Read carefully the case study, and use all information considered relevant to address the questions presented on this case.

CORPORATE REPUTATIONS ARE ON THE LINE During the last few years, there has been a great deal of negative publicity about business firms because of illegal and unethical behaviour by business executives and the economic woes that started in 2008. But some corporations continue to perform well, and to do good things for their stakeholders. Each year, the Reputation Institute publishes Global Pulse, which ranks the worlds 1000 largest companies according to their reputation with their stakeholders. Each companys score is determined by how well it scores on key performance indicators like products/services, innovation, workplace, citizenship, governance, and leadership. A list of the most respected corporations in Canada is published by KPMG/Ipsos-Reid. Several hundred leading Canadian CEOs are asked to assess Canadian corporations on eight performance categories such as long-term investment value, innovation and product/service development, financial performance, corporate social responsibility, corporate governance, human resource management, and customer service. Surveys about corporate reputations are also conducted in the United States. The Reputation Quotient study is a joint effort of Harris Interactive Inc., a Rochester, New York-based research firm, and the Reputation Institute of New York. Its surveys ask thousands of people to name two companies with the best reputation and two companies with the worst reputation. Respondents evaluate the companies on factors such as emotional appeal, financial performance, social responsibility, vision and leadership, and workplace environment. In one recent survey, 88 percent of respondents rated the reputation of American business as either not good or terrible. During the last few years, the reputations of entire industries have declined. For example, the reputations of the financial and automobile industries have declined sharply since the recession of 2008- 2009. Consumer impressions of the pharmaceutical and oil industries are also negative because of a widely held belief that these industries are overcharging consumers for the products they sell. The tobacco industry has also had problems because consumers think that information about the negative effects of smoking and nicotine were withheld from the public. When we consider negative information about business firms, we must remember that only a very small proportion of them are actually engaging in illegal or unethical behaviour. A review of the global, Canadian, and U.S. reputation listsand the criteria that are used to generate themprovides some reassuring testimony on the vitality and values of many businesses. It also shows the manner in which they conduct their operations and gives us some insights into how companies must perform to gain the kind of stellar reputation necessary to get on the list. These criteria all have one underlying theme: They reflect in one way or another the extent to which an organization and its managers effectively meet or exceed the needs Chapter 2The Environment of Business and expectations of their external constituents. For example, hiring and developing the brightest and most motivated people from the labour market results in high levels of employee talent. Likewise, respecting the needs of shareholders and other investors affects several criteria, including financial soundness, use of corporate assets, and longterm investment value. Says one expert, We admire companies that cater to their constituents. Questions:

1. Is the ranking something that investors should rely on in buying stock? 2. If you were a top manager and wanted your firm to move up in the rankings, how would you proceed?