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10 December 2007
Mumbai, India
When it comes to building corporate reputations, nothing is as effective as a company’s efforts in the area of Corporate Social Responsibility (CSR), according to the latest Nielsen Corporate Image Monitor 2007 (CIM) from Nielsen India, designed to measure people’s perceptions of the image and reputation of India’s leading companies.
As the CIM reveals, IT giant Infosys, Tata Steel and Tata Motors from the philanthropic Tata Group, Reliance Industries-one of the largest corporate houses of the country, and India’s reputable private bank, ICICI Bank, rank at the top of Nielsen India’s Corporate Social Responsibility Index.
Indian companies have become more aware of their role in CSR initiatives in the last few years. Environmental consciousness in the form of Maintenance of Parks and Roads, Primary Education, and Training are the top three investment areas for corporations. However the study reveals that these initiatives fall short of stakeholder expectations and their vision for real social responsibility. Aside from Primary Education, stakeholders expect corporations to do more in the areas of Health Development, Rural Welfare and Poverty Eradication.
“While India is on a high growth trajectory, there are many areas of society in need of drastic improvement to sustain growth. There appear to be gaps between what Indian companies currently spend in support of CSR, compared to their stakesholders’ expectations,” said Palal Bhattacharjee, Associate Director, Client Solutions, The Nielsen Company, India. “It is important for corporations to take stakeholder CSR priorities seriously, bearing in mind the triple bottom-line of ‘People, Planet & Profit’. This will not only help in the overall betterment of the country, but will also help corporations gain valuable mind space in the stakeholder community”.
The CI Monitor found that, overall the impression of the Top 20 companies, among people surveyed, had improved significantly in 2007. The average Net Image Goodwill of the Top 20 Companies saw a sharp improvement from 29 percent in 2006 to 41 percent in 2007. Companies showing sharp improvements were Tata Steel, Tata Motors, and Bharti Airtel. While ICICI Bank was the sole entrant from the banking sector, not one of the FMCG giants featured in the top ten list.
Among the various attributes rated by the stakeholders, quality of products and services, using latest technology to introduce products or services, reliability of products and services, continuous value-add, and enhancement of products and services came out on top. Additionally, ‘Company’s clear long term vision’ and ‘consistently making profit’ were also voiced as critical factors that determine the image of a corporate.
Meanwhile, a company that contributes to government revenues, is involved in community welfare and achieves its targets in an honest manner, also ranked highly on the goodwill scale with the public. Companies attracting the best talent, having good scope for career development, and possessing an international perspective of management were also rated highly.
“Corporations must communicate their CSR initiatives to promote a positive image about the company in people’s mind. News items in various media, word of mouth, and company reports are the three major sources of information for various social and environmental issues. Corporations should use regular media and company websites to promote welfare initiatives,” continues Bhattacharjee.
As the CIM further revealed, respondents were optimistic about the future of all 20 companies studied, with most expecting high or stable future growth for almost all of them. The sense of optimism appears to be most buoyant for IT companies, namely Infosys Technologies, Wipro, and Tata Consultancy Services, which took three of the top five places in terms of ‘Opinion about the Future’.
About Corporate Image Monitor
The Nielsen Corporate Image Monitor is an annual syndicated study conducted by The Nielsen Company. It covers the top 20 private sector companies (The leading corporates are ranked on assets, market capitalization (from ET-500 2007 and BT-1000) and sales (for year-ended March ‘07). On the basis of average rank of these three parameters, top 20 companies are chosen). The study covered 7 cities and interviewed 1,120 respondents in 2007. CIM measures the perception of the stakeholders about the corporate image and reputation of the leading companies in India. The insights provided by the study help companies prioritize their policies and chart future growth plans.
Companies Studied in 2007
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (Net Ratings and Buzz Metrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Ad week). The privately held company is active in more than 100 countries, with headquarters in Harlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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