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10 Sep 2012

The 2012 State of Australian Public Affairs series: Reputation matters, but not to all

George Onisiforou

Results from the Centre’s 2012 State of Australian Public Affairs survey show that many organisations are still not measuring their reputation amongst key stakeholders.

There has not been a great leap forward in respect to the proportion of organisations implementing structured internal systems to measure their reputation in almost a decade. The complacency in respect to reputation measurement is particularly evident amongst the ranks of Australian listed/dual-listed companies.

Some of the key findings to support this analysis include:

• In 2012, 52 per cent of respondent organisations report they have a structured internal system to measure their reputation. This is slightly down from 54 per cent in 2009.

• While boards are receiving reports on reputational standing or measurement on an annual (28% of respondents) and quarterly (23%) basis, a significant 21 per cent of boards governing respondent organisations ‘never’ receive such information.

When we view the results by organisation type, 85 per cent of overseas publicly listed companies manage a structured internal system to measure reputation, compared with 38 per cent of Australian publicly listed/dual-listed companies.

By not integrating such measurement and reporting into regular board reporting processes, boards of many significant Australian/dual-listed companies have revealed a blind spot in respect to their organisation’s reputation and the issues and stakeholders that may have a significant impact on shareholder value.

Any views why corporate reputation hasn’t made it onto many board agendas in Australia?

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