Survey to measure reputation of firms

Companies are increasingly being valued on corporate reputation, with a shift of emphasis from physical assets to intellectual assets. As per the 'Voice of the Leaders Survey' conducted by the World Economic Forum and Fleishman-Hillard International Communications, almost 60 per cent of those surveyed estimated that corporate and brand reputation represents over 40 per cent of the value of a company's capitalisation.

More than 77 per cent of the respondents of the survey believed that corporate reputation had become more important over the last two years, with company valuations based on the last quarter's results taking a backseat.

To facilitate a similar survey in India, TNS, a global market research and strategic consulting group, is conducting a study based on TNS TRI*M Corporate Reputation Index, to assess the corporate reputation of Indian firms.

Besides measuring the relative strength of reputation of 60 of India's leading corporations from the public and private sectors, the study will also help identify the key drivers of a company's reputation amongst key stakeholder groups; the strengths and weaknesses of each company with respect to Indian industry as well as competition in respective sectors.

The TNS TRI*M Corporate Reputation ManagerT, TNS believes, will provide a 360 degree view of the company's strengths and weaknesses.

TNS also believes that the study further differentiates the key characteristics that drive a company's value from those that add little to corporate strength, providing a clear and pointed analysis with the ability to provide actionable recommendations.

According to TNS, it will identify key areas for change as well as the importance for change, based on feedback from many key stakeholder groups including prospective employees, corporate managers, financial communities, the general public and other relevant groups.

"As corporate behavior is increasingly being scrutinised from both inside and outside a company, confidence in a company becomes vital. Corporate reputation represents stakeholder expectations from, and experiences with, the company, its products and services, processes and employees. It encompasses both emotional and rational dimensions that define a company's relationship with its various stakeholder groups," S Ganapathy, director of TNS India said.

The 2004 study, already underway, is being conducted amongst stakeholder groups of managers in financial institutions, corporates, managerial personnel across companies as well as management and engineering students across 12 main cities.

The top-line results are likely to be published in mid-October 2004.