Presentación de Charles Fombrun, Presidente del Reputation Institute, en le marco de la presentación del informe Reputation Pulse España 2010, el 7 de mayo 2010, en EOI, Escuela de Organización Industrial.

1. Of Reputations, Roller Coasters, and Wild Rides on Wall St.
Dr. Charles Fombrun
Chairman, Reputation Institute
Madrid, Spain
7 May 2010

2. Huge Centripetal Economic Forces are Pulling Us Apart
Copyright © 2010 Reputation Institute. All rights reserved. 2

3. While Geological Forces are Taking their Toll
Copyright © 2010 Reputation Institute. All rights reserved. 3

4. Contributing to a Wild Ride in the Financial Markets
Copyright © 2010 Reputation Institute. All rights reserved. 4

5. Copyright © 2010 Reputation Institute. All rights reserved. 5

6. And Putting “Reputation” On Everyone’s Mind
Copyright © 2010 Reputation Institute. All rights reserved. 6

7. Toyota is Reeling from Unintended Effects of Cost-Cutting
Copyright © 2010 Reputation Institute. All rights reserved. 7

8. BP is Reeling from a Huge Oil Spill in the Gulf of Mexico
Copyright © 2010 Reputation Institute. All rights reserved. 8

9. Clearly Reputations are Always at Risk
"It takes 20 years to build a
reputation and five minutes to
ruin it.
If you think about that,
you'll do things differently.”
'll d thi diff tl ”
Warren Buffett
Copyright © 2010 Reputation Institute. All rights reserved. 9

10. RI has conducted Global Reputation Studies since 2000
34 Countries & 24 Industries –65,000 Consumers
Airlines & Aerospace • Automotive • Beverage • Chemicals • Computer • Conglomerate • Construction & Engineering • Consumer
Products • Electrical & Electronics • Energy • Financial – Bank • Financial – Diversified Services • Financial – Insurance • Food
Manufacturing • Industrial Products • Information & Media • Pharmaceuticals • Raw Materials • Retail – Food • Retail – General •
Services • Telecommunications • Transport & Logistics • Utilities
Copyright © 2010 Reputation Institute. All rights reserved. 10

11. Lesson #1: A Corporate Reputation is an Emotional Bond
…and built on 7 Pillars
Copyright © 2010 Reputation Institute. All rights reserved. 11

12. Lesson #2: Reputation Operates “Below the Line”
Strategic
Goals
Business Corporate
Results Initiatives
Supportive Perceptions
Behaviors of Company
Copyright © 2010 Reputation Institute. All rights reserved. 12

13. Lesson # 3: Improving Alignment Increases Reputation
What
Companies Inconsistency
Say
Inconsistency How Companies
are Perceived
What Inconsistency
Companies
C i
Do
Copyright © 2010 Reputation Institute. All rights reserved. 13

14. Lesson #4: Improving Reputation Increases Support
Improve Reputation by 10% – Increase Support by 10%
80
72
64
ndents who Would Recommend
56
R
48
40
% Respon
32
24
16
8
26 36 46 56 66 76 86
2
U.S. Pulse Score Adj-R = 0.889
Source: 2010 Global Reputation Pulse (U.S. Results)
Copyright © 2010 Reputation Institute. All rights reserved. 14

15. Lesson #5: …and creates Financial Value
Top 30 in Bottom 30 in
Reputation Reputation
Ratio of
Market Value 3.79 1.42
to Book Value
% Change in Market Value = 1.3 * % Change in Reputation
So, on average:
13%
10%
Improvement
Improvement
in Market
in Reputation
Value
Copyright © 2010 Reputation Institute. All rights reserved. 15

16. Lesson #6: So that Investing in Higher Reputation Firms Can Pay Off
Cumulative
Returns HIGH REPUTATION
PORTFOLIO
4 0 .0 0 %
2 0 .0 0 %
S&P 500
0 .0 0 %
-2 0 .0 0 %
-4 0 .0 0 %
-6 0 .0 0 %
Ju 00
Ju 01
Ju 02
Ju 03
Ju 04
Ju 05
Ju 06
A -0 0
J a -0 0
A -0 1
J a -0 1
A -0 2
J a -0 2
A -0 3
J a -0 3
A -0 4
J a -0 4
A -0 5
J a -0 5
A -0 6
6
O -0 0
O -0 1
O -0 2
O -0 3
O -0 4
O -0 5
O -0 6
-0
-
-
-
-
-
-
-
pr
pr
pr
pr
pr
pr
pr
ct
ct
ct
ct
ct
ct
ct
l
l
l
l
l
l
l
n
n
n
n
n
n
n
Ja
Copyright © 2010 Reputation Institute. All rights reserved. 16

17. Lesson # 7: But Reputation Requires Vision & Governance
Energy
gy Auto
Tobacco Banking
Copyright © 2010 Reputation Institute. All rights reserved. 17

18. Lesson #8: And a Focus on Products & Innovation
Copyright © 2010 Reputation Institute. All rights reserved. 18

19. Lesson #9: Companies have to Do the Right Thing
“You can make money without doing evil
You evil”
Is Google a great
place to work because
its stock is at $483, or
is its stock at $483
because it's a great
place to work?
--Business
--Business Week, January
22, 2007
Copyright © 2010 Reputation Institute. All rights reserved. 19

20. Lesson #10: As Well as Do Things Right
Copyright © 2010 Reputation Institute. All rights reserved. 20

21. So a Mind-Shift is Taking Place
From Brand to Reputation
Brand Reputation
The promise a company makes The degree to which the company
to its stakeholders fulfills its promises
“Owned” by the company
Owned “Owned” by stakeholders
Owned
A brand is a promise…
when you li up to that promise you build R
h live t th t i b ild Reputation
t ti
Copyright © 2010 Reputation Institute. All rights reserved. 2121

22. Reputation Pulse 2010
Copyright © 2010 Reputation Institute. All rights reserved. 22

23. The World’s Best Corporate Reputations (2010)
Copyright © 2010 Reputation Institute. All rights reserved. 23

24. Corporate Reputations in Spain?
Copyright © 2010 Reputation Institute. All rights reserved. 24