Maximizing Corporate Reputation Through Effective Governance

Abstract

The aim of this dissertation research is to develop an understanding of how components of the organizational structure, leadership structures at the top level and resource allocation decisions may affect corporate reputation as defined by the reputation quotient(RQ),and which aspects of running a company top management should keep an eye on in order to maximize the reputation of their company?

Based on a literature review on the topic of corporate reputation and governance, which comprises the first part of the dissertation, a positivistic, deductive approach was chosen and a self-administered questionnaire has been developed that was sent out to the CEOs of the 60 companies currently covered in the 2002 RQ-rankings. The detailed discussion of the research method can be found in the third chapter.

Due to a low response rate, the original research approach had to be adapted, in that - where available - the information requested in the questionnaire was filled by the author with publicly-available data from various sources, including the Securities and Exchange Commission (SEC), brokerage reports, company web sites and third-party information providers, aggregating information from these sources. Because the data points obtained this way, in all cases are based on official company disclosures (i.e. SEC-filings,press releases, published web sites), for which the companies are held legally liable, it is assumed that the quality of the data points obtained this way is just as accurate as from having received it as part of the filled-out questionnaires. This for one, because of the legal implications mentioned above and for the other because the answers to the questionnaire would have been based on the same internal data used to provide information to the Securities and Exchange Commission and general public.

This adaptation of approach narrowed down the original sample size of 60 to 32 companies, because for 28 companies not sufficient public information was available and/ or the companies were not listed in both the 2001 and 2002 RQ-rankings. A second effect is that fewer of the originally intended aspects, especially relating to leadership, could be investigated, as no reliable public information was available. Nevertheless, the sample size was sufficient to draw statistically valid conclusions.

About the Author

Dr. Daniel F. Oriesek currently works for the consulting firm of Booz Allen Hamilton out of their Zurich office.

The focus of his work lies on questions relating to strategy, organization, change management and leadership.

Besides his experience on various projects, Dr. Oriesek is active in promoting the tool of business wargaming in Europe. He has published articles and conducted a number of informational events also in close cooperation with the General Staff School of the Swiss Army, where he is a guest lecturer.

Before joining Booz Allen & Hamilton, Dr. Oriesek was a buy-side financial analyst with UBS Brinson in New York and prior to that he worked in several functions within UBS in Zurich.

Dr. Oriesek holds a Bachelor of Science Degree in Management from City University in Zurich, an MBA from the Stern School of Business at New York University and a PhD from Southern California University for Professional Studies.

Dr. Oriesek holds the rank of Major in the Swiss Army and after leading a rifle company and a logistics unit at the Division level for several years has been selected for the General Staff.

Dr. Oriesek is a Swiss citizen. In addition to his native German, he is fluent in English and has a good knowledge of French.