INDUSTRY REPUTATION

According to the Harris Interactive Reputation Quotient (RQ) survey, seven out of 11 industries saw their reputation decline in 2007 from 2006. However, the RQ also found a strong statistical correlation between a company's overall reputation and the likelihood that consumers will purchase, recommend or invest in a company or its products and services.

The U.S. study indicates that more companies taking an active role affecting and managing their reputations are seeing positive results, while those that are not continue to see their reputation decline. From an industry perspective, the technology sector fared very well and the airline industry had the largest drop in rankings from 2006. Here are the top 10 ranked companies in the U.S.:

The Reputation Institute released the results from its annual Global Pulse study. The lowest ranked industries in the world, according to consumers, are chemicals, airlines and aerospace, food and tobacco, energy, information and media, services, financial, transport and logistics, construction/engineering, utilities and telecom. The study measures the overall respect, trust, esteem, and admiration consumers hold towards the largest 600 companies in the world, including the largest 150 U.S. companies. Governance and citizenship combined account for more than 30% of a company's reputation.

Here are the top 10 most respected companies in the world, according to Reputation Institute's Global Pulse survey:

A study released by Gallup (May 28, 2008) found that Americans are less likely to blame the oil profiteering for soaring gas prices than they were a year ago (20% in May 2008 vs. 34% in 2007). Compared to a year ago, respondents are more likely to blame increased supply and demand.

The Financial Times (May 12, 2008) reported that research commissioned by Societe Generale, the French bank embroiled in a rogue trader scandal, showed that its reputation had suffered in the eyes of the general public. Asked which bank they would choose if changing banks, SocGen fell to fourth choice from first place six months ago.

The Ipsos I-Rep American Public research study conducted in March 2008 found that views about the banking sector have deteriorated in seven months' time and the mortgage lending industry's image is dismal. The survey found that 43% of Americans have a favorable opinion of banking. Net favorability declined a significant 10 points from the last measurement seven months prior.

The Financial Times (March 27, 2008) reported that Wall Street Executives have a better chance of rebounding from career setbacks than their counterparts in other industries. Moreover, some of the recently departed may achieve even greater heights at their next position. Why? There is a small pool of people with the experience and skill to run complex securities and banking businesses.

The Cision Index is a quarterly assessment of how news coverage reflects and helps shape the corporate reputation of the 100 largest U.S. companies. The Q1 2008 Cision Index revealed that JP Morgan Chase and Bank of America rapidly rose to number two and number eight, respectively. Other financial services firms that positioned themselves strongly in the face of the credit crunch and subprime mortgage crisis also fared well. Here are the top 10 companies on the 2008 Cision Index:

The Institute of International Finance, which represents more than 375 of the world's largest financial institutions, has acknowledged that the industry is guilty of serious failures in its business practices. A new conduct code is meant to correct these failings. The Wall Street Journal, April 11, 2008.

The 2007 ICM Crisis Report reports the most crisis prone industries of 2007:

As part of Hill & Knowlton's 8th Annual Corporate Reputation Study, MBA students at the top 12 international business schools surveyed that they were less attracted to those industries with historically weak reputations. For example, 51% of MBA students surveyed are not interested in working for the alcohol industry, 48% are disinterested in chemicals, and 51% are disinterested in tobacco.

According to I-Rep, Ipsos’ biannual survey on perceptions of leading industries and large companies among American adults, favorability ratings of the food and beverage industry declined from 67% in January 2006 to 61% in February 2007. Ipsos Public Affairs suggests that “the increasing disaffection toward the food and beverage industry may result from extensive media coverage on issues related to health and nutrition.” Despite the decline, food and beverage still enjoys a good reputation among American consumers compared to other industries, with more than seven times as many Americans favorable (61%) versus unfavorable (8%). Only the electronics and information technology sectors are rated better. (May 29, 2007)

Ipsos released a study which found that Americans are equally as likely to hold a favorable opinion about the pharmaceutical sector (35%) as an unfavorable opinion (32%) and a neutral opinion (33%). The study revealed that pharmaceutical companies receive little recognition from the public for their current social contributions and investments. According to Ipsos, "If pharmaceutical companies could raise awareness of their philanthropic actions, they would undoubtedly make gains in countering negative feelings toward the sector."

A survey conducted by PricewaterhouseCoopers found that 78% of consumers consider a company’s reputation when making drug treatment choices. In its report, “Recapturing the Vision,” PwC suggests how companies can identify, address and alleviate the core issues that affect their reputations and how they can take steps to regain any lost respect. PwC surveyed pharmaceutical industry executives, consumers and stakeholders about practices that impact reputation risk and conclude companies can take concrete actions to make changes.

A MORI summer 2005 study in the UK among members of Parliament (MPs) revealed their overall impressions of various industries. 55 percent of MPs have a favorable view towards the pharmaceutical industry, followed by 41 percent who have a positive impression of food manufacturing and 39 percent who hold favorable views toward the chemicals industry. In comparison, 27% have a positive view about railroads and 25% towards banking. Perhaps not surprisingly, only 5% think about the tobacco industry in a flattering light. The study also included interviews among a general public audience, who held more complimentary views than MPs on the food industry (65 percent), banking (51 percent), railroads (36 percent) and tobacco (14 percent). summer 2005 study in the UK among members of Parliament (MPs) revealed their overall impressions of various industries. 55 percent of MPs have a favorable view towards the pharmaceutical industry, followed by 41 percent who have a positive impression of food manufacturing and 39 percent who hold favorable views toward the chemicals industry. In comparison, 27% have a positive view about railroads and 25% towards banking.

Perhaps not surprisingly, only 5% think about the tobacco industry in a flattering light. The study also included interviews among a general public audience, who held more complimentary views than MPs on the food industry (65 percent), banking (51 percent), railroads (36 percent) and tobacco (14 percent).

The American Petroleum Institute (API)represents the U.S. oil and natural gas industry. It is broadening its educational efforts to better explain the industry. They are conducting outreach to opinion shapers such as think tanks, lawmakers and public influencers.The public outreach effort resulted from rising gas prices and earnings that aggravated public opinion of the industry.

As noted in the Wall Street Journal, the oil industry will launch its first major advertising campaign in January 2006 with the help of Harris Interactive, Inc. The main goal of the campaign, which was created in response to a declining reputation from high gasoline prices and environmental criticisms, is to educate both consumers and policy makers to broaden understanding of the energy industry. While many individual oil companies have used marketing and advertising to promote their messages, this will be the first time that the American Petroleum Institute will initiate a large-scale promotion.