corporate reputation research and increasing the value of ...€¦ · in the case of the corporate...

Final Version 1 | Public

Corporate reputation research and increasing the value of

reputation

Istanbul 2014

Matt Williams, Ipsos Reputation Centre

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Introduction

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Final Version 1 | Public © Ipsos MORI

The Ipsos MORI Global Reputation Centre

- Specialists in reputation and corporate

communications research

- Simple aim – to help clients build more resilient

reputations through stronger relationships with their

core stakeholders

Drawing on three main sources:

1. The Reputation Council – 113 top global Comms

Heads from world’s leading brands

2. Global @dvisor – tracking public opinion across

24 countries

3. Real client experiences and data

4 4 4 4 4 4 Fundamentally…

Your brand is what you say to the world. It is the

promise you make.

Your reputation is what the world says about you.

Our role is to understand the difference between them – the

extent to which your promise is understood and believed and the

perception that you are delivering on that promise.

Reputation in context - stakeholder

communications channels

Brand is what you say to the world

In the case of the corporate brand it is

the promises you make to a variety of

stakeholders

Reputation is what the world

believes

It can generate a positive or

negative halo around your

organisation

Brand equity is your ability to generate

positive stakeholder behaviour

Based on the degree your promise is

matched by reality.

Corporate

Brand

Corporate Brand Equity

To do business with – Work with – Attract talent – To invest in

Customers – Investors - Partners

Maintain

value

Create

value

Reputation Halo

C

O

N T

E

X

T

Trust Trust

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Reputation Building Blocks – Ipsos model for

monitoring progress

Advocacy

Trust

Favourability

Familiarity

Awareness

Have I heard

of you?

Would I recommend you? Buy from,

work for/with or invest in you?

Do I like you?

What do I know

about you?

Can you be trusted?

Building blocks that determine reputation strength

Progress up the reputation

pyramid increases business

opportunities , employee

motivation and license to

operate

7


13

3

8

32

47

42

53

46

11

11

11

11

% Unfavourable % Very favourable

All Stakeholders

Know a lot about xxx

Know a fair amount about xxx

Know xxx just a little

% Mainly favourable

For the most part, familiarity breeds favourability, not contempt

Q How favourable or unfavourable is your overall opinion or impression of XXX company.

*Real data drawn from global client study – B2B

9

4

2

8 8 8 8 8 8

Reputation within a challenging

and changing business context…

9


In this digital era we are subject

to greater scrutiny from our

consumers, our clients, the mass

media…

…and that causes companies to

measure their performance not

only from their financial success,

but also their social impact

Ipsos MORI

Reputation

Council member

10 10 10 10 10 10 Greater scrutiny

Businesses operate in an increasingly transparent, connected

world.

Quick-fire, democratic communications let us all hold leaders to

account.

Social media and peer-to-peer influence mean reputations can be

built and destroyed at the click of a button.

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Grand Total

Europe

North America

Latin America

Russia

77%

76%

94%

96%

71%

113 Ipsos MORI Reputation Council Members

Three-quarters of Comms Directors feel social media is

influential in shaping corporate reputation

How influential do you think social media is in shaping a company’s

reputation?

12


13 13 13 13 13 13 Rocketing expectations!

Today, customers, employees & stakeholders demand evidence

that companies act responsibly and bring shared value.

Show me what you contribute to my world.

Why should I believe in you?

14


How important is it for large companies to articulate

their social purpose or contribution to society?

113 Ipsos MORI Reputation Council Members

15


“I try to buy products from brands that act responsibly, even if it means

spending more”

79%

76%

74%

65%

64%

59%

58%

57%

54%

52%

51%

48%

48%

47%

47%

44%

44%

41%

39%

36%

34%

5%

3%

6%

6%

11%

5%

9%

10%

10%

10%

16%

11%

13%

12%

10%

7%

15%

17%

11%

16%

20%

20%

29%

25%

29%

37%

34%

36%

38%

39%

39%

36%

42%

40%

44%

46%

53%

46%

48%

55%

China

Turkey

India

S Korea

Brazil

Argentina

S Africa

Italy

Total

Sweden

Australia

Russia

Poland

Spain

US

Canada

Germany

France

GB

Japan

Belgium

1

2

3

4

5

6

8

7

T

9

10

11

12

13

14

15

16

17

18

19

20

• 16,039 consumers

• 20 countries

54%

36%

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And… a trust deficit

18,331 adults in 24 markets

Turkey

49%

17


Today an organisation is

responsible not just for the truth

of its message, but for the totality

of its behaviour.

More than ever, a brand is what a

brand does, even more than what

it says.

The Arthur W. Page

Society

18 18 18 18 18 18

In summary...

Against this backdrop, it has

never been more important

to build a strong reputation

19 19 19 19 19 19

At Ipsos we talk about a good reputation having

present and future value…

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Regulatory risk

A good reputation has both present and future value

Past Present Future

Past actions define

present reputation

Attract Employees

Credibility to talk about issues

Maximising comms

Efficiency

Building goodwill

/seat at the table/

benefit of the doubt

2

0

21


Trust underpins communications effectiveness and

protects licence to operate

Edelman Trust Barometer 2011

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…and trust brings business benefit

Very Good Trust Fairly Good Trust Neutral Trust Poor Trust

Use our brand Feel good about our brand

Pay a premium Believe our messages

Remember our messages

People who trust the brand are more likely to…

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The ‘Trust’ return – our key measure

MarsBacardi

Fiat

AAAXA

AT&THSBC

InBevAir France

DiageoBHP

Altria

Generali

AIG

ML

Wal-Mart

BALufthansa

Shell

Starbucks

McD's

Pirelli

CNN

Kraft

Visa

Danone

Coke

J&JIntel

ToyotaApple

NestléHP

MSFTR2 = 0.9605

-10

0

10

20

30

40

50

60

-20 -10 0 10 20 30 40 50

• G@ data shows that Trust is HIGHLY correlated with any index. In other words, Trust is

key!

Net Trust

FA

M,

FA

V, A

dvocacy,

Good

Investm

ent, G

ood f

or

Econom

y, E

nvir

o R

esp

24 24 24 24 24 24

Leveraging opportunities and

mitigating risks

Performance

Importance of attributes (derived from regression analysis)

Maintain Leverage

(Opportunity)

Monitor Mitigate

(Risk)

Strategic priority analysis compares importance and performance ratings on specific attributes to determine the priorities for action

Identifying key drivers and inhibitors to trust

5

6

7

8

0 5 10 15 20

Importance

Pe

rfo

rma

nc

e

Company A

Company B

Opportunities and risks – brand attributes

Supports local

communities Integrity

Strong

leadership team

Innovative

Admired

employer

Socially

Responsible

High

quality

products

Clear

strategy

Customer

focused

Clearly

communicates

Effective

communicator

Opportunities

Risk

27 27 27 27 27 27 Well done is better than well said

With this new context of transparency, people only confer trust…

…when we act in line with their expectations and our

stated values and brand promises.

Communications must be authentic – words match deeds.

Communications professionals will be the guardian of corporate

behaviour, as much as message.

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• Your reputation is how people and opinion leaders talk to others

about you – this can have a direct impact on your ability to

implement strategy and be listened to

• People demand more of business and there is much greater

transparency than ever before

• Companies must act and behave as they say they will to be

trusted – words must match deeds

• If you understand the specific drivers of your reputation you can

align communications and behaviour both inside and out to

leverage opportunities and mitigate risks

Summary

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Reputation is a bridge between the company

and its environment, its stakeholders. That

bridge must be good for companies and

stakeholders to meet and find solutions, to

bring innovations…When a company has a

good reputation that bridge shrinks and the

system around you including stakeholders flow

faster with you to make improvements and they

begin to feel as part of the company.

Companies with a bad reputation have long

broken down bridges. For these companies

processes with stakeholders are complex,

difficult and expensive.

Ipsos MORI

Reputation

Council member

30 30 30 30 30 30

Thank you

[email protected]

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