Presentation on theme: "CEO & Corporate Reputation"— Presentation transcript:
1 CEO & Corporate Reputation Jeanette Dyhre KvisvikManager, Burson-Marsteller, NorwayHotel Nordica, Reykjavik, Thursday 21. September
2 CEO Reputation“Despite the size and complexity of modern corporations, the person in charge still sets the tone, defines the style, becomes the company’s public face.”Fortune, November 18, 2005“It takes a lifetime to build a reputation, and only a short time to lose it all.”Joseph Neubauer, CEO of Aramark, BusinessWeek, September 23, 2002Fortune quote: Emphasizes that no matter how complex today’s companies have become, they are still defined by one single person: the CEO.Neubauer quote: Reputation is a precious intangible asset.
3 Corporate Reputation“ If you lose dollars for the firm by bad decisions, I will be understanding. If you lose reputation for the firm, I will be ruthless.”Warren BuffettWe’d have to all agree with Warren Buffet when he says … “If you lose dollars for the firm by bad decisions, I will be understanding. If you lose reputation for the firm, I will be ruthless.”It’s that important.
4 How to build trust Internally Financial society The media Stakeholder map- The various needs for communicationThe mediaPublic opinionPolitical societyCEO &companyInternallyFinancial society
5 Agenda Global Survey- CEO Capital and Corporate Reputation 2005 Norwegian Survey- CEO and Corporate Reputation 2006An example- Norsk Hydro- Norways second largest oil company
6 Building CEO Reputation - Global Now in its fifth wave, Burson-Marsteller’s first CEO Reputation Study was conducted in 1997The research was conducted online with the Economist Intelligence Unit (EIU), a world leader in global business intelligence and the business–to–business arm of The Economist Group.The sample includes over 600 business influentials from 65 countries:146 CEOs146 senior executives188 financial analysts103 business journalists102 government officialsThis 2005 study was conducted online among global business influentials. Previous waves were conducted by mail among U.S. business influentials.Because of this methodology change, comparisons to prior-year studies cannot be made.
9 How much does CEO Reputation Matter? On a global basis, the CEO is held responsible for 47% of a company’s reputation. Europeans and North Americans attribute less responsibility to the CEO than do Asia/Pacific and Latin American influentials.2005 CEO Contribution to Corporate Reputation
10 How does CEO Reputation pay off? Paying attention to what a CEO has to say and recommending the company as a preferred partner is the greatest benefits of having a good CEO reputation.RankPay attention to what a CEO has to say1Recommend company as good alliance/merger partner2Give a company more time to succeed3Maintain confidence in company when share price lags4Buy stock in a company5Believe a company under pressure from the media6Recommend a company as a good place to work7Recommend a company’s stock8Prefer a company’s products and services9SCORECARDNorth America Buy or recommend stockLatin America Recommend company as alliance partner or good place to workCEOs Maintain confidence when share price lagsThe scorecard identifies regions and segments where scores are higher or lower than the average.
11 What builds CEO reputation? Credibility, attracting quality management and communicating a clear vision internally are the top three measures that shape CEO reputation. Delivering financial results is necessary for a CEO, but being credible is paramount.RankIs credible1Attracts & keeps quality management team2Communicates clear vision *inside* company3Demands high ethical conduct4Motivates & inspires employees5Manages crises and downturns effectively6Communicates clear vision *outside* company7Executes well on strategic vision8Cares about customers9Fosters corporate governance10Delivers financial results11Increases shareholder value12SCORECARDNorth/Latin America Demand high ethical conductNorth America/Asia/Pacific Foster corporate governanceLatin America Attract quality management teamFinancial Analysts Manage crises/downturns effectivelyTop 12 of 20 CEO qualities
12 What builds CEO reputation- Europe All business influentials agree that credibility drives CEO reputation. Demanding high ethical conduct ranked relatively low for European influentials, possibly because Europeans already expect strong ethics from their companies’ leaders.TotalEurNAA/PLAIs credible1Attracts & keeps quality management team239Communicates clear vision *inside* company64Demands high ethical conduct5Motivates & inspires employees10Manages crises and downturns effectively78Communicates clear vision *outside* companyExecutes well on strategic visionCares about customersFosters corporate governance12Delivers financial results1113Increases shareholder value15Top 12 of 20 CEO qualities= higher than total= lower than total
13 Top 25 Most Admired CEOsCEOCompanyJeff BezosAmazon.comJohn BondHSBC HoldingsRichard BransonVirgin GroupJohn BrowneBPWarren BuffettBerkshire HathawayJohn ChambersCisco SystemsMichael DellDellLawrence EllisonOracleBill GatesMicrosoftCarlos GhosnNissan & RenaultJeffrey ImmeltGeneral ElectricSteve JobsApple ComputerHerb KelleherSouthwest AirlinesA.G. LafleyProcter & GambleTerry LeahyTescoLakshmi MittalMittal SteelRupert MurdochNews Corp.N. R. Narayana MurthyInfosysJorma OllilaNokiaAzim PremjiWiproCarl-Henric SvanbergEricssonRatan TataTata GroupDaniel VasellaNovartisMeg WhitmaneBayJack WelchWorldwide, Bill Gates is the most admired CEO by business influentials by a large margin.Steve Jobs and Warren Buffett rank a distant second and third.CEOs from North American, European and Asian/Pacific companies are represented on this most admired list.
14 Top 25 Most Admired CEOs: European Influentials CompanyJosef AckermannDeutsche BankJohn BondHSBC HoldingsPeter BrabekNestleRichard BransonVirgin GroupJohn BrowneBPWarren BuffettBerkshire HathawayJohn ChambersCiscoMichael DellDellBill GatesMicrosoftCarlos GhosnNissan & RenaultFred GoodwinRoyal Bank of ScotlandJeff ImmeltGeneral ElectricSteve JobsAppleTerry LeahyTescoLakshmi MittalMittal SteelRupert MurdochNews CorporationJorma OllilaNokiaHelmut PankeBMWHoward StringerSonyCarl-Henric SvanbergEricssonRoger TalermoAmer GroupDonald TrumpTrumpDaniel VasellaNovartisJack WelchWendelin WiedekingPorscheAmong European business influentials, Bill Gates is the most admired CEO worldwide.
16 Drivers of Corporate Reputation RankHigh quality products and services1Communicates effectively externally2Has high quality management3Focuses on serving customers4Is honest with stakeholders5Attract, develop & retain talent6Is well-governed7Communicates effectively internally8Behaves ethically9Responds effectively to change10Is a good financial performer11Is innovative12Is a good place to work13Is socially responsible14Is an industry leader15Is environmentally responsible16Is truly global17Is the largest in its industry18SCORECARDEurope Stakeholder honesty and ethical behaviorAsia/Pacific Honesty with stakeholders and good governanceCommunicating externallyCEOs Focus on serving customersFinancial Analysts Honesty with stakeholders and effective internal communicationsHigh quality managementExternal communication and high-quality management are also key in driving corporate reputation.Despite much CEO and media attention to business globalization, being truly global is not a strong contributing factor of corporate reputation. Size does not matter either, as being the largest in its industry was least likely to drive a good corporate reputation.
17 Drivers of Corporate Reputation TotalEurNAA/PLAHigh quality products/services132Communicates well externally6Has high quality management4Focuses on serving customers857Is honest with stakeholders10Attract, develop, retain talent9Is well-governedCommunicates well internallyBehaves ethically12Responds effectively to change1113Is a good financial performerIs innovativeIs a good place to workIs socially responsible1415Is an industry leader16Is environmentally responsibleIs truly global17Is the largest in its industry18Europeans rank external communication as the number one driver of company reputation.Honesty with stakeholders was ranked relatively low, possibly reflecting a European expectation for honest behavior.Europeans believe more strongly in external communications and serving customers and believe less that ethics and honesty is a reputation driver. Asia-Pacific respondents believe that honesty and governance drive reputation more than external communication.= higher than total= lower than total
18 Payoffs of Good Corporate Reputation Attracting top talent is the biggest payoff of developing a good corporate reputation. Other perceived payoffs include the ability to attract new business and increased customer loyalty.TotalAbility to attract and retain talented employees1Ability to attract new business/partners/acquisitions2Increased loyalty from customers/clients3Confidence the company will do the right thing4Ability to quickly recover from reputation problems5Better able to withstand economic ups and downs6Better relations with regulators/government7Higher share price than competitors8Ability to charge premium prices9SCORECARDLatin America Confidence that company will do the right thingLatin America/Asia Pacific Better relations with regulators/governmentCEOs Confidence that company will do the right thing and a higher share price.Other key payoffs include attracting new business and alliances and increased customer loyalty. Financial benefits such as higher share prices and ability to charge premium prices were the least likely benefits of a good corporate reputation.
19 Our Approach Client Charter Desired Business Results Corporate Reputation ResearchCEO Reputation ResearchCorporate Brand ValuatorFortune’s America’s Most Admired CompaniesFortune’s Global Most Admired Companies Reputation IndexBrand Asset Valuator (BAV)Reputation Report CardCEO Reputation Report CardCulture Capital AssessmentCorporate Equity AnalysisSeasons of a CEOEnvironmental ScanCompetitive Platform Analysis/BenchmarkingClient CharterDesired Business ResultsCurrent Reputation ScorecardsInsightsAnalysisAssessmentResults and MeasurementCreative ExecutionStrategic ProgrammingMedia RelationsCEO Dance CardInvestor RelationsEmployee & Constituency EngagementWeb CommunicationsCorporate and Internal AdvertisingCustomized Training ProgramsCorporate Social ResponsibilityCorporate IdentityVision and ValuesCEO Platform DevelopmentCEO’s First 100 DaysIntegrated CommunicationStrategyBrand DefinitionThought LeadershipStock Price/Market ShareRankings & ScorecardsFeedback AnalysisCulture QuotientRecruitment & RetentionMedia Coverage/PenetrationStrategic StakeholderMessagingLeadership DevelopmentRewards & RecognitionCrisis PreparednessMeasurement PlanningFoundation Consulting
22 Who are the respondents? 100Investorer90Government officialsJournalister Media8070Investors60Analytikere/ MeglereThe only survey in Norway measuring reputation amongst Business InfluentialsBusiness journalists5040ToppledereFinancial analysts3020Executives10Source: Burson-Marsteller og Research International Topplederundersøkelse 20053
24 The power of reputation A good reputation is a rapidly increasing success factor in today's societyThe power of reputationSum upCEO Reputationis responsible for47 %of aCompany Reputationwhich influencesProfitability- Share priceRevenueTurnoverOther factors- Alliance/ merger partner- Recruiting and retaining- PowerIn businessPoliticallyKilde: Burson- Marsteller analyse; Burson-Marsteller/ Economist Global CEO Capital, 2005
25 What is the most important driver when deciding to invest in a company?
26 Quality of leadership and ability to adjust to change is the most important drivers when investing in companiesWhat is most important when deciding to invest in a company?Leadership482005200340Adjust to change4725Quality of productsand services383838Credibility42Financial situation31A trusted and good management is more important than financial situation2529Innovation13Specific skills or technology2817Ability to recruit and retain272621Loyal customers29Strong brand1622Financial track record1423Environmental focus1011Social responsibility8120%10%20%30%40%50%60%70%80%90%100%Data: Tall i % av base: 135/88. Figuren viser andelen som har svart på en 10-delt skala for betydning for valg* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
27 In addition, the CEO reputation affects other key success factors for the company… To what extend does your opinion of a CEO affect your will to.....2005200376Recommended as a alliance/merger partner7074Believe in company despite negative media coverage3471Potential employer6970Buy stocks in the company72Believe in company despite share price develops below index616246Be informed of company's development3934Buy company's products and services240%10%20%30%40%50%60%70%80%90%100%Tall i % av base: 135/88. Figuren viser andelen som harsvart 7-10 på en 10-delt skala for grad av påvirkning* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
28 Is there a correlation between the CEOs reputation and the company's reputation?
29 There is a strong correlation between the CEO and the company reputation The correlation proves that the trust in the CEO is crucial for a company’s reputation* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
30 Big changes in companies reputation since 2003 shows that the reputation is in motion 100Reputation is easily broken down in a crisis, but the reputation may be restored within 2 years75Company reputation5025255075100CEO CapitalTall i % av base generelt inntrykk: 90. Figuren viser andelen som har svart 7-10 på en 10-delt skala for tillit (x-aksen) og andelen som har svart 7-10 på en 10-delt skala for inntrykk (y-aksen)* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
31 Reputation recovery is possible, but demands focus Average in years2,23,2Norway2005Global0,511,522,533,54Comparison of the two studies shows that the time to recover the reputation is shorter in Norway than globallyÅrsaker kan være:Det har skjedd en generell styrking av norske selskapers omdømme i 2005Norske selskaper har høy troverdighet blant beslutningstakerneBeslutningstakerne vil at norske selskaper skal ta etikk på alvor, ref. etikk krav viktigst i NorgeData: Tall i % av base: Norge 107 som har svart, Globalt: Ca 600* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
32 What measures must be taken to build reputation?
33 To build and sustain a company's reputation, the focus must be on ethics, good leadership and results…Ethics872005Trust in CEO79Financial results79Quality products and services78Customer focused76Attracts and retain good employees74Communicates effectively externallyThe focus on ethics is very high in Norway compared to the global and European results73Adjust to change71Corporate governance66Innovative64Social responsibility55Industry leading54A good place to work53Environmental52Stakeholder openness52Communicates effectively internally49Company size14Global company1220406080100Data: Tall i % av base: 135. Figuren viser andelen som har svart 5-6 på en 6-delt skala for viktighet* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
34 … the same criteria is also the most important to build and sustain a CEOs reputation How important is it for your trust in the CEO that…Sets high ethical standards712005200362Creates good financial results6658Have a good management team6360When the company reputation and the CEOs reputation depends on the same criteria, it shows how the company and the CEO is identified with each otherHave the ability to adjust to changes6254Manage crisis in a credible way5850Turn company's strategies into action5760Informs of company's strategies and visions to employees5352Handles the media in a credible way3844Focuses on customer relations38En toppleder må forstå sin rolle og sitt ansvar- core values- lederens core values-Krever identifikasjon38Retain and develops employees3637Informs of company's strategies and visions externally3129Focuses on social responsibility30220%10%20%30%40%50%60%70%80%90%100 %Base: Tall i % av base: 135/88. Figuren viser andelen som har svart på en 10-delt skala for viktighet* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
35 Business newspapers are the most important communication channel for CEOs and companies Fra hvilke kilder lærer du mest om toppledere?TV, radio and the internet has become more important as a reputation communication channel the last two years due to a rapidly increasing focus in business newsIn addition, conferences, seminars and other meeting arenas has increased in importanceData: Tall i % av base: 135/88. Figuren viser kilderder man lærer mest om den enkelte toppleder* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
36 To build trust, a CEO must show the ability to take action within the first 6-8 months in the position…Tall i % av base: 135/88MonthsTall i parentes: antall måneders endring fra 2003…to acquire the trust of the employees7 months (0)…to establish good relations for the company10 months (0)…to improve the financial results17 months (+1)…to attract a management team with the right competence7 months (-1)…to establish the company's visions and strategies going forward8 months (+1)…to turn a negative trend around15 months (+1)* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
37 Do you believe that the chairboard fires their CEOs too fast? The demands for the CEO ability to take action and show results are increasingDo you believe that the chairboard fires their CEOs too fast?2003In time2005In time32%55%Too earlyToo late49%16%Too early16%Too late30%Data: Tall i % av base: 135/88Twice as many business influentials than in 2003 believes that CEOs should be fired earlierThe percentage that believe the CEO should be given more time is down from 49% to 16%* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
38 Zooming in on Norway's 2nd largest company * Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
39 Hydro has the best reputation amongst business influentials Company reputationHydro882005200379785078277273Hydro on topPotential reasons:Good resultsStrong managementHigh ethical standardsHigh profile years7269605624532846424139331227782516130%10%20%30%40%50%60%70%80%90%100%Data: Tall i % av base inntrykk: 135/88. Figuren viser andelen som harsvart 7-10 på en 10-delt skala for inntrykk* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
40 Hydro has a solid and evenly divided trust amongst key stakeholders Company reputation – divided by stakeholdersInvestorsAnalystsJournalistsExecutivesGovernment100799093810%10%20%30%40%50%60%70%80%90%100%HydroInvestors have full confidence in Hydro, but Hydro should strengthen its position amongst governmental officials and analysts* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
41 The Hydro CEOs reputation is the second highest amongst the measured companies Trust in CEOData: Tall i % av base: 135/88. Figuren viser andelen som harsvart 7-10 på en 10-delt skala for inntrykk929173716866655237353331795549582748750%10%20%30%40%50%60%70%80%90%100%2005Hydro2003Eivind Reiten is amongst the countries most trusted leaders and has increased the trust the last two years* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
42 The trust in the Hydro CEO varies more amongst the business influentials than of the company Trust in CEO- Divided by stakeholders1009490928670%80%90%100%HydroInvestorsAnalystsJournalistsExecutivesGovernmentEivind Reiten has a higher trust amongst analysts than the company itself (79% vs. 94%)Media and governmental officials has the lowest trust amongst stakeholders* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
43 Trust in CEO and company reputation in 2003 KorrelasjonsområdeSvært godtHydroHydro had a high trust in both CEO and in company in 2003Inntrykkav selskapSvært dårligTillit til topplederSvært lavSvært høyTall i % av base : 88. Figuren viser andelen som har svart 7-10 på en 10-deltskala for tillit (x-aksen) og andelen som har svart 7-10 på en 10-delt skala for inntrykk (y-aksen)* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
44 Trust in CEO and Hydros reputation has increased further from 2003 to 2005 KorrelasjonsområdeHydroHydro is number oneDanger- The only way is down* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
47 Corporate Reputation“In today’s world, where ideas are increasingly displacing the physical in the production of economic value, competition for reputation becomes a significant driving force, propelling our economy forward.”Alan GreenspanFederal Reserve Chairman
48 Hydros toppleder har meget høy kjennskap blant norske beslutningstakereKjennskap til toppleder20052003HydroVår analyse viser at kjennskap er en forutsetning for topplederens tillitData: Tall i % av base : 135/88. Figuren viser andelen som har svartkjenner svært godt/lite grann til* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
49 Myndigheter og journalister har best kjennskap til Hydros toppleder Kjennskap til toppleder- fordelt på målgrupper100%Investor9797Megler/analytikerJournalistToppleder92Myndighet9090%Hydro har lavest kjennskap blant meglere/ analytikere, og forholdsvis lav hos investorer og andre ledere8480%70%Hydro* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
50 Tilliten til toppleder versus kjennskap til toppleder Tillit til toppleder og kjennskap til toppleder - fordelt på målgrupperInvestorMegler/analytikerJournalistTopplederMyndighetGodt samsvar mellom kjennskap og tillitNorske myndigheter har lavere tillit enn kjennskap til Reiten , mens det er omvendt for meglere og analytikere( de som kjenner han gir han gøy tillit)KjennskapTillit* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
51 Hydros omdømme viser en solid oppadgående trend fra 2001-2005 100Tall i % av base inntrykk: 135. Figuren viser andelen som har svart 7-10 på en 10-deltskala for tillit (x-aksen) og andelen som har svart 7-10 på en 10-delt skala for inntrykk (y-aksen)Inntrykkav selsk.Tillit til topplederHydro 2005SværtgodtSvært dårligSvært lavSvært høyHydro 2003Hydro 2001908070605040302010102030405060708090100* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
52 Hva tar vi med oss videre… Hydros omdømme helt på topp” The only way is down”Tilliten til Hydros toppleder Eivind Reiten er forholdsvis ujevnt blant beslutningstakerneHydro bør fokusere mer på kommunikasjon mot myndigheter og mediaHydro kan fokusere mer på kommunikasjonen mot analytikere* Kilde: Burson-Marsteller og Research International Topplederundersøkelse 2005
53 Management Team Reputation Six out of ten worldwide business influentials (60%) believe the reputation of the executive management team is more important now than it was two years ago.Importance of Executive Management Team Vs. Two Years Ago
54 Selskapets omdømme blir stadig viktigere, og tillit til toppleder er nå avgjørende for selskapets omdømme...Hvor stor betydning har tilliten til en toppleder for din oppfatning av selskapetVår globale undersøkelse viser at topplederen utgjør 47% av selskapets omdømme* Kilde: Den globale undersøkelsen CEO Capital laget av Burson-Marsteller og The Economist (EIU), gjennomført høsten 2005
56 Who Wants to Be CEO? Total Eur. NA A/P LA 46% 40% 36% 49% 73% 54 60 64 A majority (54%) of global business influentials do not want to be CEO.Europeans (60%) and North Americans (64%) are less likely to want the job and Latin Americans are the most eager.TotalEur.NAA/PLAWant to Be CEO46%40%36%49%73%Do NOT Want to Be CEO5460645127= higher than total= lower than total
57 Why Want to Be CEO?Global business influentials believe solving complex problems is the most enjoyable part of being CEO. The top five reasons for wanting to be CEO reflect the desire to be involved in running the business at the deepest level.Rank*Enjoy complex problem-solving1Directly affect the business2Implement my ideas3Help company go from good to great4Build a company to last5Make a difference in the world6Build future leaders7Contribute to employee well-being8Earn generous compensation9Reach the pinnacle of my career10Serve in a prestigious position11SCORECARDLatin America Enjoy complex problem-solvingExecutives/ Financial Analysts Can directly affect the businessMedia/Government Can directly affect the businessMedia Get to build leadersCompensation is generousThe other top enjoyable tasks relate to contributing to the growth of the business. Compensation and prestige are the least important to influentials in all regions.* Does not include CEO responses
58 Why Want to Be CEO?Business influentials of all regions believe solving complex problems is the most enjoyable part of being CEO. Compensation and prestige are the least important factors to influentials, regardless of region.Total*Eur.*NA*A/P*LA*Enjoy complex problem-solving1Directly affect the business2Implement my ideas34Help company go from good to greatBuild a company to last56Make a difference in the world7Build future leaders9Contribute to employee well-being8Earn generous compensationReach the pinnacle of my career1011Serve in a prestigious position* Does not include CEO responses= higher than total= lower than total
59 Why Not Want to Be CEO?The biggest concern about being CEO is the lack of work/life balance. Other prevalent concerns are the quarterly earnings focus, general stress and public scrutiny.Rank*Too little work/life balance1Too much focus on quarterly earnings2Too much stress3Too much public scrutiny4Sarbanes-Oxley and other regulations5Too much pressure to reduce costs6Difficulty attracting and retaining talent7Too many stakeholder demands8Excessive media scrutiny9Too much travel10Too much board oversight11Overly competitive business environment12Diminished authority13Compensation not worth the effort14SCORECARDNorth America/Europe Sarbanes-Oxley/ RegulationsAsia Pacific/Latin America Sarbanes-Oxley/ RegulationsEurope Too much pressure to cut costsCEOs Work/life balance and public scrutinyAttract and retain talent* Does not include CEO responses
60 Why Not Want to Be CEO?For all four regions, lack of work/life balance tops the list for reasons to not want to be CEO. Other prevalent concerns are the focus on quarterly earnings, general stress and public scrutiny.Total*Eur.*NA*A/P*LA*Too little work/life balance1Too much focus on quarterly earnings234Too much stressToo much public scrutinySarbanes-Oxley and other regulations5679Too much pressure to reduce costs8Difficulty attracting and retaining talentToo many stakeholder demandsExcessive media scrutiny10Too much travel14Too much board oversight11Overly competitive business environment1213Diminished authorityCompensation not worth the effort* Does not include CEO responses= higher than total= lower than total
61 CEO Reputation payoff in Europe Influentials in Europe report that CEO reputation has the greatest influence on their likelihood to listen to what a CEO has to say and recommend the company as the preferred partner.TotalEurNAA/PLAPay attention to what a CEO has to say12Recommend company as good alliance/merger partner34Give a company more time to succeed5Maintain confidence in company when share price lags7Buy stock in a company6Believe a company under pressure from the media8Recommend a company as a good place to workRecommend a company’s stockPrefer a company’s products and services9= higher than total= lower than total
62 Profitability Vs. Social Responsibility Global business influentials believe that 74% of a company’s responsibility is to make a profit and 26% is to advance societal interest. The debate over profit vs. corporate responsibility continues to be hotly discussed in the media.*Profit Vs. Societal InterestProfitSocietal interest* “Social Responsibility: Do The Right Thing,” BusinessWeek, 15 August 2005