2017USRepTrak®100 TheMostReputableCompaniesintheUS March,2017 Reputa)onIns)tute|20YearsofReputa)onLeadership 1 Today’sAgenda • • • • • • • AboutReputa)onIns)tute DimensionsandDrivers IndustryReputa)on USTop10Companies 2017USRepTrak®100 WinnersandLosers Q&A Thispresenta)onisconfiden)alandcontainsproprietaryinforma)onandintellectualpropertyofReputa)onIns)tute,whichmaynotbereproducedordisclosedwithout theexpresswriQenpermissionofReputa)onIns)tute.RepTrak®isaregisteredtrademarkofReputa)onIns)tute.©2017Reputa)onIns)tute,allrightsreserved. Reputa)onIns)tute|20YearsofReputa)onLeadership 2 Reputa)onIns)tute AboutReputa)onIns)tute Reputa)onIns)tute|20YearsofReputa)onLeadership 3 AboutReputa)onIns)tute TheWorld’sLeadingResearchandAdvisoryFirmforReputa<on Foundedin1997byDr.CharlesFombrunandDr.CeesvanRiel,wehelporganiza)ons answerthefollowingques)ons: • Whatismyreputa)on? • Howdoesitcompare? • HowcanIimproveit? RepTrak®Framework Onanannualbasis,wemeasurethereputa)onsofthousandsoftheworld’smost pres)giouscompaniesusingourRepTrak®framework–theworld’slargestandhighest qualitynorma)vereputa)ondatabase. Con<nuousReputa<onMeasurement&Guidance Weprovidecon)nuousreputa)onmeasurement,benchmarkingandconsul)ngservicesto hundredsofthebest-knowncompaniesgloballytohelpthemprotecttheirreputa)ons, analyzerisksanddrivecompe))veadvantage. Reputa<onManagementBestPrac<ces ThroughourReputa)onLeadersNetwork,webringexecu)vesfrom150+globalmember companiestogethertoadvancetheprac)ceofreputa)onmanagementcollec)velyandfor theirorganiza)ons. Reputa)onIns)tute|20YearsofReputa)onLeadership 4 USRepTrak®100 • • Reputa)onIns)tuteconductstheUSRepTrak®100annuallytomeasurethecorporate reputa)onofthemosthighlyregardedcompaniesintheUS Itisthelargestreputa)ondatabaseamongtheUSGeneralPublic,withatotalof 97,149ra<ngscollectedinQ12017 — Around800companiesweremeasuredaspartofthisstudy — FirmsincludedintheRepTrak®100mustmeetthefamiliaritythresholdof40% • Respondentsarequalifiedtopar)cipateat2)ers: — Familiarity:Respondentmustbe“somewhat”or“very”familiar — RepTrak®Pulse:75%comple)onofpulsera)ngtobeincluded • Studycomponentsinclude: – RepTrak®Pulse – Dimensionsofreputa)on – Reputa)onaQributes – Suppor)vebehaviors – Brandexpressiveness – Personacharacteris)cs – Demographiccuts Mul)-dimensional measureofreputa)on Reputa)onIns)tute|20YearsofReputa)onLeadership 5 WhyMeasureReputa)on? Thesuccessofyourcompanydependsongenngpeopletosupportyou. Reputa<onisanemo<onalbondthatensures: • Customerand/orconsumersbuyyourproducts • Thegeneralpublicrecommendsyourcompany • Policymakersandregulatorsgiveyoulicensetooperate • Thefinancialcommunityinvestsinyou • Themediareportsfavorablyonyourcompany • Employeesdeliveronyourcorporatestrategy Reputa)onIns)tute|20YearsofReputa)onLeadership 6 TheRepTrak®Model RepTrak®measuresacompany’s abilitytodeliveronstakeholder expecta:onsacrossthe7key ra:onaldimensionsofreputa:on REPTRAK®DIMENSIONS Cogni<veConsidera<ons RepTrak®Pulsegaugesthe emo:onalbondstakeholders havewithyourcompany–it providesameasureoftheoverall reputationofyourcompany REPTRAK®PULSE Emo<onalConnec<on PRODUCTS&SERVICES Acompanythathasastrong reputa:onanddeliverson expecta:ons—willearn supportfromitsstakeholders SUPPORTIVEBEHAVIORS Reputa<onOutcomes PURCHASE INNOVATION RECOMMEND WORKPLACE CRISISPROOF GOVERNANCE VERBALSUPPORT CITIZENSHIP LEADERSHIP INVEST PERFORMANCE WORK THINK FEEL ACT Reputa)onIns)tute|20YearsofReputa)onLeadership 7 HowCorporateReputa)onlinkstoStakeholderSupport Companieswithanexcellentreputa)ongarnersignificantlymoresupport–althoughinteres)ngly,the levelofsupportforworkplaceamongcompanieswithanexcellentreputa)ondecreasedvs.2016. Poor 0-39 vs.2016 +2pts +5pts +4pts +5pts +8pts -8pts +1pts Reputa)onIns)tute|20YearsofReputa)onLeadership 8 Reputa)onIns)tute DimensionsandDrivers Reputa)onIns)tute|20YearsofReputa)onLeadership 9 KEYUSDRIVERSOFREPUTATION:2016 KeyDimensions:ProductsandServices,Ci)zenship,andGovernance USRepTrak® 2017 1 11.9% 19.9% 12.7% 12.6% 11.5% 16.2% 15.2% • Product/Services:Offershighqualityproductsandservices–itoffers excellentproductsandreliableservices • Innova<on:Isaninnova)vecompany--itmakesorsellsinnova)veproducts orinnovatesinthewayitdoesbusiness • Workplace:Isanappealingplacetowork--ittreatsitsemployeeswell 3 • Governance:Isaresponsibly-runcompany--itbehavesethicallyandisopen &transparentinitsbusinessdealings 2 • Ci<zenship:Isagoodcorporateci)zen--itsupportsgoodcauses&protects theenvironment • Leadership:Isacompanywithstrongleadership--ithasvisibleleaders&is managedeffec)vely • Performance:Isahigh-performancecompany--itdeliversgoodfinancial results FactorAdjustedRegression N=38,000 Adj-R²=0.716 Reputa)onIns)tute|20YearsofReputa)onLeadership 10 ProductsandServices,Governance,andCi)zenshipgrewinimportance USRepTrak® 2016 USRepTrak® 2017 DimensionWeights 13.4% 17.4% 13.2% 11.9% 13.6% 14.0% 13.2% 15.1% FactorAdjustedRegression N=40,471 Adj-R²=0.701 Significantchange>3.0 19.9% 12.7% 12.6% 11.5% 16.2% 15.2% FactorAdjustedRegression N=38,000 Adj-R²=0.716 • Allthreeofthetop driversincreasedin importancebyover1 percentagepoint. • Thetopthreedrivers nowaccountfora weightofimportanceof 51.3%--thisanoverall increaseofalmost5 percentagepointsvs. 2016. Reputa)onIns)tute|20YearsofReputa)onLeadership 11 Dimensionweightsfordifferentsegmentsareconsistent Female Male 12.0% 18.8% 13.0% 11.8% 12.9% 20.9% 12.4% 12.4% DimensionWeights 11.8% 16.0% 15.4% 15.1% FactorAdjustedRegression N=17,992 Adj-R²=0.731 FactorAdjustedRegression N=20,008 Adj-R²=0.703 Millennials Non-Millennials 12.5% 18.8% 13.2% 11.5% 12.9% 11.9% 15.6% Significantchange>3.0 11.2% 16.3% 20.7% 12.3% 12.5% 11.2% 16.5% 15.1% 15.3% FactorAdjustedRegression N=14,594 Adj-R²=0.716 FactorAdjustedRegression N=23,406 Adj-R²=0.716 • Thetopthreedrivers areconsistentamong genders–andalsofor Millennialsvs.NonMillennials. • Thedriverweightsfor eachsegmentare alignedwiththe weightsfortheUS overall. • ProductsandServices, Governance,and Ci)zenshipare universallyimportant Reputa)onIns)tute|20YearsofReputa)onLeadership 12 Evolu)onofreputa)ondimensions:weightofimportancedivergencein2017 PRODUCTS&SERVICES 20% 19% 18% 17% CITIZENSHIP 16% GOVERNANCE 15% 14% 13% INNOVATION LEADERSHIP 12% PERFORMANCE WORKPLACE 11% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reputa)onIns)tute|20YearsofReputa)onLeadership 13 ENTERPRISEVS.PRODUCT ThecompanybehindtheProductsmaQersmorethaneverbefore 67% 33% > ENTERPRISE PRODUCT SUPPORTIVEBEHAVIORS RECOMMENDCOMPANY●SAYSOMETHINGPOSITIVE●GIVETHEBENEFITOFDOUBT●TRUSTTODOTHERIGHTTHING●BUYPRODUCTS● INVEST●WORKFORCOMPANY●WELCOMETOTHENEIGHBOURHOOD●RECOMMENDPRODUCTS●RECOMMENDASANINVESTMENT Reputa)onIns)tute|20YearsofReputa)onLeadership 14 Diggingdeeper:thetenmostimportantreputa)ondrivers Productassurances,coupledwithreassuranceofgoodci:zenshipandgoodgovernance arekeyreputa:onenhancingopportuni:es. Offershighqualityproductsandservices Offersproductsandservicesthatareagoodvalueforthemoney Meetscustomerneeds Hasaposi)veinfluenceonsociety Isfairinthewayitdoesbusiness Standsbehinditsproductsandservices Behavesethically Isopenandtransparentaboutthewaythecompanyoperates Hasastrongandappealingleader Isgenerallythefirstcompanytogotomarketwithnewproductsand services *Listshowstop10mostimportantreputa)onaQributes Reputa)onIns)tute|20YearsofReputa)onLeadership 15 Reputa)onIns)tute IndustryReputa)on Reputa)onIns)tute|20YearsofReputa)onLeadership 16 USRepTrak®2017rankingbyindustry:Consumerindustryistop Rank Industry PulseScore 1 Consumer 76.46 2 Food&Beverage 75.51 2017Highlights 3 Transport 74.34 4 Automo)ve 73.96 5 Airlines 73.34 6 Industrial 72.37 7 Retail 72.36 8 Technology 71.84 9 Informa)on 71.80 10 Pharmaceu)cals 71.64 11 Hospitality 71.58 12 Services 70.60 13 Financial 68.98 14 Healthcare 67.25 • Reputa)onIns)tutehas expandedthetypesofindustries measuredin2017. • Mostindustriesareatleast somewhatstrong,with consumercompaniesscoring higherduetorelatability. • Theenergyindustryisweakest, andtelecom,healthcare,and financialindustryareaverage– itsmorechallengingfor companiesintheseindustriesto managereputa)on. 15 Telecommunica)on 65.34 16 Energy 59.69 Strong Average Weak Reputa)onIns)tute|20YearsofReputa)onLeadership 17 Importanceofdimensionsbyindustry:examples Technology Consumer 12.1% 21.1% 12.7% 13.5% 12.6% 14.3% 11.0% 13.1% 13.8% 11.0% 13.2% 12.9% 11.6% FactorAdjustedRegression N=600 Adj-R²=0.779 13.8% FactorAdjustedRegression N=7,400 Adj-R²=0.695 Financial 12.3% 12.3% 11.7% 14.2% 12.8% 16.6% 21.8% 13.0% 12.7% 18.1% Hospitality 20.3% 18.3% 13.0% FactorAdjustedRegression N=3,100 Adj-R²=0.700 Retail 15.9% 8.5% 15.2% FactorAdjustedRegression N=6,000 Adj-R²=0.656 12.5% 20.1% 14.0% 15.4% 13.1% Pharmaceu)cals 13.8% FactorAdjustedRegression N=4,800 Adj-R²=0.705 17.2% 12.8% 12.6% 2017Highlights • ProductsandServicesand Governancearekeyacrossall industries • Ci)zenshipisimportanttoall industries,butslightlyless importantinTechnology • Leadershipisuniquely importanttotheTechnology industry 11.5% 18.6% 15.0% FactorAdjustedRegression N=4,900 Adj-R²=0.761 Reputa)onIns)tute|20YearsofReputa)onLeadership 18 Howindustryreputa)onisimpactedbydifferentdimensions:examples Technology Consumer 76.8 75.4 78.8 73.6 76.5 73.4 74.7 72.7 77.6 74.8 71.9 71.8 70.8 71.6 73.4 74.0 71.6 71.4 73.0 71.1 69.5 Retail Hospitality Financial 73.0 74.7 72.7 69.1 66.4 70.4 70.9 71.2 73.8 74.6 71.6 68.0 66.1 69.9 71.1 71.0 2017Highlights 72.8 74.1 72.2 70.7 74.0 Pharmaceu)cals 71.7 69.0 68.4 67.9 70.3 • ConsumerandTechnology industryisstrongonall Dimensions • Pharmaceu)calsand Financialindustryisaverage onGovernance • Retail,Financial,and Hospitalityisimpactedby lowerscoresonInnova)on andCi)zenship • Hospitalityisalsoaverage onWorkplace 67.8 Reputa)onIns)tute|20YearsofReputa)onLeadership 19 LowerreputefortheFinancialvs.Consumerindustriesyieldslesssupport 2017Suppor)veBehavior 65% Financialvs.Consumer • TheGeneralPublicis morelikelytosupport Consumercompanies. • Thelowerscoresof theFinancialIndustry onthekeydimensions ofCi)zenshipand Governancedetracts fromsupport. • Financialindustrycan increasereputa)onby improvingGovernance aQributes–fairness, posi)veinfluenceon society,andgood ethics. 60% Financial 55% 50% 73.8 71.0 71.7 45% 40% 67.9 69.0 35% 30% 68.4 70.3 67.8 Recommend Company SayPosi)ve Financial Consumer 76.8 75.4 73.4 TrustToDoThe WelcomeTo RightThing Neighbourhood Consumer 2017FinancialIndustryDriverWeightsandAQributeScores 78.8 76.5 BenefitOf Doubt Isfairinthewayitdoesbusiness 68.7 Hasaposi)veinfluenceonsociety 68.3 Behavesethically 68.4 73.6 76.7 74.1 4.0% 4.5% 5.0% 5.5% 6.0% Reputa)onIns)tute|20YearsofReputa)onLeadership 20 Industriesthatareopenandtransparentgeneratemoresupport:examples 50% OpenandTransparent • Industriesthathavea higherreputa)on generallyenjoy strongerassocia)ons withtransparencyrelatedac)ons. • Higherlevelsof transparencyincreases likelihoodof“saying somethingposi)ve.” • Buttransparencydoes notasreadilyyield higherreputa)oninthe FinancialIndustry. Providessufficient informa)onaboutits ac)vi)es Welcomesopen discussionwith outsideaudiences aboutitsac)vi)es 45% 40% 35% 30% 25% 20% %whowouldsaysomething posi)veaboutIndustry AFribute:Isopenandtransparent Consumer Technology Financial Retail Energy 62% 57% 51% 57% 40% 72.2 68.8 66.1 68.7 56.1 Reputa)onIns)tute|20YearsofReputa)onLeadership 21 AcuteGovernancechallengesexistforEnergyandTelecomIndustries Telecommunica)ons 2017GovernanceAQributesandScores Telecommunica)ons Energy 64.5 60.2 Isfairinthewayitdoesbusiness 69.0 Behavesethically 56.5 64.7 Isopenandtransparent 56.1 11.1% 16.7% 14.1% 14.2% 17.2% 12.0% 14.6% FactorAdjustedRegression N=700 Adj-R²=0.730 Energy 2017Suppor)veBehavior:“TrusttoDotheRightThing” 15.8% 12.3% 12.3% Consumer Food&Beverage 19.2% Telecommunica)on 12.4% 19.0% Energy 30% 9.0% 40% 50% 60% FactorAdjustedRegression N=1,100 Adj-R²=0.780 Lowest-rankedIndustries • Therearemajor governanceissuesfor EnergyandTelecom industries–it’sahighly importantdimension. • Theselower-ranked industriesarenot perceivedasmee)ng customerneeds,or appearinggenuine. • Fewerthanhalfof respondentstrustEnergy andTelecomIndustries todotherightthing. Reputa)onIns)tute|20YearsofReputa)onLeadership 22 Reputa)onIns)tute USTop10Companies Reputa)onIns)tute|20YearsofReputa)onLeadership 23 TheTop10Companies:USRepTrak®2017 Rank 1 Company PulseScore 84.03 Highlights 2 83.71 3 83.17 4 82.78 5 82.45 6 82.23 7 82.12 8 81.76 9 81.75 10 81.67 Excellent • Alloftop10haveanexcellent reputa)on–Rolexemergesto displaceAmazonas#1 • Sevenoftop10companiesare USbased–sixare“nostalgic” andmanyarecontentinspired • 8outofthetop10are consumerorretail • LegoandHersheybounce-back intothetop10 • Kimberly-Clarkappearsinthe top10forthefirst)me Reputa)onIns)tute|20YearsofReputa)onLeadership 24 SixkeyfactorsthatdefinetheTop10Companies 1 2 3 4 5 6 Strengthoffamiliarity Iden)fywithMillennials FocusonCSR SocialMediaAc)vity CorporateBrandPurpose InspiringBrandPersona Reputa)onIns)tute|20YearsofReputa)onLeadership 25 Top10Companies:depthoffamiliarityyieldsanexcellentreputa)on 1 TobuildReputa:onitisnecessarytoreinforcetheemo:onalbondthatstakeholders havewiththecompany–throughleveragingthepoweroffamiliarity Familiarity Awareness +22.3 Excellent 27.7% Aware 60.0% 82.1 100% Good 20.3% Reputa<on 75.8 67.1 Sufficient 31.6% Notaware 40.0% Poor 20.4% Leveloffamiliarity 59.8 Poor Sufficient Good Excellent Familiarity Reputa)onIns)tute|20YearsofReputa)onLeadership 26 Top10Companies:engendermoreloveamongMillennials 2 Top10companieshaveahigherreputa:onamongMillennials,andoutperform othercompaniesintheirabilitytogarnerMillennialsupport NON-MILLENNIALS MILLENNIALS 84.1 +2.5 81.6 TOP10COMPANIESHAVEABETTERSCOREAMONGMILLENNIALSINTHE KEYENTERPRISEDIMENSIONS(WORKPLACE,GOVERNANCE,CITIZENSHIP, LEADERSHIPANDPERFORMANCE.) Millennials=18-35 Non-millennials=36-64 Reputa)onIns)tute|20YearsofReputa)onLeadership 27 Top10USCompanies:reputa)onisunderscoredbystrongCSRcreden)als 3 Rank Company PulseScore CSRIndex 1 84.03 80.53 2 83.71 79.02 3 83.17 76.98 4 82.78 78.77 5 82.45 78.95 6 82.23 76.86 7 82.12 78.97 8 81.76 75.06 9 81.75 76.73 10 81.67 74.53 Theexcellentreputa:onof thetop10companiesis alignedwithastrong commitmenttoCSR–these companiesareassociated withmakingtheworlda beFerplacetolive. Reputa)onIns)tute|20YearsofReputa)onLeadership 28 Top10Companies:reputa)onisamplifiedbySocialMediaac)vity 4 Touchpoints • TheTop10companies don’thavecompe))ve advantagefrompaid mediaac)vity. Tradi)onalmedia(television,radio,printmedia) [Company]'sadver)sementsontradi)onalmedia (television,radio,printmedia) • Companiesoutsideof theTop10generate higheradver)singrecall –butitdoesnotyield reputa)ongain. [Company]'sadver)sementsonsocialmedia Fromsocialmediapos)ngsby[Company] 0% Top10 5% 10% AllUsCompanies 15% 20% 25% 30% • TheTop10companies benefitfromhigher recallofsocialmedia ac)vity. Reputa)onIns)tute|20YearsofReputa)onLeadership 29 Top10Companies:shapedbyadeepersenseofBrandPurpose 5 Top10companieshaveanexcellentreputa:onthatisamplifiedbyapowerful corporatebrandhalo,asdefinedbyappearinggenuine,unique,andconsistent. Appearsgenuineabout whatitsaysandstandsfor Deliversaconsistent experience Brand Strength ALLUS BRANDSTRENGTH TOP10 BRANDSTRENGTH 81.3 -8.3 73.0 Standsoutfrom thecrowd Reputa)onIns)tute|20YearsofReputa)onLeadership 30 HowastrongCorporateBrandcorrelateswithabeQerreputa)on R²=0.82984 90 85 Top10Companies BrandStrength 80 75 70 65 60 55 50 45 40 40 45 50 55 60 65 70 75 80 85 90 RepTrak®Pulse BrandStrengthisaconstructofthreebrandexpressivenessaQributes: standoutfromthecrowd,deliversaconsistentexperienceandappearsgenuineaboutwhatitsaysandwhatitstandsfor Reputa)onIns)tute|20YearsofReputa)onLeadership 31 Top10Companies:corporateBrandPersonaismoreinspiring 6 ALLUS COMPANIES TOP10 IMAGINATIVE 34.9% -12.1% 22.8% CREATIVE 41.4% -11.9% 29.5% CHARMING 20.7% -7.8% 12.9% FRIENDLY 42.5% -6.5% 36.0% MODERN 40.6% -5.8% 34.8% BrandPersona • Thecorporatebrand personatraitsmost associatedwiththeTop 10companiesare “Friendly”,“Crea)ve”, and“Modern. • Top10companiesare 10percentagepoints morelikelytobeseen as“Imagina)ve”and “Crea)ve”comparedto allUScompanies Reputa)onIns)tute|20YearsofReputa)onLeadership 32 Reputa)onIns)tute 2017USRepTrak®100 Reputa)onIns)tute|20YearsofReputa)onLeadership 33 2017USRepTrak®100:MostReputableCompanies(1-50) Rank Company 2017RepTrak®Pulse Rank Company 2017RepTrak®Pulse 1 2 Rolex Amazon.com 84.03 83.71 26 27 Caterpillar Chiquita 80.21 80.17 3 Sony 83.17 28 HomeDepot 80.00 4 5 6 7 8 9 10 11 12 LEGOGroup Hallmark Nejlix Kimberly-ClarkCorpora<on HersheyCompany FruitoftheLoom Barnes&Noble PublixSuperMarketsInc. Tupperware 82.78 82.45 82.23 82.12 81.76 81.75 81.67 81.60 81.24 29 30 31 32 33 34 35 36 37 Goodyear Williams-Sonoma CampbellSoupCompany McCormick&Co Intel Whirlpool Hanesbrands DelMonteFoods Johnson&Johnson 79.96 79.91 79.90 79.88 79.78 79.73 79.68 79.68 79.56 13 Bosch 81.20 38 IBM 79.52 14 15 16 17 18 19 20 21 22 23 24 25 Canon Kellogg's L.L.Bean Google DoleFoodsCompany BassProShops Bose Heineken Michelin TheWaltDisneyCompany Colgate-Palmolive LeviStrauss&Co. 80.95 80.88 80.83 80.63 80.61 80.60 80.57 80.48 80.45 80.37 80.36 80.23 39 Microson 79.51 40 Nike,Inc. 79.43 41 42 43 Pirelli MarriooInterna<onal PayPal 79.41 79.34 79.25 44 FedEx 79.16 45 46 47 48 49 50 UPS BMWGroup Bri<shAirways ColumbiaSportswearCo. TheKranHeinzCompany Kohler 79.13 79.11 79.11 79.08 79.05 79.00 Reputa)onIns)tute|20YearsofReputa)onLeadership 34 2017USRepTrak®100:MostReputableCompanies(51-100) Rank Company 2017RepTrak®Pulse Rank Company 2017RepTrak®Pulse 51 52 53 54 55 56 57 58 59 60 61 62 UnderArmour Nikon Fujifilm Kroger KeurigGreenMountain Nintendo J.M.SmuckerCompany adidas BenjaminMoore Rolls-RoyceAerospace 3M TheEstéeLauderCompanies 78.96 78.87 78.72 78.65 78.56 78.39 78.32 78.30 78.04 78.01 77.87 77.86 76 77 78 Visa O'ReillyAutoParts GiorgioArmani 77.29 77.26 77.23 79 SheratonHotels 77.18 63 SamsungElectronics 77.84 80 81 82 83 84 85 86 87 88 Sherwin-Williams AirCanada HondaMotor Kohl's PhilipsElectronics HyaoHotels CrackerBarrelOldCountryStore Deere&Co. InterCon<nentalHotels 77.07 77.07 77.06 77.03 76.95 76.94 76.87 76.85 76.83 64 65 66 67 68 69 70 71 72 73 74 75 Panasonic USPostalService Sharp RalphLaurenCorpora<on HiltonWorldwide GeneralMills NewellRubbermaid Procter&Gamble Apple TeslaMotors Barilla Siemens 77.76 77.70 77.69 77.68 77.58 77.50 77.48 77.42 77.40 77.40 77.34 77.30 89 90 BIC FootLocker 76.78 76.78 91 Clorox 76.74 92 93 94 95 96 97 98 99 100 GarminInterna<onal Bayer BedBath&Beyond Boeing CostCoWholesale Harley-Davidson Tiffany&Co. Wrigley LandO’Lakes 76.69 76.68 76.66 76.61 76.54 76.54 76.44 76.43 76.42 Reputa)onIns)tute|20YearsofReputa)onLeadership 35 2017USRepTrak®100:FeaturedCompany Ranked #86in 2016 Rank Company 2017RepTrak®Pulse Rank Company 2017RepTrak®Pulse 1 2 Rolex Amazon.com 84.03 83.71 26 27 Caterpillar Chiquita 80.21 80.17 3 Sony 83.17 28 HomeDepot 80.00 4 5 6 7 8 9 10 11 12 LEGOGroup Hallmark Nejlix Kimberly-ClarkCorpora<on HersheyCompany FruitoftheLoom Barnes&Noble PublixSuperMarketsInc. Tupperware 82.78 82.45 82.23 82.12 81.76 81.75 81.67 81.60 81.24 29 30 31 32 33 34 35 36 37 Goodyear Williams-Sonoma CampbellSoupCompany McCormick&Co Intel Whirlpool Hanesbrands DelMonteFoods Johnson&Johnson 79.96 79.91 79.90 79.88 79.78 79.73 79.68 79.68 79.56 13 Bosch 81.20 38 IBM 79.52 14 15 16 17 18 19 20 21 22 23 24 25 Canon Kellogg's L.L.Bean Google DoleFoodsCompany BassProShops Bose Heineken Michelin TheWaltDisneyCompany Colgate-Palmolive LeviStrauss&Co. 80.95 80.88 80.83 80.63 80.61 80.60 80.57 80.48 80.45 80.37 80.36 80.23 39 Microson 79.51 40 Nike,Inc. 79.43 41 42 43 Pirelli MarriooInterna<onal PayPal 79.41 79.34 79.25 44 FedEx 79.16 45 46 47 48 49 50 UPS BMWGroup Bri<shAirways ColumbiaSportswearCo. TheKranHeinzCompany Kohler 79.13 79.11 79.11 79.08 79.05 79.00 Reputa)onIns)tute|20YearsofReputa)onLeadership 36 Kimberly-Clarkenjoyedreputa)onincreasesacrosstheboard 2017 2016 +4.3 77.4 +4.7 81.7 77.6 82.3 +4.9 74.9 75.2 72.2 75.3 79.8 +6.9 82.1 79.0 75.6 76.2 78.4 +3.1 79.5 78.4 +6.8 +3.9 2017AQributeScore AQributedriverweights: 80.8 Offershighqualityproductsandservices Offersproductsandservicesthatareagoodvalueforthe money 81.7 Meetscustomerneeds 85.1 Hasaposi)veinfluenceonsociety 79.5 Isfairinthewayitdoesbusiness 79.0 Standsbehinditsproductsandservices 81.8 Behavesethically 78.5 Significantchange>3.0 0% 1% 2% 3% 4% 5% 6% 7% • Gainsacrossalldimensions, notablyci)zenshipandproducts &services–twokeydimensions. • StrongfocusonCSRwithkey ini)a)vesaroundsourcing sustainabilityandproduct dona)ons. • Productqualityimprovement ini)a)veswithincreased communica)onbehindend benefits,andresultant improvementintheproducts& servicesdimensionscore. • KimberlyClarkachievesexcellent tonearlyexcellentscoresonthe topaQributedrivers. Reputa)onIns)tute|20YearsofReputa)onLeadership 37 2017USRepTrak®100:FeaturedCompany Ranked #33in 2016 Rank Company 2017RepTrak®Pulse Rank Company 2017RepTrak®Pulse 1 2 Rolex Amazon.com 84.03 83.71 26 27 Caterpillar Chiquita 80.21 80.17 3 Sony 83.17 28 HomeDepot 80.00 4 5 6 7 8 9 10 11 12 LEGOGroup Hallmark Nejlix Kimberly-ClarkCorpora<on HersheyCompany FruitoftheLoom Barnes&Noble PublixSuperMarketsInc. Tupperware 82.78 82.45 82.23 82.12 81.76 81.75 81.67 81.60 81.24 29 30 31 32 33 34 35 36 37 Goodyear Williams-Sonoma CampbellSoupCompany McCormick&Co Intel Whirlpool Hanesbrands DelMonteFoods Johnson&Johnson 79.96 79.91 79.90 79.88 79.78 79.73 79.68 79.68 79.56 13 Bosch 81.20 38 IBM 79.52 14 15 16 17 18 19 20 21 22 23 24 25 Canon Kellogg's L.L.Bean Google DoleFoodsCompany BassProShops Bose Heineken Michelin TheWaltDisneyCompany Colgate-Palmolive LeviStrauss&Co. 80.95 80.88 80.83 80.63 80.61 80.60 80.57 80.48 80.45 80.37 80.36 80.23 39 Microson 79.51 40 Nike,Inc. 79.43 41 42 43 Pirelli MarriooInterna<onal PayPal 79.41 79.34 79.25 44 FedEx 79.16 45 46 47 48 49 50 UPS BMWGroup Bri<shAirways ColumbiaSportswearCo. TheKranHeinzCompany Kohler 79.13 79.11 79.11 79.08 79.05 79.00 Reputa)onIns)tute|20YearsofReputa)onLeadership 38 Hershey’sBrandStrength,Products,andWorkplaceincreasereputa)on 2017 2016 +3.8 77.6 74.7 78.3 77.1 78.0 71.7 72.1 75.8 +3.8 BrandStrengthIndex 2016 77.0 2017 79.6 73.0 75.1 74.9 +3.4 +4.4 2017AQributeScore AQributedriverweights: CorporateBrand: Demonstratesconcernforthe healthandwell-beingofits 74.9 Offersequalopportuni)esinthe workplace 76.4 Rewardsitsemployeesfairly 72.9 0% Significantchange>3.0 81.8 75.1 70.7 72.6 80.9 1% 2% 3% 4% • Hershey’scommitmenttoa corporatebrandandnostalgia increasedemo)onalconnec)on. • Anewstrategicfocusona “happiness”pla•ormelevated thecorporatebrand. • Hersheyhasbeenexpandingcore productofferingstoincludemore nutri)onalproducts,bylistening towhatcustomerswant. • Numberofworkplaceini)a)ves withafocusonequality–useof bigdataposi)velyimproved employeeengagementandHR hiringprac)ces. Reputa)onIns)tute|20YearsofReputa)onLeadership 39 Reputa)onIns)tute 2017WinnersandLosers 4 Reputa)onIns)tute|20YearsofReputa)onLeadership 40 0 Google’sempoweringLeadershipandCi)zenshipeffortshavebeeneffec)ve 2017 2016 +6.3 77.6 +3.8 83.9 78.1 81.9 +7.1 74.6 77.9 76.0 70.6 +4.6 81.7 80.6 80.5 75.4 83.3 79.0 79.3 72.7 +5.4 +9.9 +3.6 +6.6 AQributedriverweights: 2017AQributeScore Hasaposi)veinfluenceon society 83.6 Actsresponsiblytoprotectthe environment 78.0 Supportsgoodcauses 79.9 0% Significantchange>3.0 1% 2% 3% 4% 5% 6% Hasastrongand appealingleader 80.7 • Googlewasabletoelevatemost dimensionstotheexcellentlevelin 2017. • CSRdimensionssawnotable increasesasGoogledemonstrated itscommitmenttosustainability, anddonatedtocharityinlieuof employeebonuses. • Googleismakingaconsciouseffort todevelopadiverseworkplace. • Google’sCEOSundarPichaikeeps amuchlowerprofilethanother techCEOs,buthehasbeenableto elevatethosearoundhimforthe en)recompanytosucceed. Reputa)onIns)tute|20YearsofReputa)onLeadership 41 LeviStrauss&CobenefitsfromimpactofWorkplaceini)a)ves 2017 2016 77.0 70.1 +8.1 77.3 69.6 Suppor)veBehavior:“WorkFor” 41.8% 2016 Significantchange>3.0 2017 69.4 +2.9 78.2 81.6 80.2 77.2 65.9 70.6 58.8% 79.1 80.2 +4.8 74.2 75.9 74.7 +7.6 +10.0 +4.1 AQributedriverweight: 2017AQributeScore Demonstratesconcernfor thehealthandwell-beingof itsemployees 77.4 Offersequalopportuni)esin theworkplace 77.6 Rewardsitsemployeesfairly 72.2 0% 1% 2% 3% • LeviStrauss&Cowasableto elevatealldimensionscoresinto atleastthestrongrange. • Anumberofworkplace ini)a)ves,includingincreased paidparentalleave,contributed toanimpressive10point increaseintheworkplace dimensionscore. • LeviStrauss&Co’sCEO,Chip Bergh,hasfurthermadea commitmenttobeingopenand accessibletowardsemployees throughtownhallmee)ngsand anopen-doorpolicy. 4% Reputa)onIns)tute|20YearsofReputa)onLeadership 42 Samsung’sBrandStrengthinsulatedagainstprecipitousdropduringcrisis 2017 2016 -4.6 83.7 -5.7 79.1 85.1 79.4 -4.0 81.4 84.4 80.4 84.1 -6.6 77.4 77.8 75.2 80.8 79.8 -5.2 -5.7 78.4 74.1 76.4 -6.7 -3.4 Top3BrandPersonalityTraits: CorporateBrand: 55.2% 50.6% BrandStrengthIndex 82.8 2017 79.3 -3.5 2016 Tech-savvy Significantchange>3.0 46.7% Modern • Samsungearnsastrong reputa)on,butsawitsposi)onon theUSRT100dropfrom#3to#63. • A‚erphonesstartedcatchingon fire,Samsungwasforcedtorecall anddiscon)nueitsGalaxyNote7. • Samsunghighlightshowbrand strengthcanprovideabufferto minimizefallincompany’s reputa)onfollowingacrisis. • However,Samsungiss)llat elevatedrisk,asbrandstrength diddecreasesignificantlyandall dimensionscoresdeclinedbackto strongrange. Crea)ve Reputa)onIns)tute|20YearsofReputa)onLeadership 43 AmericanExpresshastakenasignificantstep-backinreputa)on 2017 2016 -5.0 79.4 76.5 79.7 74.7 -3.3 76.7 77.1 77.2 75.3 -4.4 73.4 72.7 72.1 76.6 79.0 71.7 71.5 -5.1 -4.9 -7.5 AQributedriverweight: Isfairinthewayitdoesbusiness 71.2 Behavesethically 73.4 Isopenandtransparentaboutthewaythecompanyoperates 69.9 Isgenerallythefirstcompanytogotomarketwithnew productsandservices 65.0 Isaninnova)vecompany 71.5 Adaptsquicklytochange 72.1 Significantchange>3.0 -5.7 69.6 0% 1% 2% 3% 4% 5% 6% Governance Innova)on • AmericanExpresshasbeen impactedbyanumberofissues overthepastyear. • AmericanExpressendedan exclusivecontractwithCostcoand lostcreditcardco-brandingwith Jetblue&Fidelity. • Thecompanyhasnotbeenas ac)veinlaunchingnewproducts andservices. • ImpactoftheAmexSmallBusiness Saturdayprogramiswaning. • Concernsabouttransparencyled tosignificantdropingovernance. Reputa)onIns)tute|20YearsofReputa)onLeadership 44 Yahoo!experienceddras)cdeclines--andwentintoreputa)onfree-fall 2017 2016 -6.3 67.1 -9.3 60.8 70.9 61.6 -8.7 68.4 71.4 63.5 66.7 59.7 -10.6 60.8 63.3 69.3 63.3 59.3 70.1 -6.0 2017AQributeScore -10.8 AQributedriverweight: -8.9 57.8 Offershighqualityproductsandservices 61.6 Offersproductsandservicesthatareagoodvalueforthemoney 60.7 Meetscustomerneeds 60.5 Standsbehinditsproductsandservices 63.3 Isgenerallythefirstcompanytogotomarketwithnewproductsand services 50.5 Isaninnova)vecompany 63.0 Adaptsquicklytochange Significantchange>3.0 0% 59.8 1% 2% 3% 4% 5% 6% • Yahoo!sawsignificantdeclines acrossnearlyeverydimension. • Thecompanyhadbeen performingatanaverageto strongrangepreviously,butnow allscoresareaverageorbelow. • ThedelaysinclosingVerizon’s acquisi)onofYahoo!hasserved toundermineconfidence. • Seriesofdatabreachesnotonly bringsintoques)onthesecurity ofYahoo!products,butalsothe competenceofleadershipandthe fundamentalgovernance prac)cesofthecompany. Reputa)onIns)tute|20YearsofReputa)onLeadership 45 Reputa)onIns)tute Ques)ons Reputa)onIns)tute|20YearsofReputa)onLeadership 46 RepTrak®AllowsCompaniestoAc)velyManageTheirReputa)onsby Con)nuouslyMeasuringPercep)onsGlobally RepTrak®Pulse RepTrak®Integrity • Deepestnorma)vedatabaseof reputa)onintheworld • 10yearsofdata • Measurementsin40+countries ü Goldstandardforreputa)onmeasurement • 15+differentstakeholdergroups ü Onlyreputa)onmeasurementsystemtomeetthe complexreputa)onneedsofmul)-na)onalandlarge, globalcompanies • 7,000companies • Hundredsofthousandsof ra)ngsannually ProprietaryRepTrak®SystemandDatabase ü Robust,provenmethodologythatisunsurpassed Reputa)onIns)tute|20YearsofReputa)onLeadership 47 ThankYou Reputa)onIns)tute|20YearsofReputa)onLeadership 48 Reputa)onIns)tute Appendices Reputa)onIns)tute|20YearsofReputa)onLeadership 49 AQributedriversforMillennialsvs.Non-Millennialsaresimilar NON-MILLENNIALS MILLENNIALS Driver Weight Reputa<onAoribute Driver Weight Reputa<onAoribute 5.9% 5.8% 5.7% 5.4% 5.0% 4.8% 4.4% 4.4% 4.3% 4.2% 4.2% 4.2% 4.1% 4.0% 3.9% 6.7% 6.2% 5.8% 5.8% 5.4% 5.3% 5.0% 4.6% 4.3% 4.1% 4.0% 3.9% 3.9% 3.9% Offershighqualityproductsandservices Offersproductsandservicesthatareagoodvalueforthemoney Hasaposi)veinfluenceonsociety Meetscustomerneeds Standsbehinditsproductsandservices Isfairinthewayitdoesbusiness Behavesethically Isopenandtransparentaboutthewaythecompanyoperates Isgenerallythefirstcompanytogotomarketwithnewproductsand services Hasastrongandappealingleader Actsresponsiblytoprotecttheenvironment Isawellorganizedcompany Supportsgoodcauses Showsstrongprospectsforfuturegrowth Hasexcellentmanagers 3.7% Isaninnova)vecompany 3.8% 3.8% Offershighqualityproductsandservices Meetscustomerneeds Offersproductsandservicesthatareagoodvalueforthemoney Hasaposi)veinfluenceonsociety Isfairinthewayitdoesbusiness Behavesethically Isopenandtransparentaboutthewaythecompanyoperates Standsbehinditsproductsandservices Hasexcellentmanagers Actsresponsiblytoprotecttheenvironment Hasastrongandappealingleader Isawellorganizedcompany Supportsgoodcauses Showsstrongprospectsforfuturegrowth Isaninnova)vecompany Isgenerallythefirstcompanytogotomarketwithnewproductsand services Hasaclearvisionforitsfuture Adaptsquicklytochange 3.6% 3.5% Demonstratesconcernforthehealthandwell-beingofitsemployees DeliversfinancialresultsthatarebeQerthanexpected 3.8% Demonstratesconcernforthehealthandwell-beingofitsemployees 3.4% Offersequalopportuni)esintheworkplace 3.7% 3.6% 3.6% 3.5% Rewardsitsemployeesfairly Isaprofitablecompany DeliversfinancialresultsthatarebeQerthanexpected Offersequalopportuni)esintheworkplace 3.4% 3.3% 3.1% 2.9% Hasaclearvisionforitsfuture Adaptsquicklytochange Rewardsitsemployeesfairly Isaprofitablecompany 3.9% Millennials=18-35 Non-millennials=36-64 4.3% AoributeDrivers • Millennialsand Non-Millennials bothplacehigh importanceon product-related aQributes. • Percep)onsof goodethics, fairness,posi)ve influenceon societyand transparencyis alsoequally important. Reputa)onIns)tute|20YearsofReputa)onLeadership 50 AQributedriversforMalesvs.Femalesaresimilar FEMALES MALES Driver Weight Reputa<onAoribute Driver Weight 6.0% 5.7% 5.6% 5.4% 5.0% 4.9% 4.8% 4.6% 4.3% 4.2% 4.2% 4.2% Offershighqualityproductsandservices Offersproductsandservicesthatareagoodvalueforthemoney Hasaposi)veinfluenceonsociety Meetscustomerneeds Isfairinthewayitdoesbusiness Behavesethically Standsbehinditsproductsandservices Isopenandtransparentaboutthewaythecompanyoperates Hasastrongandappealingleader Actsresponsiblytoprotecttheenvironment Hasexcellentmanagers Isawellorganizedcompany Isgenerallythefirstcompanytogotomarketwithnewproductsand services Supportsgoodcauses Showsstrongprospectsforfuturegrowth Demonstratesconcernforthehealthandwell-beingofitsemployees Isaninnova)vecompany Hasaclearvisionforitsfuture DeliversfinancialresultsthatarebeQerthanexpected Adaptsquicklytochange Offersequalopportuni)esintheworkplace Rewardsitsemployeesfairly Isaprofitablecompany 6.6% 6.2% 6.1% 5.7% 5.3% 5.2% 5.0% 4.4% 4.2% 4.1% 4.1% 4.0% 3.8% 3.8% 3.7% 3.6% 3.6% 3.6% 3.5% 3.1% 4.1% 4.0% 4.0% 4.0% 3.9% 3.8% 3.7% 3.5% 3.5% 3.5% 3.4% 3.4% 3.3% 3.2% Reputa<onAoribute Offershighqualityproductsandservices Offersproductsandservicesthatareagoodvalueforthemoney Meetscustomerneeds Hasaposi)veinfluenceonsociety Isfairinthewayitdoesbusiness Standsbehinditsproductsandservices Behavesethically Isopenandtransparentaboutthewaythecompanyoperates Hasastrongandappealingleader Isgenerallythefirstcompanytogotomarketwithnewproductsand services Actsresponsiblytoprotecttheenvironment Isawellorganizedcompany Supportsgoodcauses Hasexcellentmanagers Showsstrongprospectsforfuturegrowth Isaninnova)vecompany Demonstratesconcernforthehealthandwell-beingofitsemployees Adaptsquicklytochange Hasaclearvisionforitsfuture DeliversfinancialresultsthatarebeQerthanexpected Offersequalopportuni)esintheworkplace Isaprofitablecompany Rewardsitsemployeesfairly AoributeDrivers • Product-related aQributesareof highest importanceto bothmenand women. • Posi)veinfluence onsociety, fairness,and ethicalbehavior arealsoimportant tobothgenders– thereareno majordifferences. Reputa)onIns)tute|20YearsofReputa)onLeadership 51 Kohl’salsoleveragesWorkplacetoincreasereputa)on 2017 2016 74.1 73.6 73.6 75.3 74.5 72.4 68.1 71.9 +2.5 77.2 77.0 73.1 69.8 66.5 73.8 73.6 72.5 +4.0 2017AQributeScore 76.7 Offershighqualityproductsandservices Offersproductsandservicesthatareagoodvalueforthe money 74.9 Meetscustomerneeds 77.3 Hasaposi)veinfluenceonsociety 73.8 Isfairinthewayitdoesbusiness 74.7 Standsbehinditsproductsandservices 79.7 Behavesethically 74.9 Significantchange>3.0 0% 1% 2% 3% 4% 5% 6% 7% • Kohl’swasabletosignificantly raiseitsworkplacedimension scoreby4pointsover2016. • Theincreaseinworkplaceis impressive,asoverthepastyear thecompanybeganrestructuring tofocusonsmallerformatstores. • Kohl’sisbuildinganewUS warehousethatwillcreate900 newjobs. • Kohl’sreceivesstrongscoreson themostimportantaQributes– includingCi)zenshipand Governance. Reputa)onIns)tute|20YearsofReputa)onLeadership 52 FedEx’smovestohighstrongrangeduetoServicedeliveryandWorkplace 2017 2016 +3.2 75.7 75.0 77.7 74.6 77.3 72.1 71.9 +1.9 76.6 75.4 77.3 +3.6 TopBrandPersonaTraits: 2017AQributeScore Offershighqualityproductsand services 77.5 Offersproductsandservicesthat areagoodvalueforthemoney 73.3 Meetscustomerneeds 81.5 Standsbehinditsproductsand services 78.9 0% 1% 2% 3% 4% 5% 6% 7% Significantchange>3.0 74.0 79.2 74.6 71.8 76.8 AQributedriverweight: 77.8 49.1% 41.4% Hard-working Friendly 33.3% 31.7% Genuine Flexible • FedEx’sPulsescorenowis borderingonExcellent. • FedExwasabletomaintainstrong dimensionscoresacrosstheboard andsawsignificantincreasesin ProductsandWorkplace. • Towardstheendof2016,FedEx revealeddetailsaboutacquisi)on ofTNTandbeQeropera)ng efficienciesthanexpected. • Duetomagnitudeofonline shoppingduringholidayseason, FedExhiredseasonalworkers Reputa)onIns)tute|20YearsofReputa)onLeadership 53
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