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KIRK STEWARTExecutive Director, APCO Worldwide
Global Survey
600 companies
15 countries
70,000 respondents
Source: APCO Worldwide Champion Brand Research Study, 2012
Higher Expectations Than Ever
Source: APCO Worldwide Champion Brand Research Study, 2012
A Shift in Power
The Corporate Veil has been Pierced
Source: APCO Worldwide Champion Brand Research Study, 2012
Power to Do Good
Source: APCO Worldwide Champion Brand Research Study, 2012
Companies Need to be Champions
Source: APCO Worldwide Champion Brand Research Study, 2012
Investors
Consumer Advocates
Community Activists
Policy Influencers
Employees
Environmentalists
Seeking out information about companies, including getting news about companies, visiting corporate websites, and reading corporate responsibility reports and annual reports.
more likely to have visited companies’ corporate website to read about the companies practices, policies and activities in the past 30 days.
to have read an annual report in the last 12 months.
More than 6 times
6 times more likely
Join organizations that address the concerns of multiple interests. to belong to a consumer
advocacy organization.
10 times more likely
to be an active member of a business, trade or commerce group.
10 times more likely
Taking action either in support of or to criticize companies, including boycotting, writing blogs and contacting government officials.
to have contacted a government official to express their views about a company’s or companies’ practices, policies, or activities.
7 times more likely
3 times more likely to start a conversation with friends, family or colleagues, about a company’s practices, policies, or activities.
Believing that companies have an increased influence and the ability to shape a better society, so they expect more of companies today than in the past.
agree that companies now serve some functions in society that were previously reserved only for the government.
told us they care more about a company’s practices and policies today than they did 10 years ago.
78% of stakebrokers
83% of stakebrokers
Shared Value
Reputation Management
Authentic Advocacy
Brand Relationship
PhilosophyHistorically, companies have considered the concepts of reputation management, authentic enterprise, brand relationship and shared value independently.
Philosophy
Shared Value
Brand Relationship
Reputation Management Authentic
AdvocacyPulling together the very best thinking is far more comprehensive than any single theory on its own.
The Champion Brand model was built using these combined theories as the foundation.
Top 20 Companies1. 2. 3. 4. 5.
6. 7. 8. 9. 10.
11. 12. 13. 14. 15.
16. 17. 18. 19. 20.
While Alignment is a necessary first step, it is not sufficient to create strong and enduring brands. Many brands have solid reputations, but reputation alone can't help the brand withstand a difficult business challenge.
Authenticity is achieved through transparency in both word and deed – say what you mean, mean what you say, and do what you say. Companies with solid reputations who also act authentically to meet their stakeholder expectations ultimately build trust.
Stakeholders need to feel an attachment, not only to the product, but also the company. Building a deeper emotional connection is what establishes loyalty.
Advocacy is the hardest dimension to achieve. When companies become advocates –champions – for the interests of stakeholders and society they can become truly great brands.
Stand for something bigger than themselves
Empower lives
Have a defined, clearly articulated platform
Employ surround sound communications
Companies rated highly by stakebrokers on:
The company achieves its business objectives by adding value to society
The company is an advocate for its stakeholders and society
Generally, these companies also:
SOCIETAL VALUE
ADVOCACY
Ranked 29th most admired company by FORTUNE.
Number 1 rated auto company by Harris Interactive.
Remains #1 in brand perception.
Continued strong brand loyalty.
Number 1 in global auto sales.
9 million vehicles recalled.
Four Congressional hearings.
84 class action lawsuits; $1.2 billion settlement.
10% decline in market share.
$21 billion in lost market cap.
$2 billion in total cost; $16.4 million fine.
5.9
7.3
7.1 7.3
4 A’s Comparison ‐ Global
7.16.8
6.66.0
6.4
6.5
6.2
6.9
7.1
7.0
6.66.3
6.8 6.9
7.2
6.8
AUTOMOTIVE INDUSTRY
6.0
Ranked 23rd Most Admired Company by FORTUNE.
Number 15 on Reputation Institute’s RepTrak 100.
Number 5 on Harris Interactive RQ.
Interbrand’s 6th Best Global Green Brand.
On Working Mother 100 Best for 28 years.
Voluntary recall of hip replacement devices.
Five year failure rate of 40% in one hip system.
More than 12,000 lawsuits.
$4 billion settlement.
Recall of more than 60 million bottles of Tylenol, Benadryl, Motrin, Rolaids.
MEDICAL EQUIPMENT, SUPPLIES and PHARMACEUTICALS4 A’s Comparison ‐ Global
6.6
7.16.9
7.46.86.76.4
6.56.46.26.1
5.55.45.04.4 6.1
6.9
7.0
Ranked number 1 Most Admired Company by Fortune.
Number 1 on Interbrand’s Best Global Brands.
Number 2 on Harris Interactive RQ.
World’s most valuable company
4 deaths in Foxconn factory explosion.
14 suicides at another Foxconn facility.
Tax avoidance allegations.
Retail pay issues.
New York Times front page series.
“Apple never cared about anything other than increasing product quality and decreasing production cost… Workers’ welfare has nothing to do with their interests.”
Former Foxconn manager
COMPUTER HARDWARE4 A’s Comparison ‐ Global
7.3
7.47.2
7.67.36.9
7.16.86.76.2
7.16.96.85.9
6.9
7.4
Commonalities
QUALITY PRODUCTS
CLEAR VISION, MISSION, VALUES
STRONG CULTURES
HIGH EMOTIONAL QUOTIENT
ADVOCATES
Does the organization have a clear understanding of who they are, what they stand for and what they believe in?
Is there a clear expression of purpose that is consistently communicated both internally and externally?
Does the organization leverage all of its existing initiatives to maximum mutual benefit?
Does the organization have an advocacy mindset?
