The companies with the best reputations are those that bother to communicate with the public, Johndrow says, and these days that means communicating online with blogs, tweets and Facebook updates. He notes that Johnson & Johnson was the only company in the health care space in the top 50, let alone the top five. J&J's handling of the 1982 Tylenol cyanide crisis, which included a massive product recall, is often cited in business school textbooks as a shining example of crisis management. Last spring, the company's McNeil Consumer HealthCare division issued a 40-product recall, in part because of bacterial contamination in its production facilities. This time the crisis included a negative report from the Federal Drug Administration, and yet investors didn't seem concerned. According to a May poll by TheStreet, 70.4% of voters said the public will continue to trust J&J products, while only 29.6% of voters said the recalls have hurt J&J's reputation and will result in lower sales. This may be due in part to the fact that J&J made a point of issuing an apology from the CEO on its corporate blog.
Banks fare terribly in consumer perception, not only because of the recent financial crisis but also because "no financial services company has talked about themselves publicly about what they do as a company," Johndrow says.As for Pepsi rival Coca-Cola (KO), Coke came in at No. 24 on the reputable companies list, 19 steps below its chief rival. "Coke has done very little compared with Pepsi to engage with the general public as a company," Johndrow says. "Right now if you're not talking about what you're doing as a company, people assume you're doing something wrong," he says. "If you're quiet, the assumption is generally guilt." -- Wrtitten by Carmen Nobel in Boston. >To submit a news tip, send an email to: email@example.com.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV