Forecasting the impact of sustainability issues on the reputation of large multinational corporations.

This is the summary of a survey gauging CEO views of the impact of commitment to environmental and social values on corporate reputation and value. The CEOs of the Global Fortune 500 were asked to rate the significance of seven elements of reputation to the preservation of a positive corporate reputation. 34% of the CEOs from the Global Fortune 500 completed the survey.

The seven elements of reputation rated by the CEOs are listed in order of their perceived future impact on the preservation of a positive corporate reputation.

• leadership and vision
• quality
• knowledge and skills
• social credibility
• financial credibility
• environmental credibility
• emotional connections

Despite recent financial scandals (Enron, WorldCom etc.) CEOs predict that in the near future social credibility will be as important as financial credibility, and environmental credibility will only be marginally less important. On average,‘Emotional Connections’ was considered to be the least important element to the preservation of a positive corporate reputation. However its average score suggests that it is still of medium significance. The position of the seven elements displays considerable regional variation, for example: European companies consistently assign the future importance of ‘Environmental, Financial and Social Credibility’ a higher level of significance to the preservation of a positive corporate reputation than their North American counterparts.

[Adapted from author]