Study: Corp. Reputation Trumps Stock Price

What's more important to a CEO than the company's stock price?
Try the reputation of the firm, says a new survey released last
week by the World Economic Forum (WEF) and Fleishman Hillard
International Communications. The Forum sent a written survey to
all 1,500 delegates gathered in Davos, Switzerland, for the WEF's
34th annual forum, to gauge their opinions about corporate
reputation -- the first time the forum has queried its members on
the subject. About 10% of the delegates responded to the
questionnaire. The bulk of the WEF's membership is drawn from the
world's 1,000 top global companies. Here are a few of the results
from the survey:

  • Corporate reputation is a more important measure of success
    than stock performance, profitability and return on investment
  • Only the quality of products and services edged out reputation
    as the primary measure of corporate success
  • Among corporate members, almost two-fifths (38%) rates
    economics/markets as the leading threat to security and integrity
    of the corporate brand, suggesting that short- term views may be
    distorting accurate and efficient valuation of companies
  • While most members (90%) associate either high or moderate risk
    with the current geopolitical situation, most (82%) are more
    optimistic now than they were a year ago regarding the global
    economy.

Source: World Economic Forum/Fleishman Hillard International
Communications