[ by Howard Haykin ]

24/7 Wall Street published online Friday the results of a survey conducted by Harris Interactive involving 60 publicly-traded companies.  The results of the survey neatly translate into 2 listings:  the 10 Most Reputable publicly traded Firms in America, and the 10 least reputable firms among the 60 large American companies tested.  The survey analyzed each firm on 6 key characteristics, including:  (i) product quality, (ii) trust, (iii) social responsibility,  and, (iv) how employees are treated.

We recommend that readers start off by reading the Main posting - which provide an overview on the methodology used, statistics for all 20 stocks cited by 24/7 Wall Street, and more.  We therefore refer you to the following:  [ Behind the News, "Company Reputations - Best & Worst" for 2013," 2/15/13].

#1 Worst Reputation --- American International Group. (AIG)

> Reputation score: 48.57
> 2012 score: 46.18
> 1-yr. stock performance: 45.8%
> 12-month sales: $70.61 billion

Insurance giant American Int'l Group Inc. is the least reputable company in the country for the 5th year in a row, scoring in the “critical” range in each of those five years. The company’s reputation was significantly damaged in the midst of the financial crisis when it was required to accept bailout money from the U.S. government. Recently, AIG has initiated a public relations campaign that explains it has returned all the money the federal government lent it during the financial crisis, and that the government has actually netted a profit. At the same time, the company weighed suing the federal government, arguing that high interest rates and other restrictions on the company were not in the shareholders’ interest and also unconstitutional. AIG ultimately decided not to sue.

#2 Worst Reputation --- GOLDMAN Sachs.

> Reputation score: 49.39
> 2012 score: 47.57
> 1-yr. stock performance: 35.4%
> 12-month sales: $34.16 billion

Goldman Sachs (NYSE: GS) is one of just 2 companies to receive a reputation score below 50, which Harris refers to as “critical.” The company has been in the hot seat in the last several years as many argued that it played a large role in the financial crisis. In the last year, Goldman Sachs found itself mired in controversy once again when a former employee named Greg Smith wrote his resignation in The New York Times, arguing that company employees put their own interests before the interest of their clients. In Interbrand’s most recent brand rankings, Goldman’s value declined by 16% compared to the previous year.

Fronk noted that the company is the least trusted in America, with 76% of Americans believing that Goldman would not act in their best interest.

#5 Worst Reputation  ---  BANK OF AMERICA.

> Reputation score: 55.85
> 2012 score: 49.85
> 1-yr. stock performance: 50.8%
> 12 month sales: $75.16 billion

Like most financial services companies, Bank of America Corp. (NYSE: BAC) is still reeling from the damage to its reputation caused by the bank’s role in the financial crisis. Yet the company has improved its reputation in the last year. In 2012, the financial services giant ranked 3rd from the bottom, beating out only Goldman Sachs and AIG and receiving a “critical” reputational ranking. Fronk of Harris Interactive notes that Bank of America has improved in all six categories. He noted that since the company took a hard fall in reputation during the financial crisis, and that the company’s reputation has had a tailwind on its way back up.

#6 Worst in Reputation  ---  CITIGROUP.

> Reputation score: 55.90
> 2012 score: 55.95
> 1-yr. stock performance: 33.6%
> 12-month sales: $59.32 billion

Citigroup Inc. (NYSE: C) is still working to improve its image following its near destruction at the height of of the financial crisis, even as it continues to struggle. Brand Z noted that Citi’s brand value has declined 38% in the last year. Interbrand, on the other hand, said in its study that Citi’s brand value has declined just 12% year-over-year. Only 17.3% of respondents to the MSN survey rated Citigroup’s customer service as “excellent,” while 17% rated the customer service as “poor.” Citigroup has undergone some changes recently.

The company’s board ousted CEO Vikram Pandit in October and replaced him with company veteran Michael Corbat. The company recently announced it was cutting 11,000 positions from the company.

#8 Worst in Reputation  ---  JPMORGAN Chase.

> Reputation score: 58.20
> 2012 score: 54.84
> 1-yr. stock performance: 29.4%
> 12-month sales: $93.65 billion

While the financial crisis didn’t hit the bank as hard as it did most of its peers, J.P. Morgan Chase & Co. (NYSE: JPM) has had its share of controversies over the past year. The company lost approximately $5.8 billion when a trader commonly referred to as the London Whale took excessively large trading positions in complex financial instruments that ended up souring. In addition, there have been reports that the firm pushed its own mutual funds to clients over competitor funds even though they had cheaper and more-profitable options. J.P. Morgan’s brand value in 2012 declined 8% compared to 2011, according to Interbrand.

#9 Worst in Reputation  ---  WELLS FARGO.

> Reputation score: 60.47
> 2012 score: 59.50
> 1-yr. stock performance: 16.1%
> 12-month sales: $78.87 billion

Wells Fargo & Co.’s (NYSE: WFC) reputation score rose only slightly compared to last year. Still, according to Harris Interactive, it became the first of the “big four” banks whose consumers indicated they have started to admire and trust again. In the last year, the company’s stock rose just 16%, versus 29.4% for JPMorgan, 33% for Citigroup, and more than 50% for Bank of America. The company has also been unable to separate itself from perceptions of other similarly-large banks among consumers. Alongside JPMorgan, Bank of America, and Citigroup, Wells Fargo was named one of the worst companies for customer service in 2012 by MSN and JZ Analytics.