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Simona Dan, Market Strategy Advisor

Zilele BIZ | GfK Romania | November 2014

REPUTATION ECONOMY Companies Take Success Into Their Own Hands

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High correlation between corporate reputation & business results

R²0.85

R²0.72

R²0.80

R²0.83

Purchase & Recommendation Stock Value

Recommendation as a place to work Supporting social responsibility projects

R > 0.70: High correlation

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Corporate Reputation: The most important company asset that drive business results

Case Study

Over 9.000 interviews have been conducted with stakeholders between 2009-2012

Trust

Reputation

Respect

Increase the RMS (Reputation Management Score) per stakeholder average in 4 years

+15%* Reputation Management Score is a admiration-trust index calculated by corporate performance scores based on 7 attributes:•Management Quality•Product & Service Quality•Employee Brand•Financial Strength•Social Responsibilities•Emotional Loyalty & Family

Corporate Reputation Management brings Trust & LoyaltyIncrease in key business results in 4 years span

Client Loyalty

EmployeeSatisfaction

Market Share

+17% +11% +6%

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Reputation is in the eye of the beholder

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Reputation Management Stakeholders

Business Partners

Society Investors Law MakersKey Opinion Leaders

• Dealers

• Suppliers

• Distributors/ Point of Sales

• Strategic partners

• General public

• Local public

• Consumers

• Customers

• University students

• Institutional/ individual investors

• Financial analysts & fund managers

• Rating agencies

• Media members editors, bloggers, columnists, social media channels)

• NGOs – business, consumers, trade ass.)

• Academicians

• Business world leaders)

• Bureaucrats

• Members of Parliament

• Regulators

• International public institutions

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Delivering on Expectations – 7 Key Dimensions

For your stakeholder to trust you, you need to deliver on their expectations…

If you deliver on these 7 dimensions you will be in a situation where each stakeholder

will be willing to support you.

PRODUCT / SERVICE QUALITY

CORPORATE RESPONSIBILITY

FINANCIAL STRENGTH

EMOTIONAL COMMITMENT

EMPLOYEE BRAND

MANAGEMENT QUALITY

FAMILIARITY

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Reputation Index

* Reputation level is calculated as an index score and it is between 0-100.

Reputation Management ScoreRomanian Pharma Industry71

Poor Week Average Strong Excellent

0 50 60 70 80 100

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Reputation Drivers

PRODUCT / SERVICE QUALITY

CORPORATE RESPONSIBILITY

FINANCIAL STRENGTH

EMOTIONAL COMMITMENT

EMPLOYEE BRAND

MANAGEMENT QUALITY

FAMILIARITY

• Managed by corporate governance principles (0.93)• Trustworthy (reliable) company (0.92)

• Cares about it’s employees’ opinion (0.92)• One of the most admired employers (0.89)• Has specialized, professional, reliable employees

(0.87)

• People oriented company (0.90)• Strong, sincere, reliable communication with all stakeholders (0.84)• Respects the social values/ culture (0.84)

PRODUCT / SERVICE QUALITY

CORPORATE RESPONSIBILITY

FINANCIAL STRENGTH

EMOTIONAL COMMITMENT

EMPLOYEE BRAND

MANAGEMENT QUALITY

FAMILIARITY

Importance of drivers (by correlation with Reputation Management Score)

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Companies Personalities

Visionary, Relaxed

RocheRoche

NovartisNovartis

GSKGSK

SanofiSanofiPfizerPfizer

Intelligent

Serious

Strong, Responsible

Leader, Superior

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recomandari

Ethics | Employees | Communication

Recommendations

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Reputation is not another business issue. It is the business itself.

Simona Dan | Market Strategy Advisor | GfK Romania