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2010 Corporate Reputations Ltd. and Reputation Institute. All rights reserved
Launch of Ireland RepTrak 2011
Annual study of Ireland's most reputable companies
October 2010
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Speakers
Niamh Boyle, Managing Director, Corporate ReputationsNicolas Georges Trad, Managing Partner, Reputation Institute
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Agenda
1. Introductions
2. Why is reputation so important and how can you measure and manage it?
3. Ireland RepTrak 2011
4. Ireland RepTrak 2010 - top line results and findings
5. How can your company take part
6. Audience Q&A
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Niamh Boyle BA, HDip Ed, MMII Grad, MBS (Hons)Managing DirectorNiamh founded Corporate Reputations in 2004. She has over 20 years
experience in strategic marketing and reputation building, specialising instakeholder communications, crisis and reputation management issues andcorporate PR strategies and acts as an advisor to heads of government bodies andprivate firms.
Corporate Reputations
Dublin-based consultancy, advising organisations on building their reputation in themarketplace, offering reputation measurement and management services to clients, tobuild their reputation amongst their key stakeholders.
Clients include Aer Lingus, Astellas Pharmaceuticals, Coillte, Irish Aviation Authority, Irish
Cancer Society, The Irish Times, MII, MSD, National Standards Authority of Ireland(NSAI), Pfizer, Point of Care, Schering-Plough Pharmaceuticals (Ireland), RIAI, Siemens,Sustainable Energy Authority of Ireland (SEAI), Volvo and UCD Michael Smurfit GraduateBusiness School.
Corporate Reputations is the Irish Associate to the Reputation Institute, with access to its
consultants, advice and services across 29 countries worldwide
Corporate Reputations
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Nicolas Georges Trad, Global Managing Partner Reputation Institute
Nicolas has a multinational family background with Lebanese/Danish/Icelandic
connections. He has lived and worked in Denmark, US, Argentina, France, Switzerlandand Spain.
Nicolas was one of the founders of the Advice Practice in Reputation Institute which waslaunched in 2004 and which has since then become the premier reputation managementconsulting firm globally. Nicolas advises daily a number of Fortune 500 spanning B2B toB2C and across industries and countries on their Reputation Management Systems and
Strategies.
Nicolas has written numerous articles on the topic of reputation management, speaksfrequently for larger audiences and is often a source for opinions to global/local media.
Reputation Institute
Reputation Institute is the worlds leading reputation consulting firm and a pioneer in thefield of brand and reputation management.
With a presence in more than 29 countries, Reputation Institute is dedicated toadvancing knowledge about reputation and shares best practice and current researchthrough client engagement, membership, seminars, conferences, and publications suchas Corporate Reputation Review.
Reputation Institute
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Why is reputation so important
and how can you measure and manage it?
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Conferences
Publications
Networks
AdviceKnowledge
Insight
Strategy
Alignment
The world's leading reputation consulting firm
9 offices20 partners250 reputation consultants5,000 members
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An emotional bond that ensures that
Your customers are loyal
Your customers recommend you
Your partners support you
Policy makers and regulators give youthe benefit of the doubt
The media looks for your point of view
Your employees are engaged anddeliver on your strategy
What are reputations?
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Attributesanddimensionshavedifferent
meaningand
importance
for
the
different
stakeholders.Beneaththe7dimensions,23
attributesunderpintheindividualdimension
themes.Throughstatisticalanalysis,the
modelframeworkpinpointswhichattributes
arefoundtobemoreimportantthanothers
amongthedifferentstakeholdergroups
(reputationdrivers).
Thecoreofreputationismadeupoffour
emotionalaspectsrelatingtoapersons
trust,overallesteem,feelingandrespectand
admirationforthecompany.
ReputationPulse
Sevendimensions
explore
amore
rational
andoperationallevelofreputation,which
areimportantfromastakeholders
perception.
Dimensions
Attributes
Themodelincludesmeasurementofselectedsupportive
behaviourssuchaspurchase,recommend,invest,givebenefit
ofthedoubtinacrisis,specifictoeachstakeholdergroup.
SupportiveBehaviours
RepTrak Model: The global standard forReputation Management
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Reputation management is NOT spin - but about aligning reality with perception
Change is required to alterreality and minimizereputational risk
Communication is required tocapitalize on good reality andovercome poor perceptions
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Products
Customer
Service
Investments
Employment
Direct Experiences
Branding
PublicRelations
Marketing
SocialResponsibility
What CompanySays/Does
MEDIA(Traditional, Social)
Topic Experts,Leaders,Friends/Family
What Others Say
Perceptions Behavior BusinessResults
How are Corporate Reputations Created?
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BusinessResults
StrategicGoals
CorporateInitiatives
Perceptionsof the
company
(Reputation)
SupportiveBehaviors
towards thecompany
Products/Services Innovation Workplace Governance Citizenship Leadership Performance
Purchase products
Invest in company Recommend the
company/products Work for company Benefit of doubt
Reputation predicts stakeholder support and business results
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The Stronger your Companys Reputation the Stronger thePossibility that People Recommend you to others..
Adj-R2 = 0.889
8
16
24
32
40
48
56
64
72
80
26 36 46 56 66 76 86
U.S. Pulse Score
%
Respondents
whoWouldRecommend
Source: 2010 Global Reputation Pulse (U.S. Results)
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and the stronger the prospects of recovering from acrisis situation
-20
-15
-10-5
0
5
1015
20
1 17 33 49 65 81 97 113 129 145 161 177 193 209 225 241 257
Event Trading Days
Returns %
Bet t e r gover ned com pan ies
Less w e l l gover ned com pan ies
Cr is is s t r ikes
Rory F. Knight and Deborah J. Pretty, Corporate Reputation Review, Vol. 2, No. 4, 1999
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Reputation has an influence on commonly acceptedfinancial metrics like ARPU, SAC, Margin, Net Wins &Churn.
11% of the variation of these financial metrics forTelefonica Group can be explained by Reputation.
To be more concrete, Telefonicas Reputation ispositively influencing our financial metrics by 7%
Increasing Telefonicas Reputation with our clients by 1%increased our financial indicators by 7%.
Alberto Andreu PinillosManaging Director
Corporate Reputation, Identity & SustainablityTELEFONICA, S.A.
Our clients see a direct impact of Reputation on their bottom line anduse it as a leading indicator KPI to predict business performance
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Embedding your business goals into a Reputation ManagementFramework
What we stand for andhow we act and our
desired reputation
What will we do, how will
we track success, andwho will be responsible
Company Vision Reputation Strategy
Our commitments to meetstakeholders expectations
Reputation Platform Reputing Initiatives
Where we repute with
stakeholders
Strategic Foundation Tactical Execution
PersonalExperience
What others say
What we say
Processes
Goals
Governance
Reputation
Platform
Vision
Capabilities Expectations
Reputation
Platform
Vision
Capabilities Expectations
Reputation Drivers of yourindustry/country
Vision
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Global Reputation Pulse Study 2010: 34 Countries & 24 Industries 65,000 Consumers
Wave 1: Country Rankings ofthe Largest Corporations
Measurement of the largest 600corporations in 32 countries
General public in each companysheadquarters country
Online Survey: January and
February, 2010
Wave 2: The Worlds MostReputable Companies
Measurement of the 54 mostreputable global corporations,which ranked highly in wave one
General public in each of 24
countries where the study wasfielded
Online Survey: April and May 2010
RI has conducted Global Reputation Studies since 2000
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Identifying best practicesThe Worlds Most Reputable Companies 2010
Rank Company
ReputationPulseScore
1 Google 78.622 Sony 78.47
3 The Walt Disney Company 77.97
4 BMW 77.77
5 Daimler (Mercedes-Benz) 76.836 Apple 76.29
7 Nokia 76.00
8 IKEA 75.60
9 Volkswagen 75.55
10 Intel 75.39
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Reputation drivers vary across countries
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What Do Your Key Stakeholders Want From You?
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Enabling you to balance what companies SAY, DOand what is EXPECTED
What is
expected ofcompanies
What
Companies
Say
WhatCompanies
Do
Inconsistency
Inconsistency
Inconsistency
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By 2020 the majority of leading companies will:
Have Reputation as a key component of their businessstrategy
Have a dedicated focus on reputation management andmeasurement in top management
Report on reputation in their annual report not onlybecause they have to but because it makes sense
Key Takeaways Reputation impacts the bottom line
Reputation Management is a cross-functionalresponsibility
Reputation changes across stakeholders / geography /
industry Understanding what drives stakeholder opinions
empowers you to be more relevant in your dialogue withthem
The future of Reputation Management as we see it
1990
2010
2000
2020
ReputationEconomy
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Ireland RepTrak 2011Study background and methodology
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The Ireland RepTrak 2011 study
Annual study of reputations of Irelands largest and most visible companies
Measures 100+ corporate reputations throughout Ireland, based on
consumer trust, esteem, admiration and good feeling
Developed by Corporate Reputations and Reputation Institute to provideexecutives in Ireland with a high-level overview of their companys reputationwith consumers
Based on research carried out by Reputation Institute since 1997, using theirRepTrak Pulse model.
Follows methodology of Global Reputation Pulse, the largest reputationstudy on earth - 1,500 companies, 30,000 consumers, 33 countries
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Survey Methodology - Selecting the companies in Ireland
1. The most visible companies in Ireland
o Selected via an online nominations study carried out amongst general public
2. The largest companies in Ireland
o Irish firms with a full stock exchange listing
o Firms with largest revenue, operating out of Ireland, listed in the Irish Times
Top 1000
3. Rated companies had to have significant consumer presence and beeither somewhat or very familiar to the general public
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Survey methodology
Survey will be carried out online through January and February 2011
Respondents invited to describe their perceptions of individualcompanies across 20+ questions
Scores range from a low of 0 to a high of 100, firms ranked 1 to 100
2010 study
11,996 total ratings; 3,165 unique respondents aged 18-65;
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Leadership
Performance
Citizenship
Workplace Governance
Product & Services
Innovation
Companies will be ranked across the seven dimensions of reputation:
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Consumer
ProductsICT Retail
Financial
ServicesTransport Energy
Utilities Pharmaceutical Telecoms
CompanieswillberankedbyIndustry/Sector
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Companies will be ranked by a Corporate Social Responsibility Index:
CSR Index:
Citizenship Governance
Workplace
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Annual Ireland RepTrak 2011
100+ firms
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3 Telecoms IrelandAbbott IrelandAer LingusAIBAirtricity
AldiAllergen PharmaceuticalsAn PostAn Post National LotteryAnglo Irish BankAppleArgos
ArnottsAstellasAvivaBank of IrelandBMWBoots Retail Ireland
Bord GaisBord na MonaBristol Myers SquibbBrown Thomas GroupBT IrelandBus Eireann
BWG Group - Spar,EurosparC&C GroupCadburysCIE - Coras IompairEireann
CitiCityjetCoca ColaCRHDAADairygold
DCCDebenhamsDellDiageoDixon Store Group IrelandDublin BusDunnes Stores
Eason & SoneBay IrelandEBSEircomElan
Eli LillyEnergiaEricssonESB - Electricity SupplyBoardEsso
FacebookFBDFordFyffesGlanbiaGlaxoSmithKline (Ireland)
Glen DimplexGoogleGrafton GroupGreencore GroupHeatonsHeinekenHenry Ford & SonsHibernian AvivaHP Hewlett-PackardIarnrod EireannIBMIndependent News &Media
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IntelIrish Dairy BoardIrish DistillersIrish Life & Permanent
Irish Nationwide BuildingSocietyJohn Player & SonsJohnson & JohnsonKelloggsKerry GroupKingspan Group
LidlLifestyle SportsMarks & SpencerMaxolMcDonaldsMeteor
MicrosoftMSDMusgrave
Nissan IrelandNokia IrelandNTRO2 Telefonica IrelandPaddy PowerPepsi ColaPetrogas - ApplegreenPfizerPJ CarrollPrimark - PenneysQuinn Group
RenaultRTERyanairShellSiemensSky TV Ireland
Smurfit KappaSmyths ToysStena Line
SuperquinnTesco IrelandTexaco IrelandThe Irish TimesTopaz Energy Group
Toyota IrelandUnilever IrelandUPCVHI HealthcareVodafoneWyeth
Yahoo
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Ireland RepTrak 2010 results
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Is your Industry Helping or Hurting You?
Ireland mean64.60
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What drives reputation in Ireland?
200%12.1%
12.0%11.8%
13.9%14.2%
16.0%
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Top Ten Most Reputable Companies in Ireland 20101
2
3
4
5
6
7
8
9
10
(82.19)
(81.97)
(81.13)
(81.01)
(80.29)
(79.22)
(78.65)
(78.11)
(76.60)
(76.05)
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Top Ten Most Reputable Indigenous Irish organizations 20101
2
3
4
5
6
7
8
9
10
(78.65)
(78.11)
(76.04)
(75.83)
(74.93)
(74.75)
(74.58)
(73.05)
(72.81)
(72.22)
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1
2
3
4
5
(82.19)
(79.22)
(76.60)
(73.48)
(72.52)
1
2
3
4
5
(80.29)
(69.11)
(64.78)
(64.32)
(64.12)
Computer
Telecommunications
Industry ranking- computer and telecommunications
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1
2
3
4
5
(81.01)
(76.04)
(75.83)
(75.05)
(74.58)
Retail
1
2
3
4
5
Energy
(73.05)
(72.81)
(70.40)
(66.75)
(62.81)
Industry ranking- retail and energy
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Top 10 in Ireland within Products/Services & Innovation
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Top 10 in Ireland within workplace, governance and citizenship
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Top 10 in Ireland in leadership and performance
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Strong relationship between reputation and support in Ireland
Adj-R2 = 0.838
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
25 35 45 55 65 75 85
Ireland Pulse Score
%
Respondentsw
hoWouldRecommend
Q: I would recommend 'Company' to others.
Rated on a scale from 1 to 7 where 1 means Strongly disagree and 7 means Strongly agree.
High pulse score = high referrals
Reputation puts money in the bank
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Reputation puts money in the bank
Analysis shows a simple equation links reputation to market value:
10%improvement
in
Reputation
13%improvementinMarketValue
Source: Reputation Institute Global Pulse Study
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EffectsofreputationonincomestatementRevenues
Costs
More customersMore repeat customersPremium pricing of products
BottomLine
Lower cost of suppliersLower cost of creditLower churn of investors
Lower churn/more productive staffFavorable tax and legislationtreatment
Higher marginsHigher profits
=
less
Operational Effects
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How can your company take part?
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RepTrak Pulse Study
Measures your companysreputation against:
o 4 pulse statementso 7 key dimensions of a reputationo 8,000 with one other benchmark 300 ratings
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RepTrak DeepDive study
More comprehensive study
Measuring your corporate
reputation against:
o 4 pulse statements
o 7 dimensions
o 23 underpinning attributes
Provides rich valuable data
24,000 with two other benchmarks
300 ratings
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RepTrak Pulse Monitor
Collects data over a 12 month period
DeepDive study in Q1
Shorter Pulse study in Q2, Q3 and Q4. 36,000, including two benchmarks
++ +
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How can your company take part?
1. Register for our Ireland RepTrak 2011 study -costs provided above
2. Customise your own study, in your own time
costs quoted separately
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How can your company take part?
Ireland RepTrak 2011 study:
Research runs alongside the Global RepTrak 2011 study Cost effective way of exploring public opinion
Maximise value from your research budget, gain new insights
You receive a detailed report and presentation on your results
Customise study by adding benchmarks, stakeholders, countriesand adding attributes and questions
Deadline for registration Friday 3rd
December 2011Phone Caitriona Hennessy or Niamh Boyle at 01 661 8915
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How can your company take part?
Customise your own study, in your own time
Add:
Benchmarks: competitors, peers
Stakeholder groups employees, customers,regulators, key influencers, media, etc
Countries
Attributes and questions Carry out a Pulse, DeepDive or Pulse Monitor
study
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Unlock the power of your reputation Reputation measurement and management is more than a list and
a ranking
Through a systematic approach, you can leverage reputation as a
powerful asset
Reputation tracking enables you to:
- Understand what your stakeholders want from you and how theyperceive you today, in real time
- Understand what key dimensions drive your companys reputation
- Learn what you can do to close the gaps, in order to create supportivebehaviours
- Become more effective in your interactions and more valuable to yourstakeholders
- Build a firm reputation platform and work strategically with yourreputation
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When I see that RepTrak goes downin a country, I already know that in sixmonths I will have a problem with theprofit & loss account. It is evident.
We measure it monthly in all countries.
It is in the bonus of the top managers.
Csar Alierta, President, Telefonica,2010
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Thank you