Country RepTrak®
2015 Country RepTrak® The World’s Most Reputable Countries
July 2015
The World’s View on Countries: An Online Study of the Reputation of 55 Countries RepTrak® is a registered trademark of Reputation Institute. Copyright © 2015 Reputation Institute. All rights reserved.
About CountryReputation RepTrak® Institute The world leader in Reputation Management research We enable leaders to make business decisions that build and protect reputation capital and drive competitive advantage
Reputation Institute is the world’s leading reputation-based research advisory firm, founded by Dr. Charles Fombrun and Dr. Cees van Riel in 1997. Reputation Institute’s RepTrak® Research is the worlds largest and highest quality normative reputation benchmark database. • • • • • •
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7 Dimensions of Reputation 10 Years of Data Indexed 40 Countries Measured 15 Stakeholder Groups 3,000 Companies per Year 6M Responses per Year
Our most prominent management tool is the RepTrak® model for analyzing the reputations of companies and institutions – best known via the Forbes-published Global RepTrak® 100, the world’s largest study of corporate reputations.
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Country RepTrak®
Agenda • Country RepTrak® methodology • The most reputed countries • Why is a country’s reputation important?
Country RepTrak速
The Country RepTrak速 Model
Emotional Reputation
Rational Reputation
4
Country RepTrak速
The Reputation Economy Direct Experiences Perceptions
Supportive Behaviours
Value Creation
Country Actions & Communications
3rd-party Influence
Stereotypes
5
Country RepTrak®
2015 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 February to March 2015 • Sample: Over 48,000 consumers from G8 countries
6
Country RepTrak®
Agenda • Country RepTrak® methodology • The most reputed countries in 2015 • Why is a country’s reputation important?
Country RepTrak® Country RepTrak® 2015 – Top 20
1
Canada
78.1
+1
11
Ireland
72.0
+2
2
Norway
77.1
+4
12
Austria
71.2
-1
3
Sweden
76.6
=
13
UK
69.5
+2
4
Switzerland
76.4
-3
14
Italy
69.4
+2
5
Australia
76.3
=
15
Germany
69.0
-5
6
Finland
75.1
-2
16
Japan
69.0
-2
7
New Zealand
75.0
+1
17
Spain
67.8
+1
8
Denmark
74.5
-1
18
Portugal
64.4
+1
9
Netherlands
73.7
=
19
France
64.4
-2
Belgium
72.3
+2
20
Singapore
61.1
=
10
Country RepTrak速 Largest and most powerful countries are not necessarily the ones with the best reputations Population
1 2 3 4 5 6 7 8 9 10
Exports
GDP
FDI
Tourism
China
USA
China
USA
France
India
China
USA
China
USA
USA
Japan
Germany
Russia
Spain
Indonesia
Germany
Japan
Brazil
China
Brazil
UK
South Korea
Singapore
Italy
Pakistan
France
France
Canada
Turkey
Nigeria
Brazil
Netherlands
Australia
Germany
Bangladesh
Italy
Russia
Spain
UK
Russia
India
UK
Mexico
Russia
Japan
Russia
Italy
UK
Thailand
*Based on World Bank, IMF, WTO, UNCTAD & UNWTO data.
9
Country RepTrakŽ ‌ but the happiest ones do have better reputations World Happiness Report 2015 (SDSN- United Nations)
10
Country RepTrak® and the ones that are peaceful… Global Peace Index 2015 (Institute for Economics & Peace)
11
Country RepTrak® … and also the ones with less corruption Corruption Perceptions Index 2015 (Transparency International)
12
Canada Norway Sweden Switzerland Australia Finland New Zealand Denmark the Netherlands Belgium Ireland Austria the United Kingdom Italy Germany Japan Spain Portugal France Singapore Thailand United States of America Poland Czech Republic Taiwan Brazil Peru Greece Argentina Chile Philippines Malaysia India UAE (incl. Abu Dhabi & Dubai) Indonesia South Korea Mexico Venezuela Turkey South Africa Egypt Israel Qatar Romania Colombia China Ukraine Saudi Arabia Algeria Kazakhstan Nigeria Russia Pakistan Iran Iraq 77.1 76.6 76.4 76.3 75.1 75.0 74.5 73.7
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
22.5
29.8
31.5
35.1
36.3
39.9
40.2
41.0
41.4
42.5
43.1
43.9
46.6
47.0
48.6
49.7
49.8
50.0
50.1
50.8
51.5
51.9
52.7
54.0
54.5
54.8
55.3
55.5
55.6
56.1
56.2
56.5
56.8
57.0
57.7
61.1
64.4
64.4
67.8
69.0
69.0
69.4
69.5
71.2
72.0
72.3
78.1
Country RepTrak®
2015 Country RepTrak® Global mean (56.3)
Scoring scale 0-100. A difference among scores of ±1.4 points is significant at a 95% level of confidence..
13
Country RepTrak速
Evolution of Country RepTrak速 in the last year Belgium +5.5% Italy +5.4% Ireland +5.2% Portugal +6.1% Spain +6.1%
China +7.9% Greece +6.1% South Korea +6.5% Egypt +11.6% Taiwan +7.4% Iran +10.8%
Philippines +7.3%
Colombia +5.6% Indonesia +7.1% India +7.4%
Evolution 2014-2015 14
Country RepTrak速
Evolution of Country RepTrak速 in the last year Russia -3.2%
Ukraine -2.8%
Qatar -7.4%
Brazil -2.4%
South Africa -3.2% Evolution 2014-2015 15
Country RepTrak速 Country RepTrak速 Top 10 by Year 2015
1 2 3 4 5 6 7 8 9 10
2013
2014
2011
2012
2010
Canada
Switzerland
Canada
Canada
Canada
Sweden
Norway
Canada
Sweden
Australia
Sweden
Canada
Sweden
Sweden
Switzerland
Sweden
Australia
Australia
Switzerland
Finland
Australia
Switzerland
Switzerland
Switzerland
Australia
Australia
Norway
Norway
New Zealand
Norway
Finland
Norway
Denmark
New Zealand
Norway
Finland
New Zealand
Denmark
New Zealand
Finland
Denmark
Denmark
Denmark
New Zealand
Finland
Denmark
Finland
Austria
Netherlands
Netherlands
Netherlands
Austria
Austria
Netherlands
Belgium
Germany
Austria
Netherlands
Netherlands
Belgium 16
Country RepTrak速
Asia: On the rise
Iran (+10.8%), China (+7.9%) and India (+7.4%) are the most improved Asian countries have improved their reputations on average 3.9% (+1.7 Pulse points), although they are still weak (except for Japan)
+3.9% 17
Country RepTrakÂŽ China: Powerful economy, but weak reputation 8,0
Friendly 7,5
7,0
Lifestyle
6,5
Weight of the attributes
Beautiful
Safe place
Responsible Enjoyable
Ethic
6,0 Orogressive policies Progressive policies
Effective government Operates efficiently
5,5
Quality P&S
Culture Workforce Environment for business
5,0 Well-know n brands
Education 4,5
Technology 4,0 -20
-15
-10
-5
0
5
Country scores (differences from total average) Score of the attributes
Appealing Environment
Effective Government
Advanced Economy
Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
18
Country RepTrakÂŽ Japan: The strongest reputation in Asia 8,0
Friendly 7,5
7,0
Beautiful
Lifestyle
6,5
Weight of the attributes
Safe place
Responsible Ethic
Enjoyable
6,0 Orogressive policies Progressive policies
Effective government Operates efficiently
5,5
Quality P&S
Culture
Workforce Environment for business 5,0 Well-know n brands Education 4,5 Technology 4,0 -5
0
5
10
15
20
25
30
Country scores (differences from total average) Score of the attributes
Appealing Environment
Effective Government
Advanced Economy
Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
19
Country RepTrakÂŽ
Latin America: Positive trend Latin American countries continue to improve their reputations, except for Brazil (-2.4%). Colombia’s reputation improves as its economic indicators grow. The peace process seems to have had a very positive effect. Latin American countries have improved their reputations on average 3.1% in the last year.
+3.1%
20
Country RepTrakÂŽ Colombia: Reputation takes off
Colombia improves its reputation +20.4% since 2010, helped by the economy (PIB increases 4.2% year over year on average for the same period) and the peace process turnaround in 2012. Peace process started
50
+7.3 since 2010
40
(+20.4%)
30
2010
2011
2012
2013
2014
2015
Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
21
Country RepTrak®
Europe: Polarized In the context of economic crisis and constraint policies, Germany’s and France’s reputation fell slightly (-1.3% and 0.8% respectively). Northern European countries are in the top ten list while Spain (+6.1%), Portugal (6.1%), Italy (+5.4%) and Ireland (+5.2%) have improved their reputations after some economic indicators started to improve.
Greece’s reputation fell dramatically with its economic crises and default (it was the country in the study that fell the most in 2012), but since then there is a positive trend (+6.1%)
22
Country RepTrakÂŽ Italy: Standout country for its lifestyle, culture and well-known brands Relevance 6.0 5.4 4.4 3.8 3.6 3.3 2.8
Friendly & welcoming people
1
Appealing lifestyle
4
Enjoyable country
6
Beautiful country
2
Contributor to global culture Safe environment Well-known brands High quality products & services
1.1
Well-educated & reliable people -1.5 -1.9 -2.0 -3.2 -3.8 -4.1 -5.0 -5.7 -5.9
Progressive social & economic policies Responsible participant in the global community
12 3 15 11 13 8 5
Operates efficiently
10
Values education
16
Favorable environment for business
14
Technologically advanced
17
Effective government
9
Ethical country
7
Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
23
Country RepTrak®
Russia: Worsening… Crimea annexation and the Ukrainian crisis are costing Russia its reputation, worsening its downward trend (-3.2%)
Ukraine’s reputation is also affected (-2.8%) 24
Country RepTrakÂŽ
Russia: Unrequited reputation
Affinity quadrant
60% Positive
Mutual affinity
Difference between reputation score in the country and G8 average
Positive affinity equivalence
40%
India
20% Chile
Argentina Mexico China Peru
0%
Colombia
Italy Brazil Australia
-20%
Spain
Canada the United Kingdom France
-40%
Germany
United States of America South Korea Japan
Mutual rejection
-60% -100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
Negative
Negative affinity equivalence
80%
100%
Difference between country's reputation score and G8 average Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
25
Country RepTrak®
USA: Quantifying the ‘Obama Effect’ The USA’s reputation continues the positive trend under the Obama administration, though it seems to have stabilized. Overall, the USA has seen an improvement of 9.6 Pulse points since 2008. 60
+9.6 since 2008
50
(+20.2%)
40 2008
2009
2010
2011
2012
2013
2014
2015
Scoring scale 0-100. A difference among scores of ±1.4 points is significant at a 95% level of confidence..
26
76.8 76.6 76.1 74.6 73.8 71.8 66.5 64.7 63.1 59.5 59.1 57.4 54.5 53.5
5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 21 22
Russia India Germany United States of America Japan the United Kingdom Peru China France Turkey Chile Spain Colombia Mexico Argentina South Korea Italy Brazil South Africa
38.7
81.7
4
49.4
82.3
3
79.4
84.3
2
Canada
90.1
1
Australia
Country RepTrak®
2015 Country RepTrak® - Internal Reputation (Self-Image) Global mean (68.3)
Scoring scale 0-100. A difference among scores of ±1.4 points is significant at a 95% level of confidence..
27
Country RepTrakÂŽ
Gap between Internal and External Reputation
-15.9
Italy
2.1
Argentina
-11.0
3.7
South Korea
South Africa
6.2
Canada
-6.7
6.6
the United Kingdom
Brazil
7.5
France
-4.8
7.7
Japan
Spain
9.0
Mexico
13.8
Australia
9.8
16.4
Colombia
Chile
16.8
Turkey
10.4
19.0
Peru
Countries least critical of themselves
Germany
19.8
29.1
India
United States of America
31.3
China
Russia
47.2
Countries with a major gap between internal (self-image) and external perceptions
Countries most critical of themselves
Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
28
Country RepTrakÂŽ
Gap between Internal and External Reputation for Spain by Year
External Externa
Internal Interna
80 2.3
70
12.5
2.8 4.8
GAP
4.1
60
7.3
10.9
2013
2014
50 2009
2010
2011
2012
2015
Scoring scale 0-100. A difference among scores of Âą1.4 points is significant at a 95% level of confidence..
29
Country RepTrak速
Key Factors in Reputation: Dimension Weights
27.4%
35.4%
36.1%
27.1%
36.9% Adj R2 = 0.694 N = 86,798
37.2%
Weights 2014
30
Country RepTrak速
Country RepTrak速 Top 10 by Dimension Appealing Environment
1 2 3 4 5 6 7 8 9 10
Advanced Economy
Effective Government
Canada
Japan
Sweden
Australia
Germany
Norway
Norway
Switzerland
Switzerland
Switzerland
Sweden
Canada
Sweden
Canada
Finland
Italy
Norway
Denmark
New Zealand
Netherlands
Netherlands
Finland
Finland
Germany
Netherlands
Denmark
Australia
Ireland
United States
New Zealand 31
Country RepTrak速
Effective Government 36.9%
Appealing Environment 36.1%
Advanced Economy 27.1%
Safe environment Responsible participant in the global community Ethical country Progressive social & economic policies Effective government Operates efficiently Favorable environment for business
6.9 6.5 6.4 5.9 5.9 5.6 5.2
Friendly & welcoming people Beautiful country Appealing lifestyle Enjoyable country
7.6 7.0 6.6 6.4
High quality products & services Contributor to global culture Well-educated & reliable people Well-known brands Values education Technologically advanced
5.5 5.5 5.3 4.8 4.7 4.2 Adj R2 = 0.701 N = 50,847
32
Country RepTrak速
Countries reputation mapping China United States of America
Russia Technology Brands
Japan South Korea
Israel
India Culture
Education
Italy
Iran
Germany
France Saudi Arabia
P&S
United Kingdom
Taiwan Iraq
Brazil
Egypt Mexico Beautiful
Colombia
Friendly Greece
Business
Pakistan
Singapore
Enjoyable South Africa Argentina
Nigeria
Turkey
Venezuela
Chile
Peru
Qatar
Thailand Algeria
United Arab Emirates
Spain Malaysia
Netherlands Responsible Government Efficient
Austria
Switzerland Sweden Belgium Denmark Finland
Canada Lifestyle Norway Ireland Australia Kazakhstan Progressive policies Safety Portugal Ethical New Zealand
Country RepTrakŽ Emotional Halo (emotional/rational gap) – Top 10 / Bottom 10 Emotional Halo (Pulse-Index)
Emotional Halo (Pulse-Index)
1
Spain
64,0
+3,8
1
United States of America
64,9
-7,9
2
Australia
72,8
+3,5
2
Russia
42,5
-7,4
3
Brazil
52,6
+3,5
3
China
48,1
-5,6
4
New Zealand
71,7
+3,3
4
Saudi Arabia
46,0
-5,0
5
Portugal
61,3
+3,1
5
Qatar
51,4
-4,8
6
Philippines
51,6
+2,9
6
Colombia
47,5
-4,5
7
Ireland
69,5
+2,5
7
Germany
73,2
-4,2
8
Peru
53,4
+2,3
8
South Korea
54,9
-4,1
9
Mexico
47,8
+2,2
9
Iran
33,7
-3,9
73,1
+1,9
72,7
-3,8
10 Finland
10 Japan
Country RepTrak®
Agenda • Country RepTrak® methodology • The most reputed countries • Why is a country’s reputation important?
Country RepTrak®
Today’s World Context: International Tourism
International tourist arrivals increased by 4.4% in 2014 to reach
1.135 billion Growth is expected to continue in 2015 by 3 to 4%
Source: UNWTO World Tourism Barometer 2014
36
Country RepTrak®
Today’s World Context: International FDI
Global foreign direct investment (FDI) inflows reached
US$ 1.2 trillion in 2014 and is projected to reach US$ 1.4 trillion in 2015 Source: United Nations Conference on Trade and Development (UNCTAD)
37
Country RepTrak®
Today’s World Context: International Trade
International trade in 2014 is forecasted to grow by
2.8% and
3.4% for global GDP Sources: WTO Secretariat and IMF
38
Country RepTrak速
Why Is Country Reputation Important? As in the case of companies, countries also have their own reputation and that has an impact on their performance. Countries with a good reputation welcome more tourists
Countries with a good reputation increase exports
Countries with a good reputation improve their public diplomacy
Countries with a good reputation attract FDI
Countries with a good reputation attract foreign knowledge & talent
39
Country RepTrak速
Value Creation: Reputation & Declared Intentions
Live 0.78
Buy 0.77
Work 0.77
Invest 0.75
Visit 0.74
Study 0.76
Attend/organize events 0.74 40
Country RepTrak速
Key Drivers for Influencing Stakeholder Behaviors VISIT
INVEST Key Drivers Favorable environment for business Well-known brands Technologically advanced
LIVE
Key Drivers Beautiful country Enjoyable country Friendly & welcoming people Key Drivers Appealing lifestyle Safe environment Ethical country
BUY
Key Drivers High quality products & services Well-known brands Friendly & welcoming people
41
Country RepTrak速
Key Drivers for Influencing Stakeholder Behaviors
WORK
Key Drivers Safe environment Favorable environment for business Appealing lifestyle
STUDY
ATTEND/ORGANIZE EVENTS
Key Drivers Safe environment Contributor to global culture Well-known brands
Key Drivers Enjoyable country Beautiful country Safe environment
42
Country RepTrak速
Supportive Behaviours towards Top 10 Countries Visit Canada
Invest
1
81.8
Italy
2
80.8
Australia
3
80.6
Norway
4
79.7
Switzerland
5
79.1
New Zealand
6
78.0
Sweden
7
78.0
the Netherlands
8
78.0
Spain
9
77.2
Ireland
10
77.0
Switzerland
1
Canada
2
Sweden
3
69.0
Germany
4
68.6
Norway
5
68.4
Australia
6
67.5
Japan
7
67.4
Denmark
8
66.3
the Netherlands
9
66.0
10
65.4
Finland
Buy
Live Canada
1
Australia
2
Switzerland
3
New Zealand
4
Norway
5
Sweden
6
69.9
Denmark
7
the Netherlands
8
Finland Italy
72.1 71.0
Switzerland
1
72.6
Germany
2
74.2
72.4
Sweden
3
73.8
71.2
Japan
4
73.4
70.5
Canada
5
73.0
Norway
6
72.9
68.9
Italy
7
71.8
68.8
Finland
8
71.2
9
68.4
the Netherlands
10
67.7
Denmark
75.4
76.2
9
70.7
10
70.4
43
Country RepTrak速
Supportive Behaviours towards Top 10 Countries Work Canada
1
Switzerland
2
Australia
3
Norway
4
Study Canada
1
Switzerland
2
72.8
Australia
3
72.8
72.0
Sweden
4
72.4 72.4
75.9 74.3
76.2 73.8
Sweden
5
70.9
Norway
5
New Zealand
6
70.1
the United Kingdom
6
Denmark
7
69.5
Denmark
7
70.5
the Netherlands
8
69.4
Finland
8
70.4
Germany
9
69.4
Germany
9
70.3
10
68.5
the Netherlands
10
70.1
Finland
72.2
Attend/Organize events Switzerland
1
73.9
Canada
2
73.8
Australia
3
73.7
Norway
4
72.7
Sweden
5
72.4
Finland
6
71.9
New Zealand
7
the Netherlands
8
69.7
Denmark
9
69.6
10
69.2
Italy
70.9
44
Country RepTrakÂŽ
Country Reputation & Tourism According to the analysis carried out by Reputation Institute, there is a demonstrated correlation between the a country’s reputation and the income it receives from tourism.
Country Reputation
Intention to Visit
0.7
Tourism ($)
0.6
*Based on World Bank data *Pearson correlation
45
Country RepTrak® Conclusions 1 • Country reputations can be measured in a similar way to those of people or companies. • A country’s overall reputation 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. • • •
Canada is perceived as the top country in quality of life. Sweden 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 on the supportive behaviours of stakeholders that improve a country’s economy: tourist arrivals, foreign direct investment, exports, etc.
Country RepTrak® Conclusions 2 • Canada takes first place in the ranking, recovering the leadership it had between 2011 and 2013. • Canada, Norway, Switzerland, Sweden and Australia are the best perceived countries among the population of the most relevant economies of the world. • Latin American countries still maintain a growth path (average +3.1%), headed by Colombia. On the other hand, Brazil’s reputation fell (-2.4%) as a consequence of institutional and economic crisis. • Asian countries keep improving their reputations, led by Iran (10.8%), although still at very low levels. India and China have relevant increases in 2015 (+7.4% and +7.9%, respectively). • European countries are changing trends: Germany’s reputation starts to erode (-1.3%), while Spain (+6.1%), Portugal (6.1%), Italy (+5.4%) and Ireland (+5.2%) improved their reputations after their economic indicators started to improve. • Russia’s reputation shows a negative trend, damaged by the Ukrainian crisis and Crimea’s annexation. • USA’s reputation seems to have stabilized after the positive trend under the Obama administration, improving 9.6 Pulse points since 2008.
Country RepTrak速
How to Help a Place Manage its Reputation
There are three basic elements:
Perceptions tracking
Analysis of economic implications
Action plans
48
Country RepTrak®
Action Planning: Tactical Actions Communication is required to capitalize on good reality and overcome poor perceptions
REALITY
Good
Change is required to alter ’reality’ and minimize reputational risk
Bad
Bad
Good
PERCEPTION 49
Country RepTrak®
The report and recording from this webinar can be found on Reputation Institute’s website:
http://www.reputationinstitute.com/research/Country-RepTrak
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RepTrak® is a registered trademark of Reputation Institute. Copyright © 2015 Reputation Institute. All rights reserved.