CSR IS NOT DEAD - Reputation Institute
CSR IS NOT DEAD - Reputation Institute
CSR IS NOT DEAD - Reputation Institute
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<strong>CSR</strong> <strong>IS</strong> <strong>NOT</strong> <strong>DEAD</strong> - IT’S JUST M<strong>IS</strong>MANAGED<br />
2012 <strong>CSR</strong> RepTrak 100 Study shows companies wasting millions on <strong>CSR</strong><br />
LONDON, December 11, 2012– The results of <strong>Reputation</strong> <strong>Institute</strong>’s 2012 <strong>CSR</strong><br />
RepTrak 100 Study uncover that many of the world’s 100 most reputable companies<br />
have little to show for the millions of dollars they spend on Corporate Social<br />
Responsibility (<strong>CSR</strong>) initiatives.<br />
“For companies to win in the reputation economy, they need customers and<br />
stakeholders to trust and support them. <strong>CSR</strong> is a major driver of trust and reputation. So<br />
<strong>CSR</strong> is not dead. But with 50-60% of consumers unsure if the largest companies in the<br />
world are good corporate citizens, open and transparent, and are good places to work, it<br />
is clear that <strong>CSR</strong> investments are being mismanaged”, says Kasper Nielsen, Executive<br />
Partner of <strong>Reputation</strong> <strong>Institute</strong>.<br />
Sixty percent of the 47,000 respondents across the fifteen markets in the 2012 <strong>CSR</strong><br />
RepTrak 100 Study were unsure if companies are good corporate citizens that<br />
support good causes and protect the environment. Four percent believe that companies<br />
could absolutely not be trusted.<br />
The <strong>CSR</strong> RepTrak 100 Study clearly confirms that companies that make reputation<br />
management and hence, <strong>CSR</strong>, a driving force in their business strategy realize<br />
results…a five point increase in a <strong>CSR</strong> rating would result in a 9.1% rise in the number<br />
of people who would definitely recommend a company. There is real money in<br />
improving reputation through <strong>CSR</strong>, but companies are failing to leverage this.<br />
“Companies are mismanaging their <strong>CSR</strong> investments…it’s that simple. They are not<br />
applying the same rigor to these investments as they do to their other core business<br />
priorities. They are not linking <strong>CSR</strong> to their business strategy but instead, treating it as a<br />
separate initiative and investment. You don’t do <strong>CSR</strong> for the sake of <strong>CSR</strong>. You do <strong>CSR</strong><br />
as part of your reputation management strategy to drive business growth, customer<br />
loyalty, and employee alignment” says Nielsen.<br />
Microsoft Named Most Socially Responsible Company in the World<br />
Microsoft has the best reputation for <strong>CSR</strong> in the world according to the 2012 <strong>CSR</strong><br />
RepTrak 100. It is the company in the world that is seen as delivering best on<br />
Citizenship, Workplace, and Governance. A remarkable result when you consider that<br />
the company in the early 2000s was under attack for using its market dominance to<br />
drive up consumer prices and put pressure on the competition with unfair business<br />
practices. So how did Microsoft turn this perception around?<br />
“We recognize that public trust in corporations depends in large part on the basic<br />
aspects of business character: integrity, accountability, values, responsibility and<br />
transparency,” says Dan Bross, Senior Director of Corporate Citizenship, Microsoft. “A<br />
strong and steady core is the bedrock of both right action and good business. Over the<br />
Argentina-Australia-Belgium-Brazil-Canada-Chile-China-Colombia-Denmark-Finland-France-Germany-Greece-India<br />
Ireland-Italy-Japan-Mexico-Netherlands-Norway-Panama-Peru-Portugal-Puerto Rico-Russia-South Africa-Spain-<br />
Sweden-Switzerland-Turkey-Ukraine-United Arab Emirates-United Kingdom-United States
past fifteen years we have increased our engagement in public policy discussions that<br />
relate to our business, and now publish our public policy agenda every year to let<br />
everyone see what issues we are working on and how they impact our business.<br />
Bottom line – we enhanced our commitment to accountability, strong corporate<br />
governance and transparency.”<br />
Microsoft is joined in the top 10 by Google, The Walt Disney Company, BMW, Apple,<br />
Daimler, VW, SONY, LEGO, and Colgate-Palmolive<br />
Overall, Microsoft placed first in terms of governance and second in both workplace and<br />
citizenship behind Google and Walt Disney Company respectively. Of the one hundred<br />
companies evaluated, only twenty two were considered ethically strong, with the<br />
remaining seventy eight deemed average in terms of transparency and openness.<br />
Top Trends<br />
Only six percent of respondents perceive the Top 100 companies as good<br />
corporate citizens<br />
Only seventeen percent of respondents definitely trust what companies promise<br />
in their advertising and marketing<br />
Only nineteen percent of respondents trust what companies say in official reports<br />
Fifty four percent of respondents definitely agree that Microsoft is a responsiblyrun<br />
company earning it the top spot for Governance<br />
The Walt Disney Company wins Citizenship with fifty percent of respondents<br />
definitely agreeing that The Walt Disney Company is a good corporate citizen<br />
Google takes first place in Workplace with fifty percent of respondents definitely<br />
agreeing that Google is an appealing place to work and that it treats its<br />
employees well<br />
No company has a top <strong>CSR</strong> perception across all fifteen markets proving the<br />
difficulties companies have in exporting their reputation<br />
Download the 2012 <strong>CSR</strong> RepTrak 100 Study Top Line Report<br />
(Full ranking below)<br />
About <strong>Reputation</strong> <strong>Institute</strong><br />
<strong>Reputation</strong> <strong>Institute</strong> is the world's leading corporate reputation consulting firm. Founded in 1997, with a<br />
presence in over 30 countries, we are the pioneer in reputation management. Through systematic<br />
research and analysis, <strong>Reputation</strong> <strong>Institute</strong> supports companies to build comprehensive strategies and<br />
make operational decisions that are designed to align stakeholders with corporate objectives creating<br />
tangible economic value. We enable leaders to make business decisions that build and protect<br />
reputational capital and drive competitive advantage.<br />
For more information: www.reputationinstitute.com.<br />
Argentina-Australia-Belgium-Brazil-Canada-Chile-China-Colombia-Denmark-Finland-France-Germany-Greece-India<br />
Ireland-Italy-Japan-Mexico-Netherlands-Norway-Panama-Peru-Portugal-Puerto Rico-Russia-South Africa-Spain-<br />
Sweden-Switzerland-Turkey-Ukraine-United Arab Emirates-United Kingdom-United States
<strong>Reputation</strong> <strong>Institute</strong> Contacts:<br />
Andrew Singer<br />
T: +45 5090 5190<br />
E: mailto:asinger@reputationinstitute.com<br />
Lila Ghayour<br />
T: +1 212 495 3855 – ext. 340<br />
E: lghayour@reputationinstitute.com<br />
2012 - <strong>CSR</strong> RepTrak 100<br />
Rank<br />
Company<br />
Rank<br />
Company<br />
.<br />
1 Microsoft 26 Kellogg<br />
2 Google 27 Ferrero<br />
3 The Walt Disney Company 28 Bridgestone<br />
4 BMW 29 Cisco Systems<br />
5 Apple 30 Amazon.com<br />
6 Daimler (Mercedes-Benz) 31 L'Oréal<br />
7 Volkswagen 32 Marriott International<br />
8 Sony 33 Nintendo<br />
9 Colgate-Palmolive 34 Hewlett-Packard<br />
10 LEGO Group 35 Siemens<br />
11 IBM 36 FedEx<br />
12 Intel 37 Toyota<br />
13 Johnson & Johnson 38 Deutsche Lufthansa<br />
14 Canon 39 Goodyear<br />
15 Honda Motor 40 Abbott Laboratories<br />
16 Nestlé 41 LG Corporation<br />
17 Panasonic 42 Procter & Gamble<br />
18 Adidas Group 43 Nissan Motor<br />
19 Michelín 44 Singapore Airlines<br />
20 3M 45 Nokia<br />
21 IKEA 46 Oracle<br />
22 Danone 47 Giorgio Armani Group<br />
23 Philips Electronics 48 LVMH Group<br />
24 The Coca-Cola Company 49 Roche<br />
25 Samsung Electronics 50 Bayer<br />
Rank<br />
Company<br />
Rank<br />
Company<br />
.<br />
51 Airbus 76 UPS<br />
52 Hilton Worldwide 77 Heineken<br />
53 Unilever 78 ACER<br />
54 General Electric 79 Suzuki Motor<br />
55 SAS (Scandinavian Airlines) 80 PepsiCo<br />
56 Boeing 81 Eli Lilly<br />
57 Yahoo! 82 Hitachi<br />
58 Pirelli 83 eBay<br />
59 Swatch Group 84 GlaxoSmithKline<br />
60 Toshiba 85 Diageo<br />
61 Qantas Airways 86 Starbucks Coffee Company<br />
62 Xerox 87 Carlsberg Group<br />
63 Dell 88 HJ Heinz<br />
64 Fujifilm 89 Sharp<br />
65 Barilla 90 Air France-KLM<br />
66 Nike 91 Petrobras<br />
67 Avon Products 92 Pfizer<br />
68 Sara Lee 93 Eastman Kodak<br />
69 Electrolux 94 Lenovo Group<br />
70 Kraft Foods 95 Fujitsu<br />
71 DuPont 96 Hyundai<br />
72 General Mills 97 Zara<br />
73 H&M 98 Vodafone<br />
74 Marks & Spencer Group 99 Carrefour<br />
75 Virgin Group 100 Lockheed Martin<br />
Argentina-Australia-Belgium-Brazil-Canada-Chile-China-Colombia-Denmark-Finland-France-Germany-Greece-India<br />
Ireland-Italy-Japan-Mexico-Netherlands-Norway-Panama-Peru-Portugal-Puerto Rico-Russia-South Africa-Spain-<br />
Sweden-Switzerland-Turkey-Ukraine-United Arab Emirates-United Kingdom-United States