Slide 1

Nicolas Trad,
Managing Partner, Reputation Institute

Reykjavik 2006
By Reputation Institute 2006

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Slide 2

• Reputation Institute concepts
• Global reputation results: RepTrak Pulse

By Reputation Institute 2006

2


Slide 3

• Reputation Institute concepts
• Global reputation results: RepTrak Pulse

By Reputation Institute 2006

3


Slide 4

RI – A thought leader with global authority

•
•
•
•

Books
Quarterly magazine
Membership network
Research

By Reputation Institute 2006

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Slide 5

RI – a leading reputation consulting group

By Reputation Institute 2006

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Slide 6

Purpose of Reputation Consulting:
To focus all communications & initiatives

Before RC

After RC
CEO
CM

MC
CEO

CRO
VP, Mkg

VP, Mkg

VP, Comm.

VP HR.
RM Strategy

VP HR

Ad

VP, Comm.

PR
Mkg. Con

Dir. Mkg

Ad

CM

PR
Dir. Mkg

Mkg. Con

By Reputation Institute 2006

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Slide 7

Reputation Management isn’t about SPIN…
You need to balance perception and reality.
Reputation: Comes from both Reality & Perceptions

Change is required to
alter ‘reality’ and
minimize reputational
risk.

RISKS
Good
Action is required to
capitalize on good
reality and overcome
poor perceptions.

Perceptions

Bad
OPPORTUNITIES
Bad

Good
Reality
By Reputation Institute 2006


Slide 8

Good reputations create economic value
Strategic Objectives

Performance

Strategic
Initiatives

By Reputation Institute 2006

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Slide 9

Good reputations create economic value
Strategic Objectives

Strategic
Initiatives

Performance

Stakeholder Support
for the Company
– Buy product/service

– Recommend
– Trust
– Invest
– Verbal support

Reputation of a company
- Innovation

- Offerings
- Workplace
- Performance
- Citizenship
- Governance

- Leadership
By Reputation Institute 2006

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Slide 10

You can’t manage what you don’t measure…
RepTrak™ Model

By Reputation Institute 2006

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Slide 11

Reputation is built on 7 dimensions

RepTrak™ Model

RepTrak Pulse

By Reputation Institute 2006

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Slide 12

Crises affect Lower Reputation Companies
more Significantly
Crisis
Strikes

20

Higher Reputation
Companies

Avg CARpt (%)

15
10

Index of
5
Adjusted
0
Market
Returns % -5

Lower Reputation
Companies

-10
-15
-20
1

17 33 49 65 81 97 113 129 145 161 177 193 209 225 241 257
Event Trading Days

A Study that Compared 17 Crises Demonstrates that Significant Financial Value is Lost for all Firms, but Hits
Lower Reputation Companies more Significantly
Source: D. Petty, Corporate Reputation Review,2001
By Reputation Institute 2006

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Slide 13

• Reputation Institute
• Global reputation results: RepTrak Pulse

By Reputation Institute 2006

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Slide 14

Over 95,000 Consumers Ratings in 25 Countries
The Global RepTrak™ Pulse 2006 measured over 700 corporate reputations in
25 of the World’s largest countries

Number

Country

Number of
Ratings

1

Netherlands

4,672

2

France

4,465

3

Germany

4,137

4

Switzerland

6,269

5

Denmark

6,500

6

Spain

3,869

7

Finland

1,700

8

UK

5,960

9

Italy

2,650

10

Norway

4,821

11

Poland

1,452

12

Sweden

5,589

13

Australia

6,564

14

USA

9,634

15

C anada

2,329

16

Mexico

1,556

17

C hina

11,622

18

Russia

2,126

19

Argentina

1,587

20

Brazil

3,139

21

C hile

1,484

22

India

2,721

23

Japan

4,438

24

South Korea

948

25

South Africa

2,276

By Reputation Institute 2006

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Slide 15

Global Industry Reputations

73,7

Electronics

71,0

Beverage

70,6

Food
Retail

69,4

Aerospace & Defense

69,3

Computers

67,6

Automotive

67,4
65,1

Conglomerate
Travel

64,7

Transport/Logistics

64,5

Media

64,0

Industrial

64,0
62,5

Chemicals/Pharma
Insurance

61,2

Banking - Commercial

61,0

Natural Resources

60,9

Consumer Products

60,6

Technology
Telecomunications Services

Telecommunications - worst
reputation in the world

Electronics -the best
reputation in the world

60,2

Services
Diversified Financial

Industry reputation differ

58,0
57,7
55,2

By Reputation Institute 2006

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Slide 16

Top Managers are very important
in creating a strong reputations

100
90 86,4

83,1

80

81,0
76,0

70

74,1 73,8 73,6 73,3
71,7 71,6 71,5 71,4 70,2
69,4 68,8

60

65,1 63,9
63,2 63,0 62,4
60,7 59,5

57,6 56,2 55,9

50
40
30
20

Spain

United Kingdom

Netherlands

Japan

France

Sweden

Norway

Italy

Argentina

Germany

Switzerland

Canada

US

Russia

Australia

India

South Korea

Poland

Brazil

Chile

Mexico

Finland

China

South Africa

0

Denmark

10

Q: Top managers have a strong effect on the
reputations of their companies
Top 2 box ratings (6,7)
By Reputation Institute 2006

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Slide 17

Unethical behavior impacts buying behavior
60.5

Brazil
Italy

57.2

Finland

56.1

Norway

55.7

United States of America

52.1

France

51.8

Chile

50.3

Switzerland

49.8

Canada

48.8

China

48.4

Poland

47.9

Denmark

46.5

Australia

46.2

Mexico

45.7

Spain

43.8

India

41.2

Argentina

40.9

Sweden

40.4

Germany

38.5

United Kingdom

33.6
31.7

South Africa

30.9

Netherlands

30.3

Russia

Ethical behavior is a risk and
an opportunity

42.8

South Korea

Japan

Lack of ethical leadership
heavily influences supportive
behaviors and performance

27.0

Q: In the past I have refused to
buy the products of a company
whose top managers had behaved
unethically
Top 2 box ratings (6,7)
By Reputation Institute 2006

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Slide 18

Leadership is a driver in

attracting employees
South Africa

89.5

China

86.9

South Korea

83.7

Brazil

82.5

Canada

78.4

India

77.5

Norway

73.7

Russia

73.0

United States of America

71.5

Denmark

70.4

France

66.7

Chile

66.6

Sweden

65.6

Mexico

61.8

Poland

61.4

Finland

60.6

Switzerland

60.2

Argentina

54.2

Italy

52.5

United Kingdom

52.0

Germany

51.0

Japan

Spain

The role of the leader varies
around the world

68.4

Australia

Netherlands

Strong and appealing leaders
can be used as a competitive
advantage in attracting new
employees

47.3
45.0
39.1

Q: I would prefer to work for a
company with a strong and
appealing leader
Top 2 box ratings (6,7)
By Reputation Institute 2006

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Slide 19

Leaders are not trusted by the
general public around the world
South Africa

53.5

India

36.7

Mexico

35.6

Brazil

35.4

China

35.2

Finland

32.0

Denmark

31.9

Chile

30.2

South Korea

Developing countries have the
highest trust

28.3

Canada

22.9

Spain

20.6

Switzerland

19.3

United States of America

18.7

Norway

18.6

Sweden

A major opportunity since trust
is low

17.0

Argentina

15.9

France

15.3

Australia

14.7

Netherlands

14.7

United Kingdom

13.4

Germany

13.3

Russia

13.2

Poland

Leaders are not to be trusted

11.4

Japan

9.9

Italy

9.8

Q: Most companies are run by
respected leaders
Top 2 box ratings (6,7)

By Reputation Institute 2006

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Slide 20

Scandinavian Companies included in the
Global RepTrak Pulse 2006
RepTrak™ Pulse in DENMARK

RepTrak™ Pulse in FINLAND

A.P. Møller - Mærsk
Arla Foods
Carlsberg
Danisco
Danish Crown
Danske Bank
Egmont
ISS
JYSK
LEGO
Lundbeck
TDC
Vestas

Fortum
Kesko Group
Kone
Metso
M-real
Nokia
Outokumpu
Sampo
Stora Enso
UPM-Kymmene

RepTrak™ Pulse in NORWAY

RepTrak™ Pulse in SWEDEN

Aker
Coop
DnB Nor
Hydro
Norske skog
Orkla
Rema 1000
Statoil
Storebrand
Telenor
Veidekke

Coop
Electrolux
Ericsson
Hennes & Mauritz
ICA
IKEA
Nordea
SCA
SEB
Skandia
Skanska
Sony Ericsson
TeliaSonera
Vattenfall
Volvo Personvagnar
By Reputation Institute 2006

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Slide 21

And the winners are…
RepTrak™ Pulse in
DENMARK

RepTrak™ Pulse in
FINLAND

RepTrak™ Pulse in
NORWAY

RepTrak™ Pulse in
SWEDEN

By Reputation Institute 2006

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Slide 22

Take aways…

• Reputation IS important for driving supportive
behaviors of your stakeholders
• You HAVE to create balance between perception
and reality
• Top management reputation is very important
in creating a strong reputations
• Currently there is LITTLE trust in top management
• Its important to work with repuation consulting to
secure that all parts of the organisation work in the
same direction
By Reputation Institute 2006

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Slide 23

RI’S NEXT INTERNATIONAL CONFERENCE
OSLO, NORWAY – MAY 2007
WWW.REPUTATIONINSTITUTE.COM

By Reputation Institute 2006

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