3. “ Why does having a
strong reputation matter
for my company? ”
2010 Corporate Reputation Findings: Master Deck Proprietary and confidential. Do not distribute. 1
4. FINANCIAL STRENGTH
Over a 13-year period, the top 10 companies
on Fortune Magazine’s Most Admired
rankings showed an average stock price
increase of 20.1%, while the average
increase for the S&P 500 was only 13.1%
On the other hand, the 10 firms at the bottom
of the rankings showed an average decline in
stock price of 1.9%
2010 Corporate Reputation Findings: Master DeckAPCO worldwide 2009
Source: Measuring your return on reputation, Proprietary and confidential. Do not distribute. 2
5. HIGHER SALES and PRICE PREMIUMS
U.S. consumers are 4 times
more likely to pay a premium,
and 15 times more likely to
recommend a leading
company’s products/services
versus others
2010 Corporate Reputation- Findings: Master Reputation Study
Source: Prophet 2010 2011 Corporate Deck Proprietary and confidential. Do not distribute. 3
6. HIGH QUALITY TALENT
In a recent study,
83% of MBA students
said a company’s
reputation is extremely
or very important to them
when choosing an
employer
2010 Corporate ReputationThe War for Talent” by Hill and Knowlton; survey conducted November 2007; report published in 2008 Proprietary and confidential. Do not distribute.
Source: “Reputation & Findings: Master Deck 4
7. Framework for measuring reputation
Prophet has a framework for measuring corporate reputation
Prophet’s Corporate Reputation Framework:
The face of the company and a
key vehicle for supporting and
driving reputation-building efforts
The overall measure of
reputation that gauges the degree
to which customers trust, admire,
and respect a company
The key drivers of a
company’s reputation. There
are over 30 attributes across
the 6 pillars
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 5
8. The six pillars of reputation
The reputation pillars allow for deeper understanding on what areas are
influencing a company’s overall reputation
People Pacesetters Products
Describes the company’s Describes the quality of a Describes how the company
employees and workplace company’s leadership, delivers value to end-users
environment vision, and governance
Performance Purpose Personal Relevance
Describes the company’s Summarizes the company’s Reflect the way a company
financial and operational track approach and commitment to connects with its
record making the world a better stakeholders on an
place emotional level
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 6
9. Corporate reputation study
Prophet conducts an annual reputation study that measures the reputations of
145 companies among ~5,000 U.S. consumers
2010 Industry Selection Criteria Industries
18 industries are included in the Financial Services Entertainment Auto
reputation study: Pharmaceutical Delivery Services Airline
• Highly scrutinized Healthcare Fast Food Hotel
• Well known to the general public Energy/Utility Chemical Agriculture/Industrial
• Have fortune 500 companies
Insurance Oil & Gas CPG
Retail Technology Miscellaneous1
ILLUSTRATIVE
2010 Company Selection Criteria
• Fortune 500 industry ranking (by
revenue)
• In Fortune’s World’s Most Admired
Companies
1 Miscellaneous includes GE, Boeing, Philip Morris, 3M, and Avery
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 7
10. Reputation metrics
Reputation Management The measure of a company’s overall reputation and
Index (RMI): the basis for overall company rankings and scores
Strength of Overall Reputation
A sub-set of the 30+ attributes (e.g., reliable
Drivers of Reputation: customer service and support) with the greatest
Attributes Most Important to Reputation
influence on a company’s reputation
The measure of how well consumers believe a
Performance Score: company is performing on specific attributes and is
Respondent Rating on Attribute
presented on 100 point scale
Leading Greater than 75
RMI and Performance Strong 70 – 75
Score Scale Average 60 – 69.9
Poor 55 – 59.9
Failing Below 55
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 8
11. 2010 industry rankings
CPG and delivery services have
the highest, “leading” reputation
scores
Healthcare, financial services
and oil and gas have the lowest
industry reputation scores
Industry Statistics
Mean – 65.0 High Score – 75.9
Median – 65.7 Low Score – 46.4
1Difference
between 2010 and 2009 is statistically significant at the
95% confidence level
Miscellaneous industry includes GE, Boeing, Philip Morris, 3M, and
Avery
Source: Prophet data - based on US representative sample
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 9
12. 2010 top 10 drivers of reputation
Products, personal relevance and pacesetters are key to driving reputation
across industries
2010 Top 10 Cross-Industry Reputation Drivers
Products/services Personal Relevance Performance Pacesetters Purpose People
# Attribute Reputation Pillar
1 The company’s products and services make a difference in my life Personal Relevance
2 I look to this company for the newest products, services, and technologies Products/Services
3 Behaves in an ethical manner Pacesetters
4 Gives me peace of mind Personal Relevance
5 Is open Pacesetters
6 Offers reliable products and services Products/Services
7 Is for people like me Personal Relevance
8 Communicates clearly Pacesetters
9 Balances priorities Pacesetters
10 Has high quality products and services Products/Services
Source: 2010 Prophet reputation study
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 10
13. Role of the purpose pillar
The purpose pillar includes attributes that describe the company’s approach to
making the world a better place
Purpose attributes
• Environmentally responsible
• Gives money to good causes
• Volunteers in its communities
• Socially responsible
The importance of the purpose pillar is growing over time…
Number of 2009 2010
industries with
purpose attributes
among the top 10
drivers 2 5
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 11
14. Where does “purpose” matter
Purpose attributes have moved up into the top 10 drivers in industries including
Chemical, Agriculture, Oil & Gas, Delivery Services and Pharmaceutical
Industry Top 10 Drivers
Agriculture • Socially responsible
• Socially responsible
Chemical
• Volunteers in its communities
Delivery Services • Environmentally responsible
• Environmentally responsible
Oil & Gas
• Socially responsible
• Socially responsible
Pharmaceutical
• Volunteers in its communities
Social and environmental responsibility and volunteerism are increasing in
importance. Giving money is no longer enough.
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 12
15. Why does “purpose” matter
As social & environmental responsibility becomes more important, their impact on
reputation in other industries is likely to increase with some already seeing
purpose attributes increasing in importance
Auto Healthcare Energy/Utility
Environmental Social Environmental
Responsibility Responsibility Responsibility
2.5x
More important in
2x
More important in
1.5x
More important in
2010 than in 2009 2010 than in 2009 2010 than in 2009
Fuel Efficiency Responsible Renewable
Pricing & Policies Energy
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 13
16. Case study: U.S. automakers
Ford’s renewed
focus on their
products, including
their fuel efficient
design has helped
improve the
company’s
reputation
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 14
17. What does it all mean?
Products and services will always be critical to
driving a companies reputation but…
Over time, as reliable products and services
become expected, outdoing the competition on
areas related to purpose will likely help separate the
reputation winners and losers
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 15
18. For more information please contact:
Jeff Smith
Partner
(312) 878-4921
jsmith@prophet.com
www.prophet.com
2010 Corporate Reputation Study Results Proprietary and confidential. Do not distribute. 16
