Ethical Advocates Can Build Significant Goodwill For Companies

New York, NY -- There's nothing quite like word of mouth to boost a company's fortunes. Indeed, a recommendation can be a powerful tool in building a company's reputation and competitive edge, research by Ipsos shows.

The reverse, however, can also be true.

"Certain people are more vocal and opinionated about companies than others," says Annabel Evans a Vice President with Ipsos Public Affairs and author of a study exploring the corporate reputation of 30 major U.S. businesses from a variety of sectors published in a special issue of the company's magazine, Ipsos Ideas . "They have strong beliefs - good and bad - about businesses."

Just over a quarter (26%) of Americans fall into a group Ipsos calls "Ethical Advocates." These are people who regularly advise friends, family, colleagues and others to patronize - or more often, not to patronize - a particular company.

"It's clear from our research that corporations need to pay attention to these Ethical Advocates," notes Evans. "They can be a company's greatest supporter or its harshest critic. They are informed, they can be very critical, and they do like to talk."

On average, Ethical Advocates are more likely to know a fair amount about major corporate brands than the general population. In the case of one major retailer, nearly twice as many Ethical Advocates had discussed the company compared with the general population (59% vs. 34%).

They are also critical. On average, they are nearly two-thirds (63%) more likely to be unfavorable toward companies. They are also more negative about company performance.

The Ipsos Corporate Responsibility Roadmap

Based on its research, Ipsos has developed a Corporate Responsibility Roadmap with eight model behaviors that can help companies stand out and appeal to Ethical Advocates. These behaviors are:

1. The company provides quality products and services at a reasonable price, i.e., it doesn't come across as making excessive profits at the expense of the consumer;
2. The company provides universal access to its products and services, i.e., it doesn't discriminate against sections of society because of their wealth, age or geography. This is especially pertinent for financial service, telecommunications and pharmaceutical providers;
3. The company treats its employees well (both at home and abroad);
4. The company's activities are not detrimental to the environment;
5. The company communicates clearly about its business, products and services so the consumer is able to make an informed choice. Companies with an overarching corporate brand, especially those in consumer goods, are expected to create awareness of their product portfolio;
6. The company is smart and respectful in its sales, marketing and advertising, i.e., it doesn't adopt aggressive sales techniques, excessive mailings or irresponsible advertising that targets children;
7. The company supports the local economy by sourcing US products and labor (especially so for the retail and automotive sectors);
8. The company is committed to innovation (particularly if it is in technology or pharmaceuticals).

"Companies that are perceived to be socially and environmentally responsible, and good communicators, are highly regarded," says Evans. "The opposite is true for companies that don't perform well in these areas."

Ethical Advocates regularly choose products that have some social or environmental benefit, such as those made with recycled content or produced via a fair trade arrangement. They also take personal steps to be more environmental and socially responsible. Most Ethical Advocates, for example, recycle, donate money to charity and make efforts to be energy-efficient.

Among the behaviors Ethical Advocates consider when judging companies are: quality products and services at a reasonable price, fair treatment of employees at home and abroad, support of the local economy, respect for the environment and the ability of consumers to make an informed choice.

Research Methodology Online interviews were conducted as part of Ipsos' I-Rep program between July 27 and August 2, 2006 with a nationally representative sample of 2,024 adults aged 18 and over from Ipsos' U.S. internet panel. The research investigated the performance of 30 major companies from a variety of sectors on a range of reputation metrics.

For more information on this press release, please contact: Annabel Evans Vice President, Ipsos Public Affairs New York, NY 212.584.9266

About Ipsos Public Affairs Ipsos Public Affairs is a non-partisan, objective, survey-based research company made up of campaign and political polling veterans as well as seasoned research professionals. The company conducts strategic research initiatives for a diverse number of American and international organizations, based not only on public opinion research but often elite stakeholder, corporate, and media opinion research. It has offices in Chicago, New York City, Ottawa, San Francisco, Seattle, Toronto, Vancouver, and Washington, D.C., with affiliates around the world. Ipsos Public Affairs conducts national and international public opinion polling on behalf of The Associated Press, the world's oldest and largest news organization. Ipsos Public Affairs is an Ipsos company, a leading global survey-based market research group.

To learn more, visit: www.ipsos-na.com/pa/us/

About Ipsos Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2005, Ipsos generated global revenues of e717.8 million ($853.8 million U.S.). Visit www.ipsos.com to learn more about Ipsos' offerings and capabilities.

Ipsos, listed on the Eurolist of Euronext - Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP