Вы находитесь на странице: 1из 18

The 2004 Massachusetts Corporate Reputation Survey

Introduction
Reputation is the enduring character of an enterprise – it’s the feeling people get when they
think of a company or organization. Smart organizations understand that a reputation,
however intangible, is a valuable asset in the marketplace.

Research has consistently shown that organizations with strong, positive reputations enjoy
more successful sales initiatives and more consistent financial performance, greater trust with
investors and partners, stronger customer satisfaction and loyalty, higher quality employees,
better publicity and deeper community relations. Organizations with well-defined
reputations are better positioned to communicate with any audience, from regulators to
shareholders, in good times and during a crisis.

During the summer of 2003, Morrissey & Company, a national reputation management and
public relations firm based in Boston, decided to measure the reputations of Massachusetts-
based institutions. The 2003 Massachusetts Corporate Reputation Survey was the first-ever
attempt to rate the perceptions held toward the select private and public organizations that
drive the state’s economy, based on the attributes that experts agree form the core of
reputation.

In August 2004, Morrissey & Company commissioned the second annual Massachusetts
Corporate Reputation Survey. The results of the 2004 survey are detailed in this report. The
results also can be viewed online at www.reputationsurvey.com.

Methodology
Opinion Dynamics Corporation, a national leader in market research, polling and consulting
based in Cambridge, Mass., conducted the 2004 Massachusetts Corporate Reputation Survey by
telephone on behalf of Morrissey & Company during September 2004. C-level business
executives were asked to rate 69 Massachusetts businesses, universities and hospitals on a
variety of criteria. Ratings were gathered from 200 top-level executives at Massachusetts
companies.

The reputations ratings were collected and calculated using the same methods employed in
2003. Respondents used a 10-point scale to rate each institution on:
• Overall reputation
• Products and services
• Place to work
• Social responsibility
• Ethics and corporate governance
• And, financial stability

2004 Massachusetts Corporate Reputation Survey 1


Morrissey & Company
Of the 69 enterprises rated in the 2004 Massachusetts Corporate Reputation Survey, 40 were
chosen from the top 40 organizations as ranked in the 2003 Massachusetts Corporate Reputation
Survey. The remaining companies were public companies that finished in top 29 of the 2004
Boston Globe 100. In instances where a 2004 Globe 100 company also was rated in the 2003
Massachusetts Corporate Reputation Survey, the company was eliminated from the survey and the
next ranked company was selected.

The institution names were rotated, ensuring that each business leader rated a unique
selection of institutions. This method produced at total of 2,902 ratings. The scores of
overall reputation were given a weight of five, while the other five scores were given a weight
of one, producing a possible high rating of 100. Respondents who had not heard of specific
institutions were not asked to give a rating. If a respondent had heard of an institution, but
could not offer a rating on a particular attribute, a score of zero was assigned for the
attribute in question.

Based on responses to these six questions, overall reputation scores were calculated for each
institution included in the study. For analytical purposes, a score of 60 or higher should be
considered a superior reputation, a score between 50 and 60 should be considered very
good, scores between 40 and 50 should be considered good, and a score below 40 can be
interpreted to mean the institution has not established a significant reputation for itself.

While a high reputation score means an institution has an excellent reputation, a low score
does not automatically mean an institution has a poor reputation. In most cases, a low score
is caused by a lack of familiarity with an institution.

As part of the 2004 Massachusetts Corporate Reputation Survey, business executives also were
asked a series of questions regarding business conditions in Massachusetts.

2004 Massachusetts Corporate Reputation Survey 2


Morrissey & Company
Executive Summary

According to the state’s business executives, conditions in Massachusetts in the fall of 2004
are much more promising than they were at the same time in 2003. Biotechnology and
pharmaceutical companies are considered to be the leaders of economic growth in the state
by many industry leaders.

While most executives are not sure who their colleagues will vote for in the presidential
election, about one-third think others will vote for President George W. Bush, compared to
the one-quarter who believe their peers will vote for U.S. Sen. John F. Kerry. Many business
leaders believe Kerry’s election would have a positive impact on the economy in
Massachusetts. The war in Iraq is perceived by well more than half (62%) to be hurting
America’s ability to compete in the global economy. The direction of the economy is among
the top concerns of area executives, along with an increase in business costs.

Non-profit institutions still enjoy the most superior reputations in the eyes of executives in
Massachusetts. In this year’s reputation rankings, five universities and three hospitals
finished in the top 10. Harvard University topped the list for the second consecutive year.
The other highly rated educational institutions include Boston University, Tufts University,
Boston College, and Northeastern University. The top-ranked medical institution is
Children’s Hospital, followed by Massachusetts General Hospital and Brigham & Women’s
Hospital.

As was the case in 2003, Fidelity Investments has the highest reputation ranking of all for-
profit institutions in Massachusetts. This year, Fidelity is joined in the top 10 by Staples.
Other for-profits in the top 20 are Citizen’s Bank, Yankee Candle Company, Gillette, and
BJ’s Wholesale Club. Financial services institutions, such as FleetBoston, John Hancock
Financial Services and State Street, all earned very good reputations, although it will be
interesting to see how ongoing mergers and acquisitions in this industry impact the 2005
ratings.

In the state’s highly competitive health insurance market, Blue Cross and Blue Shield of
Massachusetts ranked as the health maintenance organization with the best reputation.

Raytheon is the most highly rated of all the state’s high-tech companies, while Boston
Scientific is the highest rated biotechnology company in the state. As was the case in 2003,
very few businesses in the technology or biotechnology sectors have notable reputations.
This is mainly due to a lack of familiarity with most companies within these industries.

2004 Massachusetts Corporate Reputation Survey 3


Morrissey & Company
Summary of Opinion Survey Findings

Business Conditions
The overall perception of business conditions in Massachusetts is more positive than it was
just one year ago. One-half of respondents believe business conditions in the state today are
good, compared to the one-third who said the same in 2003. Thirty-eight percent rated
conditions as only fair, down from 55 percent in 2003. Only 6 percent deemed business
conditions to be poor in the current study – one half of the 12 percent who gave the same
rating one year ago.

First of all, how do you think business conditions in


Massachusetts are right now?

50%

30% 55% Excellent


Good
Only fair
Poor
Not sure
2% 38%
2%
1% 4%
12% 6%

September 2003 September 2004

2004 Massachusetts Corporate Reputation Survey 4


Morrissey & Company
Respondents were asked to choose, from a list of prominent Massachusetts industries, which
industry would lead economic growth during the next five years. Forty-two percent singled
out the biotechnology and pharmaceutical industries as the leaders of future growth. The
high-tech industry was chosen by 16 percent, followed by financial services and real estate
(both 10 percent). Professional services (8 percent), hospitality and tourism (2 percent) and
manufacturing (1 percent) were least likely to be considered leaders of future growth in the
state.

Which one of the following industries will lead


economic growth in MA during the next 5 years?

Bio-tech/Pharmaceuticals 42%

High Technology 16%

Financial services 10%

Real estate 10%

Professional services 8%

Hospitality and Tourism 2%

Manufacturing 1%

11%
Not sure/Refused
0% 20% 40% 60% 80% 100%

2004 Massachusetts Corporate Reputation Survey 5


Morrissey & Company
Politics and Business
The outcome of the presidential race is not foreseen to have a large impact on business
decisions. A majority of respondents (85 percent) are not postponing significant decisions,
such as investments, product launches or new hiring, until after the presidential election.
Only 8 percent say they will hold off on those types of decisions until the race is decided.
Six percent are not sure if the election will have any impact on their business plans.

Is your organization postponing significant


business decisions until after the presidential race
is decided?

No
86%

Yes
8%

Not sure
6%

When asked which candidate they think their business colleagues plan to vote for, about
one-third (34 percent) say President George W. Bush, and 24 percent say U.S. Sen. John F.
Kerry. Forty-one percent are not sure which candidate their peers will vote for.

Which of the two major presidential candidates


do you think most of your business colleagues
plan to vote for?

Bush
34%

Kerry
24%

Not sure
41%

2004 Massachusetts Corporate Reputation Survey 6


Morrissey & Company
Forty-six percent of the business executives surveyed believe the state’s business climate will
be positively affected if John Kerry is elected president. Thirty-two percent do not think
Kerry’s election would help, while 22 percent are not sure.

If John Kerry is elected president, do you think it


will help Massachusetts businesses and the
state’s business climate?
Yes
46%

No
32%

Not sure
22%

The effect of the war in Iraq on America’s ability compete in the world economy also was
measured. Almost two-thirds (62 percent) of business leaders say the war is hurting
America’s role in the global economy, while only 9 percent say it is helping. Thirty percent
of respondents are unsure of the effect.

Is the war in Iraq helping or hurting America’s


ability to compete in the world economy?

Hurting
62%

Helping
9%

Not sure
30%

2004 Massachusetts Corporate Reputation Survey 7


Morrissey & Company
Fifty percent of Massachusetts business leaders believe the money allocated to Education
Reform has been well spent. Of those, 22 percent say it was very well spent, while 28 percent
say it was pretty well spent. About one-third say it was wasted. Of those, 22 percent say it
was somewhat wasted, while 11 percent say it was totally wasted. Sixteen percent are not
sure whether the money spent on Education Reform was well spent.

Do you think the money the state has spent on


Education Reform was well-spent, or wasted?

Pretty well-
spent
28%
Very well-
spent
22%
Somewhat
wasted
22%

Totally
Not sure wasted
16% 11%

Respondents are divided on which issues worry them the most. Twenty-two percent said
they lose sleep over the direction of the U.S. economy, while the same percentage say they
agonize over an increase in business costs. Fifteen percent are anxious about a possible
terrorist attack, and 12 percent cited geopolitical events in general. Over one-fifth (22
percent) are not sure which issue concerns them the most.

What political, business or other issues is most likely to


keep you awake at night?

Direction of US economy 22%

Increase in business costs 22%


Possible terrorist attack in US 15%

Geopolitical events 12%


My competition 2%
Meeting revenue/profit
expectations 2%
Prospect of higher interest 2%
rates
Shareholder/investor mistrust 2%

None/Not sure 22%

0% 20% 40%

2004 Massachusetts Corporate Reputation Survey 8


Morrissey & Company
Summary of 2004 Massachusetts Corporate Reputation Ratings

For analytical purposes, a score of 60 or higher should be considered a superior


reputation, a score between 50 and 60 should be considered very good, scores between 40
and 50 should be considered good, and a score below 40 can be interpreted to mean the
institution has not established a significant reputation for itself.

Top Ten Rated Institutions Overall


As seen in 2003, educational institutions are viewed as the most reputable institutions in the
area. Harvard, Boston University, Tufts University, Boston College and Northeastern
University are all viewed as having superior reputations. Medical institutions are also
considered to be highly reputable; Children’s Hospital, Massachusetts General Hospital and
Brigham & Women’s Hospital are all viewed as having a superior reputation. Fidelity
Investments and Staples are the only for-profit companies in the top 10.

Top Ten Overall


70.6
Harvard University 68.2
Children’s Hospital 66.5
53.4
65.8
Boston University
57.2
65.1
Mass General Hospital 60.9
Tufts University 64.5
56.9
64.5 2004
Boston College 65.1
2003
63.4
Northeastern University 59.2
Fidelity Investments 63.2
63.3
60.7
Brigham and Women’s 45
60.2
Staples 54.8

0.0 20.0 40.0 60.0 80.0 100.0

Brigham & Women’s reputation score saw the most significant increase of the top 10
institutions (45 in 2003 to 60.8 in 2004). Other notable improvements include Children’s
Hospital (53.4 in 2003 to 66.4 in 2004), Boston University (57.2 in 2003 to 65.8), and Tufts
University (56.9 in 2003 to 64.5).

2004 Massachusetts Corporate Reputation Survey 9


Morrissey & Company
2003-2004 Top Thirty-Five Comparison
The chart below shows the ratings and rank of the top 35 organizations in 2004 compared to
2003.
Mean 2004 Mean 2003
Company Score 2004 Ranking Score 2003 Ranking
Harvard University 70.609 1 68.17 1
Children's Hospital 66.486 2 53.38 16
Boston University 65.824 3 57.23 10
Massachusetts General Hospital 65.102 4 60.90 5
Tufts University 64.523 5 56.93 12
Boston College 64.489 6 65.11 2
Northeastern University 63.434 7 59.16 8
Fidelity Investments 63.170 8 63.26 3
Brigham and Women's Hospital 60.784 9 45.04 26
Staples 60.245 10 54.79 13
Massachusetts Institute of Technology 59.387 11 61.09 4
Lahey Clinic Medical Center 58.634 12 46.50 24
University of Massachusetts, Amherst 57.650 13 57.19 11
Citizens Bank 56.344 14 46.51 23
Yankee Candle Co. 55.041 15 45.81 25
Beth Israel Deaconess Medical Center 54.651 16 41.50 28
Gillette Co. 54.389 17 54.12 14
Blue Cross Blue Shield of MA 54.050 18 59.60 7
BJ's Wholesale Club 53.347 19 48.63 20
Harvard Pilgrim Health Care 52.757 20 53.46 15
FleetBoston 52.485 21 43.97 27
John Hancock Financial Services 52.333 22 48.06 21
Tufts Health Plan 52.182 23 59.72 6
Tufts/New England Medical Center 52.020 24 52.88 17
State Street 50.489 25 40.25 30
Reebok International Ltd. 48.750 26 58.96 9
Raytheon Co. 48.342 27 33.36 37
University of Massachusetts, Lowell 47.333 28 48.65 19
University of Massachusetts, Boston 44.696 29 51.00 18
LoJack Corp. 44.618 30 Not rated
Boston Medical Center 42.119 31 47.29 22
Bridgewater State College 40.737 32 34.86 34
Boston Scientific Corp. 40.389 33 26.78 39
NStar 38.846 34 Not rated
Fallon Community Health Plan 35.581 35 41.15 29

2004 Massachusetts Corporate Reputation Survey 10


Morrissey & Company
Top Ten Non-Profit/For-Profit
The two charts below group institutions by non-profit and for-profit institutions,
respectively. As the charts illustrate, non-profits generally enjoy better reputations than for-
profit organizations.

Top Ten — Non-Profit Organizations


70.6
Harvard University 68.2
66.5
Children’s Hospital 53.4
65.8
Boston University 57.2
65.1
Mass General Hospital 60.9
Tufts University 64.5
56.9
64.5 2004
Boston College 65.1 2003
63.4
Northeastern University 59.2
Brigham and Women’s 60.8
45
59.4
MIT 61.1

Lahey Clinic Medical Ctr. 58.6


46.5

0.0 20.0 40.0 60.0 80.0 100.0

The Lahey Clinic Medical Center’s reputation score has experienced a dramatic increase
since 2003 (46.5 in 2003 compared to 58.6 in 2004).

Top Ten — For Profit Organizations


63.2
Fidelity Investments 63.3
60.2
Staples 54.8
56.3
Citizens Bank 46.5
55.0
Yankee Candle Co. 45.8
54.4
Gillette Co. 54.1
53.3 2004
BJ’s Wholesale Club 48.6 2003
52.5
FleetBoston 43.9
52.3
John Hancock Fin. Svcs 48.1
50.5
State Street Bank 40.3
48.8
Reebok International Ltd. 58.9

0.0 20.0 40.0 60.0 80.0 100.0

2004 Massachusetts Corporate Reputation Survey 11


Morrissey & Company
Citizen’s Bank, Yankee Candle Company and State Street Bank all show a significant
increase in reputation scores. Reebok International’s score fell from 58.9 in 2003 to 48.8 in
2004.

2004 Massachusetts Corporate Reputation Survey 12


Morrissey & Company
Colleges and Universities
As the 2004 Massachusetts Corporate Reputation Survey top 10 chart illustrated, many colleges
and universities in Massachusetts possess very good or superior reputations in the eyes of
the state’s business executives. Among other colleges tested and not shown in the chart, the
University of Massachusetts at Amherst enjoys a very good reputation (57.7). U-Mass Lowell
(47.3) and U-Mass Boston (44.7) both have good reputation scores. Bridgewater State
College just makes the cut-off for having a good reputation (40.1), an improvement over its
2003 score of 34.9.

Top Three — Colleges & Universities

70.6
Harvard University
68.2

65.8
Boston University 2004
57.2 2003

64.5
Tufts University
56.9

0.0 20.0 40.0 60.0 80.0 100.0

2004 Massachusetts Corporate Reputation Survey 13


Morrissey & Company
Hospitals
The Boston area’s prominent hospitals are clearly differentiated in the opinions of business
leaders. Children’s Hospital, MGH and Brigham & Women’s all have superior reputations,
while the Lahey Clinic Medical Center, Beth Israel, and Tufts/New England Medical Center
have very good reputations. Boston Medical Center is alone in having a good reputation
(42.1).

Top Three — Hospitals

66.5
Children’s Hospital
53.4

Mass General 65.1


2004
Hospital 60.9
2003

60.8
Brigham and
Women’s 45

0.0 20.0 40.0 60.0 80.0 100.0

As noted earlier, Brigham & Women’s experienced a dramatic increase in its reputation
score, as did Children’s Hospital.

2004 Massachusetts Corporate Reputation Survey 14


Morrissey & Company
Health Maintenance Organizations
Blue Cross Blue Shield of Massachusetts and Harvard Pilgrim Health Care are both viewed
as having very good reputations. Of the two, Blue Cross is held in higher regard. Tufts
Health Plan also has a good reputation, while Fallon Community Health plan’s rating has
fallen from 41.1 in 2003 to 35.6 in 2004.

Top Four — HMOs

54.0
BCBS MA 59.6

52.8
HPHC 2004
53.5

52.2 2003
Tufts Health Plan
59.7

Fallon Community 35.6


Health Plan 41.1

0.0 20.0 40.0 60.0 80.0 100.0

2004 Massachusetts Corporate Reputation Survey 15


Morrissey & Company
Financial Institutions
Fidelity Investments is still viewed in a category of its own in relation to other financial
institutions in the area, scoring well above other companies in the field. Citizen’s Bank has a
very good reputation (56.3), improving its rating of 46.5 in 2003. FleetBoston and John
Hancock Financial Services now enjoy very good reputations (52.5 and 52.3, respectively),
up from their good reputations in 2003 (43.9 and 48.0). State Street’s reputation is up to
50.5, compared to 40.3 in 2003.

Top Five — Financial Institutions

63.2
Fidelity Investments 63.3

Citizens Bank 56.3


46.5
52.5
FleetBoston 2004
43.9
2003
52.3
John Hancock 48.1

State Street 50.5


40.3
0.0 20.0 40.0 60.0 80.0 100.0

2004 Massachusetts Corporate Reputation Survey 16


Morrissey & Company
Largest 25 Companies
Among Massachusetts’ largest 25 companies, Staples stands out as having a superior
reputation. Yankee Candle, Gillette and BJ’s Wholesale Club all have very good reputations.
Reebok International’s reputation rating has dropped from 58.9 in 2003 to 48.8 this year.

Top Three — Largest MA Companies

60.2
Staples
54.8

54.4
Gillette 2004
54.1
2003

48.8
Reebok 58.9

0.0 20.0 40.0 60.0 80.0 100.0

2004 Massachusetts Corporate Reputation Survey 17


Morrissey & Company
Technology and Biotechnology
As the charts below indicate, technology and biotech firms in Massachusetts lack widespread
and well-established reputation stature. Raytheon’s reputation is considered to be good, as is
the reputation of the LoJack Corporation. Boston Scientific just makes it into the good
category with a rating of 40.4. All other entities within those industries scored below a rating
of 40. The charts below highlight the firms with the highest scores in each sector.

Top Three — Technology

48.3
Raytheon
33.4

31.1
EMC Corporation 2004
35.1
2003

19.3
Analog Devices 20.6

0.0 20.0 40.0 60.0 80.0 100.0

Top Three — Biotech

Boston Scientific 40.4


Corp. 26.7

Charles River 25.5


Laboratories 2004
International 12.1
2003

Millipore 15.3
Corporation 17.9

0.0 20.0 40.0 60.0 80.0 100.0

2004 Massachusetts Corporate Reputation Survey 18


Morrissey & Company