Exploring The Connections Between Corporate Culture and Reputation

EXPLORING THE CONNECTIONS BETWEEN CORPORATE CULTURE AND REPUTATION
AN MWW SURVEY SUMMER 2012
Recently MWW conducted a survey to explore the connections between corporate reputation and corporate culture. We surveyed 100 business leaders and human resources executives from companies with more than 250 employees and received consistent and clear feedback: they are intrinsically linked. As a means to deeply explore the issue, we presented the recent Goldman Sachs open resignation letter and asked respondents to evaluate what the letter revealed about Goldman Sachs internal culture and how it impacted the companys reputation. The results point to the central role a companys internal corporate cultures plays in driving its external reputation.
2012 MWW GROUP, ALL RIGHTS RESERVED | SURVEY | SUMMER 2012
MOST BUSINESS LEADERS BELIEVE THEIR COMPANY STANDS FOR MORE THAN JUST ITS SERVICES OR PRODUCTS AND SAY
3 OUT OF 4 BUSINESS LEADERS BELIEVE CORPORATE REPUTATION IS SUBSTANTIALLY DRIVEN BY THEIR COMPANYS INTERNAL CORPORATE CULTURE.
FRONT-LINE EMPLOYEES
ARE AMONG THE TOP TWO MOST IMPORTANT GROUPS DRIVING THEIR CORPORATE REPUTATION.
BUSINESS LEADERS BELIEVE THAT
5
ONLY
TRUST
DESPITE RECOGNIZING THE IMPORTANCE OF CULTURE, ONLY 5 PERCENT STRONGLY BELIEVE THEIR OWN ORGANIZATIONS AN INCIDENT SIMILAR TO GOLDMAN SACHS FROM HAPPENING TO THEM.
IS A BIG PART OF HOW THEIR COMPANIES OPERATE.
CULTURE WOULD PRECLUDE
CORPORATE CULTURE DRIVES CORPORATE REPUTATION

Three out of four business leaders believe corporate reputation is at least substantially driven by their internal corporate culture.
1%
Not at All
5%
Slightly
19%
15%
Entirely / Almost Entirely
In these difficult economic times, the attitude and working culture of our employees is even more important for and impactful to our level of service delivery which determines our external reputation.
CORPORATE EXECUTIVE AT A COMPANY WITH 1000-5000 EMPLOYEES
Somewhat
60%
SUBSTANTIALLY
Our culture permeates everything we do relationships with owners, architects, vendors and subs.They see us at work everyday and how we behave and react to things is based on that internal culture.
DIRECTOR IN THE HR DEPARTMENT AT A COMPANY WITH 501-1000 EMPLOYEES
PHILOSOPHY ON CORPORATE CULTURE

Most respondents indicated a strong corporate culture was important to their organization. Trust is a big part of how their company operates, and most believe their company stands for more than just its services or products. However, nearly 30% of business leaders believe their corporate culture is not consistent from the executive level down to the lowest level employees.
STRONGLY AGREE / AGREE
87
TRUST IS A BIG PART OF HOW WE OPERATE AS A COMPANY
85% 81% 78% 74% 72% 41%
OUR COMPANY STANDS FOR MORE THAN JUST OUR SERVICES OR PRODUCTS
WE ACTIVELY PROMOTE A PARTICULAR CORPORATE CULTURE BUILT ON CORE VALUES WE HAVE ADEQUATE MECHANISMS IN PLACE TO ALLOW EMPLOYEES TO REPORT UNETHICAL PRACTICES
EMPLOYEES TRULY BUY-IN TO OUR CORPORATE CULTURE
THE CORPORATE CULTURE IS CONSISTENT FROM THE EXECUTIVE LEVEL DOWN TO THE LOWEST LEVEL EMPLOYEES THE BOTTOM LINE IS THE ULTIMATE FACTOR IN JUDGING OUR COMPANYS SUCCESS REGARDLESS OF CULTURE
DESCRIBING CORPORATE CULTURE Business leaders used words such as integrity, teamwork, communication and customer-focused, when describing their corporate culture.
CORPORATE REPUTATION: INFLUENCING GROUPS Business leaders believe that front-line employees and customers are the two most important groups in driving their corporate reputation. Whereas, they believe that trade media, business media, and financial analysts are the least important.
MOST IMPORTANT:
80 70 80 60 70 50 60 40 50 30 40 20 30 10 20 0 10 0
62% 55% 62% 55%
35% 35%
EXECUTIVE MANAGEMENT EXECUTIVE MANAGEMENT
CUSTOMERS FRONT-LINE EMPLOYEES CUSTOMERS FRONT-LINE EMPLOYEES
15% 14% 9% 5% 5% 15% 14% 9% 5% 5%

CONSUMER MEDIA FINANCIAL ANALYSTS MID-LEVEL EMPLOYEES TRADE MEDIA CONSUMER MEDIA FINANCIAL ANALYSTS MID-LEVEL EMPLOYEES TRADE MEDIA BUSINESS MEDIA
BUSINESS MEDIA
LEAST IMPORTANT: 50
50 40 40 30 30 20 20 10 10 0 0
TRADE MEDIA TRADE MEDIA BUSINESS MEDIA BUSINESS MEDIA
44% 43% 43% 44% 43% 43% 34% 34% 16% 16% 10% 6% 10% 6%
EXECUTIVE MANAGEMENT MID-LEVEL EMPLOYEES EXECUTIVE MANAGEMENT MID-LEVEL EMPLOYEES
CONSUMER MEDIA CONSUMER MEDIA
FINANCIAL ANALYSTS FINANCIAL ANALYSTS
CUSTOMERS
3% 3%
CUSTOMERS
EVALUATING GOLDMAN SACHS
LETTERS EFFECT ON GOLDMAN SACHS REPUTATION Business Leaders in the United States believe that Goldman Sachs is not a particularly ethical institution and the open resignation letter only further hurt its reputation. STRONGLY AGREE / AGREE
79
ON A TROUBLESOME GLODMAN SACHS
THE LETTER SHED LIGHT CORPORATE CULTURE AT
77% 66% 14% 14%
GOLDMAN SACHS REPUTATION WAS NEGATIVELY AFFECTED BY THIS LETTER
I WOULD EXPECT TO SEE MORE OF THESE SITUATIONS WITH OTHER COMPANIES IN THE FUTURE THIS WAS AN ISOLATED INCIDENT OF A SINGLE DISGRUNTLED EMPLOYEE AND NOT REPRESENTATIVE OF GOLDMAN SACHS COMPARED TO MOST OTHER COMPANIES GOLDMAN SACHS IS AN ETHICAL INSTITUTION
A LOOK INWARD Despite recognizing the importance of culture, only 5 percent of business leaders strongly believe their own organizations culture would preclude an incident similar to Goldman Sachs from happening to them.
STRONGLY AGREE
WE HAVE A CULTURE THAT WOULD PRECLUDE THIS TYPE OF SITUATION FROM OCCURRING
5% 41%
6% 40% 9% 47%
AGREE
THESE TYPES OF OCCURRENCES GENERALLY BLOW OVER FAIRLY QUICKLY
WE HAVE THE COMMUNICATIONS AND CRISIS TOOLS/PLANS IN PLACE TO HELP US EFFECTIVELY DEAL WITH THIS TYPE OF SITUATION
DIGITAL AND SOCIAL MEDIA CAN ALLOW A SITUATION LIKE THIS TO QUICKLY GET OUT OF HAND
44% 46%
10
CHANCE OF THIS HAPPENING TO YOU 40% of business leaders are concerned a disgruntled employee could cause a similar negative% on their companys reputation. effect % % % % Reputation?
SOMEWHAT SOMEWHAT LOW HIGH LOW VERY LOW
HIGH
38 How28 Of An Impact Would0 Similar Letter Have On Your Organizations 13 0 A Much
38%
NOT CONCERNED
40%
CONCERNED
22%
UNDECIDED
21% 38% 28% 13% 0% 0%

VERY HIGH HIGH SOMEWHAT SOMEWHAT LOW HIGH LOW VERY LOW
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RESPONSE As a result of the letter, 1/3 of business leaders have taken preventative action in their own organizations to preclude a situation similar to Goldman Sachs, including making changes to employee contracts, their onboarding processes, and training. Another 1/3 is considering such actions.
TAKEN ACTION
CONSIDERING
NOT CONSIDERING / NO ACTION
REVIEWED OR CHANGED EMPLOYEE CONTRACTS TO PREVENT SUCH SITUATIONS REVIEWED OR CHANGED EMPLOYEE OFF-BOARDING PROCESSES ENHANCED TRAINING OF KEY STAFF TO HANDLE THESE SITUATIONS MORE EFFECTIVELY
15% 16% 29%
26% 28% 33%
59% 56% 39%
OVERALL
33 33 34
% %
TAKEN ACTION CONSIDERING
NOT CONSIDERING / NO ACTION
12
RESPONDENT PROFILE
WORK TITLE
68 18 7 7
%
% %
CORPORATE EXECUTIVE
DIRECTOR
OWNER/FOUNDER
VP
SIZE OF COMPANY (BY NUMBER OF EMPLOYEES)
36 20 19 1418 7 12
% % % % %
1001-5000 10000+
OWNER-FONDER / VP
% %
250-500
501-1000
DIRECTOR
5,001-10,000
SEX
78 7 2218
% %
MALE
OWNER-FONDER / VP
% %
DIRECTOR
13
FEMALE
METHODOLOGY
WHO:
n = 100 Respondents
+ Business Leaders
Corporate Executives: 75 HR Decision Makers: 25
+ At a company with 250+ employees
WHEN: WHERE: HOW:
April 2012 USA Online Recruitment via online panel and self administered
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FOR MORE INFORMATION, PLEASE CONTACT: Carreen Winters MWW Group
Executive Vice President, Corporate Communications Reputation Management 201.964.2410 | cwinters@mww.com
304 Park Avenue South, 8th Floor New York, NY 10010 212.704.9727
EAST RUTHERFORD / CHICAGO / DALLAS / LONDON / LOS ANGELES / NEW YORK / SAN FRANCISCO / SEATTLE / TRENTON / WASHINGTON D.C.
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Exploring The Connections Between Corporate Culture and Reputation

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EXPLORING THE CONNECTIONS BETWEEN CORPORATE CULTURE AND REPUTATION

AN MWW SURVEY SUMMER 2012