In an age of large-scale identity crises, a strong culture is one of the best ways for a company to stand out from the crowded corporate backdrop. In this installment of the
Corporate Reputation Gauge, provided with research from the Delahaye Corporate Index, 12 companies illustrate the impact a clear and distinct culture can have on media
coverage.
In the highly coveted top left quadrant, the usual suspects - Microsoft, Boeing and Walt Disney - prove that a strong corporate culture serves as a buffer
against negative news coverage, and it can impact how a story will break (quietly versus not-so-quietly). All three companies have a high news value because their products and
services are of great interest to consumers; however, the visible nature of their business also puts them under the microscope for scrutiny. For example, Microsoft was noted for
being fined by the European Union for anti-competitive practices, but its strong corporate culture allowed it to absorb the blow with very little negative impact.
Similarly, Walt Disney's saga involving its board and its former CEO, Michael Eisner, did not resonate with consumers; its favorability remained positive despite the widely
covered debate. Even Boeing's spring of 2005 scandal involving CEO Harry Stonecipher's intimate relationship with an executive wasn't enough to dethrone the company from the top
left quadrant - a sign of a strong corporate culture's medicinal effects on bad news.
But not all companies have the resilience of Microsoft, Boeing and Disney; the telecommunications industry especially took a big hit in the media between April 2004 and June
2005, according to the corporate index (see top right quadrant). Verizon and SBC* received a barrage of negative news, but it likely had to do with the
criticism of the industry as a whole; because both companies are widely recognized, they took the hardest hit. More recently (and after the data for this study was collected),
the telecommunications industry was consolidated, improving its position in the marketplace.
Meanwhile, Morgan Stanley took a hit in the media when its executive board called for then-CEO Philip Purcell to resign. Unlike Boeing's saga, the Morgan Stanley
dispute lingered in the news for several months, landing it in the undesirable top right quadrant.
Moving down and around the continuum, the bottom right quadrant is occupied by AT&T, AmerisourceBergen and McKesson. If unfavorable news coverage is
inevitable, this is the best place to be. AT&T's troubles were less visible because the company was largely written off by the media in the months leading up to its merger
with SBC. Similarly, pharmaceutical distributor McKesson didn't appear regularly in the news for its chairman's accounting fraud because it is a relatively unknown company.
Finally, Johnson Controls, New York Life and the Hartford enjoy solid corporate cultures that translate into favorable coverage; their visibility is the
only thing lacking. Their focus should remain with promoting their positive reputations; a move to the upper left quadrant will follow.
* This data was taken before SBC purchased AT&T and took on the company's moniker.