By Jennifer Saunders and Bahar Gidwani, CSRHub
Many aspects of a company’s performance affect its brand value. Marketing spend, distribution strength, and product quality all have proven effects. This study indicates that a company’s perceived sustainability performance may be another important factor.
In 2013, CSRHub showed that its measures of perceived corporate sustainability performance had a 28% correlation with Brand Finance’s Brand Strength Indicator (BSI). CSRHub recently published an update that showed this correlation continues to persist for financial companies. This study extends our analysis to include three other independent brand ranking systems:
- RepTrak Pulse Score. The Reputation Institute’s RepTrak model examines the relationship between the emotional connection, or “Pulse” score, a “measure of the degree of Admiration, Trust, Good Feeling and Overall Esteem that a company stakeholder holds.”
- Interbrand’s Best Global Brands list. Interbrand provides an analysis and picture of how your brand is contributing to business results today. Interbrand publishes annually a “Best Global Brands” list of the 100 brands it considers most powerful.
- CoreBrand’s CBI. Tenet Partners’ CoreBrand Analytics group generates an annual Corporate Branding Index (CBI) that measures and quantifies the impact of investment in the corporate brand and how brands perform against peers both across and within industries.
We compared data from these sources with CSRHub ratings and brand strength data from our long time data source in the branding area, Brand Finance. CSRHub provides sustainability information on more than 14,000 companies in 127 countries. CSRHub’s ratings and metrics are drawn from more than 380 sustainability data sources.
Our research found that the scores from all four leading brand ranking systems correlated with at least one of CSRHub’s sustainability measures. Further, we found consistent results across the four systems that may help brand managers better understand how to coordinate with and support their company’s sustainability programs. In particular, we found a positive correlation between brand and Compensation & Benefits and Environment Policy & Reporting strength. Success in these areas seems tied to better brand rankings.