, age, and educational
background.
10countries
26,467interviews
The Study
9

12. Mind Space: Measuring
the Strength of Brand
Awareness
Companies and brands rely on the
brand awareness metric to validate how
well the organization is doing in a
market or the performance of a
marketing campaign. This metric is
useful in establishing benchmarks and
standards for evaluation, but wouldn’t
brands want to know how easy
consumers or audiences were able to
recognize a brand? Is this brand
awareness built on positive, negative or
neutral associations? How does brand
awareness relate to corporate
reputation?
The MSLGROUP Reputation Indicator
Index differentiates from other
reputation studies by exploring intuitive
reputation awareness or the mental
associations related to a particular
company or brand. When this is linked
to a more rational, deliberate view of
reputation, the results show a profound
impact on corporate reputation: by
creating spontaneous associations with
a company, we create a metric that
demonstrates strength of brand
awareness. We call this capacity
‘Mind Space’.
3
ABOUT THE METHODOLOGY
The questionnaire was divided into two parts:
one covering spontaneous associations and
expectations, and a second part with 25
reputation statements with a 7-grade scale
(1 = do not at all agree, 7 = agree completely).
Answers were indexed to a scale 0–100. An
index difference of 2 points was considered
statistically significant.
Respondents were asked to evaluate 41 global
corporations, chosen because of their
worldwide operations and international
outlook, and only respondents with a higher
degree of brand awareness of the companies
(‘somewhat familiar’ or ‘very familiar’) were
allowed to complete the survey.
In parallel with the quantitative research, online
content was analyzed for 10 of the 41
companies, with this content categorized into
one of the four reputation dimensions of the
MSLGROUP Reputation Impact Indicator
model.
While we have chosen to focus on the overall
findings and implications of the research for
reputation management, not on
company-specific insights, data about
individual companies is sometimes used to
illustrate a general point.
The Study
Answers to the three questions around
the Reputation Core were then
combined and expressed as an index
from 0–100, giving an indication of a
company’s reputation. In order to better
understand what is driving the
Reputation Core Index we then looked at
four dimensions that contribute to the
building of reputation, each reflected
through a number of questions:
1. Strength of relationship (how well a
company builds relationships with
external audiences)
2. Perception of products and services
3. Perception of corporate behavior
4. Perception of financial performance
These four dimensions were drawn from
international academic research in the
field of reputation and are reflected in a
number of questions, with each question
then correlated to the Reputation Core –
thus identifying reputational drivers.
Underlying the results in each area is
‘reputation content’, i.e. the messages
and conversations linked to a company,
the majority of which are today delivered
and digested via digital channels. We
analyze reputation content across
multiple channels and then link that
content to the reputation dimensions
and the Reputation Core, thus exploring
which pieces of content are building or
eroding reputation.
10
ABOUT THE KNOWLEDGE BASE
Fombrun, Charles J., Naomi A. Gardberg
and Joy M. Sever (2000), ‘The Reputation
Quotient: A Multiple Stakeholder Measure
of Corporate Reputation’, The Journal of
Brand Management, 7 (4), pp. 241–255.
Wartick, S. (2002), ‘Measuring Corporate
Reputation’, Business & Society, Vol. 41
No. 4, pp. 371–392.
Helm, S. (2007), ‘One Reputation or
Many? Comparing Stakeholders’
Perceptions of Corporate Reputation’,
Corporate Communications: An
International Journal, Vol. 12 No. 3,
pp. 238–254.
Walker, K. (2010), ‘A Systematic Review
of the Corporate Reputation Literature:
Definition, Measurement, and Theory’,
Corporate Reputation Review, Vol. 12
No. 4, pp. 357-387.

13. The Study
MSLGROUP’s Reputation
Impact Indicator model
Examining the relationship between the Reputation
Core, the underlying reputation drivers and the
content produced by and about companies.
Reputation
Content
Reputation
Drivers
Reputation
Core
11

14. Alongside the four
dimensions of reputation,
the study also looks at
intuitive reputation
awareness and the impact
on corporate reputation.
This intuitive aspect of
reputation is then linked to a
more rational, deliberate
view of reputation.
Definitions and explanations
of concepts
Corporate reputation:
The general collective judgment of a corporation based on
assessments of the impact of performances and actions attributed
to the corporation over time.
NPS, Net Promoter Score:
The inclination to recommend a company.
Brand awareness:
The extent to which a brand is recognized by potential customers,
and is correctly associated with a particular product or service.
‘Mind Space’:
The ease with which a respondent can answer questions about
the company. Measures the strength of brand awareness.
Reputation Core Index:
The measure of corporate reputation used in the study.
A combined score that answers the questions ‘Do you like
company x?’, ‘Do you trust company x?’, and “Do you respect
company x?’
Products and services:
The term used for a group of reputation drivers reflecting the
quality of the company’s offering.
• X offers high-quality products/services
• X meets customer needs
• X offers products/services that are good value for money
• X is an innovative company
• X produces its products/services in a sustainable way
Corporate behavior:
The term used for a group of reputation drivers reflecting a
company’s actions and business behavior.
• X acts ethically
• X is open and transparent about the way the company operates
• X has a positive influence on society
• X cares for the environment
• X cares for its employees
Relationship:
The term used for a group of reputation drivers reflecting the
quality of the company’s relationship with its customers.
• X involves the customer in the creation of new
products/services
• X delivers on its promises
• X is open to criticism and suggestions for improvement
• X communicates in an honest and sincere way
• X offers good customer service
Financial performance:
The term used for a group of reputation drivers reflecting a
company’s financial performance.
• X is a profitable company
• X has a capable leadership
The Study
12

15. A more qualitative
approach to brand
awareness building positive
associations that are easily
accessible in the minds of
stakeholders – is therefore a
key to a strong reputation.
And the more closely this
‘Mind Space’ is linked to a
company’s products and
services, the better.
Brand Awareness is not
Enough, Building a Strong
‘Mind Space’ and Positive
Connotations is Key
Only respondents claiming to know the
companies that were surveyed ‘fairly’ or
‘very well’, and could spontaneously
associate things with the company, were
allowed to answer the subsequent
questions on the drivers of reputation,
meaning all respondents effectively were
brand-aware of the participating
companies. Seventy-eight per cent of
respondents found it easy to come up
with spontaneous associations with a
company, and the Reputation Core
Index was 43% higher among that
group. In other words, occupying a
customer’s ‘Mind Space’ – the ease
4
with which an image of a company is
created in an individual’s mind’s eye – is
an advantage.
When respondents were asked to define
these connotations, 53% defined them
as positive, 38% as neutral, and 9%
thought of them as negative.
Unsurprisingly, associating negative
things with a company is linked to a low
reputation score. But what was
surprising was the significant difference
in impact upon reputation found
between neutral and positive
associations. Positive associations
resulted in an average Reputation Core
Index that was 60% higher than that of
neutral associations. Clearly a more
qualitative approach to brand awareness
– building positive associations that are
easily accessible in the minds of
stakeholders – is therefore a key to a
strong reputation. And the more closely
this ‘Mind Space’ is linked to a
company’s products and services, the
better. These findings were true for all
markets, age groups, and industries
covered in the study.
So, in a world where businesses and
brands are constantly battling for
attention, simply grabbing people’s
attention is not enough. Organizations
need to generate positive ‘Mind Space’,
if they are to build a robust reputation.
Share of respondents who thought
it was easy versus difficult to
identify things they associate with
a company in the survey
22%
78%
Difficult
Easy
Share of positive, neutral,
and negative associations
Positive
Negative
Neutral
38%
53%
09%
The Study
13

16. Dominant brands are not only recognized, they also
occupy ‘Mind Space’ in relevant stakeholder groups
that is in line with the qualities with which the brand
wishes to be associated.
Creating a robust and relevant ‘Mind Space’ goes
beyond creating brand awareness. A company not
only needs to grab attention and make stakeholders
aware of its existence, it needs to create an
impression that allows one to easily attribute
characteristics to the brand, thus increasing the
chances of making it the brand of choice. In this
respect, ‘Mind Space’ can be said to be the quality
of awareness about a brand.
In today’s world of speed and transparency, ‘Mind
Space’ is created from a number of brand
conversation sources. What do we think of when we
hear a particular brand name? How automatically
were those connotations invoked? Are the
characteristics we ultimately associate with a brand
in line with the desired brand positioning?
A robust ‘Mind Space’ requires two parts.
The things one associates with a company need to
be easily drawn upon, thus making the process
intuitive: if a person has to spend time going
through a structured thought process in order to
work out what they think, then the ‘Mind Space’ in
question is already weaker than if sentiments are
gut-felt. Secondly, the associations need to reflect a
positive, company-specific understanding of the
brand. If the associations are generic and equally
true for all companies in the industry, ‘Mind Space’
is also weakened.
Brand
x
How do we define
‘Mind Space’?
Positive associations linked
to a stronger Reputation Core
Neutral associations lead to
a much weaker reputation
Reputation Core Company I like Company I trust Company I respect
0
85
Neutral
associations
Positive
associations
The Study
14

17. The importance of building positive
associations is also confirmed at the
industry level, with levels of corporate
reputation being significantly higher
among respondents who associated
positively with a company versus those
who demonstrated more neutral
associations. This was true across all
industries.
One interesting observation here is that
the positive impact of ethical business
behavior and drivers including ‘acts
ethically’, and ‘produces its products in
a sustainable way’ is much stronger
among respondents who judge their
own associations to be negative than
among respondents who associate
positive things with a company. For this
group of respondents, the questions
related to ethical business behavior have
a bigger impact on corporate reputation
than drivers related to product and
service quality, value for money and
meeting customer needs.
How the financial performance of a
company is perceived is also dependent
on whether the respondent judges the
things they associate with a company
Citizenship dimension drivers
linked to type of association
Acts ethically
Open and transparent about the way
the company operates
Positive influence on society
Cares for the environment
Cares for its employees
Pharma Consumer
electronics
FMCG Internet
PositiveassociationsNegativeassociationsNeutralassociations
The Study
15

18. to be positive, neutral, or negative. For
respondents with positive associations,
‘profitable company’ has a slightly
positive impact on corporate reputation,
whereas for respondents that judge their
associations as negative, the profitability
has a strongly negative impact on
reputation. An interesting observation is
the large impact of capable leadership
among respondents with negative
associations. One explanation for this
could be that respondents with negative
associations put more trust in a
company’s leadership to change the
perceived negative aspects of their
business.
From the below, we can see that the
attitude of the target group not
surprisingly has a large impact on
corporate reputation, and also that the
relative contribution of different drivers
varies significantly between respondents
with positive and negative attitudes.
Again, this highlights the need to adapt
communication to the relevant audience,
based on a thorough understanding of
their attitudes and motivations.
Financial performance drivers
linked to type of association
Pharma Consumer
electronics
FMCG Internet
PositiveassociationsNegativeassociationsNeutralassociations
Profitable company
Capable leadership
Clear vison for its future
Good potential for future growth
Delivers better financial results than
its competition
The Study
16

19. • Products and services have
the greatest influence on
corporate reputations in
China as well as the other
markets surveyed, but
corporate behavior is a
stronger driver in China
than the rest of the world.
• Acting ethically is the most
important driver for
pharmaceutical companies
in China.
• Environmental aspects are
more important for the
Internet industry in China.
• Company vision is an
important driver for the
financial dimension on
corporate reputation.
• Environmental care is an
important contributor to
corporate behavior.
• Delivering on promises
strengthens relationships
and corporate reputation.
Actions Speak Louder
Than Words
What is the strongest driver of corporate
reputation among the general public?
To answer this question and others, we
analyzed the degree to which different
attributes of the four reputational
dimensions (perception of products and
services; perception of corporate
behavior; perception of financial
performance; and strength of
relationship) drive reputation.
Perception of products and services
showed the strongest correlation to the
Reputation Core Index, thus the
strongest reputation driver in China and
all countries surveyed. This dimension
is made up of five different drivers,
which together reflects the quality of the
company’s offering.
After products and services, corporate
behavior (the degree to which a
company is perceived to be doing
business in an ethical, transparent way)
correlated most strongly with a high
Reputation Core Index. For companies
that scored low on the Reputation Core
Index there is a clear correlation to low
scoring on corporate behavior.
FINDING5
By contrast, financial performance has
no statistical significance on corporate
reputation in China, and is the least
important driver for enhancing
reputation among the general public
across all markets surveyed. Financial
performance and the quality of a
company’s management obviously has
a defining impact on many other
stakeholders, not least investors, but it is
not surprising that the general public
can be said to form opinions about a
company’s reputation first and foremost
as consumers or citizens, rather than as
investors.
It’s worth noting that of the four
dimensions Chinese respondents place
greater importance on corporate
behavior compared with the global
results; the other dimensions were
weaker than the global study. This
challenges the thinking that Chinese
consumers are indifferent to how
companies conduct themselves publicly
and affirms what we see – that as
economic development and social
progress benefits China, the public are
increasingly more demanding and are
expecting companies to live up to their
own standards.
Global
China
The Impact of Different Dimensions
on Reputation Core Index
Financial
performance
Relationship Corporate behavior
Products
and services
0
–
+
The Study
17

20. The general public in China
have higher expectations
on the corporate behavior
of pharmaceutical
companies than of
companies in the other
industries under review.
On an industry level there are
significant variations in how
different reputation drivers
contribute to the reputation core.
We first look at the reputation drivers
of two specific industry clusters –
pharmaceutical and Internet –
and then delve into four different
dimensions amongst all four
industry clusters.
a. Acting ethically is the
most important driver for
pharmaceutical companies
in China
The reputation drivers for companies
within the pharmaceutical industry
display some unique characteristics:
Although corporate behavior is
important for all industries, it has a
larger impact on reputation within the
pharmaceutical industry. ‘Acts ethically’
is most important driver for corporate
reputation in China and second most
important in all industries. Of the top
five reputation drivers in the
pharmaceutical industry in China, three
are related to products and services
(‘producing products and services that
are good value for money’, ‘produces its
products in a sustainable way’, and
‘offers high-quality products/services’)
and two are related to citizenship and
sustainability (‘positive influence on
society’ and ‘produces its products in a
sustainable way‘).
Unlike the global study, delivering on its
promises, capable leadership and
innovation significantly impact
reputations of pharmaceutical
companies in China.
It’s worth noting that there is a strong
negative impact for the financial
performance of pharmaceutical
companies and a level of cynicism about
their growth prospects in China. This
may be related to the government
anticorruption campaign in the
pharmaceutical industry which
highlighted a number of problems.
This leads us to believe that people have
higher expectations on the corporate
behavior of pharmaceutical companies
than they do of companies in the other
three industries under review, perhaps
more so in China.
Global
China
Top reputation drivers
in the pharmaceutical industry
1 2 3 4 5 6 7 8 9 10 11 12 13 14
0
–
+
1. Offers high quality products/services
2. Offers products/services that are good value for money
3. Produces its products/services in a sustainable way
4. Acts ethically
5. Meets customer needs
6. Communicates in an honest and sincere way
7. Is open and transparent about the way the company operates
8. Has a positive influence on society
9. Is a profitable company
10. Has a capable leadership
11. Offers good customer service
12. Is an innovative company
13. Has good potential for future growth
14. Delivers on its promises
The Study
18

21. Respondents in China
clearly see companies
playing a part in caring
for the environment.
b. Environmental aspects are more
important for the Internet
industry in China
Companies within the Internet sector
also display an industry-specific pattern.
By far, offering high quality products
and services is the most important
driver in China and the other markets in
the global study. That’s where the
similarities end. In China, environmental
aspects are more important with
sustainable production and care for the
environment among the top drivers.
With growing public concern in recent
years about pollution and natural
resource degradation, respondents in
China clearly see companies playing a
part in caring for the environment.
Like the pharmaceutical industry, acting
ethically is a significant driver of
corporate reputation in China. Unlike the
global study, providing products and
services that are perceived as ‘value for
money’ is a core driver of corporate
reputation in China.
It’s worth noting that ‘open and
transparent about the way the company
operates’ and ‘capable leadership’ are
not significant reputation drivers in
China compared with global results.
This may reflect a certain reality that
many companies in China, Internet or
not, have some element of state
ownership thus its operations and
leadership are inconsequential.
Global
China
Top reputation drivers
in the Internet industry
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
0
–
+
1. Offers high quality products/services
2. Offers products/services that are good value for money
3. Produces its products/services in a sustainable way
4. Acts ethically
5. Is an innovative company
6. Meets customer needs
7. Cares for the environment
8. Delivers better financial results than its competition
9. Communicates in an honest and sincere way
10. Is open and transparent about the
way the company operates
11. Has a positive influence on society
12. Is a profitable company
13. Has a capable leadership
14. Has a clear vision for its future
15. Has good potential for future growth
16. Involves the customer in the creation of new
products/services
17. Offers good customer service
The Study
19

22. While company profitability
isn’t an important aspect for
corporate reputations,
delivering better financial
results over its competitors
is consequential – this is
particularly the case for
pharmaceutical and Internet
companies.
C. Company vision is an important
driver for the financial dimension
on corporate reputation
Overall, financial performance of a
company is not a positive driver for
corporate reputation among the general
public in China and globally, but we do
see some statistically confirmed
differences between industries.
Additionally the impact of this
dimension appears to be affected by
pre-existing views respondents may
hold about a company.
We see wider acceptance for financial
performance as a driver of corporate
reputation especially in the FMCG and
Internet industries in China. And while
company profitability isn’t an important
aspect for corporate reputations,
delivering better financial results over its
competitors is consequential – this is
particularly the case for pharmaceutical
and Internet companies.
In general, the company’s leadership
have positive contributions to corporate
reputations, especially in the
pharmaceutical and FMCG industries.
Potential for future growth is particularly
important in the consumer electronics
industry.
Company vision is more important in
China that what we see globally. This is
particularly notable in the Internet
industry where vision is ranked much
higher than capable leadership. In the
past, Internet companies in China were
built around CEOs who became
celebrities and role models. However,
the industry’s rapid development and
the boom-and-bust of copycat Internet
ventures disappointed Chinese
consumers who have high expectations.
Therefore, genuine innovation has
become an indicator of a company’s
value and true differentiator. This backs
the point that innovation is regarded
highly as a reputation driver in the
Internet industry.
With the exception of FMCG, a high
profit margin has a negative impact on
the reputation of all three other
industries in the global study: ‘profitable’
seems to be seen as a dirty word. In the
FMCG and Internet industries, strong
company leadership has a positive
impact on corporate reputation but we
do not see the same pattern in the
pharmaceutical and consumer electronic
industries. For consumer electronics
and Internet businesses, a perceived
potential for future growth has a positive
impact, yet by contrast, there is no
statistically confirmed relationship
between this driver and the reputation of
companies in the pharmaceutical and
FMCG industries.
Global
China
Top reputation drivers of the financial dimension
within the pharmaceutical industry
0
–
+
Delivers better
financial results than
its competition
Has a capable
leadership
Has a
clear vision
for its future
Has good
potential for
future growth
Is a
profitable
company
The Study
20

23. Global
China
Top reputation drivers of the financial dimension
within the consumer electronics industry
–
+
0
Has a
capable
leadership
Has
good potential for
future growth
Has a
clear vision
for its future
Delivers better
financial results
than its competition
Is a
profitable
company
Global
China
Top reputation drivers of the financial dimension
within the FMCG industry
–
+
0
Has good
potential for
future growth
Has
a capable
leadership
Delivers better
financial results
than its competition
Has a
clear vision
for its future
Is a
profitable
company
The Study
21

24. Global
China
Top reputation drivers of the financial dimension
within the Internet industry
–
+
0
Delivers
better financial results
than its competition
Has a
clear vision
for its future
Has
good potential
for future growth
Has
a capable
leadership
Is a
profitable
company
The Study
22

25. Compared to the global
results, environmental care
is more important in China,
but surprisingly producing
in a sustainable way has
no statistical significance
for any of the industries.
d. Environmental care is an
important contributor to
corporate behavior
Companies’ commitment to social
issues seems to be largely judged as a
sum of their perceived overall
contribution to society. Acting ethically
and positive influence on society have
significant impact on reputation core,
and a change in this driver will bring
about the greatest change for corporate
reputation across all industries. In
China, we see a higher regard for social
influence in the FMCG and consumer
electronics industries, which perhaps
reflects a direct relationship between
brand visibility and community interest.
It’s especially notable that
environmental care is more important in
China, but producing in a sustainable
way has no statistical significance for
any of the industries. One could argue
that Chinese consumers understand the
value of protecting the environment but
aren’t willing to pay more for products
that are produced more sustainably as
they often come at a higher cost.
Surprisingly, care for employees has a
low impact on corporate reputations,
particularly in the pharmaceutical
industry. Compared with global study,
concern for the environment is perceived
to be more influential than care for
employees. The fact that it was targeted
for corruption in China suggests that
better treatment of company employees
would have strengthened ethical
behavior and improved reputations.
The Study
23
Impact of the corporate behavior dimension
on the Reputation Core Index
Pharma Consumer electronics FMCG Internet
Acts ethically
Open and transparent about
the way the company operates
Positive influence on society
Cares for its employees
Cares for the environment
+
–
0

26. Global
China
Top reputation drivers of the corporate behavioral dimension
within the pharmaceutical industry
–
+
0
Has a
positive influence
on society
Acts
ethically
Cares for
the
environment
Is open and
transparent about
the way the
company operates
Cares for
its
employees
Global
China
Top reputation drivers of the corporate behavioral dimension
within the consumer electronics industry
–
+
0
Acts
ethically
Has a positive
influence
on society
Cares for
its
employees
Is open and
transparent
about the way
the company
operates
Cares
for the
environ-
ment
The Study
24

27. Global
China
Top reputation drivers of the corporate behavioral dimension
within the Internet industry
–
+
0
Has a
positive influence
on society
Acts
ethically
Cares for
its
employees
Is open and
transparent about
the way the
company operates
Cares for
the
environment
Global
China
Top reputation drivers of the corporate behavioral dimension
within the consumer FMCG industry
–
+
0
Has a
positive influence
on society
Acts
ethically
Cares for
its
employees
Is open and
transparent
about the
way the
company
operates
Cares for
the
environment
The Study
25

28. Involving customers in
creating new products and
services reflects a deeper
level of customer
engagement in China that
strengthens the relationship
dimension.
e. Delivering on promises
strengthens relationships and
corporate reputation
When it comes to the ‘relationship’
dimension of reputation (reflecting the
quality of a company’s relationship with
its customers), delivering on its
promises and good customer service are
the main drivers in China. This seems
reasonable as Chinese consumers buy a
product or service from a business,
thereby establishing a relationship,
albeit a transactional one. When
companies fail to provide or deliver,
consumers begin to doubt and lose
trust, which ultimately erodes the
relationship.
This is starkly different from the global
study where communicating in an
honest and sincere way is the most
significant driver of this dimension. The
Internet industry in China is the only
cluster that places considerable
importance on this aspect. In an
industry that operates in a virtual world
being authentic and truthful are
paramount to corporate reputations.
Interestingly, we see a high level of
openness across all four industries
under review in China where being open
to criticism and suggestions for
improvement impact corporate
reputations, especially in the consumer
electronics industry. Part of this may be
related to significant policies at
protecting consumer rights in China and
the industry’s response by welcoming
suggestions for improvement and
publicizing it.
Another notable item is the involvement
of customers in creating new products
and services in China with all industries
offering some level of participation. This
aspect was missing at the global level;
there was no statistical significance in
the FMCG industry. This reflects a
deeper level of customer engagement in
China that strengthens the relationship.
It also best illustrates that actions do
speak louder than words.
The Study
26
Impact of the relationship dimension
on the Reputation Core Index
Pharma Consumer electronics FMCG Internet
Delivers on its promises
Communicates in an honest and sincere way
Offers good customer service
Is open to criticism and suggestions for improvement
Involves the customer in the creation of new
products/services
0
+
–

29. Global
China
Top reputation drivers of the relational dimension
within the pharmaceutical industry
–
+
0
Offers
good customer
service
Delivers on
its
promises
Communicates
in an
honest and
sincere way
Is open to
criticism and
suggestions for
improvement
Involves the
customer in the
creation of
new products/
services
Offers
good customer
service
Delivers on
its
promises
Communicates
in an
honest and
sincere way
Is open to
criticism and
suggestions for
improvement
Involves the
customer in the
creation of
new products/
services
Global
China
Top reputation drivers of the relational dimension
within the consumer electronics industry
–
+
0
The Study
27

30. Global
China
Top reputation drivers of the relational dimension
within the FMCG industry
–
+
0
Offers
good customer
service
Delivers on
its
promises
Communicates
in an
honest and
sincere way
Is open to
criticism and
suggestions for
improvement
Involves the
customer in the
creation of
new products/
services
Offers
good customer
service
Delivers on
its
promises
Communicates
in an
honest and
sincere way
Is open to
criticism and
suggestions for
improvement
Involves the
customer in the
creation of
new products/
services
Global
China
Top reputation drivers of the relational dimension
within the Internet industry
–
+
0
The Study
28

31. The B2B industry earned
the highest reputation
core scores in China;
Consumer electronics
placed first globally.
Global Brands,
Local Reputation
A global corporate reputation might well
be the sum of local reputations in each
individual market, but how reputation is
constructed in those markets means that
each must be attended to with insight
and care. This is a significant challenge
not least given the growing importance
(and reach) of web-based
communication.
Respondents in China are more positive
of the reputations of the companies in
the study, where reputation scores
ranged from 84 to 63. A more telling
story are the differences between
industry clusters: the B2B industry
earned the highest reputation core
scores in China, well above consumer
electronics and retail industries and
compared to being ranked sixth out of
seven in the global study. In China, the
Internet industry ranks sixth in China,
which is far from second place globally.
The differences might be explained by
‘mind space’: consumer-focused
industries with a higher relatability for
the general public have a higher
reputation score in the study. Another
part could be attributed to the idea of
respect and how it’s related to
knowledge. The average Chinese
consumer may not be knowledgeable
about B2B companies but it doesn’t
preclude them from respecting them,
especially if they are Fortune 500
Companies. Third-party or independent
rankings provide some assurance of
positive corporate reputation but this
also raises the question about what
really generates like, trust and respect.
As far as local differences within the
global survey findings are concorned,
two particular areas stand out:
6
1. Europeans are more skeptical
about companies than
respondents from the BRICS
The average Reputation Core score for
companies was 66, across the 10
countries surveyed. However, the study
found that reputation varies significantly
between countries and companies: the
lowest Reputation Core score was 28
and the highest 91. Examining different
regions we observed that Europeans
rate companies much lower than their
counterparts in North America do, who
in turn lag behind respondents in the
BRICS countries surveyed – Brazil,
India, China and South Africa. Indian
respondents produced the highest
average Reputation Core score of 79,
while Swedish respondents evidenced
the lowest average Reputation Core
score of 51. The study demonstrates that
in general, Indians hold corporations in
very high regard, with the lowest
Reputation Core score among the
companies surveyed being 72. These
differences observed between ‘the old
world’ and ‘the new world’ underline the
need for a finely-tuned reputation
strategy, one that avoids a ‘standardized’
global definition of reputation.
FINDING
The Study
29

32. 2. There are considerable market
variations when it comes to a
company’s reputation score
Globalization has become one of the
most dominant business trends in the
last three decades, and a significant
amount of corporate and marketing
communications work is carried out
with the purpose of building a robust,
global corporate brand. Indeed, the
brands we have studied in this research
are companies with an impressive
global presence.
The study demonstrates that despite
having high brand awareness in all
markets, a company’s brand can have a
markedly different reputation in
individual countries. We found
numerous examples where both the
strength of the Reputation Core and the
associations people make with, and
discussions they have about brands
were very different.
For example, GlaxoSmithKline has a
Reputation Core Index score between 42
and 81, the highest being in India and
the lowest in Sweden. On the other
hand, AstraZeneca sees its Reputation
Core score vary between 52 in Canada
and 84 in Brazil. Taken together with the
previous finding regarding different
population’s overall attitudes to and
views of corporations (less skeptical in
Asia, more so in Europe), this highlights
the challenges facing marketing
communications leaders at global
brands, and the clear need for local
knowledge of the stakeholder
environment.
The Study
30
Global
China
Sector scores for the 7 industries covered in the study
–
+
0
HealthcareB2B Automotive Consumer
electronics
Internet Consumer
retail
Banking/
financial
services
69
81
72
80
71
80
69
79
75
79
73
78
71
77

33. Showing the difference in
Reputation Core across countries
ReputationScore
79
76
75
74
67
64
61
60
59
51
Stronger
Weaker
India
Brazil
China
South Africa
United States
Canada
United Kingdom
Germany
France
Sweden
New world
Old world
The Study
31

34. Globalization has become
one of the most dominant
business trends in the last
three decades.
90
0
–
81
76
69 67
57 56 56 54 52
India Brazil China South Africa Canada United
States
United
Kingdom
Germany France Sweden
42
The Reputation Core score of
GlaxoSmithKline in different countries
90
0
–
84
78 77
68
58 57 56 54 52 52
Brazil China India South Africa Germany United
States
France United
Kingdom
Sweden Canada
The Reputation Core score of
AstraZeneca in different countries
The Study
32

35. Use it, Like it, Recommend
it: The Drivers of
Recommendation (NPS)
• Reputation drivers linked to actual
consumer experience are more
important for driving NPS than they
are for corporate reputation.
• There are some differences between
industries, but those differences are
not as distinct as for the drivers of
reputation.
Some have called it ‘the ultimate
question’: Would you recommend a
company to a friend or a colleague? Our
survey attempted to answer this
question by asking respondents to tell
us how likely they were to indeed
recommend the companies surveyed.
Respondents were asked to rate a
company from 0 (‘not at all likely’) to 10
(‘very likely’). By looking at the number
of ‘9’ or ‘10’ answers and subtracting
them from the 0–6 answers, the survey
produced an NPS. While an NPS can be
negative, most successful companies
have a number of dedicated promoters
or fans and therefore a high NPS score
(more than +50). Independent research2
2.
Marsden, P, Alain Samson and Neville Upton (2005),
‘Advocacy Drives Growth’, Brand Strategy
(198), pp.45–47.
7
has shown a link between a high NPS
score and business success in terms of
sales.
In this study we correlated high NPS
scores (where respondents indicated
either 9–10) with the Reputation Core. In
all countries, there was a clear
correlation between a strong reputation
and a high NPS score. While this
conclusion in itself won’t raise many
eyebrows, we were able to further
analyze the factors behind this
correlation and uncover precisely which
reputational elements have the strongest
impact on NPS. What we discovered is
that the area of reputation that is most
strongly linked to a high NPS score is
the perception of products and services.
As was the case with overall reputation,
the dimension with the least impact on
NPS among the general public is a
company’s financial performance.
Reputation dimensions as
drivers of NPS
Financial
performance
Relationship Corporate behavior Products and services
0
–
+
FINDING
The Study
33

36. As for any differences between markets
with regard to what drives NPS, we
found none. In all markets, being good
at delivering your offering builds
recommendation levels the most.
At the industry level, we did see some
differences with regard to what drives
NPS, but those differences are not as
significant as for the reputation drivers.
One interesting variation is that a
company’s financial performance is a
positive factor for NPS in the consumer
electronics, FMCG, and particularly the
internet industries. Only where the
pharmaceuticals industry is concerned
do we see a negative impact. One
further difference is that the relationship
dimension is more important, and will
become even more important, when
compared to ethical business behavior
as a driver of NPS within the consumer
electronics industry.
While the importance of the different
dimensions where NPS is concerned is
much the same as it is for the
Reputation Core Index, the ranking of
the specific drivers is slightly different.
‘Offers high-quality products and
services’ still has the largest impact, but
‘produces its products in a sustainable
way’ has a bigger impact on NPS than
products being seen as value for money
and meeting customer needs.
To have a ‘positive impact on society’ is
more important for NPS than to ‘act
ethically’, which is similar to the impact
of this dimension on corporate
reputation. ‘Caring for employees’ has
the third largest impact in the category
for NPS, but this piece is of low
significance when it comes to building
corporate reputation.
With regard to the relationship
dimension, the ranking is also different.
‘Delivering on promises’ is the most
impactful question for NPS, followed by
‘delivering good customer service’ and
‘communicating in an honest and
sincere way’. This is also the inverse of
the ranking where impact on reputation
is concerned.
Not surprisingly, from the observations
above we can see that the drivers linked
to actual consumer experience are more
important for driving NPS than for
corporate reputation. This underlines the
need to carefully evaluate and balance
the message depending on the purpose
of, and audience for communication.
The area of reputation that
is most strongly linked to a
high NPS score is the
perception of products and
services.
NPS Driver Strength by Industry Financial performance
Relationshiip
Corporate behavior
Products and services
0
– Consumer electronics Internet FMCG Pharma
+
The Study
34

37. The importance of
perception of products and
services is supported by
our analysis of online
content from the
10 sample companies.
Social Media Discussions
Reflect the Relative
Impact of the Reputation
Dimension on Corporate
Reputation
The Reputation Impact Indicator
includes an analysis of the relationship
between corporate reputation and
discussions on social media.
The importance of perception of
products and services is supported by
our analysis of online content from the
10 sample companies. For companies
selling products directly to consumers,
the proportion of social media content
related to the products and services
varied between 50–90%. Products and
services is also the reputation area
where we observed the most ‘organic’
posts, i.e. content and conversations that
8
are sustained without active
involvement from the companies in
question. A majority of the
conversations relating to the company
products and services were positive.
Also in line with the importance of the
reputation drivers, the other area where
we observed a number of ‘organic’ posts
was topics relating to a company’s
corporate behavior. These topics created
a high degree of engagement, with
conversations focused on ethical
conduct, transparency, and consumer
rights. In contrast with conversations
around core business, most of the
conversations around corporate
behavior were negative. Linking this to
the main area of research, we noticed,
perhaps unsurprisingly, that companies
with a poor corporate reputation,
evidenced by a low Reputation Core
Index, appeared so largely due to
negative perceptions of their position on
corporate behavior.
FINDING
Online content classified into
the three dimensions of
corporate reputation
1. McDonald’s
2. BP
3. GoldmanSachs
4. Citibank
5. Shell
6. PayPal
7. Microsoft
8. Johnson & Johnson
9. Samsung
10. Google
Perception of products and services
Perception of corporate behavior/CSR
Perception of financial performance
10 20 30 40 50 60 70 80 90 100
Values in percentage points, from data derived through a qualitative and quantative analysis of a sample of content
for each company in each of the 10 countries.
The Study
35

38. 36% of the respondents in
the study said that online
channels are their main
source of information
about companies.
Demographics and
Media Habits Matter
The development of the Reputation Core
Index among different age groups in
China follows a different pattern in each
of the four industries. Where Internet
companies are concerned, reputation is
highest in the years immediately after
university and lowers among
middle-aged respondents but rises again
at 51-55 years. The FMCG and
consumer electronics industries follow
each other closely until about 36 years
where they start diverging – FMCG
reputation is highest among the 46-50
year olds.
The reputation of pharmaceutical
companies is the most striking – the
reputation score peaks among 51-55
year olds but are the lowest in the age
groups before and after. This differs
widely from other industries where
scores generally weaken after 50 years.
This reveals a remarkable picture of
Chinese consumers whose perceptions
about corporate reputation shift widely
in old age. It’s reasonable to expect
strong reputation scores for
pharmaceutical companies for older
respondents– there’s an increasing need
for medicines and other health services
when we age. But the dramatic rise and
9
slope suggests some groups may be
targeted.
We also see a link between reputation
scores and the educational level of the
respondents with the highest reputation
scores emerging from respondents with
college or university degrees among all
industries. We also found high
reputation scores among respondents
with secondary education levels in the
FMCG and pharmaceutical industries.
Students seem to be generally skeptical
in the study with lower reputation scores
overall, except for the consumer
electronics industry where it rated high.
This suggests that more education
increases knowledge and improves
understanding about companies, thus
helping them form positive opinions
about reputation.
The study also reveals a relationship
between online habits and the
Reputation Core Index: more time spent
online results in a higher reputation
score. This is particularly evident in the
pharmaceutical industry followed by
FMCG and consumer electronics.
Surprisingly, those who spent less than
one hour online scored consumer
electronics companies higher.
The research highlights the increasing
importance of digital channels as a
source of company information.
Whether it comes from corporate
websites or social media, online content
is critical to reputation management.
FINDING
Secondary
College, university
Still studying
Reputation Core Index and education level*
Prescription drugs FMCG Internet Consumer electronics
0
–
+
* Primary school were excluded due to the low number of respondents
The Study
36

39. Industry Reputation
Core Index by age group in Global
Pharma
Consumer electronics
FMCG
Internet
80
0
16–17 18–22 23–26 27–32 33–35 36–40 41–45 46–50 51–55 56–60 61–65 65+
Industry Reputation
Core Index by age group* in China
Prescription drugs
FMCG
Internet
Consumer electronics
100
0
16–17 18–22 23–26 27–32 33–35 36–40 41–45 46–50 51–55 56–60
* Age 16-17 and 56- were excluded due to the low number of respondents
The Study
37

40. Where do you mainly get your
information about companies?
Breakdown:
1. Company websites 16%
2. Twitter 1%
3. Facebook 5%
4. Other online source 14%
5. Other 1%
6. Newspaper ads 10%
7. Newspaper stories 10%
8. TV ads 13%
9. TV news 17%
10. Radio ads 2%
11. Radio news 3%
12. Magazine ads 1%
13. Friends or family 7%
The rest:
36%online
6
7
8
9
101112
13
12
3
4
5
The Study
38

41. Reputation Core Index and
online usage
80
Less than 1 hour
1–3 hours
3–6 hours
More than 6 hours
Pharma Consumer electronics FMCG Internet
0
40
Reputation Core Index and
education level
Primary
Secondary
College, university
Still studying
80
Pharma Consumer electronics FMCG Internet
0
40
More time spent online
results in a higher
reputation score
The Study
39

42. The Observation
40
The Observations
Lusha Niu
Director
“...A company that is lit up from the
inside and committed to use its
influence for the betterment of
individuals or society speaks to the
heart of Chinese people, thus
earning unconditional
trust – and strengthening "Mind
Space” – from stakeholders.”

43. Lusha Niu
Director
for MSLGROUP China
In the Age of Earned
Trust, is Your Corporate
Reputation Reputable?
The meaning of reputation differs around the world – the meanings aren’t
always precise but they’re also not incorrect. The MSLGROUP Reputation
Impact Indicator study is our attempt to fill in the gaps and present a
logical, reasonable, and actionable solution to the reputation puzzle. We
now understand three important conclusions from this research:
1) While brands can be global, a company’s reputation is very much
shaped at a local level;
2) The ‘Mind Space’ of stakeholders has significant influence over a
company’s reputation;
3) To develop reputation-enhancing content for a company, we need to
identify specific reputation drivers and address the reputation core.
Armed with this knowledge, how can I build, re-build, maintain or
improve the reputation of the company I work for or own?
Trust at first sight does exist in China
Chinese people are characteristically suspicious – we have been ingrained
to cast doubt on everything in our lives. So when we learned that China is
more optimistic about the reputations of companies, we didn’t believe it.
Yet the results spoke for themselves: Chinese respondents on average
gave higher reputation scores to the 41 companies in the study, and
respondents from Sweden, France, Germany and the United Kingdom are
comparably more skeptical. We are actually living in a less ‘harsh’ part of
the world and we don't realize it.
Great news but what can or should we do with this new information?
Develop trusting relationships with our stakeholders by delivering
on our promises
Our study shows that among four industry clusters (Pharma, FMCG,
Internet, and Consumer Electronics), Chinese respondents rank ‘delivers
on its promises’ as the number one driver of a company’s reputation
when looking at the strength of its relationships with customers. This
aspect doesn’t even register on some industries at the global level.
Why is that?
41
The Observations

44. Just as the oxytocin
hormone in the human
brain could increase trust,
‘Mind Space’ is your
corporate oxytocin. If we
can build a stronger ‘Mind
Space’ in people, we can
move the needles of
corporate reputation to
make it more trustworthy.
The answer lies in Wuchang (‘五常’) or the Five Constant Virtues of
Confucius. He regarded Xin (信) as one of the five most important values
of humanity, which had become compromised during the last four
decades of China’s opening up. It’s inevitable that some areas are
overlooked to allow a nation to prosper economically. However,
individuals, businesses and the government suffer in various ways.
Now we are beginning the process of restoring that trust and people are
quickly valuing trust more than ever before. Before, Internet start-ups
could excel in business with a star CEO, but now, they have to deliver on
their promises just to stay in the competition. Consumer electronics
companies can no longer rely on the clout of brand names and fancy new
product launches to keep market share – they have to deliver on their
promises. Companies in the FMCG and pharmaceutical industries must
also change to preserve their reputations in China.
Reputation-enhancing content is not what it is, but what it can be
Companies need to do more than just grab attention, it needs to create an
impression that allows stakeholders to easily think about it thus
increasing the chances of making it the brand of choice. We call this
‘Mind Space’ - the strength or quality of brand awareness – and there is a
positive correlation between ‘Mind Space’ and a company’s reputation.
Just as the oxytocin hormone in the human brain could increase trust,
‘Mind Space’ is your corporate oxytocin. If we can build a stronger ‘Mind
Space’ in people, we can move the needles of corporate reputation to
make it more trustworthy.
So how exactly does that work?
Move away from ‘we know best’ and move into ‘we know how to
make it best for you’
This is not easy. It requires a 180-degree change in mindset, but this
should be the guiding principle of any business that wants to succeed in
China today. When describing corporate behavior, both Chinese and
global respondents rank ‘has a positive influence on society’ top of the list
across all industry clusters. But what does ‘positive influence on society’
mean in today’s China context?
Our study shows that China values an inspiring and uplifting company
vision more than other countries. A company that is lit up from the inside
and committed to use its influence for the betterment of individuals or
society speaks to the heart of Chinese people, thus earning unconditional
trust – and strengthening ‘Mind Space’ – from stakeholders.
Companies, large or small, are in great need – more than ever before – of
defining and presenting its own vision to local audiences and ensuring all
actions and operations support this locally. Some of the most successful
global companies failed our reputation test in China because they never
spoke to the ‘Mind Space’ of Chinese consumers. Companies that rely on
Hong Kong or Singapore as their gateway to mainland China today limit
their chances to go through that gate in the future. As our study proves,
reputation is your license to operate and it definitely is local.
42
The Observations

45. Mastering the balancing act between the court of law and the court
of public opinion can help build a reputable local operation
We have seen too many examples of companies succeeding in the rule of
law but failing miserably in the court of public opinion in China. As we
operate in the age of earned trust, even courts are sometimes constrained
by public opinion. With the absence of any formal government lobbying
mechanism in China, the only effective channel left for companies to
change public perceptions is by having a direct conversation with the
public and the respected elite.
Make communication strategy part of your China business strategy
Parachuting a US or European-centric communication framework to
China does not increase your company’s reputation locally. China no
longer admires other people or other countries for their qualities or traits.
China admires companies that are truly improving the lives of its people,
leaders for inspiring employee excellence, and behaviors that are full of
care and respect.
As communications becomes even more fragmented and digitized by the
second, a sound reputation is no longer a life-long goal. How can we
communicators seize that high reputation moment and maximize it before
the next trend or moment arrives? Money and effort aside, it takes
wisdom and knowledge to transform that what it is today to what it can
be tomorrow.
At MSLGROUP, we believe the journey to help businesses succeed in the
age of earned trust is just beginning: A reputation in China is your
relationship with China.
43
The Observations

46. About the Editor:
Pär Uhlin is a consultant in the
Corporate Communications practice
at MSLGROUP in Stockholm. He has
a rich experience from communication
in a global environment, and has spent
15 years in Asia working at MSLGROUP
offices in Beijing, Hong Kong, and
Shanghai. Pär has been a senior advisor
to several large multinationals in Asia
and has considerable experience in
both crisis and reputation management.
He has a Bachelor’s degree in Business
Administration with a Major in
International Marketing, and a Master’s
degree in Asian Studies, from the
University of Stockholm, Sweden.
About the Editor for China Section:
Tzyy Wang applies nearly two decades
of corporate advisory and strategic
communications expertise in the US
and China to enhance MSLGROUP
China's reputation-building initiatives.
She particularly focuses on producing
impactful content for audiences and
enriching teams with global viewpoints.
44

47. About
MSLGROUP
China
As a Business-Driven Communications
Consultancy, we’re focused on
delivering INTEGRATED, creative
programs through data-based
INSIGHTS, and driven by making a real
IMPACT on business through strategic
communications in the digital age.
MSLGROUP China is a full-service
strategic communications and social
engagement consultancy with more than
200 staff in Beijing, Shanghai,
Guangzhou and Chengdu delivering
business results for some of the world’s
most valuable brands. We were named
‘China Agency of the Year’ twice within
four years by The Holmes Report.
MSLGROUP also won accolades from
SABRE, the International PR
Association, the China PR Association,
the International Business Awards, and
China’s New Media Festival.
About
MSLGROUP
We are Publicis Groupe’s strategic
communications and engagement
group, advisors in all aspects of
communication strategy: from consumer
PR to financial communications, from
public affairs to reputation management,
and from crisis communications to
experiential marketing and events.
45

48. MSLGROUP.CN
Wei Wei
Marketing Head
wei.wei@mslgroup.com