• by Steve McClellan , February 7, 2012

At a time when consumers are demanding more transparency from companies on issues ranging from child labor practices to the environmental impact of their products, a new WPP study has found many marketers need to improve their images as corporate citizens.

The study was a collaboration of several WPP firms, including market researcher and consultant Penn Schoen Berland, PR firm Burson-Marsteller, and branding specialists Landor Associates and BrandAsset Consulting.

Penn Schoen Berland is credited with developing a proprietary evaluation model called the Global Corporate Reputation Index (GCRI) that the companies implemented to evaluate corporate reputations both by industry and individual brand.

The model assesses both company performance and citizenship attributes, based on 40,000 consumer interviews regarding the qualities they associated with nearly 6,000 companies in six countries, including the U.S., China, Brazil, Germany, Japan and Russia.

For most companies, the study concluded: “Citizenship continues to significantly lag performance, indicating many are still paying inadequate attention to this category, despite the increasing role it plays in today’s marketplace.”

The GCRI identified the 25 companies with the best reputations based on a mix of performance and citizenship strengths. The companies include Adidas, Apple, Avon, Bosch, Canon, Coca-Cola, Danone, Electrolux, Ford, Google, Heinz, Honda, Lego, McDonald’s, Microsoft, Nestle, Nike, Nokia, Philips, Puma, Sharp, Sony, Toshiba, Visa and Volkswagen.

By sector, the technology industry scored highest overall, the study found. However, so-so citizenship marks were masked by extremely high scores on vision and innovation. The apparel industry showed the largest gap between performance and citizenship, given ongoing consumer concerns about how the sector manufactures products. The banking industry received some of the lowest overall scores, particularly in the U.S., where it was blamed for much of the 2008 financial crisis.

“By sector, banks and oil companies have the most work to do,” said Mark Penn, CEO of Burson-Marsteller and Penn Schoen Berland. “This index shows that companies have an opportunity to strengthen their reputation by demonstrating and communicating more actively their commitment to good corporate citizenship.”

Added Craig Branigan, chairman of Landor Associates: “In an increasingly transparent world, isolated programs and insufficient or insincere commitments will undermine corporate reputations . . . Good corporate citizenship really is good business.”