Building Your Reputation Bank Account 2010 Fleet Safety Council Conference October 23, 2010 Presented by: Tricia Hellingman, APR, C.Dir.

“We can afford to lose money – even a lot of money. We cannot afford to lose reputation – even a shred of reputation.” - Warren Buffett

Companies are increasingly realizing that reputation may be their most important asset.

Reputation is: The overall esteem in which a company is held by its constituents.

Another Definition It is the result of what you do, what you say and what other people say about you.

Some Interesting Research by The Reputation Institute

Online survey of 26,000 consumers in G8 countries asking them to rate the reputation of 39 countries in different categories.

Live 1. Canada 2. Switzerland 3. Australia 4. Sweden 5. Denmark

Work 1. Switzerland 2. Australia 3. Canada 4. Sweden 5. Norway

Buy 1. Switzerland 2. Sweden 3. Germany 4. Canada 5. Japan

Invest 1. Switzerland 2. Sweden 3. Canada 4. Australia 5. Norway

Visit 1. Canada 2. Australia 3. Switzerland 4. Italy 5. Spain

Canada’s Most Respected Businesses

The Top 10 Canadian Companies With the Best Reputations 1. Tim Hortons 2. Jean Coutu 3. Bombardier 4. Yellow Pages 5. Rona 6. Saputo 7. Canadian Tire 8. Research in Motion 9. Metro 10. Westjet

Why is Reputation so Important?

Benefits of a Strong Reputation Customer preference Ability to charge a premium Positive employee morale Recruitment advantage Increased employee productivity & responsibility Support from regulatory agencies Support in times of controversy

What Makes a Corporate Reputation 1. Ethics 2. Employees/workplace 3. Financial performance 4. Leadership 5. Management

What Makes a Corporate Reputation Cont’d 6. Social responsibility 7. Customer focus 8. Quality 9. Reliability 10. Emotional appeal

Building Your Reputation Bank Account … in Case of an Emergency Withdrawal

How to Build Your Reputation Bank Account Ensure you always do the right thing Offer superior customer service Commit to excellent employee relations Treat suppliers fairly & with respect Build your corporate brand

How to Build Your Bank Account Cont’d Identify your key stakeholders & engage with them Communicate your achievements Admit to your errors & explain how you will address them Work with your industry association to raise the bar for your industry Distance yourself from the “bad apples”

Building your Corporate Brand Conduct market research Ensure your corporate image reflects how you want to be perceived Have your CEO take the lead and set the standard for others to follow

Identifying Key Stakeholders & Engaging With Them Identify your key stakeholders Develop a plan to regularly engage with them through surveys, face-to- face and group meetings Ask them how you are doing and how you might improve

Communicating Your Achievements Develop & implement a communications and marketing plan Include a web presence, and regular written & electronic communications Tell your story to community groups Cultivate media relationships, send out news releases and follow up Develop a crisis communications plan

Some Examples Dofasco Maple Leaf Foods Walker Industries Hospital for Sick Children (Toronto) McDonald’s Johnson & Johnson

For Companies in Challenging Industries Establishing a healthy reputation bank account is more difficult, because the industry is generally not well regarded It’s even more important to strive for a good reputation A good opportunity to differentiate from your competition

Challenging Industries Waste Management Mining/Aggregate Extraction and Processing Chemical Energy Companies and Facilities – Oil, Gas, Coal and Nuclear Correctional Facilities/Halfway Houses/Addiction & Mental Health

Do Extraordinary Things Serve on community boards Sponsor unique events Demonstrate a commitment to environmental sustainability Develop unique partnerships (i.e. with police, CAA) Show you care about road safety

“It takes about 20 years to build a reputation and five minutes to ruin it. If you think about that you’ll do things differently.” -Warren Buffett

Questions?