south africa · contact information for more information about the study please contact:...

Na#onal Pulse 2017Report

SouthAfrica

2

Table of Contents

Introduction Section 1 4

Country results Section 2 10

Demographics Appendix 1 35

Methodology Appendix 2 37

2

3

Introduction About the study. The RepTrak® model.

Section 1

4

About the Study

What follows are the results of the RepTrak® Pulse 2017 reputation study conducted in South Africa by the Reputation Institute and the Reputation House. The reputations of the biggest and most visible companies in South Africa were measured via an online survey among a representative sample of the general public in South Africa. Data collection took place in February and March, 2017. Contact information For more information about the study please contact: [email protected]

4

5

The RepTrak® Model Reputation Institute’s generic model for reputation is structured around four core themes, seven reputation dimensions and 23 reputation attributes. Together, these elements explain a company’s reputation. 1 - Reputation RepTrak® Pulse is the core of a company’s reputation and shows how strong the emotional bond is between the company and the public. 2 – Dimensions and attributes The RepTrak® model consists of seven operational dimensions and 23 attributes that explain the reputation profile. 3 - Drivers The individual attributes mean different things to people and are perceived differently in terms of weighted importance. Analyses identify areas that are most important for strengthening a company’s reputation. Drivers can be at dimension and attribute level and show how the company gains value for money in its communication.

The RepTrak® Model Explains Reputation

1

2

3

5

6

What is the relationship between RepTrak® Pulse and the 7 reputation dimensions? RepTrak® Pulse measures the overall reputation based on people's immediate emotional perception of the company. In contrast, the 7 reputation dimensions examine people’s rational perception of corporate reputation based on specific and detailed statements. RepTrak® Pulse score is not necessarily always equal to the average of the 7 reputation dimensions. People’s emotional perception may be influenced by an overall positive attitude to the company, which is not necessarily rewarded by a proper evaluation of the respective company's products, innovation, workplace, governance, citizenship, leadership or performance.

RepTrak® - Rational vs. Emotional

Emotional Rational explanation of the emotional

6

7

Direct experience

What a company communicates

What others say

Say positive

Benefit of the doubt

Buy Invest

Work for

Recommend the company Trust the company

Welcome into the community

Recommend as an investment

Recommend products/services

Touch Points Reputation Supportive Behaviour

Choose

Stakeholders build their perceptions about a company through three types of channels: •  “Direct Experience” (buying product/service, contacting customer support •  “What a company communicates” (company’s own communication, marketing material, newsletters, website) •  “What others say” (word of mouth, media publications, expert opinions)

Perceptions gained through Direct Experience and Own Communication can be to large extent controlled by the company. What others say, on the other hand, can only be influenced indirectly. The company needs to manage its reputation in order to appear in accordance to expectations of its stakeholders.

Why should we care about reputation

Reputation is important, because it drives supportive behaviour and through support of its stakeholders allows the company to achieve business results.

7

8

Significant differences and normative scale

Significant differences In any study based on a sample of the population there is a statistical error in all measurements. The table below shows the difference needed between two scores before they can be said to be significantly different. Only score differences that are statistically significant will be shown in this report. Normative scale Using an extensive database containing results from thousands of studies throughout the world since 1998, Reputation Institute has developed a Normative Scale (in everyday language “The Traffic Light”) that indicates whenever a particular score is high or low when benchmarked against previous studies of a similar character.

Statistical Significance

RepTrak® Pulse > 3,7

Dimensions > 7,3

Excellent/Top tier 80+

Strong/Robust 70-79

Average/Moderate 60-69

Weak/Vulnerable 40-59

Poor/Lowest tier <40

8

9

Country Results South Africa 2017

Section 2

10

Most Visible Companies

10

List of Companies South Africa [Sorted by Industry] Financial_Short-Term Insurance

FMCG

Oil, Gas & Lubricants

1st for Women (Pty) Ltd Clover BP Auto & General Coca Cola Caltex Budget Insurance Nestle Engen Dial Direct Procter & Gamble Sasol MiWay Insurance SAB Miller Shell Outsurance Tiger Brands Total South Africa Santam Unilever

Financial – Bank Financial - Diversified

Telecommunications

ABSA Discovery Cell C Capitec Bank Holdings Liberty Holdings MTN Group First National Bank Momentum Telkom SA Nedbank Old Mutual Vodacom Group Standard Bank Sanlam

Retail

State Owned Enterprises

Edcon Group Eskom Massmart Holdings South African Airways Mr Price Group South African Broadcasting Association Pick n Pay Holdings South African Post Office Shoprite Holdings Transnet The Foschini Group The Spar Group Truworths (International) Woolworths Holdings

11

Company 2016 2017 1st for Women ABSA Auto & General Barloworld Bidvest BP Budget Insurance Caltex Capitec Bank

Cell C Clover Coca-Cola Dial Direct Discovery Edcon Group

Engen Eskom First Rand_FNB Foschini Group Liberty Holdings

Massmart_Makro/Game/Dion MiWay Insurance Momentum Mr Price Group

MTN

Company 2016 2017 Nedbank Nestlé Old Mutual Outsurance Pick n Pay Procter & Gamble SABMiller Sanlam Santam Sasol Shell Shoprite South African Airways South African Broadcasting Corporation South African Post Office Spar Group Standard Bank Telkom Tiger Brands Total Transnet Truworths

Unilever Vodacom Woolworths

Measured companies - 2016 to 2017

11

12

Coca Cola 2% n = 2.152First National Bank 1% n = 2.302Eskom 1% n = 3.692Vodacom Group 1% n = 2.429Pick n Pay Holdings 1% n = 2.281Telkom SA 1% n = 3.456The Spar Group 2% n = 2.308Nestle 0% n = 2.260Mr Price Group 1% n = 2.350Cell C 1% n = 2.297Clover 0% n = 2.298ABSA 1% n = 2.248Shell 0% n = 2.215South African Post Office 0% n = 2.265Truworths 0% n = 2.328MTN Group 0% n = 2.615Woolworths Holdings 1% n = 3.789Standard Bank 0% n = 2.129Engen 0% n = 2.356Shoprite Holdings 1% n = 2.250Massmart Holdings_Makro/Game/Dion 0% n = 2.336Caltex 1% n = 2.346BP 0% n = 2.513Nedbank 1% n = 2.147Old Mutual 0% n = 2.322

Familiarity distribution (%)[South Africa][sorted by very familiar]

85%81%80%78%78%77%76%75%75%74%74%74%74%73%73%73%72%72%71%71%

69%69%69%

67%65%

12%15%17%

15%16%18%

17%21%21%21%21%21%22%22%21%21%

20%24%

23%20%

21%23%25%

24%27%

1%4%2%

4%3%2%

4%2%3%3%3%3%3%3%5%

4%5%

3%3%

5%6%

6%4%

5%6%

0%0%1%2%1%1%1%2%1%1%1%1%1%1%1%2%2%1%2%3%4%1%2%3%1%

Very familiar Somewhat familiar Have only heard the name Not at all familiar Not sure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Familiarity Distribution

12

South Africa (1/2)

13

The Foschini Group 1% n = 2.245South African Airways 1% n = 2.490South African Broadcasting Corporation 1% n = 2.233Sasol 0% n = 2.472Discovery 1% n = 2.454Outsurance 1% n = 2.388Capitec Bank Holdings 1% n = 2.323Sanlam 0% n = 2.636Total South Africa 1% n = 2.742Tiger Brands 0% n = 2.509Transnet 0% n = 3.910SAB Miller 2% n = 2.777Unilever 1% n = 2.644Momentum 1% n = 2.462Edcon Group 1% n = 2.879Santam 1% n = 2.603MiWay Insurance 0% n = 3.011Budget Insurance 1% n = 2.459Auto & General 1% n = 2.6081st for Women 1% n = 2.951Bidvest 1% n = 2.784Dial Direct 1% n = 2.925Liberty Holdings 1% n = 2.874Barloworld 3% n = 3.259P & G 3% n = 3.446

Familiarity distribution (%)[South Africa][sorted by very familiar]

65%64%64%64%

62%61%61%60%59%

54%51%

49%47%46%45%45%

43%42%42%41%40%40%39%

30%22%

27%29%

24%28%

26%27%28%30%

25%30%

30%28%30%

36%24%

36%32%36%

33%35%36%

34%31%

33%29%

5%5%

7%6%

9%8%8%7%

9%11%

14%12%13%

12%14%

14%18%

16%18%17%18%

19%17%

19%24%

2%1%3%2%2%3%1%2%

6%4%5%

10%9%

5%16%

5%7%5%

6%6%5%6%

12%15%

21%

Very familiar Somewhat familiar Have only heard the name Not at all familiar Not sure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 13

Familiarity Distribution South Africa (2/2)

14

South Africa – 2017 Top 10

14

Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Lowest tier <40

1

2

3

4

5

6

7

8

9

10

80,3

79,5

77,6

76,7

76,3

75,8

75,6

75,2

72,7

72,4

RepTrak® Pulse – Top 10 South Africa: 2017

15

Changes in Top 10 2016 vs 2017

15


12

34

56

78

910

78,1

76,2

75,4

74,9

73,3

72,6

72,1

71,6

70,2

69,9

2016 1

2

3

4

5

6

7

8

9

10

80,3

79,5

77,6

76,7

76,3

75,8

75,6

75,2

72,7

72,4

2017

16

RepTrak® Pulse South Africa 2017

Clo

ver

1

Coc

a C

ola

2

Pick

n P

ay H

oldi

ngs

3

Nes

tle

4

Firs

t Nat

iona

l Ban

k

5

Woo

lwor

ths

Hol

ding

s

6

The

Spar

Gro

up

7

Old

Mut

ual

8

Dis

cove

ry

9

The

Fosc

hini

Gro

up

10

Mas

smar

t Hol

ding

s_M

akro

/Gam

e/D

ion

11

Sanl

am

12

Truw

orth

s

13

Bidv

est

14

Enge

n

15SA

B M

iller

16C

alte

x17

Uni

leve

r

18

Tige

r Bra

nds

19

Libe

rty H

oldi

ngs

20

Cap

itec

Bank

Hol

ding

s

21

Shel

l

22

Saso

l

23

Mr P

rice

Gro

up

24

Shop

rite

Hol

ding

s

25

Barlo

wor

ld

26

Sant

am

27

Stan

dard

Ban

k

28

Ned

bank

29

Edco

n G

roup

30

Tota

l Sou

th A

frica

31

Voda

com

Gro

up

32

BP

33

Out

sura

nce

34

1st f

or W

omen

(Pty

) Ltd

35

Mom

entu

m

36

Auto

& G

ener

al

37

Budg

et In

sura

nce

38

MiW

ay In

sura

nce

39

Proc

ter &

Gam

ble

40

Dia

l Dire

ct

41

MTN

Gro

up

42

Sout

h Af

rican

Airw

ays

43

ABS

A

44

Cel

l C

45

Tran

snet

46

Telko

m S

A

47

Sout

h Af

rican

Pos

t Offi

ce

48

Sout

h Af

rican

Bro

adca

stin

g C

orpo

ratio

n

49

Esko

m

50

RepTrak® Pulse Rankings 2017

16


17

Industry Ranking

FMCG (7) n = 699

Retail (9) n = 1 101

Financial - Diversified (5) n = 502

Oil, Gas & Lubricants (6) n = 600

Financial - Banking (5) n = 500

Financial - Short-term Insurance (7) n = 702

Telecommunication (4) n = 602

State Owned Enterprises (5) n = 901

Total n = 5 807

72,8

72,1

70,8

69,7

68,7

66,8

63,5

58,4

45,2

Industry Rankings 2017

17

All score differences > +-3,7 are significant at 95% confidence interval


18

Industry Leaders

Leaders within each Industry 2017

FMCG (Clover)

Retail (Pick n Pay Holdings)

Financial - Banking (First National Bank)

Financial - Diversified (Old Mutual)

Oil, Gas & Lubricants (Engen)

Financial - Short-term Insurance (Santam)

Telecommunication (Vodacom Group)

State Owned Enterprises (South African Airways)

Industry Leaders 2017

18


19

Rank 2016 2017 FMCG

Retail

Financial - Banking

Financial - Diversified

Oil, Gas & Lubricants

Financial – Short-term Insurance

Telecommunication

State-Owned Enterprises

Industry Leaders

2016 vs 2017

19


20

Reputation Drivers Dimensions 2017

21 South Africa

n = 5.806

Explanation

Prod

ucts

Sout

h Af

rica

Enterprise

Products vs. enterprise analysis is based on two sets of indices for all companies in South Africa: the Products index (defined as Products & Services and Innovation) and the Enterprise index (defined as Workplace, Governance, Citizenship, Leadership and Performance).

The indices are created by multiplying each dimension score by their respective South Africa weights.

The x-axis shows the deviation of the given company’s Enterprise index from the South Africa average.The y-axis shows the deviation of the given company’s Product index from the South Africa average.

The line represents the average balance between the Product and Enterprise dimensions for companies’ reputation in South Africa.

The reputation of companies above the line is more strongly influenced by the Product dimensions (is Product-centric), while the reputation of companies below the line is more strongly influenced by the Enterprise dimensions (is Enterprise-centric).

-24

-19

-14

-9

-4

1

6

-24 -19 -14 -9 -4 1 6

Products vs. Enterprise - driving reputation

21

22

In the Marketplace Just Two Factors are at Play

ENTERPRISE PRODUCTS

22

23

Who You Are Matters More than What You Do

% Influence on Emotional Bond

South African Companies Overall Pulse

ENTERPRISE 69.1%

PRODUCTS 30.9%

66.0

23

24

2017 Reputation Drivers

To win the support and trust of consumers, you have to engage on all 7 dimensions: •  Each of the 7 dimensions account for

more than 12% of reputation, except for Workplace. So to win you need to excel and communicate about each one of the dimensions.

•  The key reputation drivers: Product &

Services, Governance and Performance explain almost 50% of reputation (47.4%).

•  Building a company specific reputation platform across dimensions is the key to succeed in the reputation economy.

14.3% 17.5%

13.0% 13.4%

12.9%

15.6%

13.4%

Dimension Drivers 2017

1

2

3

24

25

Reputation Drivers Overtime

Products & Services 18,5 16,6 15,2 18,9 18,2 17,5Innovation 15,4 15,9 14,8 15,5 13,4 13,4Workplace 13,2 13,6 13,8 13,1 12,8 13,4

Governance 13,1 13,6 13,4 12,8 15,3 15,6Citizenship 13,5 13,0 15,0 12,6 13,2 12,9Leadership 12,6 12,7 12,9 12,7 13,6 13,0

Performance 13,7 14,7 14,8 14,4 13,5 14,3A dj.R ²n= 0.759 0.689 0.753 0.548 0.769 0.743

n= 2,300 1,999 2,400 10,547 5,000 5,000

Dimension Drivers Over TimeSouth Africa: 2012 - 2017

8

10

12

14

16

18

20

22

2012 2013 2014 2015 2016 2017

Products & Services

Governance

Performance InnovationWorkplaceLeadershipCitizenship

25

26

Dimension Rankings – Winner Per Dimension

26

2017

2016 vs 2017

2016


27

Performance

Coca-Cola

Clover

Pick n Pay

Nestlé

First National Bank

The Spar Group Woolw orths The Spar Group

Bidvest Discovery First National Bank

Coca-Cola Coca-Cola Pick n Pay

Clover Pick n Pay Clover

Governance Citizenship Leadership

Pick n Pay Clover Coca-Cola

Woolw orths Nestlé Sanlam

First National Bank Pick n Pay Sasol

Coca-Cola Clover First National Bank

Nestlé First National Bank Clover

Products and Services Innovation Workplace

Clover Coca-Cola Coca-Cola

Dimension Rankings – Top 5

27


28

Dimension Quadrant

Rep

Trak

® D

imen

sion

Impo

rtanc

e: 2

017

Sou

th A

frica

South AfricaRepTrak® Dimension Scores: 2017

Products & Services

InnovationWorkplace

Governance

CitizenshipLeadership

Performance

12,0

17,0

60,0

Products/Services Innovation Workplace Governance Citizenship Leadership Performance

Lower Priority Weaknesses Lower Priority Strengths

Score Weights Products 66,7 17,5Innovation 65,0 13,4Workplace 63,1 13,4Governance 63,6 15,6Citizenship 63,4 12,9Leadership 64,2 13,0Performance 66,9 14,3

n = 5,806

28

All score differences > +-3,7 are significant at 95% confidence interval


29

Dimension distribution Q1 2017

Score

Products & Services 6% 3% 66,7

Innovation 7% 4% 65,0

Workplace 6% 20% 63,1

Governance 7% 10% 63,6

Citizenship 7% 13% 63,4

Leadership 7% 11% 64,2

Performance 6% 11% 66,9

n = 5.806

South Africa[by dimension order]

36%

37%

33%

37%

36%

35%

33%

55%

51%

40%

46%

44%

47%

51%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Negative (1-2) Neutral (3-5) Positive (6-7) "Not sure %"

Dimension Distribution South Africa

29

30

Supportive Behaviour 2017

31

RepTrak® Pulse vs. Recommend company (%) in South Africa If a company improves its reputation by 5 points, the number of people who would recommend the company goes up by 6.3%.

RepTrak® Pulse Score

Will

ingn

ess

to s

uppo

rt (R

ecom

men

d co

mpa

ny to

oth

ers

Top-

two

box)

ABSA

Barlow orldBidvestBP

CloverCoca Cola

Dial Direct

Discovery

Engen

Eskom

First National Bank (FNB)

Massmart

MomentumMTN

Nedbank

Nestlé

Old Mutual

Pick n Pay

Procter & Gamble

Shoprite

South African Airways

South African Broadcasting Association

South African Post Office

TelkomTransnet

Woolw orths Holdings

20%

30%

40%

50%

60%

70%

80%

90%

25 30 35 40 45 50 55 60 65 70 75 80 85

Adj. R² = 0.92


32

Support for the most and least reputable companies in South Africa

32

Top 5 vs bottom 5

Supportive behavior distribution CountThe 5 most reputable companies 3% 0% n = 499The 5 least reputable companies 28% 2% n = 1.101

The 5 most reputable companies 3% 0% n = 499The 5 least reputable companies 28% 2% n = 1.101





The 5 most reputable companies 8% 5% n = 499The 5 least reputable companies 37% 4% n = 1.101Work for

The most reputable companies vs. least reputable companies

Recommend as investment

Buy

Recommend products

Trust to do the right thing

Say something positive

Invest

19%38%

21%39%

25%37%

22%39%

22%31%

23%31%

25%29%

77%32%

76%31%

69%29%

76%31%

70%28%

69%29%

62%30%

0% 20% 40% 60% 80% 100%

Negative (1-2) Neutral (3-5) Positive (6-7) Not sure

33

Most Supported Companies – Top 5 Buy [Sorted by Positive]

1 Clover 1% 1%

2 Nestlé 1% 0%

3 Coca-Cola 4% 0%

4 Woolw orths 4% 0%

5 The Foschini Group 5% 2%


13%

19%

16%

17%

16%

85%

80%

80%

79%

77%

Recommend Products [Sorted by Positive]

1 Clover 1% 0%

2 Nestlé 3% 0%

3 Woolw orths 5% 0%

4 Coca-Cola 5% 0%

5 The Spar Group 1% 0%


15%

17%

18%

19%

26%

84%

80%

77%

76%

73%

Trust [Sorted by Positive]

1 Coca-Cola 4% 2%

2 Clover 2% 4%

3 Nestlé 2% 2%

4 Woolw orths 5% 2%

5 Old Mutual 3% 3%


19%

19%

24%

25%

27%

75%

75%

72%

68%

67%

Say Positive [Sorted by Positive]

1 Coca-Cola 4% 0%

2 Clover 1% 1%

3 Nestlé 1% 0%

4 Woolw orths 4% 1%

5 Old Mutual 2% 1%


16%

19%

23%

20%

23%

80%

79%

76%

75%

74%

Invest [Sorted by Positive]

1 Coca-Cola 3% 6%

2 Old Mutual 3% 3%

3 Pick n Pay 2% 4%

4 Clover 1% 4%

5 First National Bank 6% 2%


11%

22%

23%

26%

25%

80%

72%

71%

69%

67%

Recommend as Investment [Sorted by Positive]

1 Coca-Cola 2% 6%

2 Old Mutual 4% 2%

3 Nestlé 2% 6%

4 Pick n Pay 3% 4%5 Clover 0% 7%


13%

22%

24%

26%

27%

79%

72%

68%

67%

66%

Work for [Sorted by Positive]

1 Coca-Cola 7% 5%

2 Nestlé 4% 6%

3 Bidvest 3% 7%

4 Clover 7% 5%



20%

24%

28%

27%

29%

68%

66%

62%

61%

59%

Benefit of Doubt [Sorted by Positive]

1 Clover 2% 6%

2 Coca-Cola 4% 1%

3 The Spar Group 1% 1%

4 Nestlé 5% 3%



17%

24%

32%

28%

27%

75%

71%

66%

64%

62%

Welcome into my Community [Sorted by Positive]

1 Clover 0% 1%

2 Coca-Cola 4% 1%

3 Pick n Pay 2% 0%

4 Woolw orths 4% 0%

5 Nestlé 4% 1%


13%

12%

23%

22%

22%

86%

83%

75%

73%

73%

Recommend Company [Sorted by Positive]

1 Clover 1% 0%

2 Coca-Cola 5% 0%

3 Nestlé 2% 2%

4 Woolw orths 4% 2%

5 Pick n Pay 2% 2%


17%

17%

19%

20%

24%

82%

78%

77%

74%

72%

34

Appendix 1 Demographics Demographics

35

Respondent Profile South Africa 2017

3%4%5%6%7%10%

15%23%

27%

NorthernCapeLimpopo

MpumalangaNorthWestFreeState

EasternCapeWesternCapeKwaZulu-Natal

GautengGeography

22%

32%

21%25%

18-24 25-34 35-44 45-64

AgeGroupGender

50.0%

50.0%

Education65%

35%

Loweducation

HighEducation

Middleeducation

Income27% 25% 34%

14%

LowIncome

MiddleIncome

HighIncome

Don'twishtoanswer

3%

7%

9%

33%

47%

Prefernottoanswer

Coloured

Indian/Asian

African

WhiteRace

35

36

Methodology Fielding methodology. Research design. Key analyses and modelling techniques.

Appendix 2

37

Fielding methodology & Research design

Qualified respondents are: Adults between 18-64 who reported that they were either “Somewhat Familiar” or “Very Familiar” with one of the companies in the study. Furthermore, respondents who are not able to give valid responses to 3 of the 4 Pulse questions are screened out. Data collection method: Respondents filled out a 15 minute online RepTrak® questionnaire designed to measure overall corporate reputation and related questions. The questionnaire used for this research is based on the proprietary RepTrak® model developed by Reputation Institute for analysis of corporate reputations. Respondents were invited to participate in this project through emailed invitations sent to a carefully screened online panel managed by an established commercial market research firm, member of ESOMAR. Respondents were randomly assigned to rate up to 5 companies in a Pulse study and 2 companies in a Deep Dive study with which they were familiar. Fielding period: February – March, 2017 Number of respondents: A minimum of 300 respondents provided ratings for each Deep Dive and a minimum of 100 for each Pulse company in the study. Sample representation: Responses were weighted to represent the national profile on demographics, including age and gender. Note on Gaps: All Gaps are calculated using exact scores. Occasionally reported gaps appear to differ by 0.1 from gaps calculated between scores with one decimal. This is due to rounding error. Note on Sample Sizes: All sample sizes reported are based on weighted data. Occasionally the weighting procedure produces a slightly smaller or larger sample size than the unweighted raw data otherwise would. Note on RepTrak® Pulse Scores: The RepTrak® Pulse is calculated on the basis of the answers from the four variables that measure the respondent’s esteem, feeling, admiration and trust (captured in the Pulse score on a 0-100 scale).

37

38

Key Analysis & Modeling Techniques

RepTrak® Pulse Score All RepTrak® analyses begin with a single reputation score (the RepTrak® Pulse) that is decomposed into a set of underlying dimensions and attributes. The process of decomposition involves application of various forms of multivariate analyses designed to address interdependence and multicollinearity in data obtained from cognitive research. At the core, the RepTrak® Pulse measures reputation consisting of three questions about the emotional appeal of the company and a rating of the “Overall Reputation” of the company. Structural Equation Modelling indicates that these four variables are a reliable indicator of the reputation construct. •  [Company] is a company I have a good feeling about •  [Company] is a company that I trust •  [Company] is a company that I admire and respect •  [Company] has a good overall reputation

Attributes were measured on 7-point scales, where 1 = Strongly Disagree and 7 = Strongly Agree. Results are re-scaled to 100-point scale for easier interpretation.

38

39

Normative Scale Using an extensive database containing results from thousands of studies throughout the world since 1998, Reputation Institute has developed a Normative Scale (in everyday language “The Traffic Light”) that indicates whenever a particular score is high or low when benchmarked against previous studies of a similar character.

Driver Analysis The relative contribution of individual dimensions to the RepTrak® Pulse is calculated from a factor adjusted regression modeling procedure. Individual dimension weights range from 0-1, and total to 100%. To determine drivers of reputation, the weights are developed with a Factor Adjusted Linear Regression:

Factor analysis is used to determine the unique contribution of each attribute to the variance of the RepTrak® Pulse. Equamax rotation is used to assign the factors to the dimensions. It creates an orthogonal structure of uncorrelated variables that allows the regression to be performed without interference from multicollinearity. It is used to maximize interpretation of the final set of regression coefficients. Linear Regression is run using the Raw Pulse Construct as the dependent variable and the factor scores as the independent variables. Only attributes that were found to be significantly correlated with the reputation (p<0.05) have driver weights assigned.

Excellent/Top Tier Above 80Strong/Robust 70-79Average/Moderate 60-69Weak/Vulnerable 40-59Poor/Bottom Tier Below 40

Key Analysis & Modeling Techniques

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Statistical Significance Statistical Significance of Results Reported in RepTrak® Projects Individual responses to questions asked in a survey enable the calculation of various statistical measures, including averages (means) and standard deviations. The greater the number of responses used in calculating an average, the more confident we are about the accuracy of the score. Similarly, the smaller the range of responses made to a specific question, the more confident we are about the score. Reputation Institute reports scores with a 95% confidence interval in the surveys that we conduct. The interval describes our confidence that, if we conducted the same study repeatedly, 95 times out of 100 the obtained score would lie within the confidence interval. It therefore describes how statistically different a score is likely to be from another score. If a measure is created from multiple questions, the variation in responses is reduced, and our confidence in the average obtained from the combined questions is higher, thereby shrinking the confidence interval. The specific formula Reputation Institute therefore uses to calculate a 95% confidence interval around the mean is therefore:

Confidence Interval = Average Score +/- 1.96 * Average Standard Deviation of Attributes / SQRT (Sample Size * # of Attributes)

Directional Scores When analyzing subgroups and/or specific and hard-to-reach stakeholders, sample sizes will often have limited power and reliability. As the sample size shrinks, results become directional in nature. At extremely low counts, results become unreliable and are not shown. In this report low and insufficient counts are denoted as per below:

*Low counts (<50) – scores are directional (refer to appendix for details on directional scores) **Insufficient counts (<30)

Reporting Results

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Standardizing all Reputation Scores RepTrak® Scores - Standardized and Comparable Market research shows that people are inclined to rate companies more or less favorably in different countries, or when they are asked questions directly or online. When asked in a personal interview, for example, it’s known that people tend to give a company higher ratings than when they are asked by phone, or when they are asked to answer questions about the company online. This is a well-established source of ‘systematic bias’. Another source of systematic bias comes from national culture - in some countries, people are universally more positive in their responses than in other countries. In statistical terms, it means that the entire distribution of scores in a ‘positive’ country is artificially ‘shifted’ in a positive direction for all companies, good or bad. The distribution of scores in that country may also be more ‘spread out’ than in another because people have more information and are able to make more subtle differences between companies. To overcome this systematic bias, Reputation Institute’s policy is to adjust all RepTrak® scores by standardizing them against the aggregate distribution of all scores obtained from the Reputation Institute’s Annual Global RepTrak® Pulse. Standardization has the effect of lowering scores in countries that tend to over-rate companies, and has the effect of raising scores for companies in countries that tend to rate companies more negatively. Two adjustments are made for every RepTrak® Score Reputation Institute uses its cumulative database of RepTrak® Pulse scores about reputation scores internationally to carry out two adjustments: Country Adjustment: All scores derived from surveys are standardized by subtracting the country mean and dividing by the standard deviation of all known scores previously obtained in that country. In statistical terms, this adjustment ‘normalizes’ the distribution of scores in the country to a mean of 0 and a standard deviation of 1, producing a ‘z-score’ for the observation. Global Adjustment: The ‘z-score’ obtained on the country level is then used to determine the globally adjusted score. In order to do this, the results are scaled back by multiplying each company’s score by the global standard deviation and adding back the global mean. The resulting number is the globally adjusted score. As additional global research comes in, Reputation Institute regularly updates the country and global distributions that are used to create our standardized RepTrak® scores. All RepTrak® results are therefore comparable across industries, countries, and over time.

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Reputation House Parkwood - Johannesburg Phone: 0027 11 268 1559 Email: [email protected] www.reputationhouse.co.za

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