ACNielsen 2006 Corporate Image Monitor

• Indian Professionals Optimistic about the Future of Corporations
• Infosys once again tops the Corporate Reputation Index
• Auto sector secured strong presence in 2006

23 January 2007
India

Sustaining the momentum it has built over the last few years, Infosys has for the fourth year running, topped the ACNielsen Corporate Reputation Index, according to the 2006 ACNielsen Corporate Image Monitor.  Two other IT giants -- Wipro and TCS – featured among the top ten ‘most favorable companies’ along with Infosys, while Information Technology as an industry retains its position as the most reputable sector.  (Refer Chart 1)

The ACNielsen Corporate Image Monitor is an annual syndicated study conducted by ACNielsen ORG-MARG. The study is conducted and designed to measure key perceptions of the performance of leading corporations in India, to help benchmark company image and reputation. The actionable insights provided by the study help companies prioritise policies and chart future growth plans.

“In its sixth year, the ACNielsen Corporate Image Monitor is well received by organizations across India. The IT sector has gained momentum in India for some years now and is very well perceived by Indians. What is interesting this year is how Auto and Steel companies have started to make their presence felt,” said Prasenjit Das, Associate Director, and ACNielsen, India. “This could be attributed to the economic upheaval the country is witnessing, bringing with it an overall positive outlook of the manufacturing sector.”

In ACNielsen Corporate Image Monitor significant improvements have been seen in the Auto industry for the last two years. In this round, there are two automotive companies - Bajaj Auto (3rd) and Maruti Udyog (9th) in the Top Ten of the Corporate Reputation Index. Tata Steel, the only steel manufacturer in our list has improved significantly from last year.

It is interesting to note that, overall, the impression of the Top 20 companies improved significantly in 2006. The average Net Image Goodwill which the study computes on the basis of the net of positive and net of negative rating on all dimensions for the companies, shows the average Net Image Goodwill of the Top 20 Companies saw a sharp improvement from 23 percent in 2005 to 29 percent in 2006. Companies with sharp improvements this year are Bajaj Auto (from 9th to 3rd position), HLL (from 10th to 4th position) and Tata Steel (from 14th to 7th position). ICICI Bank is the sole entrant from the banking sector in the list of Top 10 corporates.

Meanwhile, respondents were optimistic about the future of all these companies, with most expecting high or stable future growth for almost all the 20 companies studied. The sense of optimism was most buoyant for IT companies, taking the top three places in the ‘Opinion about the Future’.    

To capture the growing importance of Corporate Social Responsibility (CSR) across boardrooms in India, the ACNielsen Corporate Image Monitor recently added CSR as an additional measurement dimension. Infosys, Tata Steel and Wipro rated as the three most socially responsible corporations. Tata Steel, well known for its philanthropy, holds a much higher rank in CSR when compared to its overall standing in terms of corporate image (CRI).

“In recent times many companies have engaged in CSR related activities. In India, nearly three quarters (73%) of respondents interviewed feel that companies in India today have become socially more responsible. Rural welfare and poverty eradication, development of health and hygiene, primary education and training are the key areas where people feel companies should take greater responsibility and ownership,” added Das.

About ACNielsen Corporate Image Monitor 
ACNielsen Corporate Image Monitor is a special report measuring the image of a corporate in the mind of the various stakeholders of business for the Top 20 corporates in India, chosen from ET-500 based on Market Capitalization, Sales and Assets.

Apart from understanding the overall salience, familiarity and favourability of the corporates, the key dimensions on which stakeholders’ perception is captured in CIM are Quality of products/services, Corporate vision and Strategy, Management Strategy, Investment Worthiness, Human Resource Management and Social Ethical & Environmental issues.

The report provides corporates with an insight and a pathway to develop better strategic direction for the company. The study is an extensive study conducted across the seven largest metros in India covering a sample size of 1,100.The survey poll various target group which includes Policy-makers: Politicians & Bureaucrats, Influencers: General & Business media, NGOs, Financial Community: Brokers, Investment Analysts, FIs & FIIs, Corporate Bankers, Investors: Retail Investors, Large & Small, Talent Pool: Final year students from Top 20 management & engineering schools, Corporate Executives: Executives with minimum 3 years experience, Corporate Elite: GMs, VPs, Presidents & above in Top 150 corporates.

About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), business publications (Billboard, The Hollywood Reporter, Adweek) and trade shows. The privately held company has more than 42,000 employees and is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. To learn more, visit www.nielsen.com / www.acnielsen.co.in

Chart 1:

The Top 20 Corporates and their CRI Ranks in CIM 2006