The Ipsos Global Reputation Centre recently undertook a massive online study of the reputation of more than 100 of the world’s largest companies to examine the factors that contribute to reputational success and resiliency in the face of crisis.
The research ranks companies into trust tiers, and explores what makes companies in the top trust tier different, how they perform financially, the impact of trust on resiliency in the face of crisis, and the inter-relationship between trust and CSR on a company’s core business performance.
If you are building trust, you are building reputation
Why trust? In our view, if you are building trust you are building reputation. Trust is intuitively the ideal for which companies aim and is the foundation of our approach to reputation. Companies seek to build trust with their consumers, suppliers, employees and other stakeholders, just as individuals seek to build trust in their daily relationships with family, friends, and colleagues. Why? It’s simple – when you trust someone you are more likely to believe what they say, you will seek out their advice, you will value their experience and judgment, and ultimately, you will give them your confidence and your business.
About companies in the top trust tier
Companies in the top trust tier have been able to transfer the best aspects of their country brand into the global marketplace.
The impact of trust on resiliency
Companies who are most trusted are more resilient in the face of crisis.
What makes top trust tier companies different?
Providing high quality products is one of the strongest direct drivers of trust for all companies as well as the top trust tier companies.
All types of companies have the potential to become a top trust tier company, as long as they’re willing to put in a strong effort to manage their reputation.
Trust differences around the world
Companies can transcend poor trust scores even in skeptical markets
The final word
Top trust tier companies are successfully able to unlock the value of their reputation, irrespective of economic conditions or consumer skepticism. Unlocking value allows the most trusted companies to develop and maintain a positive feedback loop to financial success. Trust enables companies to operate more efficiently and with fewer headwinds – thus increasing their likelihood of financial success. In addition, highly trusted companies are also more resilient in the face of crisis, which allows them to more quickly overcome crises and get back to running their business successfully.
The advantage of the top trust tier companies comes from their overall stronger performance across the board, as well as their ability to connect corporate social responsibility performance directly to the key driver of being commercially dynamic. Companies outside of the top trust tier can begin to unlock their reputational value by coupling strong business performance with a social conscience.
Why does reputation matter?
The Ipsos Global Reputation Centre helps clients to unlock reputation value. Careful management of one’s reputation is in fact a key generator of value for companies. Value is unlocked both as stored reputation equity in times of crisis as well as in creating greater business efficiency for the company through:
- REGULATORS: giving you a seat at the table when stakeholders are making decisions about your organisation, legislators inclination to help or hinder you
- NGOs: propensity to work with or against you
- CONSUMERS: greater marketing efficiency, consumers’ desire to buy your products and/ or services
- EMPLOYEES: the ability to attract the best employees, employee pride in working for you, employee likelihood to execute the mission and values of the company
- MEDIA: disposition to report positively or negatively about you, willingness to hear/present your side of the story
- INVESTORS: confidence to invest in you, willingness to ride out downturns