Reputation Methodology

RRC employs a rigorous methodology in all phases of the rating process. Our process is based on years of time-tested methodologies in the research survey and credit analysis industries. The assignment of Reputation Strength Ratings (RSRs) is performed by a Rating Committee composed of experts in research methodology, financial analysis and the specific industry under investigation. While quantitative metrics are heavily employed as part of the rating process, it is important to understand that such data is simply a starting point for the rating process. Qualitative input from members of the Rating Committee as well as the financial analysts or other industry experts surveyed is a critical, and often defining, element in the assignment of the final reputational rating.

Companies selected for inclusion in each industry study are identified through a process of merging/purging a variety of lists and/or market indices identifying leading companies in that industry. Additionally, RRC's industry experts identify companies for inclusion in the study that may be smaller in terms of market capitalization but are judged to have potential impact on the industry 'landscape' by the industry experts.

Interviews are conducted among senior executives within the industry and financial analysts specializing in that industry. Respondents are asked to rate a subset of companies in the industry based on their level of familiarity with each company. The survey administered to each group differs but is comprehensive in nature and based on decades of experience in reputational research at Opinion Research Corporation and the input of Professor Stephen A. Greyser of the Harvard Business School (an RRC Board member). All interviews use a telephone survey methodology with strict adherence to rigorous interviewing protocols and CASRO (Council of American Survey Research Organizations) guidelines. Respondents are identified using a multi-stage screening process to ensure appropriateness for inclusion in the survey. All respondents are randomly selected for the interview using sample frames recognized as objective. On average, interviews among senior executives take 25 minutes to complete with interviews among financial analysts taking upwards of one hour. Financial analysts are given an honorarium in exchange for their participation in the study.

A more comprehensive explanation of the methodology is available with the purchase of each industry report.