/ 20 September 2016

SA’s most reputable companies share a focus on vision and leadership

Sifiso Falala
Sifiso Falala

September is Top Companies Reputation Index (TCRI) month in South Africa. The Mail & Guardian will release the 2016 TCRI results to the public on September 30, revealing the most reputable top companies in the country. The rankings follow research conducted independently by Plus 94 Research, and the supplement will present the reputation scores of more than 160 top South African businesses.

Corporate reputation is perhaps the single biggest indicator of a company’s wellbeing. This in turn influences how the country is perceived and how businesses perform. Two-thirds of the World Economic Forum’s Global Competitiveness Index is based on an Executive Opinion Survey, the opinions of which are allied to business reputation and results. In short, the aggregate reputation of businesses in South Africa will be correlated to some of its crucial statistics, albeit it with a time lag, including its sovereign debt rating. Reputation measures are more important than any brand measures in terms of business longevity and sustainability.

This week we look at vision and leadership. Numerous academic studies, including those by HC Ngambi (2010), Stevens (2009) and White and White (2009) show there is a direct and positive relationship between employee morale and the leadership of a business. This is particularly affected by the decisions leaders make, which are in turn influenced by their vision.

Companies with good reputations attract and retain competent staff. Poor leadership and weak decision-making leads to low staff morale and business decline. The reputation of a business is transferred directly to its employees; those working for more reputable companies are likely viewed through the favourable lens of a good reputation.

Plus 94 Research in polling the public has found that it is difficult for respondents to actually articulate the vision of a business. Respondents are more comfortable talking about what the business has accomplished which is a direct result, in many ways, of its vision and mission. While all businesses tend to publish their vision and mission, very few actually measure what impact such promises have on their consumers, and if they are indeed credible.

Companies with the highest overall scores in the past, such as Coca-Cola, Vodacom, Toyota, Pick n Pay, Volkswagen, Johnson & Johnson and MTN, have also tended to have high vision and leadership scores. Interestingly, companies with strong vision and leadership are also perceived to have impressive financial results. With economic growth prospects in the country having been revised downwards a few times this year, it will be important to note the impact that this has had on corporate reputation.

These facts will be revealed at a dinner function hosted by the Mail & Guardian on September 28 2016.