Wednesday, November 21, 2001
Ahold is the very first winner of the Dutch Reputation Award. Professor dr. Cees van Riel from the Reputation Institute presented the award and the accompanying work of art to Ahold president and CEO, Cees van der Hoeven in Utrecht on November 20. The award is the result of a representative survey into the reputation of twenty of the most well known companies in the Netherlands. Ahold scored the highest in the study which involved some 5400 Dutch people.
Press release from the European Reputation Institute.
Amsterdam, November 20, 2001
Ahold won with an RQ-score of 87.2 points. The top five also included Sony (77.3), Unilever (76.7), Heineken (76.6) and Microsoft (76.1).
The Dutch Reputation Award is an initiative of the Reputation Institute, Blauw Research BV and Amsterdam RAI Exhibition Center. The award is based on a study into the Reputation Quotient which covers both business indicators and the company's emotional impact. Unlike other studies, assessment is based on the judgement of all the stakeholders in a company. This includes investors, customers and potential staff as well as people who deliberately choose to boycott the company or its services. This makes the Reputation Quotient of a company an objective indicator.
In the US - where the Reputation Quotient was first developed by the Reputation Institute - the award has become a highly coveted test for companies. As a model that companies can use to compare themselves against each other, the RQ has developed into a benchmark for companies. It also has an influence on how financial analysts assess companies. In financial circles, RQ ratings are increasingly a source of interest and have become a regular feature in the columns of the financial press.
Ahold boss van der Hoeven was swift to respond: We're delighted with this award, especially as it focuses on areas close to the companys heart such as social policy, social responsibility, labour market, leadership and financial performance. Ahold is also very much aware of the fact that the most important rating is that of the customers, who visit over 9000 of our stores worldwide every day, including the Albert Heijn stores in the Netherlands.
The Reputation Quotient is based on a series of six Reputation Drivers. The six areas, for which over 5000 people scored were:
1. Emotional appeal people respect and admire these companies and spontaneously trust them.
2. Products and services are considered by users to have a good price-quality ratio, are objectively of good quality and manufacturers can be relied on to be innovative.
3. Vision and leadership are the characteristics of the management of these companies, which enables them to react swiftly and preempt market developments. This is something that is also recognized by the market.
4. Workplace environment is another key indicator of a successful company. The company is well-run, is good to work for which in turn means it is staffed by good people.
5. Social responsibility is crucial to company policy. An active environmental policy, social involvement and social responsibility are characteristic of a company with a good reputation.
6. Financial performance is ultimately the decisive factor as to whether a company is successful or not. Positive financial results consolidate a company's reputation. These include the history of financial performance, appeal to investors and future prospects.
Ahold scored the best in three of the six Reputation Drivers and was in the top three in four.
After an initial survey among 1500 Dutch people, 20 companies were nominated back in August. These were, in alphabetical order: ABN AMRO, Ahold, Akzo Nobel, Eneco, Essent, Heineken, ING Groep, KLM, KPN, Libertel Vodafone, Microsoft, Nuon, Oc, Philips, Rabobank, Shell, Sony, TPG, Unilever and Vendex KBB.
The reputation survey was carried out in the Netherlands by Blauw Research bv. one of the fastest growing polling companies in the country with a staff of over 90. Blauw works in collaboration with International Reputation Institute, represented in the Netherlands by Prof Dr. Cees van Riel, professor of Corporate Communication at the Erasmus University in Rotterdam.
Van Riel is the driving force behind this research methodology together with Professor Charles Fombrun of New York University's Stern School of Business who is also Executive Director of the Reputation Institute (www.reputationinstitute.com)
Amsterdam RAI Exhibition Center is also a joint initiator of the Dutch Reputation Award, as the award is the perfect basis for the World Reputation Forum a series of debates on reputation issues for top business people to be held for the first time on November 26, 2002.