MISSION INTANGIBLE

M:I Products

MISSION:INTANGIBLE, the blog of the Intangible Asset Finance Society, offers critical comments on intangible asset, corporate reputation, and finance; supplemented by quantitative reputation metrics. Intangible assets include business processes, patents, trademarks; reputations for ethics and integrity; quality, safety, sustainability, security, and resilience; and comprise 70% of the average company's value. MISSION:INTANGIBLE is a registered trademark of the Intangible Asset Finance Society.

Read future M:I posts via RSS RSS

Ford: Rocketing reputation

Nir Kossovsky - Thursday, April 08, 2010
The results are in and jaws are agape. Heroes are tarnished, the low are elevated, and we have a new crop of villains to talk about. Of course, were referring to the Harris Reputation Quotient.

The Harris organization released their 2009 rankings earlier this week. Based on interviews and other processes in the first weeks of 2010, this is one of the most widely watched reputation metrics.

One surprise is that Berkshire Hathaway (NYSE:BRK.A) took the top spot from frequent top scorer Johnson & Johnson (NYSE:JNJ). Of course, the latter had a reputation run in with both FDA and the US Justice Department earlier this year that appears to have cost them reputationally.

A true bright spot in the study belongs to Ford (NYSE:F), whose RQ score increased by 11.28 points from 2008, the largest single year improvement in the past nine years. Readers of the Mission:Intangible blog saw this coming with our post in April 2009. The major turning point for Ford was 30 October 2009. Below we paste the Steel City Re Corporate Reputation Index rankings for Ford relative to its 9 automotive peers. Compared with the fortunes of GM, Chrysler and Toyota (NYSE:TM), Ford is flying. Its rankings climbed from the 33rd to the 87th percentile.



But even compared with the reputation metrics of the largest public companies with values $50B and greater shown in the chart below, Ford is clearly rocketing. Among these 85 peers, Ford climbed from the 2nd percentile to the 29th percentile. Not to take a shine off its product, but corporate reputation in this instance clearly benefitted from a period ROE of some 230%. Alas, this is all so 2009.



Which leads us to assert, with restrained hubris, that the Harris Reputation Quotient is a lagging indicator of reputation relative to the Steel City Re Corporate Reputation Index. Really.

Recent Comments


SuMoTuWeThFrSa
  1
2
345
6
7
8
9
10
11
12
13
14
15
16171819
20212223242526
2728293031  
 

Subjects

Archive