Burson-Marsteller

Innovation & Insights

Corporate Reputation: A Balance of Purpose & Performance

Communicating on Corporate Purpose is one of the key strategic tools for managers seeking to build trust and reputation with stakeholders, according to the Corporate Purpose Impact study by Burson-Marsteller and IMD business school. The Corporate Purpose Impact 2010 study is based on research into 213 European companies from 10 industries.

The survey shows that:

• Corporate purpose enhances financial performance
• Corporate purpose builds trust with stakeholders
• Corporate Purpose communications is growing as companies increasingly understand its impact on financial performance and the importance of their social role.

The study provides conclusive evidence for the hypothesis that there is a crucial link between a strong reputation and superior financial returns. The results of the study show that a well defined and communicated purpose can contribute up to 17% of the financial performance economy-wide of leading European companies.  Within an industry it explains 8% of the variation of the financial performance of leading European companies.

Click here for the Corporate Purpose Impact Study 2010

The 2008 corporate reputation research has shown that a company’s ‘purpose’ can be its guiding star to sustaining financial performance through tough economic times. However, our research also shows that there is an in-built tension between the two objectives, and that CEOs must find a way to strike the right balance.

The key findings of the Burson-Marsteller Purpose & Performance study were based on in-depth interviews conducted by Penn, Schoen & Berland, the strategic research firm, with 200 leading corporate executives and opinion-makers.

What Burson-Marsteller offers:

• Refine Purpose & Performance or Vision, Mission & Values Statement – an assessment based on research findings;
• Stakeholders Analysis – how Purpose & Performance or Vision, Mission & Values is perceived through an audit;
• Living the Purpose & Performance Statement – a review of company communications tools for consistency and if they represent the P&P statement;
• Benchmark – an audit of how this company stands in terms of Purpose & Performance versus competitors.