the world’s most reputable countries...reputation institute has created a new business unit...
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Copyright © 2011 Reputation Institute. All rights reserved. 1
2014 Country RepTrak®
The World’s View on Countries: An Online Study of the Reputation of 55 CountriesRepTrak® is a registered trademark of Reputation Institute. © 2014 Reputation Institute, all rights reserved.
The World’s Most Reputable Countries
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About Reputation Institute
2
Advice Group
PublicationsConferencesTraining
Metrics & InsightsStrategy & Positioning
Alignment & ImplementationReputational Risk
Global Value PropositionWe enable leaders to make business decisions that build and protect reputational capital and drive competitive advantage.
Intelligence Group
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International tourist arrivals grew by 5% in 2013 to reach
1,087 billionGrowth is expected to continue in 2014 by 4% to 4.5%
Source: UNWTO World Tourism Barometer
Today’s World Context: International Tourism
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Global foreign direct investment (FDI) inflows reached
US$ 1.4 trillionand is projected to reach US$ 1.6
trillion in 2014Source: United Nations Conference on Trade and Development (UNCTAD)
Today’s World Context: International FDI
in 2013
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Today’s World Context: International Trade
3.7% for global GDP
Sources: WTO Secretariat and IMF
International trade in 2013 is forecasted
to grow by 4.5% and
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Places are Competing for Attention
Nations Regions Cities
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Why is Place Reputation Important?
As in the case of companies, countries also have their own reputation which has an impact their performance.
Countries with a good reputation welcome more tourists
Countries with a good reputation attract FDI
Countries with a good reputation attract foreign knowledge & talent
Countries with a good reputation increase exports
Countries with a good reputation improve their public diplomacy
8Copyright © Reputation Institute. All rights reserved.
Advancing Reputation Knowledge: Introducing RI’sPlace Reputation Unit
Reputation Institute has created a new business unit conceived from the ever-rising need of countries, regions, and cities to manage their reputation.
This new unit is called Place Reputation Unit
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How to Help a Place to Manage its Reputation?
There are three basic elements on place reputation management:
Perceptions tracking Analysis of economic implications Action plans
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Emotional Reputation
Rational Reputation
Perceptions Tracking: the Country RepTrak® Model
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Analysis of Economic Implications: the Reputation Economy
SupportiveBehaviours
ValueCreation
Perceptions
Direct Experiences
Country Actions & Communications
3rd-party Influence
Stereotypes
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Action Planning
Action plans
Strategic
Place Branding (economic arena)
Public Diplomacy (political arena)
TacticalQuick wins in
reputation through specific actions
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Action Planning: Tactical Actions
PERCEPTION
Bad
Good
Good
REA
LITY
Communication is required to capitalize on good
reality and overcome poor perceptions
Change is required to alter’reality’ and minimize
reputational risk
Bad
About the Study
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2014 Country RepTrak® Study Overview
• Stakeholder Group (Target): General public balanced to the country population on age and gender, and was also controlled for region.
• Country Selection: Largest economies by GDP.
• Data Collection Method : CAWI (online interviews).
• Data Collection Period: From January to February 2014.
• Sample: Over 26,000 consumers from G8 countries.
2014 Country RepTrak® Results
17Copyright © Reputation Institute. All rights reserved.
2014 Country RepTrak® – Top 20
75.1
74.6
123456789
10
75.6
73.8
73.7
73.4
72.5
71.1
69.9
76.0
68.5
68.4
11121314151617181920
68.5
66.7
65.8
64.8
64.0
60.6
60.0
69.1Switzerland
Canada
Sweden
Finland
Australia
Denmark
Norway
Netherlands
Germany
New Zealand
Austria
Belgium
Ireland
Japan
UK
France
Italy
Portugal
Singapore
Spain
18Copyright © Reputation Institute. All rights reserved.
The most Reputable Countries are not necessarily the most Economically Relevant
123456789
10*Based on World Bank, IMF, WTO, UNCTAD & UNWTO data.
USA
China
Japan
Germany
France
Brazil
UK
Italy
India
Russia
GDPPopulation TourismFDI
China France
BrazilGermany China
India
UK
China
USAUSA
China
Indonesia SpainJapan
USA
Brazil
TurkeyFrance
Australia
USA
Pakistan
Italy
Bangladesh
Germany
Singapore
Russia RussiaItaly Chile
UK
South Korea Russia
Japan Malaysia
Russia Canada
Nigeria
Netherlands
IrelandUK
Exports
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but the Happiest Countries are similar
World Happiness Report 2013 (SDSN- United Nations)
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Global Peace Index 2013 (Institute for Economics & Peace)
and the Safest Countries…
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…and the most Ethical & Transparent countries
Corruption Perceptions Index 2013 (Transparency International)
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We have analysed ethics/transparency/corruption
Ethical country with high transparency and low corruption
74.5
74.3
74.0
73.8
72.9
71.3
69.8
68.8
68.3
68.3
67.8
66.7
64.2
63.8
63.3
60.3
55.0
54.3
52.9
50.7
50.3
50.2
47.5
47.2
46.6
46.5
46.4
46.3
44.9
44.7
44.5
44.5
44.0
43.7
42.8
42.4
42.0
41.7
40.5
39.7
39.2
37.6
37.5
37.4
37.2
35.8
34.9
34.7
33.3
31.6
31.5
29.1
29.1
26.9
23.8
Sw
eden
Den
mar
kFi
nlan
dN
orw
ayC
anad
aS
witz
erla
ndA
ustra
liaN
ew Z
eala
ndA
ustri
ath
e N
ethe
rland
sG
erm
any
Bel
gium
Japa
nth
e U
nite
d K
ingd
omIre
land
Fran
ceP
ortu
gal
Spa
inS
inga
pore
Cze
ch R
epub
licIta
lyP
olan
dU
nite
d S
tate
s of
Am
eric
aTa
iwan
Mal
aysi
aQ
atar
Sou
th K
orea
UA
E (in
cl. A
bu D
habi
& D
ubai
)P
eru
Arg
entin
aTh
aila
ndIs
rael
Chi
leB
razi
lG
reec
eP
hilip
pine
sIn
done
sia
Sou
th A
frica
Ven
ezue
laTu
rkey
Kuw
ait
Kaz
akhs
tan
Rom
ania
Sau
di A
rabi
aIn
dia
Alg
eria
Ukr
aine
Mex
ico
Chi
naE
gypt
Col
ombi
aN
iger
iaR
ussi
aP
akis
tan
Iran
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2014 Country RepTrak® – Full Ranking I
71.1
72.5
73.4
73.7
73.8
74.6
75.1
75.6
76.0
Netherlands
New Zealand
Denmark
Norway
Australia
Finland
Sweden
Canada
Switzerland
60.0
60.6
64.0
64.8
65.8
66.7
68.4
68.5
68.5
69.1
69.9
Singapore
Portugal
Spain
France
Italy
United Kingdom
Japan
Ireland
Belgium
Austria
Germany
Countries with a strong reputation (1-9) Countries with a moderate reputation (10-20)
24Copyright © Reputation Institute. All rights reserved.
2014 Country RepTrak® – Full Ranking II
Countries with a weak reputation (20-48) Countries with a poor reputation (49-55)
40.540.8
42.442.642.743.6
47.047.748.148.148.548.649.0
50.250.350.851.452.352.352.353.053.353.6
55.155.455.556.457.5
Saudi ArabiaColombia
KuwaitUkraine
RomaniaEgyptIsrael
South KoreaIndonesia
TurkeyMexico
VenezuelaIndiaUAEQatar
PhilippinesSouth Africa
GreeceChile
TaiwanMalaysia
PeruArgentinaThailand
PolandCzech Republic
United StatesBrazil
26.9
30.0
34.9
36.3
38.4
39.4
39.5
Iran
Pakistan
Nigeria
Russia
Algeria
China
Kazakhstan
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Colombia +7.5%
South Africa +9.0%
Greece +9.4%
Iran +16.0%
Evolution 2013-2014
Evolution of Country RepTrak® in the last year
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Peru -2.9%
India -3.4%
Australia -3.1%
Evolution 2013-2014
Evolution of Country RepTrak® in the last year
USA -2.0%
Austria -2.1%
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Country RepTrak® in recent years – Top 10
123456789
10
Canada
Sweden
Switzerland
Australia
Norway
New Zealand
Denmark
Netherlands
Austria
Finland
2014 2013 2012 2011 2010
Canada Canada
Australia
AustraliaAustralia
Australia
Sweden
Sweden
Sweden CanadaCanada
Switzerland Switzerland Switzerland
Switzerland
Norway
Norway
Norway
Finland
Sweden
New Zealand
New Zealand
Finland
Finland
FinlandNorway
Austria Austria
AustriaNew Zealand
Denmark DenmarkDenmark
Netherlands Netherlands
NetherlandsNetherlands
Denmark
BelgiumGermany
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Latin America: On the Rise
Latin American countries maintain a growing trend in their
reputations headed by Colombia (+7,5%) and with very
few exceptions (such as Braziland Peru).
Latin American countries’ reputation has grown an average
of 3% in the last year.
+3%
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The end of the ‘Obama Effect’?
The reputation of the USA under the Obama administration has experienced a continuous growing trend that has ended in 2014 with a decrease in its reputation Pulse score…
-2.0%
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Greece, second year of reputation recovery
If Greece’s reputation fell dramatically with its
economic crises and default (it was the country
in the study that fell the most in 2012), since then
the trend has been reversed.
Greece is the country that, in percentage terms, improves its reputation the most since 2012.
+9.4% ( +18% since 2012)
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BRIC: Contrasting Results
Of the four BRIC countries, only China significantly improves its reputation.
Russia, India, and Brazillose reputation in 2014
+4%
-3.4%
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86.983.9
79.475.4 74.9
71.8 71.7 71.167.1 65.2 64.8
61.8
54.6 53.1 50.6
Australia Canada India Japan Germany Russia UK USA China SouthKorea
Mexico France Brazil Spain Italy
Global mean (68.8)
2014 Country RepTrak® - Internal Reputation (Self-Image)
33Copyright © Reputation Institute. All rights reserved.
35.6
30.427.7
17.5 16.314.7
13.0
8.3 7.05.1 5.0
-2.9 -3.1
-10.9
-15.2
Russia India China SouthKorea
Mexico USA Australia Canada Japan UK Germany Brazil France Spain Italia
Gap between Internal and External Reputation
Countries with a major gapbetween internal (self-image) and
external perceptions
Countries most critical of themselves
Countries least critical of themselves
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37.2%
35.4%27.4%
Adj R2 = 0.685N = 44643
36.8%
35.3%27.9%
Weights2013
Key Factors in Reputation: Dimension importance
35Copyright © Reputation Institute. All rights reserved.
0
20
40
60
80Effective Government
Advanced EconomyAppealing Environment
Switzerland
Sweden
Canada
Greece
Philippines
Indonesia
Reputation Profile of Countries
#1 #1
#1
Countries with a good reputation
present a balanced reputation profile Countries with a bad
reputation have a more uneven
profile
36Copyright © Reputation Institute. All rights reserved.
Advanced Economy27.4%
Friendly & welcoming peopleBeautiful countryEnjoyable countryAppealing lifestyle
Safe environmentEthical countryResponsible participant in the global communityProgressive social & economic policiesEffective governmentOperates efficiently Favorable environment for business
High quality products & servicesContributor to global cultureWell-educated & reliable peopleWell-known brandsValues educationTechnologically advanced
Appealing Environment35.4%
Effective Government37.2%
7.06.66.36.05.95.75.5
7.26.66.56.3
5.65.55.44.84.74.2
Key Factors in Reputation: Attribute importance
Adj R2 = 0.687N = 44643
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Value Creation: Reputation & Declared Intentions
Live0.77
Buy0.77
Work0.77
Invest0.74
Visit0.72
Study0.75
Attend/organizeevents
0.72
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Key Drivers for Influencing Stakeholder Behaviors
Key DriversBeautiful countryEnjoyable countryFriendly & welcoming people
Key DriversAppealing lifestyleSafe environment
Ethical country
Key DriversFavorable environment for businessWell-known brandsTechnologically advanced
VISIT INVEST
LIVE
BUY
Key DriversHigh quality products & servicesWell-known brandsFriendly & welcoming people
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Key Drivers for Influencing Stakeholder Behaviors
Key DriversEnjoyable countryBeautiful country
Safe environment
ATTEND/ORGANIZE EVENTS
WORK
STUDY
Key DriversSafe environmentContributor to global cultureWell-known brands
Key DriversSafe environment
Favorable environment for businessAppealing lifestyle
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Visit Invest
Live
Supportive Behaviours towards Countries – Top 10
Buy
80.779.979.4
78.677.776.976.476.376.276.0
CanadaAustralia
ItalySwitzerland
SwedenFinlandNorway
New ZealandDenmark
France
71.668.067.867.5
66.566.266.0
64.364.164.0
SwitzerlandGermany
SwedenCanada
AustraliaFinland
JapanDenmark
the NetherlandsNorway
73.172.8
71.570.7
69.268.167.467.266.866.0
CanadaSwitzerland
AustraliaSweden
New ZealandDenmark
Finlandthe Netherlands
NorwayGermany
74.173.472.972.6
71.571.5
69.869.268.868.7
GermanySwitzerland
JapanSwedenCanadaFinland
Denmarkthe Netherlands
AustraliaItaly
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Work Study
Attend/Organize events
Supportive Behaviours towards Countries – Top 10
73.072.371.871.0
69.668.868.768.568.2
67.2
SwitzerlandCanadaSweden
AustraliaFinland
DenmarkGermany
the NetherlandsNorway
New Zealand
72.872.271.671.3
70.469.969.269.0
67.967.7
CanadaSwitzerland
SwedenAustraliaGermany
the United KingdomDenmark
Finlandthe Netherlands
United States of America
71.670.770.170.1
68.768.668.468.3
66.766.7
CanadaSweden
AustraliaSwitzerland
NorwayFinland
New ZealandDenmark
ItalyGermany
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Intention to VisitCountry Reputation Tourism ($)
0.7 0.6
*Based on World Bank data.
Country Reputation & Tourism
According to the analysis carried out by Reputation Institute, there is a demonstrated correlationbetween the reputation of a country and the income received from tourism.
*Pearson correlation.
43Copyright © Reputation Institute. All rights reserved.
-100
100
300
500
700
900
1100
01/09 04/09 07/09 10/09 01/10 04/10 07/10 10/10 01/11 04/11 07/11 10/11 01/12 04/12 07/12 10/12 01/13 04/13
Time (date)
Country Reputation & Risk PremiumC
ount
ry R
isk
Prem
ium
Countries with a good reputation have maintained a stable risk premium since the beginning of the financial crisis, while countries with poor reputations have seen the risk premiums they pay rise by up to 300%.
Set of countries with weaker reputations (China, India, USA & Poland)
Set of counties with stronger reputations (Canada, Sweden , Norway, Switzerland & Australia)
*Based on World Bank data.
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Today’s Speakers
Alexandre EdelmannHead of Branding & Communication
Presence Switzerland
@fpradoRI
Fernando PradoManaging Partner Latin America & Iberia
Reputation Institute
@AlexandreEd
Presence Switzerland
- Created in 2001, integrated to the FDFA in 2009
- Statutory base and definition of tasks: Federal Act of Parliament
- Strategy for communication abroad: layed down by the Federal Council for four years at a time
- 43 employees (37.7 FTEs)- BudgetCHF 10.2 M (EUR 8.3 M)- Special appropriations for major
events: Olympic Games in Sochi, CHF 3 M (EUR 2.44 M)
Swiss Foreign-Policy Strategy 2012 - 2015
Focus on- relations with neighbouring
States and with EU- enhancing stability in Europe
and in the world- consolidating / diversifying
strategic partnerships and multilateral commitment
Keys of success
Why is Switzerland successful?
Why is Switzerland successful?
HISTORY AND POLITICSCULTURE, TRADITIONS AND VALUES
NeutralityStabilityReliabilityPrecision
Culture(s)MultilinguismWillensnationAdaptation/autonomie
GEOGRAPHYTOURISM
SmallnessBeauty
ECONOMYFINANCEINDUSTRY
BankingWatch industryPharma
Products
EDUCATIONRESEARCHINNOVATION
UniversitiesEPFApprenticeship
Why is Switzerland successful?
CHALLENGES FinanceFiscal Issues
OPPORTUNITIES InnovationEducationPolitical system
protestantismtraditions
HISTORY
neutralitydirect democracy
POLITICS culture(s)multilinguism
CULTUREvalues
worksense of compromise
sense of duty
qualityprecisionreliability
infrastructures
bankingwatch industrypharma
FINANCE
ECONOMY
GEOGRAPHY
no raw materialsmall countrytourism
good servicesinternational organizations
DIPLOMACY
PROSPERITY
TRUST
INVESTMENTS
STABILITY
RESEARCH
EDUCATION
INNOVATION
International communication
Strategy 2012-2015
Education, research, innovation
Innovative policies: transport, energy, environment, health, social issues, finance
Switzerland's political system
Swiss solidarity and good offices
Culture, sports
Different targets:Opinion leadersMediaLarge public
How are we visible?
How are we visible?
ADVANCED ECONOMY EFFECTIVE GOVERNMENT
APPEALING ENVIRONMENT
direct democracy
tourismpeople
securitystabilityreliabilityefficiency
productsbrands
educationinnovationproducts & services
brandshigh-tech
How are we visible?
Tourism, investments
Direct democracy
Sport
Finance, bankingCompanies, products, services
Diplomacy, good services, mediation
Swissness
Swissness 2013
Swissness
Swissness 2013
0%
5%
10%
15%
20%
25%
30%
Produkte Landschaft Banken Trad.Werte
Neutralität Urlaub Wohlstand
Today’s Speakers
Alexandre EdelmannHead of Branding & Communication
Presence Switzerland
@fpradoRI
Fernando PradoManaging Partner Latin America & Iberia
Reputation Institute
@AlexandreEd
Copyright © Reputation Institute. All rights reserved.
Conclusions 1
• Country reputations can be measured in a similar way to those of people or companies.
• Overall reputation of a country is an emotional perception constructed through direct experience, own communication, third parties’ perspectives and generally accepted stereotypes.
• The overall emotional perception can be explained through different attributes and dimensions. Three main dimensions explain a country’s reputation:
• Quality of life (appealing environment).• Quality of its institutions (effective government).• Level of development (advanced economy).
• Countries with a strong reputation are positively perceived in all three dimensions.
• Australia is perceived as the top country in Quality of Life.• Switzerland is perceived as the top country in terms of the quality of its institutions.• Japan is perceived as the country with a higher level of development.
• Reputation has a strong impact in supportive behaviours of stakeholders that improve a country’s economy: tourist arrivals, foreign direct investment, exports, …
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Conclusions 2
• After three years of Canada’s leadership on country reputation, Switzerland takes the first position of the ranking.
• Switzerland, Canada, Sweden, Finland and Australia are the best perceived countries among the population of the most relevant economies of the world.
• China’s reputation experienced a relevant improvement after past years’ falls (+4%).
• Latin American countries still maintain a growth path (average +3%) with very few exceptions. Colombia, in the middle of the negotiations for a peace process, is leading this reputation growth (+7.5%).
• After its deep crisis and the sharp fall of its reputation, Greece has been experiencing a rebound effect in the last couple of years while international media is not paying as much attention to its weak economy (+9.4%).
• Spain (+3.1%) and Italy (+2.9%) have also improved their reputations while some economic indicators started to improve.
• Germany (+2.3%) reaches the top ten for the first time after years of continuous growth of its reputation.
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• Understand perceptions and drivers among your stakeholders
• Identify your competitive strengths and points of difference
• Define brand & reputation strategy
• Align activities with your strategy and stakeholder expectations
• Build KPIs to ensure accountability
• Monitor success on an ongoing basis
Place Reputation & Brand Management: Best Practices
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Thank you
Questions or CommentsPlease post your questions or comments
and continue the discussion…
Download The 2014 Country RepTrak® ReportGo to our website to download
With our local offices - please visit our website:www.reputationinstitute.com/contact-us
www.reputationinstitute.com
Country specific results:[email protected]
Australia · Argentina · Belgium · Brazil · Canada · Chile · China · Colombia · Croatia · Denmark · Ecuador · Finland · France Germany · Greece · India · Ireland · Italy · Japan · Malaysia · Mexico · Netherlands · Norway · Panama · Peru · Portugal
Puerto Rico · Russia · South Africa · Spain · Sweden · Switzerland · Turkey · UAE · United Kingdom · United States · Ukraine
@Reputation_Inst
Reputation Institute
Reputation Institute