Please see below selected recent intelligence about reputation. This is a synthesis of major recent developments at competitors, business schools, thinktanks, media, commentators, and other key influencers in our external environment. New content is in bold.
- As the next generation of family business leaders get positioned to run their family companies into the twenty first century, many are abandoning the “get rich first and give back later” philosophy, found INSEAD research. They want to create impact and meaning while they do it. Beyond responsibilities to their stakeholders, their reputations mean more than quality products at affordable prices and they place more emphasis on giving back as part of their legacy, not just ensuring the continuation of the family firm to the next generation. Such values are increasingly being shared by their peers in the corporate world, especially those at inflection points in their careers, pondering their next significant career move.
- The World’s Most Ethical Companies programme honoured companies that excel in three areas - promoting ethical business standards and practices internally, enabling managers and employees to make good choices, and shaping future industry standards by introducing tomorrow’s best practices today. Honorees have historically out-performed others financially, demonstrating the connection between good ethical practices and performance that’s valued in the marketplace.In 2016, 131 honorees were named. spanning 21 countries and five continents and representing over 45 industries.
- The luxury watch brand Rolex is the world's most reputable company, according to the Reputation Institute's annual rankings. The top 10 companies for 2016 are (2015 ranking in parentheses): 1. Rolex (4) ; 2. The Walt Disney Company (6); 3. Google (2); 4. BMW (1); 5. Daimler (Mercedes-Benz) (3); 6. Lego (5); 7. Microsoft (11); 8. Canon (7); 9. Sony (9) 10. Apple (8). After the emissions scandal that engulfed the company last year, Volkswagen dropped from being the 14th most reputable company in the world in 2015 to the 123rd spot this year. The Reputation Institute ranks companies according to the public's perception of their performance in seven areas: products and services, innovation, workplace, governance, citizenship, leadership, and performance. To compile the rankings, the Reputation Institute collected more than 240,000 ratings from 15 countries.
- The Swiss firm RepRisk recently published its “most controversial companies” index for 2015. Here were some of the names that featured most prominently, and not in a good way, last year: Uber, Volkswagen, Sony, HSBC and FIFA. They were deemed to have mishandled environmental, social or governance issues. This was one league table you did not want to appear in, claimed the Financial Times, asking whether Chief Risk Officers (CROs) been asleep on the job in these cases? Why did boards not know what was about to hit them? Management of risk is a question of culture and behaviour. It is hard for any CRO to influence risk management in a business if it is not seen to be taken seriously at the top.
- In the US, KPMG withdrew nearly a decade of opinions approving financial statements from the U.S. Commodity Futures Trading Commission. The swaps regulator understated liabilities by $212 million in fiscal 2014 and $194 million in fiscal 2015, according to KPMG estimates. AUS commentator said, “Overlooking the problem for nearly 10 years takes a substantial bite out of KPMG's reputation.
- The annual Edelman Trust Barometer, which looks at reputations of business, government and other institutions, this year came up with a striking opinion gap between “informed people” at the top and the rest of the population. Given that many of the jobs further down the organisation can be automated or outsourced, should business leaders care that those at the bottom are unhappy, asked the Financial Times.