"Strong business results begin with supportive behavior, an endorsement thatcan be achieved with a strong reputation," said Nicolas Trad, managingpartner, Reputation Institute. "As the leading companies on the 2009 GlobalReputation Pulse show, even though companies are viewed with more scrutinythese days, a reputation is a business driver that helps them sustain supportthrough the noise and come out on top with the consumer."Word-of-Mouth Support: A Critical Business Driver According to the Global Reputation Pulse findings, a company's reputationscore has a positive and direct link to consumer attitudes and behaviors. Forexample, by improving its reputation score five points, a company can increaserecommendations within the general public by 6.75 percent. In a competitivesituation, increasing recommendations by two to five percent can have adramatic impact on the bottom line. With 67 percent of consumers saying theywould recommend one of the world's top 20 most reputable companies to others,organizations like Japan's Nintendo, France's Christian Dior and India's Tatashowed they have effectively used recommendations to drive business andreputation in their respective countries. The Reputation Pulse also shows that 57 percent of consumers would give themost reputable companies across the globe the benefit of the doubt in a timeof crisis.
This is a significant finding since having the benefit of the doubtcan be a competitive advantage when launching a new product, raising theprices on services, or dealing with a negative public situation. On thecontrary, four out of 10 people would refuse to support the 20 least reputableglobal companies in a crisis, a public reaction that will put their reputationand business results at risk.The Recipe for Reputation SuccessThe Global Reputation Pulse study proves that excellent reputations are builtacross seven dimensions of reputation management: Products/Services,Innovation, Governance, Workplace, Citizenship, Leadership and Performance. Itfurther shows that to establish a solid reputation, it is essential thatcompanies address all seven dimensions. In fact, Global Reputation Pulse foundthat 16 companies excel by taking up the top five positions across thedimensions of reputation. Ferrero is the only company that is in the top fiveon all seven dimensions which explains why the Italians revere this company.The most influential dimension on reputation is Product/Services followed byGovernance.
However, to earn trust, admiration, good feeling and supportcompanies need to address all seven dimensions of reputation Each one aloneaccounts for over 12 percent of reputation. "Companies that manage their reputation on a single dimension can falter whenthe tide turns against them," added Kasper Nielsen, managing partner,Reputation Institute. "In contrast, companies that manage reputation broadlyacross several dimensions establish a solid emotional connection withstakeholders that will lead them to support the company both vocally andmonetarily in any scenario."Other key highlights from 2009 Global Reputation Pulse study include: -- Corporate Trust Higher in Emerging Markets, Lower in Industrialized Markets Companies from the BRIC (Brazil, Russia, India and China) economies secured solid rankings among the largest global corporations. Even from struggling global industries such as energy, automotives and banking, strong companies like Brazil's Petrobras, China Faw and State Bank of India rise to the top.
Proportionally, the largest companies in these BRIC countries enjoy a stronger emotional connection from consumers than the largest companies in the industrialized world -- namely the U.S., Japan, United Kingdom, France and Germany. Corporate managers should look to companies in these markets for models to build stronger relationships with consumers.-- The Increasing Need for Transparency After delivering strong products and services (Products/Services), transparency and corporate ethics (Governance) and caring about society (Citizenship) are the best ways to improve reputation with the general public and increase support. Financial Performance and Leadership saw the greatest increase in importance from 2008, emphasizing that more than ever consumers recognize the impact of the C-suite's vision and identify the need for continued market success.-- Reputations Remain Stable Despite Volatility Of the over 400 companies that remained within the Global 600 in both 2008 and 2009 only 7 percent saw substantial movement in reputation with a change of +/- 10 Reputation Pulse points - indicating a higher than anticipated level of stability in corporate reputation around the world. 2009 Global Reputation Pulse - Top 25 Rank Company CountryScore ---- ------- ------------1 FerreroItaly 85.172 IKEASweden 83.983 Johnson & JohnsonU.S.83.584 PetrobasBrazil 82.375 Sadia Brazil 82.066 Nintendo Japan 81.637 Christian DiorFrance 81.378 Kraft FoodsU.S.81.099 MercadonaSpain 80.99 10 Singapore Airlines Singapore 80.97 11 Tata India 80.89 12 UPSU.S.80.84 13 General MillsU.S.80.80 14 El Corte InglesSpain 80.80 15 Matsushita Electric Ind.
Japan 80.31 16 FedExU.S.80.30 17 Grupo Bimbo Mexico 80.22 18 Honda MotorJapan 79.86 19 WhirlpoolU.S.79.86 20 VotorantimBrazil 79.59 21 Walt Disney Co.U.S.79.44 22 China FawChina 79.35 23 Google U.S.78.80 24 China Merhchants BankChina 78.72 25 CaterpillarU.S.78.69About the Global Reputation Pulse 2009 StudyThe Global Reputation Pulse 2009 was conducted online in late January andFebruary 2009. A Pulse score is a measure of corporate reputation calculatedby averaging perceptions of four indicators -- trust, esteem, admiration, andgood feeling -- obtained from a representative sample of at least 100 localrespondents who were familiar with the company. Scores range from a low of 0to a high of 100, Pulse scores that differ by more than +/-0.5 aresignificantly different at the 95% confidence level The mean for allcompanies included in the study was 64.2. A report on the 2009 GlobalReputation Pulse findings can be downloaded at About Reputation InstituteReputation Institute is the world's leading reputation consulting firm. As apioneer in the field of brand and reputation management, Reputation Institutehelps companies unlock the power of reputation. With a presence in more than25 countries, Reputation Institute is dedicated to advancing knowledge aboutreputation and shares best practices and current research through clientengagement, memberships, seminars, conferences, and publications such asCorporate Reputation Review. Reputation Institute's 2009 Global ReputationPulse is the largest study of corporate reputations in the world, identifyingwhat drives reputation and covering more than 1,000 companies from 32countries annually.