Study Reveals Critical Link between Reputation and Word of Mouth Support
in Driving Bottom Line Results
TORONTO, June 25 /CNW/ - Amidst turbulent times in corporate Canada this
year, Canadian-owned companies' reputations have remained strong in the minds
of Canadians. In a global survey conducted by Reputation Institute earlier
this year, the corporate reputations of the largest Canadian-owned companies
generally improved with the banking sector showing particularly strong gains
in admiration, respect and trust with Canadian consumers.
"As corporate scandals continue to weigh heavily on people's minds, while
they lose their jobs and savings in the current financial crisis, a strong
corporate reputation is no longer a 'nice to have', but rather, absolutely
essential to business success," said Rob Jekielek, Principal, Reputation
Institute. "This year's Canadian results not only illustrate a strong
relationship between the strength of a company's reputation and how likely
consumers are to recommend that company, but also show that corporate ethics/
transparency has now become even more important than products/services in
managing corporate reputation with Canadian consumers."
Two Canadian companies that stood out included Shoppers Drug Mart and
Royal Bank. Shoppers moved into the top tier of global corporate reputations
joining reputation leaders like Johnson & Johnson and IKEA, while Royal Bank,
whose reputation improved from average to strong, showed the best improvement
from 2008 to 2009 among the most reputable Canadian companies.
In addition, top Canadian reputation companies saw direct benefits from
their reputation as consumers were twice as likely to both recommend and the
give benefit of the doubt to Canadian companies with strong reputations vs.
Canadian companies with poor reputations.
Key highlights from 2009 Canadian Global Reputation Pulse study include:
- For the first time, Governance (ethics/transparency) was the most
important dimension of Reputation for Canadian consumers, moving
ahead of Products/Services
- Canadian Tire and the Jean Coutu Group continue to have strong
reputations.
- Bombardier is the highest ranked company with significant
international visibility.
- Canadian banks saw large increases in reputation scores; RBC having
the top score, and having the biggest gain among most reputable
Canadian companies, while BMO made the largest improvement in the
overall study.
- The telecommunications sector (represented by TELUS, Rogers, Bell
Canada and Nortel) has the weakest reputation in the minds of the
public.
Building a Strong Reputation
----------------------------
The Global Reputation Pulse study proves that excellent reputations are
built across seven dimensions of reputation: Products/Services, Innovation,
Governance, Workplace, Citizenship, Leadership and Performance. It further
shows that to establish a solid reputation, it is essential that companies
address all seven dimensions.
The most influential reputation dimension for Canadian consumers is
Governance (ethics/transparency), pushing ahead of Products / Services for the
first time. This year Leadership and Financial Performance were also
increasingly important in building reputation. However to earn trust,
admiration, good feeling and support companies need to address all seven
dimensions of reputation. In Canada, each one alone accounts for over 12
percent of reputation.
Global Reputation Pulse - Largest Canadian Owned Companies
(in Bilibala's portfolio highlighted in blue)
----------------------------------------------------------
-----------------------------------------------
Global
Rank Company Pulse
Score
-----------------------------------------------
1 Shoppers Drug Mart 80.56
2 Jean Coutu Group 79.54
3 Canadian Tire 76.28
4 Bombardier 73.36
5 RBC Royal Bank 70.26
6 George Weston Limited (Weston) 70.25
7 Canadian National Railway 69.35
8 Metro 69.22
9 TD Canada Trust 68.99
10 EnCana 68.78
11 Husky Energy 68.06
12 Manulife 67.49
13 Couche-Tard 66.72
14 Sun Life Financial 66.64
15 BMO Bank of Montreal 64.31
16 Scotiabank 63.81
17 Petro-Canada 60.75
18 Hydro Quebec 60.47
19 Power Corp. 60.27
20 Enbridge 59.59
21 CIBC 55.44
22 Air Canada 55.25
23 Telus 53.94
24 Rogers Communications 53.74
25 Bell Canada (BCE) 49.21
26 Nortel 36.20
-----------------------------------------------
6.25.2009
Reputation up for Canadian
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