JB Hi-Fi has the strongest corporate reputation in Australia, according to an annual survey, showing that traditional retailers are still viewed positively by consumers. The picture is less rosy for media brands and carmakers Holden and Ford.
The 2014 Corporate Reputation Index ranked JB Hi-Fi highest out of 60 Australian companies, knocking Toyota from the top spot.
AMR managing director Oliver Freedman said the research demonstrates that while many traditional retailers are struggling to compete with online competitors, JB Hi-Fi's model resonates with consumers.
“These results show that if you get your model and product offering right, and you are seen as transparent, the reputation follows. We know that a strong reputation is crucial for consumer advocacy, which puts JB Hi-Fi in a strong position to compete with many online alternatives in the future,” he said.
The media sector suffered overall this year, as media firms struggle to “find relevance” in an increasingly digital sector.
News Corp Australia fell from 55 to 60, at the bottom of the list while Fairfax dropped from 49 to 57 and both rank below the Australian Tax Office for overall reputation.
Corporate decisions that impact local workers has a significant impact on how consumers view brands in the region. Car makers Ford and Holden are struggling with reputation management and have fallen down the list significantly this year, as their decisions to pull out of manufacturing in Australia damaged the way consumers view the brands. Coca Cola Amatil suffered a similar backlash and fell from 28 to 45.
Holden fell out of the top 10 and dropped 25 spots to 35th in the list. Ford fell from 20 to 49 this year.
“It’s clear that decisions taken by both Ford and Holden about the future of vehicle manufacturing in Australia have had a serious impact on their overall reputations. Australians clearly have a strong view on how and when companies should support local manufacturing, and any decision to take that manufacturing off-shore has serious consequences on reputation.
“A strong reputation built and maintained over a long period of time means companies can ‘weather the storm’ of any issues that might arise. However, this does not mean that organisations can repeatedly use this goodwill over and over without some consequence.”
Freedman cited Qantas as an example of a company that has “used up its goodwill” in recent years and so saw a disproportionate fall from 13 to 26th place as a result of recent redundancy announcements.
The annual global list is compiled by AMR and the Reputation Institute. AMR is part of STW Communications Group, Australia's leading marketing content and communications services group.
The Reputation Index collates insight from consumers rather than the companies themselves and measures how Australians feel about each company
Company 2014 ranking Company 2014 ranking
For the full list see below.
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