How authentic companies behave demanding world · communicators and marketers can find that North...

Executive Summary | 2015 – 2016

How authentic companies behave in a more demanding world The gap between what people expect and what they experience reveals which companies are more likely to succeed in business today.

1FleishmanHillard | The Authenticity Gap Report – Executive Summary | 2015-16 © FleishmanHillard Inc.

This year there has been more discussion about authenticity than perhaps any other time in the history of business. The word has appeared more than 12,000 times in the business press this year in reference to CEOs, the Pope and even a cover story in Harvard Business Review.

Yet our experience tells us that being authentic, ironically, still seems pretty hard for most organizations.

For more than two decades the world had been obsessed with promises. Then came the age of digital and social media and we launched new channels, new functions, we created a bevy of new job titles. We imploded time. Attention became the new currency and to get that attention we became brash about what our companies could promise, what they could influence and what they could control.

And in all of that, it became harder and harder to find the authentic – the real truths about the organizations we work for and the people who lead them.

FleishmanHillard’s latest Authenticity Gap study is a lens through which communicators and marketers can find that North Star of authenticity. We believe that authenticity comes when your brand promise speaks directly to the realities of your reputation. When organizations are honest and direct they are given far more credence, and thus they are able to evolve their reputation and then push their brand to new heights.

One often overlooked piece in the quest for more authentic conversations is that neither brand nor reputation are shaped by a single audience. In our customer-centric world we too often overlook the broader circle of audiences that have tremendous power over our reputation and brand – even when they don’t directly buy our product. Look how consumers are shaping the debate on genetically modified food even though they never purchase a single seed. Examine how regulators or legislators can take down a company almost overnight when they lose faith in the organization’s ability to do the right thing.

Inside this report you will find new insights to help you bridge the gap between audiences’ expectations and their experiences in industries around the globe. I find it most interesting that expectations of how management behaves are on the rise – a clear signal that the stories we tell and the storytellers we put forward must be talking about more than product features.

As a global society we expect more. The era of big promises and platitudes is over. We must ‘be as we wish to be seen’ if we are to embark on an authentic conversation about what matters most to our businesses.

Marjorie Benzkofer Global Managing Director, Reputation Management Practice, FleishmanHillard

The Intersection of Brand and Reputation 2

Tell Your Whole Story 4

Shifting Sands: Our Expectations and Experiences 6

Expectations of Management on the Rise 8

Consumers Downgrading Expectations of Innovation in Exchange for Better Value 10

Companies Must Act on Shared Societal Values 12

Focus on Cultural Differences 14

The Nine Drivers and Consumer Advocacy 16

The Sources of Information Consumers Most Value 18

The Companies We Studied 20-25

The Authenticity Gap Difference 26

About FleishmanHillard and Lepere Analytics 28

Contents

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32 FleishmanHillard | The Authenticity Gap Report – Executive Summary | 2015-16 © FleishmanHillard Inc. FleishmanHillard | The Authenticity Gap Report – Executive Summary | 2015-16 © FleishmanHillard Inc.

Nine Drivers of Authenticity The Authenticity Gap studies measure the gap between stakeholder expectations and their actual experience of a company, using a framework of Nine Drivers that shape perceptions and beliefs about an organization.

While in the past different stakeholder agendas might be addressed in isolation, in today’s interconnected world this can no longer be the case. Companies must tell a holistic story that includes all facets of their business. As such, the Nine Drivers fall into three interconnected groups: Management Behaviors, Customer Benefits and Society Outcomes, with each group made up of three individual drivers.

Authentic Engagement Companies can no longer expect to succeed if they fail to understand the gaps between the expectations and the experiences of their stakeholders. To succeed in this new era, companies must align their brand (what they say and how they behave) with their reputation (what others say about them).

The pressure to bring brand and reputation together creates painful conflict for organizations where marketing and corporate communications are managed in silos, but creates all kinds of new opportunities when the functions work in harmony. The Authenticity Gap studies offer executives a new, single view of their organization that encompasses both brand and reputation. It shows executives what they can do to close the gaps and create true relationships with audiences – Authentic Engagement – that drive progress and opportunity.

The Intersection of Brand and Reputation

Authenticity Drivers (full statements)

Management Behaviors– More committed to doing the right thing– Having more consistent and stable financial and operational performance– Communicating more frequently and credibly

Customer Benefits– Offering products and services that are better value– Taking better care of customers– Innovating new and better products and services

Society Outcomes– Taking better care of employees– Contributing to society in a way that has a better impact on my community – Taking better care of the environment


Consumers will always be focused on the benefits they get from using products and services. But increasingly their expectations are also focusing on the company and the people behind the products and services they are buying. How does the company treat its employees? Does leadership create the right culture to ensure the right things happen? How is the company helping to make the world a better place?

Brand has taken on a very new meaning – it is now much more than a marketing campaign. It is everything within an organization’s purview, from how executives behave, how a company runs its manufacturing facilities to how it interacts with employees and society. Brand must be managed across disciplines as it involves all that is within a company’s control. This goes well beyond communications and marketing and embraces its touchpoints with all stakeholders, not just consumers.

Managers need to be aware of the risks of over- focusing on creating and delivering “only” a better product. Companies need to tell as complete a story as they can. It is no longer persuasive to focus on meeting stakeholder expectations on one, or even several, drivers and ignore the others. Industry leaders meet or exceed their competition on all Nine Drivers and differentiate by exceeding on one or two industry-defining drivers.

Tell Your Whole Story

Doing right

Consistentperformance

Care ofenvironment

Crediblecommunications

Employeecare

Communityimpact

Innovation Customer care

Better value

SOCI

ETY

OU

TCO

MES

MANAGEMENT BEHAVIORS

CUSTOMER BENEFITS

27%2015

24%2014

55%2015

61%2014

00%2015

00%2014

18%2015

16%2014


Doing right

Consistentperformance

Care ofenvironment

Crediblecommunications

Employeecare

Communityimpact

Innovation Customer care

Better value

Shifting Sands: Our Expectations and Experiences The Nine Drivers of Authenticity are more than just a framework, they are the attributes that most shape our perceptions and beliefs about an organization. More than 570 companies in US, Canada, UK, Germany and Japan are failing to meet expectations on these drivers. Take a topline look at how our expectations and experiences are changing.

Management Behaviors

Consumer expectations of management are on the rise – around the globe. But experience of doing right, year over year, is actually going down.

27%2015

24%2014

55%2015

61%2014

18%2015

16%2014

Society Outcomes

Expectations on all three drivers are up, but the importance of each differs by country: care of the environment is No. 1 in the US, community impact is No. 1 in the UK and Germany, employee care is No. 1 in Canada.

27%2015

24%2014

55%2015

61%2014

18%2015

16%2014

Customer Benefits

Despite a surprisingly large drop in expectations, the gap between expectations and experience has widened. The biggest gaps are in innovation and better value.

27%2015

24%2014

55%2015

61%2014

18%2015

16%2014


In the past investors and regulators held company management to account; today’s consumers have enough sway to do the same. Expectations of Management Behaviors (doing right, consistent performance, credible communications) are on the rise in every country.

People believe that executive leadership is accountable for driving profit. They also believe that executive leadership is accountable for driving corporate culture and ensuring the right things happen. How this accountability is achieved cannot only take place behind closed doors. To make it meaningful to consumers the process needs to be open and transparent, and the more it can be communicated externally, the more compelling it is to stakeholders.

Doing right – expectations are rising, but experience isn’t

Insight: Expectations of companies’ doing right have on average gone up vs. last year, but experience of doing right year over year is actually going down. It is the only driver where this is the case. The most important way for a company in the UK, Japan and Germany to demonstrate its commitment to doing the right thing is to operate transparently. In the US and Canada the best way is to operate its business with the highest ethical standards.

Implication: Companies must do a better job of spotlighting the ways they are doing right that are different from what the rest of the industry is doing. And they must have both well thought through plans and know what it will take to make good decisions in the heat of a crisis.

Consistent performance – prevailing uncertainty makes communicating about performance even more critical

Insight: Consistent performance ranks highly as the No. 3, 4 or 5 driver in all countries. In the US, where it is the highest rank, 44% of companies have gaps or are barely meeting expectations. This compares to 40% of companies in Canada, 36% in Germany and 24% in the UK. In Japan, where it is the lowest ranked, 14% of companies are exceeding expectations.

Implication: Managers need to recognize that stakeholders have higher expectations of management, ongoing anxieties related to economic conditions, and more information than ever before. Consistent performance, even in excess of expectations, is not sufficient; more focus needs to be concentrated on communicating these efforts as an antidote to prevailing uncertainty.

Credible communications – hunger for more information on business processes and practices

Insight: Overall, expectations of credible and frequent communications are low but they are growing. These low expectations may be driven by the fact that consumers aren’t hearing enough communication on the issues they care about. Our previous study showed that in almost all industries, consumers looked for companies to be more open about their processes and practices. Technology was the exception, where people wanted communications that make it easier to resolve issues or problems.

Implication: Companies need to strike the right balance between overpromising and under-delivering. In the heat of competitive battle it can be tempting to overemphasize a minor product difference with competitors. But it is the story behind the product that the consumer longs to hear, and that deepens credibility for the organization overall.

Expectations of Management on the Rise

29%

28%

26%

25%

25%

27%

21%

21% 22%

2014

2015

The Authenticity Drivers Management Behaviors

Consumers’ Expectations of Management Behaviors 2014 vs. 2015


Globally audiences have lowered their expectations of the drivers related to Customer Benefits (innovation, better value, customer care). But expectations are also shifting within this group of drivers. Across the globe, consumers are switching their previous very high expectations of innovation and replacing them with new demands on better value and customer care.

Better value – expectations rising more than any other driver

Insight: Expectations of better value have risen more than any other driver (+4%) in 2015. Continuing low income growth and “austerity” measures in some countries is putting a premium on the cost of living. Consumer expectations of better value rank No. 2 in every country studied, except Japan where it is No. 1. In Japan over 80% of companies have gaps on better value. This compares to two thirds of companies in US, UK and Canada and just over half of German companies. Consumers don’t want to be surprised by hidden costs after purchasing a product or service. Surprisingly, how transparent a company is in its pricing is even more important than being cheaper than competitors.

Implication: Executives must recognize that while consumers may have less disposable income than in the past, they are better informed and thus more discerning. They are seeking out better value and better customer care. But value is not just price; it also involves other benefits of quality, convenience and service.

Customer care – consumers want more recognition, service and rewards

Insight: Expectations of customer care are on average also on the rise year on year. But over one third of all companies in all countries are showing gaps in this area.

Implication: Executives need to increase their focus on delivering great customer care and service. It is vital to empower staff to respond quickly and intelligently when things go wrong. They also need to renew efforts to reward customers; whether it is for a first-time purchase or for sustained loyalty.

Innovation – now part of the cost of doing business

Insight: Last year we saw a voracious appetite for innovation – it was the No. 1 expectation in all countries and in most categories. While expectations of innovation are lower in 2015 they are still hugely important in most industries and an area where many companies still fall short. In the US, UK and Germany 70% of companies have gaps in innovation. Canada is just behind at 65%. Japanese companies are doing much better, with less than half having innovation gaps.

Implication: Innovation is now part of the cost of doing business. Consumers expect companies to be innovative in all aspects of their business and in their relationships with all stakeholders. Technology could be driving innovation – a mobile app that is easy to use and works flawlessly – but it isn’t the only definition. A new food flavor, improved packaging that is easier to open or an easier access to customer service spring from fresh thinking that consumers also see as innovation.

Consumers Downgrading Expectations of Innovation in Exchange for Better Value

The Authenticity Drivers Customer Benefits

Expectations of Customer Benefits – Average All Countries %

2014 vs. 2015

34%

22% 19%

14%

15% 12%

61%2014

55%2015

Innovation

Better value

Customer care

Innovation

Better value

Customer care


People are increasingly looking beyond government to companies and organizations to help solve the world’s problems. Expectations of Society Outcomes (employee care, community impact, care of the environment) are going up vs. last year.

When companies think of performance with purpose it is important to recognize that people expect deep resource, funding and expertise from companies that have a meaningful impact on changing how we live and work. Clever workplace perks and programs don’t cut it any longer. When companies treat social and environmental issues as opportunities to create Shared Value – the alignment of social purpose to profits – they will see new possibilities for innovation and competitive advantage.

Companies Must Act on Shared Societal Values

Employee care – more than being fairly paid

Insight: Consumers in the US, Canada and the UK are looking to companies to offer comprehensive benefits that go well beyond the paycheck. Benefits like on-site childcare facilities, generous healthcare plans and work from home days address employees’ needs holistically and give them greater peace of mind at home and at work. Japan and Germany are different. The most important expectation of consumers is that companies communicate honestly and frequently with employees.

Implication: Companies should understand that taking care of employees serves both society and the organization; employees who feel taken care of perform better and become one of a company’s most important and most influential competitive assets.

Community impact – helping to solve real world problems

Insight: Expectations of community impact are growing in every country and companies have work to do to keep up. About 40% of all the companies in each country have gaps or are only barely matching expectations of community impact. There is growing cynicism around employee “volunteerism” as a company’s effort to contribute to society. Only about one in five people find it meaningful for companies to offer their employees opportunities to engage in the company’s social or environmental programs.

Implication: Companies need to move beyond employee volunteerism, pro bono programs and matching donations to charities. Consumers expect deep resource, funding and expertise from companies to help solve real world problems – not just half a day from their employees. Progressive organizations deliver both social benefit and economic value as an intrinsic part of their business model. They utilize Shared Value strategies as a driver of innovation and growth. While clearly an issue everywhere, there is a particular opportunity for US managements to address a gap that is demonstrably met more effectively in Japan, UK and Germany.

Care of environment – fundamental to a company’s story

Insight: In Japan and the US, care of the environment is the No. 1 expectation of Society Outcomes. In Germany it is No. 2 and No. 3 in the UK and Canada. These high expectations remain consistent with previous studies.

Implication: Companies need to move beyond workplace initiatives like recycling and energy initiatives towards deeper corporate involvement through provision of resources, funding and expertise. Consumers’ willingness to advocate for a company to increase their business presence and employment opportunities in their community is most strongly linked to their perceptions of how well or poorly a company takes care of the environment.

The Authenticity Drivers Society Outcomes

39%

100 %

60

20

80

40

0

12

34

56

7

Comprehensive benefits that provide employees peace of mind

Career opportunities and tools to help employees

Communicate honestly and frequently with employees

Compensation plans that reflect employee value

Employee safety is the number one concern of leadership A culture that

balances company and employee needs

36% 31%27%

26%25% 17%

Opportunities to engage in company social or environmental programs

Consumers’ Expectations of Employee Care – Average All Countries % 2015

Note: Respondents selected their top two choices of seven so % do not add up to 100%


People in different countries place different emphasis on different drivers, underscoring the importance of national cultures and mindsets. So while many companies need a framework that works globally, executing against local expectations is key to an authentic relationship with local stakeholders.

Credible communications

Expectations of credible communications have risen more in Britain than in any other country. But UK companies need to work harder; 43% have gaps or are only barely meeting these expectations.

Society Outcomes Like their counterparts in other countries, German consumers want innovation, service and value – but not at a cost to society. They value the drivers related to society – employee care, community impact and care of environment – all more highly than US, Canadian, Japanese or British consumers.

Customer care Expectations of customer care are high in Japan – it is the No. 2 driver. Yet the number of companies with gaps on customer care exceeds 90%, by far the highest of all countries.

Better value Expectations of better value have more than

doubled in the US year on year, more than any other country. But US companies have

work to do; more than 60% have gaps.

Employee care In Canada, employee care is companies’ most important contribution to society – expectations of employee care rank the highest of the three drivers that make up Society Outcomes.

Focus on Cultural Differences

1716

People’s experience of companies is a major factor in their willingness to actively support or oppose an organization’s business presence in their local communities. The strongest relationships between company experience and advocacy are to be found in three of the Nine Drivers.

The need for companies to be holistically authentic is reinforced by the fact that each one of these drivers comes from a different grouping: care of environment from Society Outcomes, credible communications from Management Behaviors and better value from Customer Benefits.

The Nine Drivers and Consumer Advocacy

Care of environment – drives local advocacy

People’s support or opposition for companies to increase their business presence and employment opportunities in their community is most strongly linked to their perceptions of how well or poorly a company takes care of the environment. There are strong correlations between local advocacy and care of the environment for more companies than for any other driver.

These relationships are both positive and negative: consumers are very willing to advocate for companies that are seen to take care of the environment – but won’t for companies that don’t.

Credible communications – get it wrong and it really hurts advocacy

There are also many strong correlations between credible communications and advocacy. However, nearly three quarters of all strong correlations are negative; companies need to be aware that communications not seen to be credible have a disproportionately negative impact on companies’ reputations.

If stakeholders find an organization obfuscating or deliberately misleading them, its reputation is very likely to be damaged – sometimes beyond repair.

Better value – offer it and win local advocates

We also see strong correlations between better value and advocacy. About two thirds of correlations between better value and advocacy are positive; companies that are believed to offer better value are more likely to win people’s support locally.

Today’s consumers are seeking out better value than ever before. They are becoming choosier when assessing a company’s products and services. It is critical for managers to recognize that value is not just price; it involves consumer trade-offs between cost and other benefits of quality, convenience and service.

Consumer Advocacy question:

How likely would you be to advocate (i.e., recommend, promote their activities) for [insert Company name] to increase their business presence and employment opportunities in your community?

FleishmanHillard | The Authenticity Gap Report – Executive Summary | 2015-16 © FleishmanHillard Inc. FleishmanHillard | The Authenticity Gap Report – Executive Summary | 2015-16 © FleishmanHillard Inc.


12%Not sure

9%Personalities

and celebrities

7%Do not value any of these

20%People who workin the industry

30%Relevant companies/ organizations

36%Knowledgeable friends,family and colleagues

30%Mainstream media(e.g., TV, websites, print, radio, billboards)

19%Blogs, forums and online communities

SOURCES OF INFLUENCE

Question: We would now like your views on the sources of information people listen to and value. What sources do you think other people most value when making decisions about [INSERT SELECTED BRAND]? Please select all that apply.

Note: Percentages do not add to 100% as respondents selected all sources of information they valued.

Knowing who to listen to and who to trust is increasingly difficult. Given the onslaught of information we are all exposed to hourly, we examined which sources of information people most value.

Insights: • Knowledgeable friends, family and colleagues is the No. 1 source of information in all countries except Japan, where companies and organizations is No. 1.

• Information from companies is valued by consumers as much as information from mainstream media.

• Perhaps surprisingly, people who work in the industry, including employees, is a lowly ranked source of information in all countries.

Implications: • Companies are working hard to be part of the online conversation. Executives would do well to also pay as much attention to the offline, face-to-face conversations going on about their companies.

• Many companies need to keep working on becoming better storytellers and using their “owned” channels in ways that have a more authentic connection with their audiences.

• Many managers forget employees as important stakeholders in telling their organization’s story. Not communicating with this audience is a missed opportunity. Employees can become one of a company’s most important, and most influential, communications channels – on and offline.

The Sources of Information Consumers Most Value Sources of Influence –

Average All Countries 2015 – 2016


The Companies We Studied Canada

Sports ApparelAdidasLolëLululemonMECNikePUMAReebokUnder Armour

Discount RetailDollar GeneralDollar TreeDollaramaFamily DollarGiant TigerHart Inc.Real Canadian SuperstoreWalmart Canada

Fast FashionAmerican ApparelForever 21GapH&MJoe Fresh SimonsUniqloZara

Pensions & BenefitsAon HewittGreat-West LifecoLondon LifeManulife FinancialMercerMorneau ChappelleSun Life FinancialTowers Watson

BeerAlexander Keith’sBudweiser Corona ExtraHeinekenLabatt Molson CanadianSleemanStella Artois

Dining – Upscale CasualBoston PizzaCactus Club CaféEarl’s Kitchen + BarJack Astor’s Bar & GrillJoey’s RestaurantsMilestone’sMontana’s CookhouseThe Keg Steakhouse + Bar

Packaged Foods Campbell Company of Canada (Campbell’s Condensed, Pepperidge Farms, V8) Canada Bread (Dempster’s, McGavin’s, Silver Hills) Daiya Foods (Shreds, Blocks, Pizzas) Maple Leaf Foods (Prime, Schneider’s, Natural Selections)

McCain Foods (Fries, Deep’n Delicious, Pizza Pockets)

Old Dutch Foods (Old Dutch, Dutch Gourmet, Humpty Dumpty) President’s Choice (President’s Choice, PC Blue Menu) Weston Foods (D’Italiano, ACE Bakery, Wonder)

GrocersCostcoLoblaws (Provigo/No Frills/T&T) Longo’s MetroOverwaitea (Save-on-Foods/Urban Fare/Price Smart Foods)Sobeys (Safeway/FreshCo)Walmart CanadaWhole Foods

AirlinesAir CanadaAir TransatAmerican AirlinesCanJetPorter AirlinesSunwing AirlinesUnited AirlinesWestJet

Consumer Electronics/DevicesAppleHPLGPanasonicPhilipsResearch in MotionSamsungSony

Mobile NetworksBellFidoKoodoMobilicityRogersTelusVirgin MobileWIND Mobile

Internet ServicesAmazoneBayFacebook GoogleMSNPinterestTwitterYahoo

Enterprise ServicesAccentureCGICiscoHPIBMMicrosoft OracleSAP

Luxury AutomotiveAudi BMW Cadillac Jaguar Land Rover LexusLincoln Motor CompanyMercedes-Benz Tesla Motors

BankingBank of MontrealBank of Nova ScotiaCanadian Imperial Bank of CommerceLaurentian BankNational Bank of CanadaPresident’s Choice FinancialRoyal Bank of CanadaToronto-Dominion Bank

Law FirmsBlake, Cassels & Graydon LLPBorden Ladner Gervais LLPDavies Ward Phillips & Vineberg LLPGoodmans LLPMcCarthy Tétrault LLPOlsler, Hoskin & Harcourt LLPStikeman Elliott LLPTorys LLP

PharmaceuticalsAstraZenecaBayer HospiraJohnson & JohnsonMerckPfizerRocheSanofi

Health ITAppleGE HealthcareJohnson & JohnsonPhilipsSamsungSiemensTelus

PharmacyCostco PharmacyGuardian PharmacyLondon DrugsPharmasaveRexallShoppers Drug MartSobeys PharmacyWalmart Pharmacy

Sports LeaguesATP (Association of Tennis Professionals)CFL (Canadian Football League)MLB (Major League Baseball)NBA (National Basketball League)NFL (National Football League)NHL (National Hockey League)PGA (Professional Golfers’ Association)UFC (Ultimate Fighting Championship)

Industry Sectors

TechnologyPublicConsumer Products & ServicesHealthcareManufacturing & IndustrialsFinancial & Professional ServicesFood & AgribusinessEnergy & Utilities

Authenticity Insights for more than 570 companies and brands in more than 60 categories in US, Canada, UK, Germany and Japan.

We don’t shop in a “sector” defined by Wall Street or an industry. We seek products and services online and offline from local mom-and-pop outlets to global providers. We interact with both traditional and new disrupter sources, heritage and emerging brands, from the hugely popular to the niche. Our lifestyles are changing at an ever faster pace with profound implications for our expectations and experience of companies. Our habits, our interests and our concerns are in a state of flux. It’s something every company is grappling with, every day in each of the eight sectors we studied. Staying ahead of rapidly changing consumers’ expectations is critical to success.


JapanGermany

Personal CareBeiersdorf (Nivea, La Prairie, Eucerin)Coty (Lancaster, Philosophy, Manhattan)Estée Lauder (Estée Lauder, Aveda, MAC)ShiseidoL’Oréal (SkinCeuticals, Garnier, Kiehl’s)P&G (Olaz, Pantene, Cover Girl)RB (Scholl, Veet, Clearasil)Unilever (Dove)

E-CommerceAmazoneBayNotebooksbilliger.deQuelleRedcoonTchiboOttoZalando

Affordable FashionBenettonC&AEspritH&MMangoPrimarkKIKZara (Inditex)

Health ClinicsAgaplesionAsklepiosHeliosRhönSanaSchönSRHVivantes

Medical Devices & DiagnosticsBoston ScientificDepuyEdwardsMedtronicNovo NordiskPhilipsSiemensZimmer

Audit & ConsultingCapco (a FIS company)BCGE&YKPMGMcKinseyPWCRoland BergerWarth & Klein

Banking & InvestingAareal BankCommerzbankCREDIT SUISSEDeutsche BankHSBC Holdings plcING GroupM.M. Warburg & CIEUnicredit

DairyArla Foods (Arla, Castella, Hansano)BauerDanone (Actimel, Activia, Dany Sahne)DMK (Milram, Ravensberger, Humana)Friesland Campina (Landliebe, Südmilch, Puddis)Hochwald (Hochwald, Bärenmarke)MeggleTheo Müller (Müller, Weihenstephan, Sachsenmilch)

Energy CompaniesBPE.ONExxon MobilGazpromPrimagasRWEShellStatoil

Food RetailersAldiEdekaKauflandLidlNettoNormaPennyRewe

Personal Care TechnologyAEGBabylissBraunGHDGrundigPhilipsRemingtonRowenta

Consumer Electronics/DevicesAppleHTCHuaweiLGNexusSamsungSonyWindows phones (Microsoft/Nokia)

NGOsBUNDFoodwatchFSCGreenpeaceNaBuPetaStiftung WarentestWWF

IT Service Provider/ConsultancyAccentureAtos IT Solutions & ServicesCapGeminiCSC Deutschland SolutionsIBM Global Business ServicesInfosysTata Consultancy ServicesT-Systems

Enterprise SoftwareAdobeAutodeskCitrixOracleSageSAPSoftware AGVMware

Chemical DistributorsAzelisBiesterfeld AGBrenntag AGHARKE Chemicals GmbHHELM AGNexeoNordmann Rassmann GmbHUnivar

Carrier & Logistics CompaniesDHLDachserDB SchenkerDPDHermesKühne & NagelTNTUPS

Mobility ServicesCar2GoDeutsche BahnDriveNowFlinksterMeinFernbusBlaBlaCar (Mitfahrzentrale, Mitfahrgelegenheit)MyTaxiUber

Pharmaceuticals (RX)AbbVieBayer Boehringer IngelheimBristol-Myers-SquibbEli Lilly & CompanyJanssen (Velcade, Stelara, Imbruvica)NovartisRoche (Pegasys)

Pharmaceuticals (OTC)Bayer VitalBoehringer Ingelheim GSK GlaxoSmithKlineJohnson & Johnson MedicalNovartis Consumer HealthProctor & GambleReckitt Benckiser (Gaviscon, Nurofen, Dobendan)Roche

Golf Honma GolfDunlop (Srixon, XXIO)AdidasCallawayTaylor MadeNikeBridgestoneTitleist

Laundry DetergentFAFAKAO (Attack, New beads, Emal)LION (Top, Nanox, Hygia)P&G (Ariel, Bold)SARAYA (Arau)

Luxury GoodsBurberryCartierChanelCoachKate SpadeLouis VuittonPrada Tiffany

Shavers BraunFeatherGilletteKaijirushiPanasonicPhilipsSchick

Medical Devices & DiagnosticsAbbottBoston ScientificGE HealthcareJohnson & JohnsonMedtronicPhilipsSiemensTerumo

Payments & Credit CardsAmerican ExpressJCBMasterCardPayPal SquareUnion PayVisa

Chain RestaurantsGyu-KakuMcDonald’sSaizeriyaSkylark SukiyaSushiroWatamiYoshinoya

BeerAsahi Super DryKirin IchibanKirin LagerKirin TanreiSapporo YebisuSuntory KIN-MUGISuntory Premium Malts

TeaKIRINLiptonNitto-KouchaTWININGS

CosmeticsEstée LauderKanebo KAO KoseNARISNOEVIRPOLASHISEIDO

Consumer Electronics/DevicesAppleHTCHuaweiLGNexusSamsungSonyWindows phones (Microsoft/Nokia)

AirlinesAmerican AirlinesANABritish AirwaysCathay PacificJALLufthansaSingapore AirlinesUnited Airlines

Internet ServicesCOOKPADDeNA e-commerceGoogleGREEGURUNAVIKakaku.comLINE Yahoo! Japan

Enterprise ServicesFireEyeIBMMicrosoftOracleSalesforceSAPSeagateSymantec

Industrial (Heavy and Manufacturing)

HitachiIHIKawasaki Heavy IndustriesKomatsuKubotaMitsubishi Heavy IndustriesToshiba

Banking & InvestingBank of Tokyo-Mitsubishi UFJBNP ParibasCitibankDeutsche BankJP MorganMizuho ResonaSumitomo Mitsui

Life InsuranceAflac (American Family)American Home DirectAXAKampo-SeimeiMeiji-Yasuda-SeimeiMetlifeNihon-Seimei (Nissay)Orix-Seimei

AutomobilesBMWHondaMazdaMercedes-BenzNissanSubaruToyotaVolkswagen

PharmaceuticalsAstraZenecaBayerEli LillyGSK GlaxoSmithKlineMSD (Merck)NovartisPfizerSanofi


Personal BeautyDr. JartGarnierLancômeLaneigeL’OréalNeutrogenaShiseidoVichy

RetailersAmazonCostcoKohl’sMacy’sSam’s ClubTargetWalmartZappos

Bio-TechnologyAmgenBiogen IdecCelgeneGenentechGileadNovo NordiskShireUCB

Managed Healthcare/Health Insurance

AetnaCignaCoventry Health CareHealth NetHumanaKaiser PermanenteUnitedHealth GroupWellPoint

Medical Devices & DiagnosticsAbbottBaxterBecton DickinsonBoston ScientificCardinal HealthJohnson & Johnson MedtronicSt. Jude

AgribusinessArcher Daniels Midland CompanyBASFBayer Crop ScienceCargillDow AgroSciencesDuPont (Pioneer)MonsantoSyngenta

Payments & Credit CardsAmerican ExpressCapital One FinancialDiscover Financial ServicesMasterCardPayPalSquareVisaWestern Union

Packaged FoodsCampbell's (V8, Pepperidge Farm, Bolthouse Farms)Dean Foods (Dean, Oak Farms)General Mills (Cheerios, Pillsbury, Yoplait)Kraft (Jell-O, Oscar Mayer, Planters)Mars (Skittles, M&M’s, Dove)Mondelēz (Oreo, Cadbury, Triscuit)PepsiCo (Frito Lay, Quaker, Gatorade)WhiteWave (Silk, Horizon, Earthbound Farm)

Quick Service RestaurantsBurger KingChick-fil-AChipotleDominosFive GuysLittle CaesarsMcDonald’sWendy’s

UtilitiesAmerican Electric Power (AEP)Dominion ResourcesDuke EnergyExelonNextEra Energy (FPL)NRGPacific Gas and ElectricSouthern Companies

Energy CompaniesBPChevronConocoPhillipsExxon MobilHalliburtonPetrobrasSaudi AramcoShell

Consumer Electronics/DevicesAppleElectronic ArtsFitbitGoProLGPhilipsSamsungSony

ApparelAdidasGapLevi’sNikeTomsUnder ArmourUniqloVans

Paid TV ServicesAT&T U-VerseComcastDIRECTVDishHuluNetflixTime Warner CableVerizon FiOS

Internet ServicesAlibabaAmazonFacebookGoogleLinkedInNetflixTwitterYahoo

Enterprise ServicesFireEyeIBMMicrosoftOracleSalesforceSAPSeagateSymantec

AutomobilesBMWChryslerFordGMHondaHyundaiTeslaToyota

Industrial CompaniesCabot CorporationCaterpillarDeere & CoDowDuPontGEIngersoll RandUnited Technologies

Auto, Property & Life InsuranceAllstateMetLifeNY LifeState FarmThe HartfordTravelersUSAAZurich

Banking & InvestingBank of AmericaBarclaysBlackRockHSBC BankJPMorgan ChaseSchwabT. Rowe PriceWells Fargo

PharmaceuticalsAbbVieBayerEli Lilly & CompanyJ&J/JanssenMerckNovartisPfizerSanofi

United StatesUnited Kingdom

Home ImprovementsB&QBHSDulux Decorator CentreHabitatHomebaseIKEARobert DyasWickes

HotelsHiltonHyattIbisMarriottMercureNovotel SofitelStarwood

Online Shopping AmazonArgosASOSeBayGrouponJohn LewisNet-a-PorterOcado

Baby CareAldi MamiaAsda Little AngelsBoots BabyCussons Mum & MeM Little BigPampersSimple BabyTesco Loves Baby

Sports Apparel AdidasNikePumaReebokSpeedoThe North FaceUmbroUnder Armour

InsuranceAXAAvivaChurchillDirect LineFriends LifeRoyal LondonRSAZurich

SpiritsBacardiBaileysBeefeaterChivas RegalGordon’sJack Daniel’sPimm’sSmirnoff

SupermarketsAldiAsdaCo-opM&SMorrisonsSainsbury’sTescoWaitrose

Energy ProvidersBritish GasE.ONEDFFirst UtilityNpowerOvo EnergyScottishPowerSSE

Quick Service RestaurantsBurger KingCostaGreggsMcDonald’sNando’sPizza ExpressStarbucksSubway

Internet Services AlibabaAmazonAppleeBayFacebookGoogleMicrosoftTwitter

Computer/Internet SecurityBarracudaCipherCloudProofPointSmarsh Sonian SophosSymantecTrend Micro

Consumer Electronics/DevicesAppleBlackberryHTCHuaweiLGNokiaSamsungSony

Wearable TechnologyApple WatchFitbitFuelBandGarminJawBonePebbleSamsung GearSony Smart Band

Enterprise ServicesCitrixIBMMicrosoftOracleSageSalesforceSAPVMWare

Pharmaceuticals (RX)AbbottAbbVieAstraZenecaBayerGSK GlaxoSmithKlineMerck/MSDNovartisPfizer

Pharmaceuticals (OTC) BayerBootsGSK GlaxoSmithKlineJohnson & JohnsonNovartisPfizerProcter & GambleReckitt Benckiser

Banking & InvestingBarclaysHSBCLloyds Banking GroupNationwideRBSSantanderTSBVirgin Money

Medical Devices & DiagnosticsAbbottBaxterBoston ScientificCovidienEdwards LifesciencesJohnson & JohnsonMedtronicRoche Diagnostics

Bio-Technology ActelionAmgenBiogen IdecCelgeneGenzymeGileadShireUCB


Expert StakeholdersOnly the most knowledgeable and engaged stakeholders in specific categories of goods and services – people screened and identified as Expert Stakeholders™ – qualify to take part in The Authenticity Gap study. Expert Stakeholders are experts in specific categories of goods and services or topics in which they have a higher level of interest, knowledge, engagement and as a result, greater influence with their peers.

How do we find Expert Stakeholders?Expert Stakeholders are not the average stakeholder. They are not even the informed stakeholder, the traditional top-down opinion elites or influencer groups; they are your friends, family and colleagues, living and working next door. So we don’t use the traditional screening process to identify them.

We don’t screen for profession or income or age. Instead we want to know about people’s personalities, attitudes, behavior and critically, their engagement in certain categories of goods and services and topics.

Expert Stakeholders are:• Customers, partners, employees, opinion-formers, commentators or consumers• Highly interested and engaged in selective categories and topics• Peer influencers actively influencing friends, family and colleagues• Found in most traditional business-to- business and business-to-consumer audiences.

The Authenticity Gap Difference

The Nine Drivers of AuthenticityThe Nine Drivers of Authenticity were identified and validated in separate studies in 2012. The Nine Drivers fall into three interconnected groups: Management Behaviors, Customer Benefits and Society Outcomes, with each group made up of three individual drivers.

Only the most knowledgeable and engaged consumers in specific categories of goods and services – people screened and identified as Expert Consumers™ – ranked both their expectations of the category and their experience of an individual organization or brand against the Nine Drivers.

What do the respondents see?Each driver is stated in full in the questionnaire. For example each respondent sees the full statement, “offering products and services that are better value.” In custom studies the authenticity drivers are tailored to fit a particular organization’s nomenclature, culture and values and the type of competitive activity it faces.

How were the Nine Drivers validated? In summary, a combination of primary and secondary (literature and peer review) research was undertaken to identify the Authenticity drivers. The initial list was identified in extensive secondary research including published studies, white papers and literature reviews (e.g., Arthur W Page Society, The Reputation Institute, European Management Journal, McKinsey, Watson and Kitchen, Columbia Business School). This list was further tested and refined in primary research by Lepere Analytics reputation studies (Q4 2011) and by FleishmanHillard reputation experts.

A second wave of primary research was then used to validate the Authenticity drivers in a discrete study undertaken as part of the FleishmanHillard pilot study (Q4 2012). The methodology used three complementary approaches:

I. CorrelationCorrelated company and brand ratings of the drivers for those brands respondents self-identified from the competitive set they commented on most often.

II. RegressionConducted regression analysis to identify the strength of relationships between Authenticity as the dependent variable as measured by Competitive Momentum and the drivers as the independent variables.

III. Cross country analysisIdentified five outputs from the datasets including factor analysis. Data from US, China and Germany was analyzed separately and ranked on each of the five outputs. Finally the results were cross-analyzed across all three countries.

Authenticity drivers (full statements)

Management Behaviors– More committed to doing the right thing– Having more consistent and stable financial and operational performance– Communicating more frequently and credibly

Customer Benefits– Offering products and services that are better value– Taking better care of customers– Innovating new and better products and services

Society Outcomes– Taking better care of employees– Contributing to society in a way that has a better impact on my community – Taking better care of the environment

A representative sample of the general population is screened for:

1. Personality based on the Big 5 theory – the most widely accepted, empirical and data-driven model of personality psychology.

2. Attitudes to, amongst other things, commercial culture, curiosity about new products and technologies, concept of value.

3. Behavioral characteristics such as media consumption, level of networking activities, willingness to share information and experiences with others.

The ability to identify Expert Stakeholders from the general population was developed by Lepere Analytics. The methodology is US Patent Pending.

EXPERT CONSUMERS

Proprietary algorithm | US Patent Pending | ™ and © Lepere Analytics

Scoring Matrix

Categoryself-selection

1Personality?

2Attitudes?

3Behavior?

General Population

ExpertStakeholders

28 FleishmanHillard | The Authenticity Gap Report – Executive Summary | 2015-16 © FleishmanHillard Inc.

FleishmanHillard Authenticity Guides are published annually based on on-going online polling in seven sectors and in more than 50 categories. The methodology is proprietary to FleishmanHillard and Lepere Analytics.

About FleishmanHillardFleishmanHillard is the world’s most complete global communications firm, specializing in public relations, public affairs, marketing, paid media, and transmedia and social content. FleishmanHillard delivers on The Power of True, reflecting the firm’s high values, and unique ability to guide clients through a world demanding unprecedented authenticity and transparency. FleishmanHillard was named PRWeek’s 2014 Global Agency of the Year, “Standout Agency” on Advertising Age’s 2013 A-List; NAFE’s “Top 50 Companies for Executive Women” for 2010-2014; and among PRWeek’s 2013 “Best Places to Work.” The firm’s award-winning work is widely heralded, including at the Cannes International Festival of Creativity. FleishmanHillard is part of the DAS Group of Companies, and has 88 offices in 31 countries, plus affiliates in 42 countries. Visit us at www.fleishmanhillard.com.

About the DAS Group of CompaniesThe DAS Group of Companies, a division of Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com), is a global group of marketing services companies. DAS includes over 200 companies in the following marketing disciplines: specialty, PR, healthcare, CRM, events, promotional marketing, branding and research. Operating through a combination of networks and regional organizations, DAS serves international, regional, national and local clients through more than 700 offices in 71 countries.

Lepere Analytics is an independent research firm whose data forecasts company reputation and revenue. The methodology is US Patent Pending, is independently validated and is used by Wall Street investment analysts and portfolio managers.

Lepere Analytics was founded in 2007. It is a privately held company, registered in the UK with partners based in London and New York. For more information, visit www.lepereanalytics.com.

Polling is conducted for Lepere Analytics by Ipsos – the world’s third largest research company with operations in 84 countries. Online panels are in compliance with international quality standards ESOMAR and AIMRI and certified on key ISO standards.

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