SA corporates reveal decline in confidence
TOP JSE-listed companies took a huge reputational knock this year with lack of leadership being at the core of the decline, a survey revealed yesterday.
The 2012 RepTrak Pulse survey measures the reputation of the largest listed South African companies, based on revenue. The 2012 survey included the top twenty listed companies in SA.
MD at the Reputation Institute SA and survey principal Dominik Heil said that a lack of visible business leadership emerged as the main cause for declining confidence in corporate SA.
"The 2012 survey shows that SA's populace is losing confidence in the leadership of the private sector. Corporate leadership has played a vital role in SA over the past few decades. Now, board chairs and CEOs are no longer demonstrating their role as corporate citizens," he said.
Executive leadership has become critical to the overall reputation of organisations in today's corporate world, particularly when it is estimated that 60% of a company's market value is attributed to reputation.
Woolworths emerged tops with 78.59 points, which the survey said indicated a strong reputation.
The remaining 19 companies scored below 70 points, including last year's top four companies - MTN, ABSA, Old Mutual and Standard Bank - earning "average-moderate" reputations.
MTN, which was last year's leader dropped to below 70 points from 73.91 in 2011. The Reputation Institute said MTN's good score last year was based on the emotional connection with consumers created by its sponsorship of the World Cup.