Mais conteúdo relacionado Semelhante a Of reputation, roller coasters, and Wilde Rides on Wall St. (20) Mais de EOI Escuela de Organización Industrial (20) Of reputation, roller coasters, and Wilde Rides on Wall St.1. Of Reputations, Roller Coasters, and Wild Rides on Wall St.
Dr. Charles Fombrun
Chairman, Reputation Institute
Madrid, Spain
7 May 2010
4. Contributing to a Wild Ride in the Financial Markets
Copyright © 2010 Reputation Institute. All rights reserved. 4
7. Toyota is Reeling from Unintended Effects of Cost-Cutting
Copyright © 2010 Reputation Institute. All rights reserved. 7
8. BP is Reeling from a Huge Oil Spill in the Gulf of Mexico
Copyright © 2010 Reputation Institute. All rights reserved. 8
9. Clearly Reputations are Always at Risk
"It takes 20 years to build a
reputation and five minutes to
ruin it.
If you think about that,
you'll do things differently.”
'll d thi diff tl ”
Warren Buffett
Copyright © 2010 Reputation Institute. All rights reserved. 9
10. RI has conducted Global Reputation Studies since 2000
34 Countries & 24 Industries –65,000 Consumers
Airlines & Aerospace • Automotive • Beverage • Chemicals • Computer • Conglomerate • Construction & Engineering • Consumer
Products • Electrical & Electronics • Energy • Financial – Bank • Financial – Diversified Services • Financial – Insurance • Food
Manufacturing • Industrial Products • Information & Media • Pharmaceuticals • Raw Materials • Retail – Food • Retail – General •
Services • Telecommunications • Transport & Logistics • Utilities
Copyright © 2010 Reputation Institute. All rights reserved. 10
11. Lesson #1: A Corporate Reputation is an Emotional Bond
…and built on 7 Pillars
Copyright © 2010 Reputation Institute. All rights reserved. 11
12. Lesson #2: Reputation Operates “Below the Line”
Strategic
Goals
Business Corporate
Results Initiatives
Supportive Perceptions
Behaviors of Company
Copyright © 2010 Reputation Institute. All rights reserved. 12
13. Lesson # 3: Improving Alignment Increases Reputation
What
Companies Inconsistency
Say
Inconsistency How Companies
are Perceived
What Inconsistency
Companies
C i
Do
Copyright © 2010 Reputation Institute. All rights reserved. 13
14. Lesson #4: Improving Reputation Increases Support
Improve Reputation by 10% – Increase Support by 10%
80
72
64
ndents who Would Recommend
56
R
48
40
% Respon
32
24
16
8
26 36 46 56 66 76 86
2
U.S. Pulse Score Adj-R = 0.889
Source: 2010 Global Reputation Pulse (U.S. Results)
Copyright © 2010 Reputation Institute. All rights reserved. 14
15. Lesson #5: …and creates Financial Value
Top 30 in Bottom 30 in
Reputation Reputation
Ratio of
Market Value 3.79 1.42
to Book Value
% Change in Market Value = 1.3 * % Change in Reputation
So, on average:
13%
10%
Improvement
Improvement
in Market
in Reputation
Value
Copyright © 2010 Reputation Institute. All rights reserved. 15
16. Lesson #6: So that Investing in Higher Reputation Firms Can Pay Off
Cumulative
Returns HIGH REPUTATION
PORTFOLIO
4 0 .0 0 %
2 0 .0 0 %
S&P 500
0 .0 0 %
-2 0 .0 0 %
-4 0 .0 0 %
-6 0 .0 0 %
Ju 00
Ju 01
Ju 02
Ju 03
Ju 04
Ju 05
Ju 06
A -0 0
J a -0 0
A -0 1
J a -0 1
A -0 2
J a -0 2
A -0 3
J a -0 3
A -0 4
J a -0 4
A -0 5
J a -0 5
A -0 6
6
O -0 0
O -0 1
O -0 2
O -0 3
O -0 4
O -0 5
O -0 6
-0
-
-
-
-
-
-
-
pr
pr
pr
pr
pr
pr
pr
ct
ct
ct
ct
ct
ct
ct
l
l
l
l
l
l
l
n
n
n
n
n
n
n
Ja
Copyright © 2010 Reputation Institute. All rights reserved. 16
17. Lesson # 7: But Reputation Requires Vision & Governance
Energy
gy Auto
Tobacco Banking
Copyright © 2010 Reputation Institute. All rights reserved. 17
18. Lesson #8: And a Focus on Products & Innovation
Copyright © 2010 Reputation Institute. All rights reserved. 18
19. Lesson #9: Companies have to Do the Right Thing
“You can make money without doing evil
You evil”
Is Google a great
place to work because
its stock is at $483, or
is its stock at $483
because it's a great
place to work?
--Business
--Business Week, January
22, 2007
Copyright © 2010 Reputation Institute. All rights reserved. 19
20. Lesson #10: As Well as Do Things Right
Copyright © 2010 Reputation Institute. All rights reserved. 20
21. So a Mind-Shift is Taking Place
From Brand to Reputation
Brand Reputation
The promise a company makes The degree to which the company
to its stakeholders fulfills its promises
“Owned” by the company
Owned “Owned” by stakeholders
Owned
A brand is a promise…
when you li up to that promise you build R
h live t th t i b ild Reputation
t ti
Copyright © 2010 Reputation Institute. All rights reserved. 2121
23. The World’s Best Corporate Reputations (2010)
Copyright © 2010 Reputation Institute. All rights reserved. 23