After more than 13 years' measuring corporate reputations we're pleased to share some of our research findings and insights focusing on a case study with global insurance company QBE. We show some of the key events which can negatively impact your corporate reputation, and how organisations can negate this with a good relationship with business journalists.

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INSIDE STORY Research and Knowledge Management | Level 5, 2 Barrack Street, Sydney NSW 2000
Tel: 02 9299 9979 | Fax: 02 9299 7991 | Email: catherinea@insidestory.com.au | Web: www.insidestory.com.au | ACN: 00 364 0953 | ABN: 46 795 383 901
INSIDE STORY opens the vaults on
corporate reputation

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Introducing INSIDE STORY
CELEBRATING A BIG BIRTHDAY MEASURED CORPORATE REPUTATIONS SINCE 1999
REPUTATION CLIENTS SPAN MANY COMPANIES AND INDUSTRIES

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Unions
Employee
s
Students &
graduates
Associations
Academics
Members
Politicians
Advisors
Opposition
Bureaucrats
Regulators
News
journalists
Business
journalists
Wires
Television
Print
Internet
BloggersTwitterers
Fans
NGOs
Community
groups
Consumer
advocates
SMEs
Large
businesse
s
Enterprises
Regional
communities
Australians
Internationa
l visitors
Who influences your reputation?

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Journalists – every 6 months since 1999
News
journalist
s
Business
journalist
s
Wires
Televisio
n
Print
Internet

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How we measure reputation
Negative equity Positive equity
Neutral: neither
weak
nor strong
-5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5
© Copyright INSIDE STORY 2013 INSIDE REPUTATION INDEX

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How the environment has changed
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
In the
beginning –
companies
perceived
positively.
Regularly
saw
reputation
ratings up
at 4.5/5
2000/2001 – Dot
com bubble burst
2001 – HIH –
Australia’s largest
ever corporate
collapse
All reputations re-
evaluated – drop.
The best sit at
around 3/5
2008-2010 – GFC –
Australian business
largely unscathed in
a global sense.
However a degree
of nervousness.
The ‘new normal’ -
businesses getting to
grips with high Australian
dollar, ‘two speed
economy’, uncertain
political environment,
new carbon tax, increase
in superannuation –
increased uncertainty
Relative stability
Increase in interest in CSR
activities, innovation

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Case study: QBE
Frank O’Halloran
14 years at the helm of QBE
Reputation for being a great leader
Made hard nosed decisions which paid off
Ability to attract top executives
Did not like talking to the media – unless it suited him

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Feb ‘09 Feb ‘10
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
QBE’s evolving reputation
Feb ‘04 Feb ‘05 Feb ‘06 Feb ‘07 Feb ‘08
1.5
Global financial
crisis – period of
uncertainty
Feb ‘11 Feb ‘12 Feb ‘13
Recovering from
losses in
September 11
attacks in USA
plus unsuccessful
life insurance
expansion
1.3
1.9
2.3
2.1
QBE goes
shopping – buys
up cheaper
competitors
3.1
3.8
QBE hit by multiple disasters –
Japan & Christchurch
earthquakes, floods in
Thailand, tornadoes in USA.
Negative impact on profitability –
45% drop in share price
2.0
Frank steps down
as CEO, John Neal
appointed
1.9
2.1

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0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Feb ‘11 Feb ‘12 Feb ‘13
$-
$5.00
$10.00
$15.00
$20.00
$25.00
QBE’s share price
2.0 1.9
2.1
Feb ‘04 Feb ‘05 Feb ‘06 Feb ‘07 Feb ‘08 Feb ‘09 Feb ‘10
1.5
1.3
1.9
2.3
2.1
3.1
3.8

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Impact on trust and confidence
Feb ‘04 Feb ‘05 Feb ‘06 Feb ‘07 Feb ‘09 Feb ‘10 Feb ‘11 Feb ‘12 Feb ‘13Feb ‘08
0.6
1.5
0.3
1.7
1.5
2.6
1.4 1.4
0.4
1.3
Trust Confidence
1.3
1.9
2.3
2.1
1.5
3.1
3.8
Overall
reputation
2.0
1.9
2.1
Global financial
crisis – period of
uncertainty
1.8
1.9 1.8
2.3
2.0
2.7
4.0
1.4 1.4
2.3
QBE, which was regarded as the best managed insurer in
this sector and one of the better ones on the globe, wasn't
actually quite as well managed as we thought it was.”
Senior business journalist, May 2013

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What is a ‘good’ reputation then?
-5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5
© Copyright INSIDE STORY 2013 INSIDE REPUTATION INDEX
1.3 3.8
1.8 2.8
The ‘golden zone’

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Corporate reputation – what negatively
impacts it?
Failing to meet forecasts
Especially without warning
Failing to grow
Especially when your competitors are
Making unexpected major changes
And failing to communicate reasons why
Crisis
Service outage, plant closures, major
layoffs, strikes, off-shoring
Disharmony
Between the board and management, institutional
shareholders and management, company and
government, social and shareholder expectations
Scandal
Customer complaints, CEO or board indiscretions
‘Unethical’ practices
Price gouging, significant price increases without
explanation

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The journalist’s mental model – how they
respond to your messages
Values Experiences Perceptions
Integrity, esteem
Rational economist vs.
humanist
Past and present, direct
and
indirect, professional
and personal
Things they hear, read
and observe
Knowledge and feelings
‘You’ (the organisation)
Actions, people, culture, competitiveness, corporate
responsibility, strategies, relationships
Message
How you project externally eg
via
messages, advertising, products
and your relationships with the
media.
How well your message is
communicated and cuts through
Journalists will overlay your
message with their previous
experiences, perceptions and
values.
This is combined with what they
learn from others eg financial
analysts, other sources
Support
Positive stories
Reject
Negative
stories
Wait & see
Neutral stories
Ignore
Overall
evaluation

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Corporate affairs
A hygiene factor – ignore it at your peril
 Timely access to the right people
 Framing the strategy clearly and confidently

Understanding and communicating:
What were the event triggers?
What are the critical issues that led to this?
What is happening in the background (industry, economically, etc)?
After an event, media focus is on strategy (what you are doing now?)
as opposed to the business model (how you make money)

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When do journalists’ musings matter?
 When your company has a big consumer footprint
 When politicians or other major opinion leaders might take notice
 When your company has many direct shareholders and
customers who listen to these journalists

When your company is perceived as an iconic brand name
(Qantas, Telstra, CBA, NRMA) – everybody thinks they should have
a say in how these companies are managed!

When your CEO cares about how public comment reflects on his
or her reputation

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What makes a good relationship with the
media?
 Build a relationship – get to know who writes about you
 Help journalists to understand your wider industry as well as your organisation
 Don’t mass spam your press releases – target your audience
 Don’t try to manage the press! Hate exclusives – if have a release, be open
 It’s all about the story – welcome coming with comments on issues, ideas for
stories, positions on events
 Give advance notice of CEO and senior management availability for interviews –
especially if based interstate
 Return calls and emails promptly – even just to say you’re unable to respond or you’re
working on it

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INSIDE STORY Research and Knowledge Management | Level 5, 2 Barrack Street, Sydney NSW 2000
Tel: 02 9299 9979 | Fax: 02 9299 7991 | Email: catherinea@insidestory.com.au | Web: www.insidestory.com.au | ACN: 00 364 0953 | ABN: 46 795 383 901
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