Research and analysis firm Delahaye released its Q3 reputation index last week, and retail behemoth Wal-Mart landed in the number one spot with the most
quantitative and qualitative news coverage over the past quarter. Despite a slew of negative reports highlighting its workplace bias and community backlash, Wal-Mart's efficient
response to Hurricane Katrina (contrasted with FEMA's disastrous one) garnered enough positive coverage to supercede any residual negativity. It swapped places with
Microsoft, which reigned as numero uno in Q2 of 2005 and Qs 2 and 3 of 2004.
General Motors Corporation received the highest volume of media attention but remained in fourth place due to the index's consideration of both consumer and business
news. GM's poor financial performance, credit rating downgrade and recent layoffs were counterbalanced by news of its fuel-efficient hybrid engines and its employee-pricing
campaign, thus maintaining the status quo.
The most notable change from last year's third quarter is the ample positive coverage of the financial sector. Goldman Sachs Group and Merrill Lynch, both well
outside the top ten in Q2 of 2004, rose to sixth and sixteenth in Q3, respectively. This ascension signifies the shift away from corporate wrongdoings and towards economic
performance and corporate advancement.
Other consistent performers include Walt Disney (a testament to its well aligned partnerships and branding efforts) and Boeing (as noted in PR News'
11.23.05 issue, its corporate blog is one initiative that lends itself to corporate transparency).
KC Brown, founder of the index and spearhead for the team that compiles results, notes a few surprises: GM's financial struggles didn't outshine its innovations, just as Wal-
Mart's oft-maligned reputation withstood criticism to come out on top.
"You have to look at the news objectively," he says. "You live by the information you have today."
While Brown emphasizes that much of the corporate news isn't cyclical, he points to trends in retail that often repeat. Q4 can expect another strong performance by Microsoft
thanks to the release of its much-anticipated Xbox 360, and Wal-Mart may be in position for another strong finish, as Q4 'tis the season to go shopping.
| REPUTATION INDEX - DATES: JULY 2005 - SEPTEMBER 2005 | |||
|---|---|---|---|
| 2005 Q3 | 2005 Q2 | 2004 Q3 | 2004 Q2 |
| Wal-Mart | Microsoft | Microsoft | Microsoft |
| Microsoft | Wal-Mart | Verizon | Walt Disney |
| Walt Disney | Time Warner | Walt Disney | Verizon |
| General Motors | General Motors | IBM | General Motors |
| Boeing | Walt Disney | Intel | Intel |
| Goldman Sachs | Intel | General Motors | Boeing |
| IBM | Verizon | Boeing | Wal-Mart |
| General Electric | Boeing | Goldman Sachs | Ford |
| Exxon Mobil | Goldman Sachs | Citigroup | General Electric |
| Verizon | General Electric | Ford Motor | Wachovia |
| SOURCE: Delahaye | |||