TNS Reports: Automotive Companies Rated Highly for Corporate Social Responsibility in Emerging Markets

TNS Reports: Automotive Companies Rated Highly for Corporate Social Responsibility in Emerging Markets

May 09, 2006

Shell Ranked Highest, Followed by the Two Volkswagen JVs in China

    SHANGHAI, China, May 9 /Xinhua-PRNewswire/ -- Consumers
in emerging markets expect automotive corporations to take
an active role in the economic and social development of
their country, according to recent findings from TNS
Automotive, the world's largest automotive research
company.

    The 2006 Global Corporate Social Responsibility (CSR)
study, which was conducted in March and April across 16
countries, reveals that emerging markets such as Thailand,
India, and China rate automotive related companies higher
in regards to corporate social responsibility than mature
markets of the west.  The study attributes this to the
general public's high ratings of the automotive sector in
emerging markets for generating jobs and improving quality
of life. 

    Chris Bonsi, regional director TNS Automotive explains:


    "Thailand, India, and China have recorded
phenomenal industry growth in the automotive sector and
consumers in these markets see automotive related companies
playing an integral role in the economic and social
development of their country.  Conversely, the governments
of some emerging markets do not fully recognise the
contribution of the automotive sector in generating jobs
for their country -- in some cases, levying high taxes on
the automotive sector because the end-products are seen to
be luxury items that only a few can afford, without
considering the jobs the sector creates for everyday people
manufacturing, distributing, and servicing these
products." 

    Bonsi adds, "For mature markets, consumers rate
the automotive sector poorly on job generation and impact
on the environment.  Therefore, the strategies for
corporations in improving their reputation for corporate
social responsibility would need to vary depending on
market maturity."

    The Global CSR study was conducted by TNS to understand
the general public's perception of the automotive sector in
regards to compliance and contribution towards corporate,
social, environmental, and philanthropic activities. 
Consumers were asked to rate corporations from the
passenger car, commercial vehicle, motorcycle, tire, and
oil sectors.  All of the scores were indexed using TNS'
globally recognized TRI*M stakeholder management system
with the global average set to 100.  Scores above one
hundred indicate strong public goodwill towards the
corporation.  

    Among the 45 companies surveyed in China, Shell ranked
highest for corporate social responsibility with strong
ratings for sustaining the environment through innovation
and technology.  Following closely behind Shell were the JV
companies of Volkswagen -- Shanghai VW and FAW VW.  Both
Shanghai VW and FAW VW received very favourable ratings for
manufacturing safe products and for improving the quality of
life for people in China. 

    "Shell and Volkswagen look back to a quite long
history of activities in China and enjoy a very good
reputation.  The results of the study clearly indicate that
Chinese consumers acknowledge the contribution of the three
companies to the formidable success of the automotive
industry on the mainland", says Klaus Paur, Director
Automotive at TNS China."  

    The study shows that consumers across the world are
very likely to accept or reject a corporation based on its
reputation for social and environmental responsibility.  In
China, nine out of ten consumers indicated that they were
more likely to purchase a product or service from a
corporation with responsible business practices while nine
out of ten indicated that they would refrain from
purchasing a product or service if the corporation failed
to follow environmentally friendly or ethical business
practices.

    Klaus Paur, Director Automotive at TNS China explains,
"These findings clearly show that values are important
to consumers in China.  Corporations that realise this and
strengthen CSR activities will benefit from the goodwill
they will generate with consumers in China."

    Bonsi concludes, "The general public is a very
important stakeholder for the automotive industry as a
corporation's reputation is often judged in the court of
public opinion.  Corporations that fail to engage society
often suffer serious consequences when there is a crisis. 
However, corporations that develop strong public goodwill
can use this as 'social insurance' to tide them over during
difficult periods.  The CSR champions identified by this
study are already seeing the value in their investment; now
other companies, need to take notice." 

    Notes to Editor:

    The TNS Automotive Global Corporate Social
Responsibility (CSR) provides an in-depth understanding of
global perceptions of the general public towards automotive
corporations.  The report is based responses from over
16,000 consumers in 16 major automotive markets.  The TNS
Global CSR study will be conducted on an annual basis to
provide the industry with the most up-to-date information
on the general public's perceptions of their CSR
performance and the goodwill derived from their
activities.

    About TNS

    TNS is a market information group:

     -- The world's largest provider of custom research and
analysis  
     -- A leader in political and social polling
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intelligence and TV and 
        radio audience measurement services.  

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    About TNS Automotive

    TNS is a leading provider of Automotive research. 
Teams of researchers dedicated to the automotive sector
combine in-depth market knowledge, the latest research
techniques and sophisticated technology to provide
immediate and informed market measurement, analysis and
insight for all your research requirements, be they global
or local, customised or syndicated, quantitative or
qualitative.  We act as your sixth sense of business. 

    This press release is provided for editorial use only. 
No advertising or other promotional use can be made of the
press release without prior written approval from TNS
([e-mail]).

    For more information, please contact:

    Shanghai:

     Melanie Stroehlein
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail]

     Gigi Yuan
     Tel:   [phone] ext.162
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     Web:   http://www.tns-global.com

    Singapore:

     Chris Bonsi
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     Email: [e-mail] 

SOURCE  TNS