{"id":7857,"date":"2022-09-06T18:40:08","date_gmt":"2022-09-06T18:40:08","guid":{"rendered":"https:\/\/converseon.com\/?p=7857"},"modified":"2022-12-15T19:22:17","modified_gmt":"2022-12-15T19:22:17","slug":"publics-perception-corporate-covid-responses","status":"publish","type":"post","link":"https:\/\/converseon.com\/?p=7857","title":{"rendered":"Examining the Public\u2019s Perception of Early Corporate COVID Responses Offers Insight Into Effective Stakeholder-Driven Leadership"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">[Article originally posted on JUST Capital&#8217;s website <a href=\"https:\/\/justcapital.com\/news\/how-the-public-perceived-corporate-covid-responses-offers-stakeholder-leadership-insight\/\">here<\/a>.] <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"662\" src=\"https:\/\/converseon.com\/wp-content\/uploads\/2022\/09\/mcdonalds-covid.png\" alt=\"\" class=\"wp-image-7858\" srcset=\"https:\/\/converseon.com\/wp-content\/uploads\/2022\/09\/mcdonalds-covid.png 1024w, https:\/\/converseon.com\/wp-content\/uploads\/2022\/09\/mcdonalds-covid-300x194.png 300w, https:\/\/converseon.com\/wp-content\/uploads\/2022\/09\/mcdonalds-covid-768x497.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">(David Rogers\/Getty Images)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Sam Schrager is JUST\u2019s Director of Metrics and Data Analytics. He is joined in this collaboration by&nbsp;<a href=\"https:\/\/converseon.com\/\">Converseon<\/a>\u2018s Chief Innovation Officer, Glen Kushner, and Advisor, Larry Friedman. Converseon&nbsp;uses machine learning to track perception of brand purpose on social media using a combination of natural language processing, social intelligence, and advanced analytics. You can visit its&nbsp;<a href=\"https:\/\/www.brandpurpose.converseon.com\/\">Brand Purpose Intelligence Center<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fight against the coronavirus pandemic is still far from over, and corporations are still determining how to safely serve their stakeholders, especially their workers and the communities they serve. In fact, as JUST Capital has noted, the pandemic has forced companies to take stakeholder capitalism more seriously than ever. As we consider where we are headed, there is value to looking at the lessons of the past year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s why we decided to compare our complementary data sets for a look at how America\u2019s largest companies responded to the pandemic and how the public perceived those actions. JUST\u2019s data is drawn from its&nbsp;<a href=\"https:\/\/justcapital.com\/reports\/the-covid-19-corporate-response-tracker-how-americas-largest-employers-are-treating-stakeholders-amid-the-coronavirus-crisis\/\" target=\"_blank\" rel=\"noreferrer noopener\">COVID-19 Corporate Response Tracker<\/a>, a tool thoroughly measures the policies and actions of the country\u2019s largest companies, and Converseon\u2019s Brand Purpose rating, a perception score based upon AI-collected social media posts from the public, over the same time frame.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below, we\u2019ve taken 11 of America\u2019s most recognizable companies and found that for the majority, the public was in alignment with how the company responded, but that for others, there was a sharp disconnect due to the impact of negative stories.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Divergence Analysis<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Comparing our ratings yields one of three results for each company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If there is a&nbsp;<strong>Negative Public Perception Gap<\/strong>, the public reacted more negatively on social media toward that company\u2019s brand relative to the quality of that company\u2019s public response. The team at Converseon believes that by analyzing public perception and reactions on social media, brands can identify what they feel are negative perception gaps, for the sake of better alignment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A&nbsp;<strong>Perception Alignment<\/strong>&nbsp;indicates that the public\u2019s reaction was in line with the relative quality of the public corporate response.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And then a&nbsp;<strong>Positive Perception Gap<\/strong>&nbsp;exists where the public was reacting more positively than the way the company\u2019s public actions would otherwise indicate.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/Just-Capital-charts_Social-and-Survey-DEC_2020.001.png\" alt=\"\" class=\"wp-image-15172\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">(Converseon)To illustrate these three categories, we\u2019ll walk through the example of 11 companies included in the&nbsp;<a href=\"https:\/\/www.forbes.com\/sites\/ezequielminaya\/2020\/05\/26\/the-forbes-corporate-responders-new-ranking-of-nations-top-employers-responses-to-pandemic\/?sh=4458d43f4a51\">Forbes Corporate Responders<\/a>&nbsp;list from May, powered by JUST\u2019s data, which ranked how large corporations immediately responded to the onset of the pandemic in the U.S.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Of the 11 companies assessed, eight fall broadly within the retail sector (CVS,&nbsp;Home Depot, Kroger, Lowe\u2019s, McDonald\u2019s, Starbucks, Walgreens, and&nbsp;Walmart), while the remaining three are large banking institutions (Bank of America, JPMorgan Chase, and Wells Fargo).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our analysis found&nbsp;<strong>Perception Alignment<\/strong>&nbsp;for seven companies (<strong>Bank of America<\/strong>,&nbsp;<strong>CVS<\/strong>,&nbsp;<strong>Home Depot<\/strong>,&nbsp;<strong>Lowe\u2019s<\/strong>,&nbsp;<strong>Starbucks<\/strong>,&nbsp;<strong>Walgreens<\/strong>, and&nbsp;<strong>Wells Fargo<\/strong>) and a&nbsp;<strong>Negative Perception Gap<\/strong>&nbsp;for four (<strong>JPMorgan Chase<\/strong>,&nbsp;<strong>Kroger<\/strong>,&nbsp;<strong>McDonald\u2019s<\/strong>, and&nbsp;<strong>Walmart<\/strong>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><img decoding=\"async\" src=\"https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/revised-converseon-chart.png\" alt=\"\" width=\"1281\" height=\"987\" srcset=\"https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/revised-converseon-chart.png 1281w, https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/revised-converseon-chart-300x231.png 300w, https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/revised-converseon-chart-768x592.png 768w, https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/revised-converseon-chart-1024x789.png 1024w\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"caption-attachment-15214\">(Converseon)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reasons for Divergence: The McDonald\u2019s Example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Forbes Corporate Responders list, McDonald\u2019s scored a 3.64 out of a scale of 5 on its corporate COVID-19 response, as of May, and a score slightly above zero for its Brand Purpose. Reasons for this score include executives voluntarily cutting their base salaries by more than 25%, an expanded paid sick leave policy to address employee wellness concerns, and about $50 million worth of \u201cThank you Meals\u201d given for free to public safety and health workers. During this same time period, there was a significant push on social media supporting workers who were demanding a better paid sick leave policy and higher pay. It is also worth noting that JUST assesses McDonald\u2019s corporate workforce, and public perception of the brand includes both its assessment of the corporate leadership and the leadership of the company\u2019s primarily franchise restaurants.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><img decoding=\"async\" src=\"https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/Just-revised-slide.png\" alt=\"\" width=\"960\" height=\"540\" srcset=\"https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/Just-revised-slide.png 960w, https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/Just-revised-slide-300x169.png 300w, https:\/\/justcapital.com\/wp-content\/uploads\/2021\/01\/Just-revised-slide-768x432.png 768w\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"caption-attachment-15222\">(Converseon)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brand perception dipped to its lowest over this period in mid-March, coinciding with strikes. There was also a&nbsp;<a href=\"https:\/\/www.nytimes.com\/2020\/03\/19\/opinion\/mcdonalds-paid-leave-coronavirus.html\">high profile video feature<\/a>&nbsp;a few days later from the New York Times Opinion team that highlighted workers calling for paid sick leave and more safety precautions. Brand perception rebounded a month later with McDonald\u2019s announcement of Thank You Meals to frontline workers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By tracking in-the-moment perception as events occur, aspects of the reaction against McDonald\u2019s vs. its relatively positive corporate response become more clear.&nbsp;<a href=\"https:\/\/www.eater.com\/2020\/3\/16\/21181862\/are-mcdonalds-starbucks-and-other-chains-offering-paid-sick-leave-for-coronavirus\">As Eater noted in March<\/a>: \u201cMcDonald\u2019s says over&nbsp;<a href=\"https:\/\/corporate.mcdonalds.com\/corpmcd\/franchising\/overview.html\">90 percent of its stores<\/a>&nbsp;worldwide are operated by franchisees, and notes that franchisees, while required to adhere to state and local sick leave laws, are considered independent business owners. The McDonald\u2019s Corporation can recommend sick leave policies to its franchisees, but \u2014 according to the company \u2014 the franchisees do not have to implement them.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In that initial period, McDonald\u2019s corporate policies were relatively strong among other large companies in America, but the disconnect between corporate and franchisee requirements resulted in a Negative Perception Gap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we all know, the COVID-19 infection continued to ebb and flow throughout the year, and McDonald\u2019s notably&nbsp;<a href=\"https:\/\/www.cnbc.com\/2020\/11\/13\/mcdonalds-to-conduct-coronavirus-safety-checks-to-prevent-pandemic-fatigue.html\">announced franchisee safety inspections<\/a>&nbsp;in November after a meeting with franchise owners around health and safety. As we have seen, such a move was in line with correcting for what was the biggest pain point in the early stage of the pandemic.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benchmarking and Engagement<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Key to the guiding philosophy of stakeholder capitalism is that all stakeholders \u2013 workers, customers, communities, the environment, and shareholders \u2013 are taken into account in corporate strategy. The pandemic has dramatically shown that both effectively communicating how actions fit into an overall guiding purpose and carefully listening to what workers and customers are demanding are essential for leadership that benefits all stakeholders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This, of course, is easier said than done when it comes to massive, global corporations. That is precisely why we need to make use of an integrated view of the marketplace, combining insights from diverse sources to understand perception gaps, and identifying investments that are most critical to make.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[Article originally posted on JUST Capital&#8217;s website here.] Sam Schrager is JUST\u2019s Director of Metrics and Data Analytics. He is joined in this collaboration by&nbsp;Converseon\u2018s Chief Innovation Officer, Glen Kushner, and Advisor, Larry Friedman. Converseon&nbsp;uses machine learning to track perception of brand purpose on social media using a combination of natural language processing, social intelligence, [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":7922,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-7857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Public Perception of Corporate COVID Responses | Blog | Converseon\u2122<\/title>\n<meta name=\"description\" content=\"Converseon and JUST Capital join together to provide insights into effective stakeholder-driven leadership during COVID-19. 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