Managing Corporate Reputation a must have or a nice to have_EACD_Pedro Carneiro

1. Managing Corporate Reputation a must have or a nice to have_EACD_Pedro Carneiro Is managing Corporate Reputation a must have or a nice to have? 1 Is managing Corporate Reputation a must have VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 a must have or a nice to have?

2. Is managing Corporate Reputation a must have or a nice to have? 2 The current context we’re faced with is different The World out there: • Changing at the speed of a click; • Markets, Consumers, Costumers and Employees increasingly connected and engaged in the traditional and social media – no more secrets; VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 engaged in the traditional and social media – no more secrets; • Increasing distance and lack of confidence versus institutions, politicians, Government and corporations; • Credibility of the message sources dramatically changing towards “word-of-mouth” and personal recommendation; • Cost reduction, expenditure control, crisis. Is managing Corporate Reputation a must have or a nice to have? 2 The current context we’re faced with is different The World out there: • Changing at the speed of a click; • Markets, Consumers, Costumers and Employees increasingly connected and engaged in the traditional and social media – no more secrets; VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 engaged in the traditional and social media – no more secrets; • Increasing distance and lack of confidence versus institutions, politicians, Government and corporations; • Credibility of the message sources dramatically changing towards “word-of-mouth” and personal recommendation; • Cost reduction, expenditure control, crisis.

3. Is managing Corporate Reputation a must have or a nice to have? 3 Evidence shows highly reputed companies are fitter Higher reputed companies suffer less from crisis turbulence and recover faster when confidence is restored. They enjoy higher benefit of the doubt from its Stakeholders. VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Is managing Corporate Reputation a must have or a nice to have? 3 Evidence shows highly reputed companies are fitter Higher reputed companies suffer less from crisis turbulence and recover faster when confidence is restored. They enjoy higher benefit of the doubt from its Stakeholders. VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

4. Is managing Corporate Reputation a must have or a nice to have? 4 Why does this happen? We’re talking about perceptions. Charles Fombrun, 1996 Fundador Reputation Institute VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 “A reputação corporativa é a percepção que se tem sobre as acções passadas e expectativas futuras de uma empresa, e que identifica a sua atractividade para com os Stakeholders quando comparada com os seus principais concorrentes.” Is managing Corporate Reputation a must have or a nice to have? 4 Why does this happen? We’re talking about perceptions. Charles Fombrun, 1996 Fundador Reputation Institute VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 “A reputação corporativa é a percepção que se tem sobre as acções passadas e expectativas futuras de uma empresa, e que identifica a sua atractividade para com os Stakeholders quando comparada com os seus principais concorrentes.”

5. Is managing Corporate Reputation a must have or a nice to have? 5 Why does this happen? Behaviors are shaped by perceptions. Business Results Strategic Goals Corporate Initiatives Indicators of Reputation VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Indicators of Support • • Purchase products • Recommend products • Trust company • Support verbally • Invest in company • Recommend investment • Work for company • Recommend to work • Products/Services • Innovation • Workplace • Governance • Citizenship • Leadership • Performance Reputation Assessement Is managing Corporate Reputation a must have or a nice to have? 5 Why does this happen? Behaviors are shaped by perceptions. Business Results Strategic Goals Corporate Initiatives Indicators of Reputation VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Indicators of Support • • Purchase products • Recommend products • Trust company • Support verbally • Invest in company • Recommend investment • Work for company • Recommend to work • Products/Services • Innovation • Workplace • Governance • Citizenship • Leadership • Performance Reputation Assessement

6. Is managing Corporate Reputation a must have or a nice to have? 6 How to build a strong Reputation platform? VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Is managing Corporate Reputation a must have or a nice to have? 6 How to build a strong Reputation platform? VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

7. Is managing Corporate Reputation a must have or a nice to have? 7 What should managers do? Measure and act upon objective info. • Identify the key Stakeholders for their businesses; • Assess their perception about company and competitors; • Align messages, activities or company reality. VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Is managing Corporate Reputation a must have or a nice to have? 7 What should managers do? Measure and act upon objective info. • Identify the key Stakeholders for their businesses; • Assess their perception about company and competitors; • Align messages, activities or company reality. VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

8. Is managing Corporate Reputation a must have or a nice to have? 8 Choose a model and stick to it over time. Model should… • have an emotional measure of the relationship as well as provide the evaluation on a set of rational dimensions/attributes to be acted upon; • be comparable over time and across geographies, enabling industry, sector and VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 • be comparable over time and across geographies, enabling industry, sector and country analysis; • always include benchmarks; • provide definition of the Reputation drivers for the company, industry and country; • should quantify the relationship between reputational perceptions and supportive behaviors. Is managing Corporate Reputation a must have or a nice to have? 8 Choose a model and stick to it over time. Model should… • have an emotional measure of the relationship as well as provide the evaluation on a set of rational dimensions/attributes to be acted upon; • be comparable over time and across geographies, enabling industry, sector and VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 • be comparable over time and across geographies, enabling industry, sector and country analysis; • always include benchmarks; • provide definition of the Reputation drivers for the company, industry and country; • should quantify the relationship between reputational perceptions and supportive behaviors.

9. Is managing Corporate Reputation a must have or a nice to have? 9 GRP2010 Portugal Country Results: Reputation drivers. DRIVERS DA REPUTAÇÃO EM PORTUGAL, 2010 Produtos e Serviços 18,5% 18.5%10.9% VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Produtos e Serviços 18,5% Governo de Sociedade 16,1% Ambiente de Trabalho 14,9% 12.7%13.8% 14.9%13.1% 16.1% Is managing Corporate Reputation a must have or a nice to have? 9 GRP2010 Portugal Country Results: Reputation drivers. DRIVERS DA REPUTAÇÃO EM PORTUGAL, 2010 Produtos e Serviços 18,5% 18.5%10.9% VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Produtos e Serviços 18,5% Governo de Sociedade 16,1% Ambiente de Trabalho 14,9% 12.7%13.8% 14.9%13.1% 16.1%

10. . Is managing Corporate Reputation a must have or a nice to have? 10 GRP2010 Portugal Country Results: PSI20 Ranking. 2 71,58 70,14 69,12 68,48 1 3 4 EDP Renováveis Jerónimo Martins Sonae Com Sonae 12 59,42 57,87 57,15 56,34 11 13 14 Millennium BCP Banco BPI BES Zon Multimedia VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 67,62 66,41 63,96 63,58 62,28 61,90 5 6 7 8 9 10 Cimpor Sonae Industria Portucel Teixeira Duarte EDP Energias Galp Energia 55,84 54,17 54,15 53,32 15 16 17 18 Brisa Mota-Engil Ren Portugal Telecom

11. . Is managing Corporate Reputation a must have or a nice to have? 11 GRP2010 Portugal Country Results: Supportive behaviours. VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

12. . Is managing Corporate Reputation a must have or a nice to have? 12 The challenge: Do you really know everything about your Stakeholders? “We don’t need to waste money on more research on our Stakeholders” VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 … because… “I’ve been around for too many years” “If I don’t know my clients well enough then who will?!”

13. . Is managing Corporate Reputation a must have or a nice to have? 13 The answer? It’s up to you. VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010 Obrigado.