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The Global RepTrak™ 200




     The World’s Best Corporate Reputations 2006




                                Copyright ©2006 Reputation Institute. All rights reserved.
                             © Reputation Institute - RepTrak™ Pulse 2006            1
Reputation is built on multiple dimensions and attributes

                                                      The Dynamics of Reputation
                                                      Founded in 1997, Reputation Institute (RI) is a pioneer and global
                                                      leader in the field of corporate reputation management. Our
                                                      mission is to help companies create value from reputation and we
                                                      do this by using proprietary research and analytics to create
               The RepTrak™ Model                     reputation strategies for organizations around the world.

                                                      The RepTrak™ model
                                                      Based on a decade of qualitative and quantitative global research,
                                                      Reputation Institute has demonstrated that corporate reputations
                                                      are rooted in the emotional reactions that people have to the names
                                                      of companies—the trust, admiration, and good feelings that lead
                                                      them to feel more or less positively about a company. RI’s
                                                      RepTrak™ model is built around the RepTrak™ Pulse—the “beating
                                                      heart” of a company’s reputation. The RepTrak™ Pulse measures
                                                      the health of a company’s corporate reputation by measuring the
                                                      esteem, good feeling, trust, and admiration that stakeholders feel
                                                      towards a company. The RepTrak™ Pulse is a simple but valid
                                                      measure that captures the essence of corporate reputation.

                                                      Understanding the RepTrak™ Pulse
                                                      To understand what drives the RepTrak™ Pulse, RI has identified 23
                                                      key attributes, grouped around 7 dimensions that describe the
                                                      common platform through which most organizations build
                                                      reputation. In its detailed advisory work, RI relies on sophisticated
                                                      statistical analyses to connect the RepTrak™ Pulse to the underlying
                                                      attributes and dimensions, and thereby identify the key drivers and
                                                      action points for reputation management.

                                                      The results in this report are based solely on measurement of the
                                                      RepTrak™ Pulse. Companies interested in examining the underlying
                                                      drivers of their RepTrak™ Pulse can call on Reputation Institute to
                                                      carry out a customized “Deep Dive”. Through a Deep Dive, RI
                                                      works with companies to examine the specific attributes that drive
                                                      their company’s reputation against rivals and based on that
                                                      Reputation Institute helps build winning reputations.




                                                             © Reputation Institute - RepTrak™ Pulse 2006              2
Global RepTrak™ Pulse 2006
–The Reputations of the World’s Largest Companies




                                                                      The Global RepTrak™ Pulse 2006 measures the corporate
                                                                      reputations of the world’s largest companies
                                                                      The Global RepTrak™ Pulse 2006 is the first annual ranking of
                                                                      the Reputations of the World's Largest Companies. The study
                                                                      was created by Reputation Institute to provide executives with a
                                                                      high-level overview of their company’s reputation with
                                                                      consumers.

                                                                      The Global RepTrak™ Pulse 2006 is the result of over 30,000
                                                                      online interviews conducted in March and April with consumers
                                                                      in 25 countries on six continents. More than 110,000 ratings
                                                                      were used to create reliable measures of the ‘corporate
                                                                      reputation’ of more than 750 companies. The 600 largest
                                                                      companies measured in the study are the focus of the ranking
                                                                      provided here.
    RepTrak™ Pulse
    Consumers act based on their feelings.                            Online Ratings
                                                                      The Global RepTrak™ Pulse 2006 was conducted online using
                                                                      web based questionnaires in all countries, except South Africa,
    The RepTrak™ Pulse measures the health of a company’s
                                                                      where face-to-face interviews were conducted. The RepTrak™
    overall reputation. It does so by measuring the esteem, good
                                                                      Pulse is calculated from an average of at least 100 ratings
    feeling, trust, and admiration that stakeholders feel towards a
                                                                      provided by local respondents who are familiar with the
    company.
                                                                      company. Companies were only rated by consumers in their
                                                                      home country.
    The Global RepTrak™ Pulse study provides an overall
    assessment of a company’s reputation benchmarked against the
                                                                      In order to enable international comparisons, all RepTrak™
    world’s largest companies.
                                                                      Pulse scores are standardized on both the country and global
                                                                      level. Scores range from a low of 0 to a high of 100.




                                                                         © Reputation Institute - RepTrak™ Pulse 2006                3
Focus: The World’s Largest Companies


     The Largest Companies in the World were rated
     Companies selected for inclusion in the Global RepTrak™ Pulse fulfilled four criteria:

         They were among the largest companies in 2004 or 2005 revenues, either from being listed on a major stock
         exchange in the respective country, or identified from a published source.

         They were not strictly business to business companies.

         They were commercial companies and not purely investment trusts.

         They had sufficient public visibility to make it feasible for consumers to rate them. Some B2B companies made it
         to the list on this criterion.


     Countries Selected
     The RepTrak™ Pulse was conducted in 25 countries, selected because the world’s largest 300 companies originate in
     these countries:

         Europe: Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Russia, Spain, Sweden,
         Switzerland, United Kingdom

         Asia Pacific: Australia, China, India, Japan, South Korea

         North America: United States, Canada

         Latin/South America: Argentina, Brazil, Chile, Mexico

         Africa: South Africa




                                                                                © Reputation Institute - RepTrak™ Pulse 2006   4
The RepTrak™ 200

                                                                                 The RepTrak™ 200 consists of the 200 companies with
                                                                                 the best reputations in the world. Topping the list is
                                                                                 Italy’s famed food producer Barilla Group with a
                                                                                 RepTrak™ Pulse of 87.79. Italy’s top-rated pasta maker
                                                                                 is followed closely by Denmark toy company LEGO with a
                                                                                 Pulse of 86.58.

                                                                                 Regionally, the RepTrak™ 200 is dominated by Europe
                                                                                 (97 companies). North America comes in 2nd with 42
                                                                                 companies, followed by Asia (34 companies), and South
                                                                                 America (17 companies). The remaining 10 are from
                                                                                 Australia and South Africa.

                                                                                 The top tier consists of 15 companies with Pulse scores
                                                                                 above 80—companies with an excellent reputation. The
                                                                                 top tier is dominated by European companies. Only 2 are
                                                                                 from the USA (Kraft and Johnson & Johnson) and 2 from
                                                                                 Asia (Toyota and Samsung). The 11 remaining
                                                                                 companies are from Western Europe, and include familiar
                                                                                 corporate names like Lufthansa (Germany), IKEA
                                                                                 (Sweden), Michelin (France), and Philips (Netherlands).
                                                                                 These companies all enjoy positive word of mouth from
                                                                                 consumers as well as high levels of admiration, trust, and
                                                                                 respect in their home countries.

                                                                                 The 2nd tier of top-rated companies consists of 125
                                                                                 companies with Pulse scores in the 70’s. It includes
                                                                                 companies as diverse as Norway’s ReitanGruppen (79.1),
                                                                                 the U.K.’s Marks & Spencer (76.66), and the USA’s
                                                                                 Microsoft (70.01). These companies have good
                                                                                 reputations and are trusted and admired by local
                                                                                 consumers.

                                                                                 The 3rd tier consists of 61 companies in the RepTrak™
                                                                                 200 that all have Pulse scores above the global mean of
                                                                                 64. These companies enjoy reasonably positive levels of
                                                                                 trust, admiration, esteem, and good feeling from
                                                                                 consumers.

        Note: All Pulse scores are standardized on both the country and global
        level. For further explanation see page 11.
        All RepTrakTM Pulse scores that differ by more than +/-0.5 are
        significantly different at the 95% confidence level                            © Reputation Institute - RepTrak™ Pulse 2006           5
The RepTrak™ 200, continued




  Note: All Pulse scores are standardized on both the country and global level. For further explanation see page 11.
  All RepTrakTM Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level
                                                                                                                       © Reputation Institute - RepTrak™ Pulse 2006   6
Selected Country Results from
U.S., U.K., and India—as published by Forbes

            The Global RepTrak™ Pulse was conducted in 25 countries:

  •   Europe: Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland,
      Russia, Spain, Sweden, Switzerland, United Kingdom

  •   Asia Pacific: Australia, China, India, Japan, South Korea

  •   North America: United States, Canada

  •   Latin/South America: Argentina, Brazil, Chile, Mexico

  •   Africa: South Africa


              Results from these countries are available online at
                          www.reputationinstitute.com

                                                   © Reputation Institute - RepTrak™ Pulse 2006   7
The 50 Best Corporate Reputations in the USA




                                                                                                   U.S. consumers gave Kraft Foods the highest
                                                                                                   RepTrakTM Pulse (81.82) in America, edging
                                                                                                   out perennial favorite Johnson & Johnson
                                                                                                   (81.07). With Pulse scores above 80, these
                                                                                                   two companies clearly lead the U.S. sector in
                                                                                                   earning excellent reputations with the
                                                                                                   American public and so enjoy high levels of
                                                                                                   trust, admiration and respect.

                                                                                                   The 2nd tier of U.S. companies earn Pulse
                                                                                                   scores in the 70s, and so have strong
                                                                                                   reputations with consumers, and enjoy
                                                                                                   strong respect and trust from the American
                                                                                                   public. Led by Pepsico, Disney, and Home
                                                                                                   Depot, they include a wide range of
                                                                                                   companies involved in making or selling
                                                                                                   consumer products, in retail, food and
                                                                                                   beverage production, and transportation.

                                                                                                   The 3rd tier of large U.S. companies with the
                                                                                                   best corporate reputations consists of 24
                                                                                                   companies with Pulse scores right around or
                                                                                                   above the global mean of 64. Dell’s Pulse of
                                                                                                   69.95 is above average and indicates a
                                                                                                   positive level of trust and respect from the
                                                                                                   U.S. general public. The top 50 list closes
                                                                                                   with fast-food maker McDonald’s Pulse of
                                                                                                   63.82 which is marginally below the global
                                                                                                   mean.

                                                                                                   The companies with the 50 best reputations
                                                                                                   in the USA are a diverse set, spanning retail,
                                                                                                   food, health care, entertainment, beverages,
                                                                                                   computers, and industrials.


                 Note: All Pulse scores are standardized on both the country and global
                 level. For further explanation see page 11.
                 All RepTrakTM Pulse scores that differ by more than +/-0.5 are           © Reputation Institute - RepTrak™ Pulse 2006        8
                 significantly different at the 95% confidence level
The 10 Best Corporate Reputations in the U.K.




                                                                                        Of the largest companies rated in the U.K.,
                                                                                        Tesco earned the highest RepTrak™ Pulse
                                                                                        (79.65), a score approaching ‘excellence’
                                                                                        (above 80). None of the other large companies
                                                                                        rated in the U.K. came as close as Tesco to
                                                                                        earning an excellent reputation score.

                                                                                        The 2nd tier of top rated companies in the U.K. is
                                                                                        led by Marks & Spencer. A notable entrant into
                                                                                        this group is the U.K.’s national charity,
                                                                                        Motability, set up in 1977 to assist disabled
                                                                                        people with their mobility needs. Motability,
                                                                                        along with Sainsbury and Diageo earn good
                                                                                        reputations with British consumers.

                                                                                        The 3rd tier of top rated companies in the U.K.
                                                                                        all earn reputation scores above the global
                                                                                        mean of 64. This tier is led by Wm Morrison
                                                                                        Supermarkets, and includes pharmaceutical
                                                                                        giant GlaxoSmithKline, Anglo-Dutch consumer
                                                                                        products maker Unilever, and innkeeper
                                                                                        Ladbrokes (the former Hilton Group). Vodafone
                                                                                        rounds out the U.K.’s Top 10 list of the Best
                                                                                        Reputations with a 64.56 Pulse, all of which are
                                                                                        companies that earn favorable regard from U.K.
                                                                                        consumers.

                                                                                        The list of top-rated companies in the U.K.
                                                                                        represents a diverse set of industries, led by
                                                                                        retailers and supermarkets.



         Note: All Pulse scores are standardized on both the country and global
         level. For further explanation see page 11.
         All RepTrakTM Pulse scores that differ by more than +/-0.5 are
         significantly different at the 95% confidence level                      © Reputation Institute - RepTrak™ Pulse 2006           9
The 10 Best Corporate Reputations in India




                                                                                        Of the largest companies rated in India, Tata
                                                                                        Group earned the highest RepTrakTM Pulse, and
                                                                                        with a score of 79.41 comes closest to joining
                                                                                        the global roster of ‘excellent’ corporate
                                                                                        reputations—companies with Pulse scores above
                                                                                        80. The company is widely recognized by the
                                                                                        public for its support of India’s national
                                                                                        development, and was rated 6.33 points higher
                                                                                        than runner up car dealer Maruti Suzuki.

                                                                                        The 2nd tier of India’s best corporate
                                                                                        reputations is led by Maruti Suzuki, a company
                                                                                        with a strong reputation (73.08) heavily rooted
                                                                                        in its awards for customer service and
                                                                                        satisfaction. The tier also includes Hero Honda,
                                                                                        Hindustan Lever, and ITC. All four companies
                                                                                        earned Pulse scores above 70, indicating strong
                                                                                        levels of trust and respect by the Indian public.

                                                                                        The 3rd tier of top-rated companies in India is
                                                                                        led by State Bank of India (69.50), and includes
                                                                                        Infosys, Mahindra & Mahindra, Indian Oil, and
                                                                                        Grasim, all of which enjoy pulse scores above
                                                                                        the global mean of 64.

                                                                                        India’s 10 top rated companies come from a
                                                                                        wide variety of industries, with a particularly
                                                                                        strong showing from the automotive sector.




         Note: All Pulse scores are standardized on both the country and global
         level. For further explanation see page 11.
         All RepTrakTM Pulse scores that differ by more than +/-0.5 are
         significantly different at the 95% confidence level                      © Reputation Institute - RepTrak™ Pulse 2006        10
All RepTrak™ Scores are Standardized and Comparable Globally




   RepTrak™ Scores - Standardized and Comparable                       Two adjustments are made for every RepTrak™ Pulse
   Market research shows that people are inclined to rate              Reputation Institute uses its cumulative database of RepTrak™
   companies more or less favorably in different countries, or when    Pulse scores about reputation internationally to carry out two
   they are asked questions directly or online. When asked in a        adjustments:
   personal interview, for example, it's known that people tend to
   give a company higher ratings than when they are asked by                 1) Country Adjustment: All scores derived from
   phone, or when they are asked to answer questions about the               perception surveys are standardized by subtracting the
   company online. This is a well-established source of 'systematic          country mean and dividing by the standard deviation of all
   bias'. Another source of systematic bias comes from national              known scores previously obtained in that country. In
   culture—in some countries, people are universally more positive           statistical terms, this adjustment 'normalizes' the
   in their responses than in other countries. In statistical terms,         distribution of scores in the country to a mean of 0 and a
   it means that the entire distribution of scores in a 'positive'           standard deviation of 1, producing a 'z-score' for the
   country is artificially 'shifted' because of this propensity for          company.
   people in that country to give higher ratings to all companies,
   good or bad. The distribution of scores in that country may also          2) Global Adjustment: A global mean and standard
   be more 'spread out' than in another because people have more             deviation are calculated from all of the country-adjusted
   information and are able to make more subtle differences                  ratings. A global RepTrak™ Pulse score is scaled back by
   between companies.                                                        multiplying each company's z-score by the global standard
                                                                             deviation and adding back the global mean. The resulting
   To overcome these cross-cultural sources of systematic bias,              number is the RepTrak™ Pulse that is reported.
   Reputation Institute's policy is to adjust all RepTrak™ scores by
   standardizing them against the aggregate distribution of all        As additional global research comes in, Reputation
   scores obtained from the RI's Global RepTrak™ Pulse.                Institute regularly updates the country and global
   Standardization has the effect of lowering scores in countries      distributions that are used to create our standardized RepTrak™
   that tend to over-rate companies, and has the effect of raising     scores. All RepTrak™ results are therefore comparable across
   scores for companies in countries that tend to rate companies       industries, countries, and over time.
   more negatively.




                                                                           © Reputation Institute - RepTrak™ Pulse 2006            11
A Note on Copyrights:
The text, images, data, and other content in the Global RepTrak™ Pulse 2006 Report (hereafter ”Report”) are
protected by copyright and may be covered by other restrictions as well. Reputation Institute and relevant third
parties, own and expressly reserve all rights, including copyright, in whole and in part, throughout the world, in
the materials contained in this Report. The Report, and the data contained in it, may be used only by obtaining
explicit written permission from Reputation Institute. Any unauthorized use or modification of the materials of the
Report may violate copyright laws, trademark laws, the laws of privacy and publicity, contract, and
communications regulations and statutes and any other applicable laws.

Reputation Institute expressly reserves all rights and remedies available under said law, regulations and statutes.

You may not distribute, modify, transmit, reuse, copy, or use the contents of the Report for public or commercial
purposes, or for personal gain, without the express prior written permission of Reputation Institute.

Copyright ©2006 Reputation Institute. All rights reserved.




                                                                    © Reputation Institute - RepTrak™ Pulse 2006      12
Reputation Institute (RI) is a private advisory and research firm
        headquartered in New York with representation in more than 20 countries
        around the world. Founded in 1997, RI is a pioneer and global leader in the
        field of corporate reputation management, with a mission to help companies
        create value from reputation. RI connects a global network of practitioners
        and academics working towards this common mission through research,
        analysis, and consulting.                                                                                        www.reputationinstitute.com

        In 2006, Reputation Institute’s launched the Global RepTrak™ Pulse, a project
                                                                                                                         reptrak@reputationinstitute.com
        that surveyed more than 30,000 people in 25 countries, to measure consumer
        perceptions of over 750 companies in North America, Latin America, Europe,
        Asia, Australia, and Africa. RI works with corporate leaders who trust RI to use
        its cutting-edge knowledge, international network, and experienced advisors to
        help develop resilient reputing strategies.




         Reputation Institute Network



          Australia      Bolivia     Brazil      Chile       China      Croatia    Denmark     France      Germany       Greece      India          Italy




          Japan       Netherlands   Norway    Portugal   South Africa   Spain     Sweden     Switzerland   Turkey    United Kingdom United States



www.reputationinstitute.com




                                                                                                                    RepTrak™ Pulse 2006                     13
© Reputation Institute

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2006 global reputation institute

  • 1. The Global RepTrak™ 200 The World’s Best Corporate Reputations 2006 Copyright ©2006 Reputation Institute. All rights reserved. © Reputation Institute - RepTrak™ Pulse 2006 1
  • 2. Reputation is built on multiple dimensions and attributes The Dynamics of Reputation Founded in 1997, Reputation Institute (RI) is a pioneer and global leader in the field of corporate reputation management. Our mission is to help companies create value from reputation and we do this by using proprietary research and analytics to create The RepTrak™ Model reputation strategies for organizations around the world. The RepTrak™ model Based on a decade of qualitative and quantitative global research, Reputation Institute has demonstrated that corporate reputations are rooted in the emotional reactions that people have to the names of companies—the trust, admiration, and good feelings that lead them to feel more or less positively about a company. RI’s RepTrak™ model is built around the RepTrak™ Pulse—the “beating heart” of a company’s reputation. The RepTrak™ Pulse measures the health of a company’s corporate reputation by measuring the esteem, good feeling, trust, and admiration that stakeholders feel towards a company. The RepTrak™ Pulse is a simple but valid measure that captures the essence of corporate reputation. Understanding the RepTrak™ Pulse To understand what drives the RepTrak™ Pulse, RI has identified 23 key attributes, grouped around 7 dimensions that describe the common platform through which most organizations build reputation. In its detailed advisory work, RI relies on sophisticated statistical analyses to connect the RepTrak™ Pulse to the underlying attributes and dimensions, and thereby identify the key drivers and action points for reputation management. The results in this report are based solely on measurement of the RepTrak™ Pulse. Companies interested in examining the underlying drivers of their RepTrak™ Pulse can call on Reputation Institute to carry out a customized “Deep Dive”. Through a Deep Dive, RI works with companies to examine the specific attributes that drive their company’s reputation against rivals and based on that Reputation Institute helps build winning reputations. © Reputation Institute - RepTrak™ Pulse 2006 2
  • 3. Global RepTrak™ Pulse 2006 –The Reputations of the World’s Largest Companies The Global RepTrak™ Pulse 2006 measures the corporate reputations of the world’s largest companies The Global RepTrak™ Pulse 2006 is the first annual ranking of the Reputations of the World's Largest Companies. The study was created by Reputation Institute to provide executives with a high-level overview of their company’s reputation with consumers. The Global RepTrak™ Pulse 2006 is the result of over 30,000 online interviews conducted in March and April with consumers in 25 countries on six continents. More than 110,000 ratings were used to create reliable measures of the ‘corporate reputation’ of more than 750 companies. The 600 largest companies measured in the study are the focus of the ranking provided here. RepTrak™ Pulse Consumers act based on their feelings. Online Ratings The Global RepTrak™ Pulse 2006 was conducted online using web based questionnaires in all countries, except South Africa, The RepTrak™ Pulse measures the health of a company’s where face-to-face interviews were conducted. The RepTrak™ overall reputation. It does so by measuring the esteem, good Pulse is calculated from an average of at least 100 ratings feeling, trust, and admiration that stakeholders feel towards a provided by local respondents who are familiar with the company. company. Companies were only rated by consumers in their home country. The Global RepTrak™ Pulse study provides an overall assessment of a company’s reputation benchmarked against the In order to enable international comparisons, all RepTrak™ world’s largest companies. Pulse scores are standardized on both the country and global level. Scores range from a low of 0 to a high of 100. © Reputation Institute - RepTrak™ Pulse 2006 3
  • 4. Focus: The World’s Largest Companies The Largest Companies in the World were rated Companies selected for inclusion in the Global RepTrak™ Pulse fulfilled four criteria: They were among the largest companies in 2004 or 2005 revenues, either from being listed on a major stock exchange in the respective country, or identified from a published source. They were not strictly business to business companies. They were commercial companies and not purely investment trusts. They had sufficient public visibility to make it feasible for consumers to rate them. Some B2B companies made it to the list on this criterion. Countries Selected The RepTrak™ Pulse was conducted in 25 countries, selected because the world’s largest 300 companies originate in these countries: Europe: Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom Asia Pacific: Australia, China, India, Japan, South Korea North America: United States, Canada Latin/South America: Argentina, Brazil, Chile, Mexico Africa: South Africa © Reputation Institute - RepTrak™ Pulse 2006 4
  • 5. The RepTrak™ 200 The RepTrak™ 200 consists of the 200 companies with the best reputations in the world. Topping the list is Italy’s famed food producer Barilla Group with a RepTrak™ Pulse of 87.79. Italy’s top-rated pasta maker is followed closely by Denmark toy company LEGO with a Pulse of 86.58. Regionally, the RepTrak™ 200 is dominated by Europe (97 companies). North America comes in 2nd with 42 companies, followed by Asia (34 companies), and South America (17 companies). The remaining 10 are from Australia and South Africa. The top tier consists of 15 companies with Pulse scores above 80—companies with an excellent reputation. The top tier is dominated by European companies. Only 2 are from the USA (Kraft and Johnson & Johnson) and 2 from Asia (Toyota and Samsung). The 11 remaining companies are from Western Europe, and include familiar corporate names like Lufthansa (Germany), IKEA (Sweden), Michelin (France), and Philips (Netherlands). These companies all enjoy positive word of mouth from consumers as well as high levels of admiration, trust, and respect in their home countries. The 2nd tier of top-rated companies consists of 125 companies with Pulse scores in the 70’s. It includes companies as diverse as Norway’s ReitanGruppen (79.1), the U.K.’s Marks & Spencer (76.66), and the USA’s Microsoft (70.01). These companies have good reputations and are trusted and admired by local consumers. The 3rd tier consists of 61 companies in the RepTrak™ 200 that all have Pulse scores above the global mean of 64. These companies enjoy reasonably positive levels of trust, admiration, esteem, and good feeling from consumers. Note: All Pulse scores are standardized on both the country and global level. For further explanation see page 11. All RepTrakTM Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level © Reputation Institute - RepTrak™ Pulse 2006 5
  • 6. The RepTrak™ 200, continued Note: All Pulse scores are standardized on both the country and global level. For further explanation see page 11. All RepTrakTM Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level © Reputation Institute - RepTrak™ Pulse 2006 6
  • 7. Selected Country Results from U.S., U.K., and India—as published by Forbes The Global RepTrak™ Pulse was conducted in 25 countries: • Europe: Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom • Asia Pacific: Australia, China, India, Japan, South Korea • North America: United States, Canada • Latin/South America: Argentina, Brazil, Chile, Mexico • Africa: South Africa Results from these countries are available online at www.reputationinstitute.com © Reputation Institute - RepTrak™ Pulse 2006 7
  • 8. The 50 Best Corporate Reputations in the USA U.S. consumers gave Kraft Foods the highest RepTrakTM Pulse (81.82) in America, edging out perennial favorite Johnson & Johnson (81.07). With Pulse scores above 80, these two companies clearly lead the U.S. sector in earning excellent reputations with the American public and so enjoy high levels of trust, admiration and respect. The 2nd tier of U.S. companies earn Pulse scores in the 70s, and so have strong reputations with consumers, and enjoy strong respect and trust from the American public. Led by Pepsico, Disney, and Home Depot, they include a wide range of companies involved in making or selling consumer products, in retail, food and beverage production, and transportation. The 3rd tier of large U.S. companies with the best corporate reputations consists of 24 companies with Pulse scores right around or above the global mean of 64. Dell’s Pulse of 69.95 is above average and indicates a positive level of trust and respect from the U.S. general public. The top 50 list closes with fast-food maker McDonald’s Pulse of 63.82 which is marginally below the global mean. The companies with the 50 best reputations in the USA are a diverse set, spanning retail, food, health care, entertainment, beverages, computers, and industrials. Note: All Pulse scores are standardized on both the country and global level. For further explanation see page 11. All RepTrakTM Pulse scores that differ by more than +/-0.5 are © Reputation Institute - RepTrak™ Pulse 2006 8 significantly different at the 95% confidence level
  • 9. The 10 Best Corporate Reputations in the U.K. Of the largest companies rated in the U.K., Tesco earned the highest RepTrak™ Pulse (79.65), a score approaching ‘excellence’ (above 80). None of the other large companies rated in the U.K. came as close as Tesco to earning an excellent reputation score. The 2nd tier of top rated companies in the U.K. is led by Marks & Spencer. A notable entrant into this group is the U.K.’s national charity, Motability, set up in 1977 to assist disabled people with their mobility needs. Motability, along with Sainsbury and Diageo earn good reputations with British consumers. The 3rd tier of top rated companies in the U.K. all earn reputation scores above the global mean of 64. This tier is led by Wm Morrison Supermarkets, and includes pharmaceutical giant GlaxoSmithKline, Anglo-Dutch consumer products maker Unilever, and innkeeper Ladbrokes (the former Hilton Group). Vodafone rounds out the U.K.’s Top 10 list of the Best Reputations with a 64.56 Pulse, all of which are companies that earn favorable regard from U.K. consumers. The list of top-rated companies in the U.K. represents a diverse set of industries, led by retailers and supermarkets. Note: All Pulse scores are standardized on both the country and global level. For further explanation see page 11. All RepTrakTM Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level © Reputation Institute - RepTrak™ Pulse 2006 9
  • 10. The 10 Best Corporate Reputations in India Of the largest companies rated in India, Tata Group earned the highest RepTrakTM Pulse, and with a score of 79.41 comes closest to joining the global roster of ‘excellent’ corporate reputations—companies with Pulse scores above 80. The company is widely recognized by the public for its support of India’s national development, and was rated 6.33 points higher than runner up car dealer Maruti Suzuki. The 2nd tier of India’s best corporate reputations is led by Maruti Suzuki, a company with a strong reputation (73.08) heavily rooted in its awards for customer service and satisfaction. The tier also includes Hero Honda, Hindustan Lever, and ITC. All four companies earned Pulse scores above 70, indicating strong levels of trust and respect by the Indian public. The 3rd tier of top-rated companies in India is led by State Bank of India (69.50), and includes Infosys, Mahindra & Mahindra, Indian Oil, and Grasim, all of which enjoy pulse scores above the global mean of 64. India’s 10 top rated companies come from a wide variety of industries, with a particularly strong showing from the automotive sector. Note: All Pulse scores are standardized on both the country and global level. For further explanation see page 11. All RepTrakTM Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level © Reputation Institute - RepTrak™ Pulse 2006 10
  • 11. All RepTrak™ Scores are Standardized and Comparable Globally RepTrak™ Scores - Standardized and Comparable Two adjustments are made for every RepTrak™ Pulse Market research shows that people are inclined to rate Reputation Institute uses its cumulative database of RepTrak™ companies more or less favorably in different countries, or when Pulse scores about reputation internationally to carry out two they are asked questions directly or online. When asked in a adjustments: personal interview, for example, it's known that people tend to give a company higher ratings than when they are asked by 1) Country Adjustment: All scores derived from phone, or when they are asked to answer questions about the perception surveys are standardized by subtracting the company online. This is a well-established source of 'systematic country mean and dividing by the standard deviation of all bias'. Another source of systematic bias comes from national known scores previously obtained in that country. In culture—in some countries, people are universally more positive statistical terms, this adjustment 'normalizes' the in their responses than in other countries. In statistical terms, distribution of scores in the country to a mean of 0 and a it means that the entire distribution of scores in a 'positive' standard deviation of 1, producing a 'z-score' for the country is artificially 'shifted' because of this propensity for company. people in that country to give higher ratings to all companies, good or bad. The distribution of scores in that country may also 2) Global Adjustment: A global mean and standard be more 'spread out' than in another because people have more deviation are calculated from all of the country-adjusted information and are able to make more subtle differences ratings. A global RepTrak™ Pulse score is scaled back by between companies. multiplying each company's z-score by the global standard deviation and adding back the global mean. The resulting To overcome these cross-cultural sources of systematic bias, number is the RepTrak™ Pulse that is reported. Reputation Institute's policy is to adjust all RepTrak™ scores by standardizing them against the aggregate distribution of all As additional global research comes in, Reputation scores obtained from the RI's Global RepTrak™ Pulse. Institute regularly updates the country and global Standardization has the effect of lowering scores in countries distributions that are used to create our standardized RepTrak™ that tend to over-rate companies, and has the effect of raising scores. All RepTrak™ results are therefore comparable across scores for companies in countries that tend to rate companies industries, countries, and over time. more negatively. © Reputation Institute - RepTrak™ Pulse 2006 11
  • 12. A Note on Copyrights: The text, images, data, and other content in the Global RepTrak™ Pulse 2006 Report (hereafter ”Report”) are protected by copyright and may be covered by other restrictions as well. Reputation Institute and relevant third parties, own and expressly reserve all rights, including copyright, in whole and in part, throughout the world, in the materials contained in this Report. The Report, and the data contained in it, may be used only by obtaining explicit written permission from Reputation Institute. Any unauthorized use or modification of the materials of the Report may violate copyright laws, trademark laws, the laws of privacy and publicity, contract, and communications regulations and statutes and any other applicable laws. Reputation Institute expressly reserves all rights and remedies available under said law, regulations and statutes. You may not distribute, modify, transmit, reuse, copy, or use the contents of the Report for public or commercial purposes, or for personal gain, without the express prior written permission of Reputation Institute. Copyright ©2006 Reputation Institute. All rights reserved. © Reputation Institute - RepTrak™ Pulse 2006 12
  • 13. Reputation Institute (RI) is a private advisory and research firm headquartered in New York with representation in more than 20 countries around the world. Founded in 1997, RI is a pioneer and global leader in the field of corporate reputation management, with a mission to help companies create value from reputation. RI connects a global network of practitioners and academics working towards this common mission through research, analysis, and consulting. www.reputationinstitute.com In 2006, Reputation Institute’s launched the Global RepTrak™ Pulse, a project reptrak@reputationinstitute.com that surveyed more than 30,000 people in 25 countries, to measure consumer perceptions of over 750 companies in North America, Latin America, Europe, Asia, Australia, and Africa. RI works with corporate leaders who trust RI to use its cutting-edge knowledge, international network, and experienced advisors to help develop resilient reputing strategies. Reputation Institute Network Australia Bolivia Brazil Chile China Croatia Denmark France Germany Greece India Italy Japan Netherlands Norway Portugal South Africa Spain Sweden Switzerland Turkey United Kingdom United States www.reputationinstitute.com RepTrak™ Pulse 2006 13 © Reputation Institute