Transcription

The Harris Poll 2014 RQ Summary ReportA Survey of the U.S. General PublicUsing the Reputation Quotient April 2014 2014 The Nielsen Company. All rights reserved."

EXECUTIVE SUMMARYThe Reputations of theMost Visible Companies15thANNUAL RQ STUDYRQ RATINGS:DECEMBER 2013 –JANUARY 201414,000 PEOPLE INTERVIEWED 2014 The Nielsen Company. All rights reserved.2

Amazon repeats as top scoring companyCompany increases RQ score to 83.87 with The Coca-Cola Co. replacing Apple at #2 Amazon’s customer-centric focus continues to pay reputation dividends as itdominates both Emotional Appeal and Product and Service dimensions- The multi-faceted company achieves 6th consecutive year of Excellent reputationrating The Coca-Cola Company, with a RQ score of 82.68 moves from 6th to 2nd this year, its9th consecutive year of Outstanding reputation- Only company to be ranked in top 5 on all six reputation dimensions measured- Company has been on the RQ Most Visible List for all 15 years of the RQ study andin a nearly unmatched show of reputation consistency, has hovered around an RQscore of 80, the mark of an Excellent reputation, for all 15 yearsApple maintains its reputation Excellence, with a third place rated RQ score of 81.76,its 6th consecutive year of achieving this coveted mark- Similar to 2013, the company achieves top 5 ratings in Products and Services, Visionand Leadership, Financial Performance, and Workplace Environment 2014 The Nielsen Company. All rights reserved.3

Corporate America viewed more positivelyOnly about 20% say reputation has improved, but this is up from 2013 and double 2012 Although more Americans remain skeptical about the reputation of corporate Americathan confident, the gap continues to steadily close-Numbers now better than 2008 ratings Hard core skeptics of corporate America down 14% from last year and 42% over fiveyears ago Nine companies achieve RQ scores above 80, the standard of excellence, three morethan in 2013 Equally telling, for first time since 2007, no company achieved an RQ score of below50, the score at which a company’s reputation is considered to be in a critical stage 2014 The Nielsen Company. All rights reserved.4

Top reputation companies vie for positionLong-term elite and new entrants combine to create deep and strong company list Honda Motor Company, on the Most Visible List since 2001, returns to the top 10 forthe first time since 2007, ranking 5th with an RQ score of 80.87- Company adds 6.7 points to its already historically strong reputationSamsung, on the most Visible List since only 2012, ranks 7th this year and achieves itsfirst ever Excellent rating of 80.65-Company’s reputation continues to be driven by elite Products & Services scores Microsoft improves its Social Responsibility ratings and improves its RQ score to 80.11,the 11th time in 15 years it has been above or near this level of Excellence Johnson & Johnson and Google experience significant declines in RQ score and falloutside this year’s top 10 rated companies- This is the first time in this 15 year study that J&J has been outside the top 10Proctor & Gamble Co., another long-term reputation titan, is emblematic of thestrength of this year’s list as the company improves its RQ score but falls 4 places 2014 The Nielsen Company. All rights reserved.5

Financial services shows glimmers of hopeWhile retail industry sees some vulnerability Banking, insurance and broader financial services industries all still have negativereputations but all show positive gains with insurance leading the way As compared to two years ago, nearly double the number of respondents now seethese industries as part of the solution to our economic issues The four largest RQ score increases came from financial services firms-AIG 9.7-Goldman Sachs 8.7-Wells Fargo & Company 7.8-Citigroup 7.6 The retail industry, which was given great credit for value and comfort during theheight of economic recession, has now stalled in being seen as part of the economicsolution Three of the largest RQ score declines came from retailers 2014 The Nielsen Company. All rights reserved.6

Digital issues play role in reputationOpportunity, challenges and questions confront management About three-quarters of the general public are concerned about the amount ofprivate information that companies capture about their customers-Less than half trust companies to act responsibly with this private data Only 31% say that they learn company information via social media tools and only17% trust this information more than information from other sources Yet we continue to see nearly 6 in 10 say they research companies before doingbusiness with them-Five in ten decided NOT to do business with a company based upon somethingthey learned about the company’s conduct-One third proactively tried to influence friends and family perceptions as well 2014 The Nielsen Company. All rights reserved.7

Supporting Data RQ scores, trendsIndustry viewsCommunications 2014 The Nielsen Company. All rights reserved.8

20 attributes folded into 6 dimensionsThe Reputation Quotient (RQ ) Research InstrumentSOCIALRESPONSIBILITYVISION &LEADERSHIP Supports GoodCauses EnvironmentalResponsibility CommunityResponsibility Market Opportunities Excellent Leadership Clear Vision for theFutureFINANCIALPERFORMANCEREPUTATION OutperformsCompetitors Record of Profitability Low Risk Investment Growth Prospects Feel Good About Admire and Respect TrustEMOTIONALAPPEALPRODUCTS& SERVICESWORKPLACEENVIRONMENT High QualityInnovativeValue for MoneyStands Behind Rewards EmployeesFairly Good Place to Work Good EmployeesRQ Score [(Sum of ratings on the 20 attributes) / (the total number of attributesanswered X 7)] X 100. Maximum RQ 100. 2014 The Nielsen Company. All rights reserved.9

The 2014 RQ The Reputations of the Most Visible CompaniesRank 1 - 15Rank 16 - 30RQRank 31 - 45RQRank 46 - 60RQRQ1Amazon.com83.8716Johnson & Johnson77.7331Ford Motor Company73.9846Chrysler Corporation65.022The Coca-Cola Company82.6817The Home 8General Electric77.2433The Allstate Corporation*72.8048JCPenney63.564The Walt Disney Company81.5019Kohl's*77.1534Best Buy71.1349Citigroup63.555Honda Motor Company80.8720Chick-Fil-A77.0735Royal Dutch Shell71.0450Comcast62.606Costco80.7521Toyota Motor Corporation76.8136AT&T70.6851Sprint n Communications69.9352JP Morgan Chase & Co.61.088Whole Foods Market80.4523Southwest Airlines*76.3538Facebook69.6153Sears Holdings et68.9154AIG58.2610Sony79.7725PepsiCo75.3340Wells Fargo & Company68.2455Goldman .0056Dish Network*58.0612Kraft Foods78.8227Starbucks Corporation75.1242General Motors67.7757Halliburton57.2913Procter & Gamble Co.78.7328Hyundai Motor 630Hewlett-Packard Company74.0745Time Warner65.7660Bank of America55.34* New to RQ 2014 Study and/or not measured in the RQ 2013Guide to RQ Scores: 80 & above: Excellent 75-79: Very Good 70-74: Good 65-69: Fair 55-64: Poor 50-54: Very Poor Below 50: Critical 2014 The Nielsen Company. All rights reserved.10

The 2013 RQ Dropped off the Most Visible List in 2014The Reputations of the Most Visible CompaniesRank 1 - 15Rank 16 - 30RQRank 31 - 45RQRank 46 - 60RQRQ1Amazon.com82.6216The Home Depot76.2731YUM! Brands*71.4146Sears Holdings Corporation63.542Apple82.5417Lowe's75.6732State Farm Insurance*70.3147Sprint Nextel Corporation63.253The Walt Disney Company82.1218Berkshire Hathaway75.6333Chick-Fil-A*70.1148Time Warner62.824Google81.3219Toyota Motor Corporation75.5934Hewlett-Packard Company70.0149Monsanto*61.705Johnson & Johnson80.9520Ford Motor Company74.9635Burger King*69.8350Chrysler Corporation61.446The Coca-Cola Company80.3921Starbucks Corporation74.8236Verizon Communications69.4151Comcast60.997Whole Foods Market78.6522Target74.8237JCPenney69.1252Wells Fargo & Company60.478Sony78.2923PepsiCo74.4738Royal Dutch Shell*67.5953JPMorgan Chase & Co.58.209Procter & Gamble 7.9525Honda Motor g77.7026Dell73.0541Best Buy65.9256Bank of America55.8512Kraft Foods77.4627Hyundai Motor Company72.8342Facebook*65.6357American 58Halliburton*52.5114Nike77.2429General Electric71.8544General Motors64.4459Goldman Mobil64.3860AIG48.57* New to RQ 2013 Study and/or not measured in the RQ 2012Guide to RQ Scores: 80 & above: Excellent 75-79: Very Good 70-74: Good 65-69: Fair 55-64: Poor 50-54: Very Poor Below 50: Critical 2014 The Nielsen Company. All rights reserved.11

The 2012 RQ Dropped off the Most Visible List in 2013The Reputations of the Most Visible CompaniesRank 1 - 15Rank 16 - 30RQRank 31 - 45RQRank 46 - 60RQRQ1Apple85.6216Kohl's77.9531Toyota Motor Co77.7832Hewlett-Packard73.4147Sears*64.263The Coca-Cola Company81.9918General Mills77.3933Starbucks72.9748Time Warner63.384Amazon.com81.9219Costco76.7234Best Buy72.6849T-Mobile*62.825Kraft Foods81.6220Nike75.9535General Electric72.6050Chrysler60.306The Walt Disney 017Johnson & Johnson80.4522Lowe's*75.3937Walgreens*72.1052Wells Fargo & Co.59.508Whole Foods 109Microsoft79.8724Berkshire Hathaway75.0239JCPenney71.2354News Corp*57.1410UPS79.7525Ford Motor Company74.8340Verizon uthwest Airlines74.6041Walmart69.2556JPMorgan Chase54.8412Honda Motor 3Samsung*78.1128Boeing*74.0443Sprint Nextel65.9058Bank of America49.8514Home Depot78.1129Hyundai*73.9244General Motors65.3159Goldman Sachs47.5715Procter & Gamble Co.78.0930Macy's*73.6345AT&T65.0960AIG46.18* New to RQ 2012 Study and/or not measured in the RQ 2011Guide to RQ Scores: 80 & above: Excellent 75-79: Very Good 70-74: Good 65-69: Fair 55-64: Poor 50-54: Very Poor Below 50: Critical 2014 The Nielsen Company. All rights reserved.12

Only a minority feel Corporate America’s reputationhas improvedBut this proportion has more than doubled since 2012PERCEIVED PAST YEAR CHANGE IN CORPORATE AMERICA’S REPUTATIONImproved a lot3%2%1%NET IMPROVE19% 201416% 20139% 201216%14%Improved a little8%41%Stayed the same36%31%27%Declined a littleDeclined a lot30%31%14%19%29%201420132012NET DECLINE41% 201449% 201360% 2012Base: General Public (2014, n 14,055; 2013, n 14,512; 2012, n 12,961) Q1311 Which one of the following best captures your opinion of how the reputation ofcorporate America has changed over the past year? 1. It has improved a lot. 2. It has improved a little. 3. It has basically stayed the same. 4. It has declined a13little. 5. It has declined a lot.

Nay-sayers still outweigh optimistsHowever, the number of hard-core skeptics is at its lowest levels since the financial collapseOVERALL REPUTATION OF CORPORATE AMERICA - 201433%12%38%21%25%Excellent/Very Good5420%3OVERALL REPUTATION OF CORPORATE AMERICA - TRENDED40%35%30%25% 18%20%15% 9%10%5%0%2008n 20,47731%Very Poor/Terrible18%Not sureExcellent/Very Good32%5%Very 201220132014n 20,483n 21,264n 30,104n 12,961n 14,512N 14,055Base: US Respondents 2014 (n 14,055), 2013 (n 14,512) Q1310 How would you rate the overall reputation of corporate America today, where “1” means it hasa “Very Bad” reputation and “7” means it has a “Very Good” reputation? 2014 The Nielsen Company. All rights reserved.14

Investors more bullish on reputationFor the first time in more than a decade, investors are more often positive than negativeabout Corporate America’s ellent/Very GoodVery Poor/Terrible0%2003n 5,64520042005200620072008200920102011201220132014n 4,095n 4,142n 3,353n 3,224n 3,901n 2,769n 4,642n 4,499n 1,656n 2,140n 2,458Base: Investors. Q1310 How would you rate the overall reputation of corporate America today, where “1” means it has a “Very Bad” reputation and “7” meansit has a “Very Good” reputation? 2014 The Nielsen Company. All rights reserved.15

Four of the top five improvements come fromfinancial servicesThree of the five decliners come from Retail sector.SIGNIFICANT IMPROVEMENTS IN RQ2014 v. oldman SachsWells Fargo & CompanyCitigroupChick-Fil-AHonda Motor CompanyGeneral ElectricBest BuyHalliburtonAT&THewlett-Packard CompanyFacebookMicrosoftChrysler CorporationRoyal Dutch ShellGeneral .73.63.43.33.0SIGNIFICANT DECLINES IN RQ2014 v. nald's-4.45.Sears Holdings Corporation-3.26.Johnson & Johnson-3.27.Google-2.9Note: /- 3 point indicates a significant difference. 2014 The Nielsen Company. All rights reserved.16

Nine companies with excellent RQ scoresFirst time since 2007 that no company falls below RQ score of 50 Google Johnson& JohnsonCompanies with RQ above 80.0 2005-2014 3M BerkshireHathaway Johnson Google Johnson Johnson& Johnson Johnson& Johnson20052006 Enron* MCI* Enron* MCI Microsoft 3M2007 & JohnsonIntelGeneral MillsKraft2008 Halliburton & JohnsonGoogleSonyCoca-ColaKraftAmazon.com2009 AIG(formerlyWorldCom)* Adelphia* BerkshireHathaway Johnson& Johnson Google 3M SC Johnson Intel2010 Fannie Mae* AIG FreddieMac* Apple Intel Kraft Amazon.com General Mills Disney Procter & GambleSC JohnsonUPSSonyCoca-ColaMicrosoft Apple Google Coca-Cola Amazon.com Kraft Disney Johnson Amazon.com Apple Disney Google Johnson Whole Foods Coca-Cola& Johnson2011 BP AIG2012 Bank of AmericaGoldmanSachsAIG& Johnson2013 Amazon.com Coca-Cola Apple Disney Honda Costco Samsung Whole Foods Microsoft2014 GoldmanSachs AIGCompanies with RQ 50.0 2005-2014* Companies that have ceased to exist or subjected to government takeover.Guide to RQ Scores: 80 & above: Excellent 75-79: Very Good 70-74: Good 65-69: Fair 55-64: Poor 50-54: Very Poor Below 50: Critical 2014 The Nielsen Company. All rights reserved.17

Only Coca-Cola appears in all 6 dimensionsCorporate Leaders on the Six Reputation DimensionsSOCIAL RESPONSIBILITYEMOTIONAL APPEALPRODUCTS & SERVICES1. Whole Foods Market83.121. Amazon.com85.651. Amazon.com86.232. USAA80.712. Costco81.902. Apple84.833. The Coca-Cola Company80.373. The Coca-Cola Company81.073. Samsung84.544. The Walt Disney Company79.614. Kohl's80.494. Honda Motor Company83.745. Microsoft78.815. Honda Motor Company80.455. The Coca-Cola Company82.41VISION & LEADERSHIPFINANCIAL PERFORMANCEWORKPLACE ENVIRONMENT1. The Coca-Cola Company84.421. The Coca-Cola Company85.221. Amazon.com82.102. Amazon.com84.122. Apple85.152. The Coca-Cola Company82.093. Apple83.983. Amazon.com84.973. Apple82.074. The Walt Disney Company82.944. The Walt Disney Company 84.314. Microsoft81.765. Whole Foods Market81.965. Microsoft5. Costco81.6981.76Guide to RQ Scores: 80 & above: Excellent 75-79: Very Good 70-74: Good 65-69: Fair 55-64: Poor 50-54: Very Poor Below 50: Critical 2014 The Nielsen Company. All rights reserved.18

Industry Reputation RatingsTechnology industry continues to have most positive reputation halo while Financial Servicesindustries remain polarizingPOS REP –NEG REP TechnologyTravel and TourismConsumer Financial %41%27%45%23%69%TobaccoNEGATIVE t1713%-5613%-60POSITIVE REPBase: General Public 2014 (n 14,055) Q1314: For this question, we'd like you to think about industries in general. How would you rate the overall reputation ofthe following industries, where “1” means it has a “Very Bad” reputation and “7” means it has a “Very Good” reputation? 2014 The Nielsen Company. All rights reserved.19

Some recently challenged industries tick upwardAlthough, still far from positivePOSITIVE RATINGS 2014POSITIVE RATINGS 2013POSITIVE RATINGS 20121Technology79%79%76%2Travel and Tourism64%61%58%3Consumer 29%11Airline35%27%22%12Financial 11%15Government13%16%NA 2014 The Nielsen Company. All rights reserved.20

The SeekersAmerican public continues to investigate corporate behavior before buyingAGREEMENT WITH: MORE SO THAN IN THE PAST, I PRO-ACTIVELY TRY TO LEARN MORE ABOUT THE COMPANIES I HEARABOUT OR DO BUSINESS WITH54% SEEKERS201415%46% BYSTANDERS39%32%56% SEEKERS201317%13%STRONGLY AGREE39%9%4%31%49% BYSTANDERS37%SOMEWHAT AGREE4%44% BYSTANDERS50% SEEKERS201210%31%NEITHER AGREE OR DISAGREESOMEWHAT DISAGREE11%7%STRONGLY DISAGREEBase: General Public (2014, n 14,055; 2013, n 14,512; 2012, n 12,961) Q1080: Now, please tell us whether you agree or disagree to each of the followingstatements: 2014 The Nielsen Company. All rights reserved.21

SeekersThis group actively shares what they learn about companies and seeks to influencebehavior of others20142013Participated in a conversation withother about how a company conductsitself59%70%Decided not to do business with acompany because of something youlearned about how the companyconducts itselfProactively tried to influence friends'or family's perceptions about acompany because of something youlearned about how the companyconducts itselfShared any information about acompany through social media RS60%73%41%61%25%47%26%40%SEEKERSBase: Seekers (2014, n 7,296; 2013, n 7,844), Bystanders (2014, n 6,759; 2013, n 6,668) Q1035 There are many ways people can learn and communicateabout companies. For each of the following, indicate whether you have personally done this in the past year. 2014 The Nielsen Company. All rights reserved.22

Privacy concernsStrong and growing majority are concerned about the volume of information companiesknow about them, and less than half trust companies to act responsibly with thisinformation“I am concerned about the increasing amount ofpersonal information companies capture abouttheir customers these 20142013NEITHER AGREEOR DISAGREE35%34%13%STRONGLYAGREE37%40%“Overall, I trust companies to act responsiblywhen it comes to using all the private data theyhave on consumers.”2%Base: General Public (2014, n 14,055; 2013, n 14,512) Q1080 Now, please tell us whether you agree or disagree to each of the following statements: 2014 The Nielsen Company. All rights reserved.23

MethodologyAbout Nielsen and theHarris Poll 2014 The Nielsen Company. All rights reserved.24

Methodological Overview Harris Interactive, now a part of Nielsen, has used the Harris PollReputation Quotient (RQ) to measure the reputations of the most visiblecompanies in the U.S. since 1999. The 2014 RQ study represents the 15thconsecutive year of measuring corporate reputation in the U.S. The Annual RQ study involves a two step process which begins with aNominations Phase and is followed by a Ratings Phase, where we measurethe reputation of the most visible companies in the U.S. The following summarizes the methodological details for both phases ofthe Annual RQ study. 2014 The Nielsen Company. All rights reserved.25

Methodological Overview (Continued)Nominations section – Identifying the “most visible” companies The Annual RQ study begins with a ‘nomination section’ which is used to identify thecompanies with the most “visible” reputations according to the General Public. Allrespondents are asked to name companies that stand out as having the best and worstreputations overall. Two open-end questions are used:-Of all the companies that you’re familiar with or that you might have heard about,which TWO - in your opinion - stand out as having the BEST reputations overall?-Of all the companies that you’re familiar with or that you might have heard about,which TWO - in your opinion - stand out as having the WORST reputations overall?Nominations from all interviews are tallied with subsidiaries and brand namescollapsed within the parent company. Online nominations are summed to create atotal number of nominations for each company. The final list of the 60 most visiblecompanies in the U.S. is measured in the RQ Ratings Section along with othercompanies representing the major industries in the U.S. 2014 The Nielsen Company. All rights reserved.26

Methodological Overview (Continued)Nominations Section - Summary of SpecificationsNOMINATIONINTERVIEWING DATESUnited StatesOctober 14-16 and November 4-6, 2013NUMBER OFNOMINATIONINTERVIEWSMETHOD OFINTERVIEWING4,028OnlineNUMBER OF “MOSTVISIBLE” COMPANIESIDENTIFIED60Who Rates the “Most Visible” Companies in the United States?The RQ Ratings phase takes place among the general public. As part of the ratings section, respondentsare randomly assigned to rate two of the companies with which they are “very” or “somewhat” familiar.After the first company rating is completed, the respondent is given the option to rate the secondcompany. Each interview lasts approximately 20 minutes.Outlined in the table below is the method of data collection for this phase, as well as the dates ofinterview, total number of interviews, number of companies measured, and average number of ratingsper company.RQ Ratings Section - Summary of SpecificationsRATINGINTERVIEWING DATESUnited StatesDecember 23, 2013January 6, 2014NUMBER OF RATINGINTERVIEWS14,055METHOD OFINTERVIEWINGOnlineAVERAGE NUMBER OF RATINGSPER COMPANY300 2014 The Nielsen Company. All rights reserved.27

About Nielsen and the Harris PollANNUAL REVENUE: 5.7 billion in 2013EMPLOYEES:approximately 35,000global associatesHEADQUARTERS:New York, USA andDiemen, the NetherlandsSTOCK SYMBOL:NLSNIn February 2014, Nielsen acquired Harris Interactive and The Harris Poll .Nielsen’s Reputation Management and Public Affairs team was establishedfollowing the acquisition of Harris Interactive, a leading global marketresearch firm known for its reputation management and consultingexpertise. The group unites Harris Interactive’s industry-defining corporatereputation and public release research capabilities with Nielsen’s keenunderstanding of today’s consumers. The result is a force to be reckonedwith, providing more powerful insights and capabilities to help companiesin numerous industry sectors enhance their reputation and succeed intoday’s competitive marketplace.Nielsen is a leading global provider of information and insights into whatconsumers watch and buy. With leading market positions in marketing andconsumer information, television and other media measurement, onlineintelligence and mobile measurement, Nielsen’s comprehensive end-to-endconsumer insights enable companies to make smarter decisions that enablebusiness growth. 2014 The Nielsen Company. All rights reserved.28

1 Amazon.com 82.62 16 The Home Depot 76.27 31 YUM! Brands* 71.41 46 Sears Holdings Corporation 63.54 2 Apple 82.54 17 Lowe's 75.67 32 State Farm Insurance* 70.31 47 Sprint Nextel Corporation 63.25 3 The Walt Disney Company 82.12 18 Berkshire