Most global business executives (79 per cent of those surveyed) believe that companies with strong corporate responsibility track records recover their reputations faster after a crisis than those with weaker records. This finding did not differ by region.
The survey, Safeguarding Reputation, was conducted in 11 markets by global public relations firm Weber Shandwick along with KRC Research. In Asia, three markets were surveyed: India, Hong Kong and Japan.
In Asia, Indian executives considered a strong corporate responsibility record far more important to a brand recovering its reputation (88%) as compared to their counterparts in Hong Kong (74%).
"Reputation recovery is increasingly driven by more than financial metrics," said Brendan May, Weber Shandwick's international head of corporate responsibility & sustainability. "As social, economic and political agendas increasingly influence consumer and market issues, companies now recognise that a record of corporate responsibility can inoculate a company against long-term reputation failure. Responsibility is no a longer nice-to-have. It is now a must-have corporate mandate."
Executives who believe strong corporate responsibility record helps reputation recovery
|
Total Global |
Total Asia-Pacific |
India |
Hong Kong |
Japan |
|
79% |
79% |
88% |
74% |
79% |
Source: Weber Shandwick Safeguarding Reputation conducted with KRC Research, 2006
Responsibility, a vital building block of reputation
Business executives were also asked to rate factors that build company reputation today. Over one-half (52%) of Asian executives surveyed report that being recognized as committed to corporate responsibility contributes "a lot" to a company's overall reputation.
However, when broken down, Indian executives considered corporate responsibility far more important to a companies reputation (60%), compared to its Asian counterpart markets (Japan 53%; Hong Kong 47%).
Executives who believe corporate responsibility contributes 'a lot' to company reputation
|
Total Global |
Total Asia-Pacific |
India |
Hong Kong |
Japan |
|
55% |
52% |
60% |
47% |
53% |
Source: Weber Shandwick Safeguarding Reputation conducted with KRC Research, 2006
"Companies have awakened to the fact that corporate responsibility is a business imperative in building a good reputation today. Leaders understand that responsible companies attract the best talent, earn valuable trust and generate more positive word-of-mouth," added Weber Shandwick's Asia-Pacific president, Andrew Pirie.
"In fact, KPMG International reports that 52 per cent of the largest 250 firms of the Fortune 500 publish corporate social responsibility reports, an increase of 45 per cent from three years ago," he added.
Safeguarding Reputation
Safeguarding Reputation was conducted by Weber Shandwick in partnership with KRC Research among 950 global business executives in 11 countries spanning North America, Europe and Asia-Pacific. Brazil was the only Latin American country participating in the survey.
All interviews were conducted by telephone between July 20 and August 8, 2006. The sampling error for the total sample is +/- 3.2 per centage points.