2007

Massachusetts Corporate
Reputation Survey

Conducted for

Morrissey & Co.

Methodology

Two hundred Boston area executives were asked to rate 74 Boston area businesses,
universities and hospital on various criteria. A total number of 2,817 ratings were
collected. From 2003-2005, only companies that were based in Massachusetts were
rated. Beginning in 2006, the survey was opened up to include some companies with a
large presence in Massachusetts.

Reputation rates were gathered and tallied using the same methods that have been in
place since 2003. Area executives were asked to use a 10-point scale to rate each
institution on:

 Overall reputation
 Products and services
 Place to work
 Social responsibility
 Ethics and corporate governance
 Financial stability

Overall reputation scores were compiled for each institution selected for the study. The
overall scores are based on the ratings of the factors listed above. The highest possible
reputation score is 100. For analytical purposes, a score of 60 or higher is considered a
superior reputation, a score between 50 and 60 is considered good, and a score below 40
is interpreted to mean the institution has not established a significant reputation for itself.
Significant changes in reputation over the past years are noted in this report.

 Rating of 60 or higher = Superior

 Rating of 50-60 = Very good
 Rating of 40-50 = Good
 Rating of 40 or lower = Has not established a significant reputation

Though a high reputation score means an institution has a superior reputation, a low
score is not necessarily indicative of an inferior reputation. In most cases, a low score is
caused by a lack of name recognition or familiarity with an organization.

Area executives were also asked to answer some questions relating to business conditions
and issues in the state. Those results are also included in this report.

2
 Executive Summary

Reputation Ratings

Boston College, which has been in the overall top ten for the last four studies, is number
one in the reputation ratings this year. Non-profit organizations continue to enjoy an
edge over for-profits when it comes to reputation ratings. The top ten non-profits also
comprise a majority of the overall top ten. The only for-profit companies that appear in
the top ten include UPS (second place) and Dunkin Donuts (fifth).

The second highest rated non-profit is Children’s Hospital, followed by Blue Cross Blue
Shield of Massachusetts, MIT, and the University of Massachusetts. Brigham and
Women’s Hospital, which held the number one spot among all organizations in 2006, is
ranked eighth among non-profits.

Harvard University is ranked sixth among non-profits; from 2003-2005 Harvard

University held the top spot among all organizations, including the non-profits. Tufts
University is ranked seventh among non-profits, while Tufts/New England Medical
Center is ninth and Tufts Health Plan is tenth.

Five of the top ten for-profit organizations were rated for the first time in 2006. UPS
garners the top rating of the for-profits, followed by Dunkin Donuts, which was ranked
first among the for-profits last year. In the number three spot is the Friendly Ice Cream
Corporation, followed by Yankee Candle Co. and BJ’s Wholesale Club. The rest of the
for-profit top ten includes Staples, Stop and Shop, Home Depot, Reebok and Citizen’s
Bank.

Boston College is, of course, ranked first among colleges and universities, followed by
MIT, the University of Massachusetts, Harvard University and Tufts University.

When looking at the top five hospitals, Children’s Hospital is first and is followed by
Brigham and Women’s Hospital and Tufts/New England Medical Center. Massachusetts
General Hospital and Beth Israel Deaconess Medical Center round out the list.

Blue Cross Blue Shield of Massachusetts is the top ranked HMO, while Tufts Health Plan
and Harvard Pilgrim Health Care are a distant second and third.

Citizens Bank is the top rated financial institution, beating out Bank of America for the
first time.

In general, technology and biotech companies are not recognized often enough by area
executives to gain a significant reputation rating.

3
Boston Business and Political Climate

Almost three-quarters of area executives either say it is too early or they are not sure what
impact Deval Patrick and his administration have had on the local economy. When asked
which party they will support in the upcoming presidential election, about one-half say
they don’t know or won’t support either party. Executives who do express a preference
will support the Democratic party by a three-to-one margin.

Most executives say their companies have implemented at least some green practices, and
almost all have some sort of a recycling program. Over one-third of area executives say
the green business movement is primarily driven by increased awareness of
environmental problems and causes; almost one-fifth say the severity of environmental
degradation is the main cause, while another fifth say it is the opportunity to reduce
energy and other operating costs.

Few executives expect their companies to hire Chief Reputation Officers; a majority has
never heard of the role.

When looking at Boston’s commercial real estate market, 42% say prices will increase,
while about one-third say prices will decrease or stay the same. When turning to the
housing market, executives are divided on whether housing costs are attracting new
residents or driving existing ones away.

A majority of executives are looking to increase or maintain their employment levels in

the coming year. Among those with plans to grow their business, a majority plan to do so
within the state. Executives mention costs associated with the cost of living, insurance,
taxes and real estate as the greatest challenges to doing business in the state.

4
 Summary of Findings

Reputation Ratings: Top Ten Non-profit Organizations

As noted in the methodology section of this report, 74 Massachusetts organizations were

rated by 200 area business executives on the following attributes: reputation, products
and services, place to work, degree of social responsibility, ethics and corporate
governance, and financial stability. A ten-point scale was used to measure opinions on
each of these attributes for each organization. The organizations were randomized so
each executive rated a unique selection of organizations, producing a total of 2,817
ratings. The scores of the overall reputation were given a weight of five, while the other
scores were give a weight of one, producing a maximum rating of 100. Executives who
had not heard of a particular organization were not asked to rate it on any attribute. If an
executive had heard of an institution, but could not offer a rating on any particular
attribute, a score of zero was assigned to that particular attribute.

In general, non-profit organizations tend to have higher overall reputation ratings than
for-profit entities do. The top ten non-profits have a high of 69.6 and a low of 56.0, while
the top ten for-profits range from a high of 68.3 and a low of 52.6. Boston College
maintains a superior rating of 69.6, and is also the highest rated organization of the year.
Children’s Hospital has a superior rating of 65.6; though this is a fairly significant drop
from the rating of 71.4 recorded last year, the hospital is still in the second highest rated
non-profit. Blue Cross Blue Shield of Massachusetts holds steady at a superior 65.3,
while MIT has a superior score of 64.9, which is fairly consistent with last year’s rating.
The University of Massachusetts has a superior rating of 62.2, which is almost identical
to last year’s 62.3. In earlier studies, the school’s reputation was measured by branch
(Amherst, Boston and Lowell). Last year (2006) was the first time the entire university
system was rated, therefore only 2006 results are comparable to the current MCRS.
Top Ten Non-Profit Organizations (1-5)
69.6
69.6
Boston College 65.2
64.5
65.1
65.6
71.4
Children’s Hospital 67.8
66.5
53.4
65.3
65.1
2007
63.4
BCBSMA 54.1
59.6 2006

64.9 2005
65.6
2004
MIT 60.3
59.4 2003
61.1
62.2
62.3
University of Massachusetts

0.0 20.0 40.0 60.0 80.0 100.0

5
Reputation Ratings: Top Ten Non-profit Organizations (continued)

Harvard University’s reputation rating has fallen to an all-time low of 60.9, though it is
still a superior rating and is in the top ten non-profits as well as the overall top ten. Tufts
University, while still superior, has also dropped from 69.2 last year to 60.1 this year.
Brigham and Women’s Hospital has its second-lowest rating of 58.6, going from
superior to very good in the past year. Tufts/New England Medical Center remains very
good with a score of 57.6, and Tufts Health Plan enjoys an increase from a good 48.1 last
year to a very good rating of 56.0 in 2007.

Top Ten Non-Profit Organizations (6-10)

60.9
67.8

Harvard University 71.1

70.6
68.2
60.1
69.2
67.1
Tufts University
64.5
56.9
58.6
72.7
2007
66.1
Brigham and Women’s Hospital 60.8
2006
45.0
57.6 2005
57.5
2004
51.7
Tufts/New England Medical Center 52.0 2003
52.9
56.0
48.1
52.5
Tufts Health Plan 52.2
59.7

0.0 20.0 40.0 60.0 80.0 100.0

6
Reputation Ratings: Top Ten For-profit Organizations

Half of the companies in the top ten for-profits were added to the MCRS last year, while
the other half are based in the state and have been part of the MCRS since its inception in
2003. The top for-profit is United Parcel Service. UPS has a superior rating of 68.3; last
year it had a rating of 59.6. Dunkin Donuts, which was the top for-profit organization in
2006, has fallen about eight points, though still holds the number two slot, with a
superior rating of 63.2.

The Friendly Ice Cream Corporation has risen from 52.4 in 2006 to 58.6 in 2007, slowly
building on its very good reputation. Yankee Candle Co. has its second highest rating
with a very good 58.0; this is a significant improvement on its good ratings garnered in
2005 and 2003. The reputation of BJ’s Wholesale Club continues to rise, with an all-time
high of 57.7 (very good).

Top Ten For-Profit Organizations (1-5)

68.3
United Parcel Service 59.6

63.2
Dunkin Donuts 71.5

58.6
Friendly Ice Cream Corporation 52.4 2007
2006

58.0 2005
59.7
2004
45.6
Yankee Candle Co. 55.0 2003
45.8
57.7
56.1
BJ’s Wholesale Club 53.3
53.3
48.6

0.0 20.0 40.0 60.0 80.0 100.0

7
Reputation Ratings: Top Ten For-profit Organizations (continued)

Staples has a very good reputation of 57.6, which is few points lower than the superior
scores recorded in the past three studies. Stop and Shop, which made its debut with a
superior rating of 60.4 in 2006, has a very good reputation of 54.6. Home Depot also
enjoys a very good reputation (54.3), which is also down from a superior 60.7.

Reebok’s reputation is still seen as very good, an improvement on the good ratings in
2005 and 2004. Citizen’s Bank continues to have a very good reputation.

Top Ten For-Profit Organizations (6-10)

57.6
61.4
Staples 63.3
60.2
54.8
54.6
Stop and Shop 60.4

54.3
Home Depot
60.7 2007

2006

53.6 2005
57.5
2004
Reebok 45.9
48.8 2003
58.9
52.6
53.9
Citizens Bank 58.4
56.3
46.5

0.0 20.0 40.0 60.0 80.0 100.0

8
Reputation Ratings: Top Ten Overall

In general, non-profits still enjoy higher reputation ratings than for-profit entities. Eight
of the top ten organizations are non-profits. The highest reputation rating is still held by
a non-profit organization. Boston College takes the top honors this year with a superior
rating of 69.6. The next highest reputation rating goes to the for-profit UPS (a superior
68.3), followed by Children’s Hospital (a superior 65.6).

Blue Cross Blue Shield of MA has a stable superior rating of 65.3, and MIT also remains
stable with a superior 64.9.

Top Ten Overall (1-5)

69.6
69.6
Boston College 65.2
64.5
65.1

68.3
UPS 59.6
2007

2006
65.6
71.4 2005

Children’s Hospital 67.8

2004
66.5
53.4
2003
65.3
65.1
BCBS of MA 63.4
54.0
59.6

64.9
65.6
60.3
MIT 59.4
61.1

0.0 20.0 40.0 60.0 80.0 100.0

9
Reputation Ratings: Top Ten Overall (continued)

Dunkin Donuts still enjoys a superior rating, though its score has dropped from 71.5 in
2006 to 63.2 in 2007. The University of Massachusetts has a stable superior rating of
62.2, and Harvard’s rating of 60.9 is down from past years. Tufts University has a
superior rating of 60.1 (down from 69.2 last year).

Brigham and Women’s hospital, which has enjoyed a superior reputation rating from
2004-2006, and fallen to a very good rating of 58.6.

Top Ten Overall (6-10)

63.2
71.5
Dunkin Donuts

62.2
62.3
University of Massachusetts 2007

2006
60.9
67.8 2005

Harvard University 71.1

2004
70.6
68.2
2003
60.1
69.2
67.1
Tufts University 64.5
56.9

58.6
72.7
66.1
Brigham and Women’s Hospital 60.8
45.0

0.0 20.0 40.0 60.0 80.0 100.0

10
Reputation Ratings: Top Five Colleges & Universities

Boston College is the top college again this year, with a consistent superior rating of
69.6. MIT’s rating remains constant (64.9, compared to 65.6 last year), as does the
University of Massachusetts (62.2, compared to 62.3 last year).

Harvard University has a superior rating of 60.9, which is its lowest rating to date. Tufts
University has also fallen this year, from 69.2 in 2006 to 60.1 in 2007.

Top Five Colleges & Universities

69.6
69.6
Boston College 65.2
64.5
65.1
64.9
65.6
MIT 60.3
59.4
2007
61.1 2006
62.2
62.3 2005
University of Massachusetts 2004

2003
60.9
67.8
71.1
Harvard University 70.6
68.2
60.1
69.2
67.1
Tufts University
64.5
56.9

0.0 20.0 40.0 60.0 80.0 100.0

11
Reputation Ratings: Top Five Hospitals

Children’s Hospital takes the top slot for hospitals, with a superior rating of 65.6.
Brigham and Women’s Hospital is given a rating of very good (58.6) for the first time; it
had a superior rating from 2004-2006, while in 2003 it was considered to have a good
reputation.

Massachusetts General Hospital has an all-time low rating of 54.9, compared to 66.8 last
year, 65.2 in 2005, 65.1 in 2004 and 60.9 in 2003. Beth Israel Deaconess Medical Center
is given a very good rating of 52.4, which is lower than its scores from the past three
studies (it was given a good rating of 41.5 in 2003).

Top Five Hospitals

65.6
71.4
Children’s Hospital 67.8
66.5
53.4
58.6
72.7
Brigham and Women’s Hospital 66.1 2007
60.8
45.0 2006
57.6
57.5 2005

Tufts/New England Medical Center 51.7

52.0 2004
52.9
2003
54.9
66.8
Mass. General Hospital 65.2
65.1
60.9
52.4
62.3
Beth Israel Deaconess Medical Center 58.6
54.7
41.5

0.0 20.0 40.0 60.0 80.0 100.0

12
Reputation Ratings: Top Four HMOs

Blue Cross Blue Shield of Massachusetts is the only HMO with a superior rating (65.3) .
The next most highly rated HMO is the Tufts Health Plan, which is given a very good
rating of 56.0; this is the highest rating given to the plan since 2003 (a very good 59.7).

Harvard Pilgrim Health Plan has a very good rating of 54.7, which is its highest rating to
date (53.5 in both 2006 and 2003, 52.5 in 2005 and 52.8 in 2004). In general, Fallon
Community Health Plan has not established a significant reputation for itself, though it
did garner ratings of good in 2005 and 2003.

Top Four HMOs

65.3
65.1
63.4
BCBSMA
54.1
59.6

56.0
2007
48.1
Tufts Health Plan 52.5 2006
52.2
59.7 2005

54.7 2004
53.5
2003
Harvard Pilgrim Health Care 52.5
52.8
53.5

37.3
36.6
Fallon Community Health Plan 45.6
35.6
41.1

0.0 20.0 40.0 60.0 80.0 100.0

13
Reputation Ratings: Top Five Financial Institutions

Citizens Bank has a very good rating of 52.6, which is similar to the 53.9 in 2006, but is
down from ratings in 2005 and 2004 (58.4 and 56.3, respectively). Fidelity Investments
also enjoys a very good rating (52.0) though it is down from its ratings in 2006, 2004 and
2003 (58.5, 63.2 and 63.3).

Bank of America has a very good rating of 50.7, which is down from its debut score of
57.3 last year. State Street has a good rating of 48.1, which is its highest rating since
2004 (50.5). Putnam Investments has still not established a significant reputation among
area executives.

Top Five Financial Institutions

52.6
53.9
Citizens Bank 58.4
56.3
46.5
52.0
58.5
Fidelity Investments 49.1
2007
63.2
63.3 2006
50.7
Bank of America 57.3 2005

2004

2003
48.1
37.0
45.6
State Street 50.5
40.3

38.4
38.9
Putnam Investments 32.3
31.1
34.9

0.0 20.0 40.0 60.0 80.0 100.0

14
Reputation Ratings: Top Four Technology Companies

The state’s technology companies are not at the forefront of many area executives’
minds. Raytheon has a good reputation of 46.4, which is down from 51.0 last year, but
remains consistent with ratings in 2005 and 2004. EMC Corp. has yet to establish a
significant reputation for itself among area executives. LoJack Corp. has not regained its
good reputation recorded in 2003 (44.6). Analog Devices has also not yet established a
significant reputation for itself in the state.

Top Four Technology

46.4
51.0
43.6
Raytheon Co.
48.3
33.4

38.9
2007
27.8
EMC Corp. 30.9 2006
31.1
35.1 2005

35.2 2004
34.5
2003
LoJack Corp. 37.8
44.6

23.3
25.9
Analog Devices 23.7
19.3
20.6

0.0 20.0 40.0 60.0 80.0 100.0

15
Reputation Ratings: Top Four Biotech

Biotechnology companies are not easily recognized or rated by a majority of the surveyed
area executives. Boston Scientific remains stable at 37.7 (37.2 last year), while Genzyme
remains stable at 29.8 (28.1 last year). Palomar Medical Technologies and Hologic have
yet to establish significant reputations in the MCRS.

Top Four Biotech

37.7
37.2

Boston Scientific Corp. 29.5

40.4
26.8

29.8
28.1 2007

Genzyme Corp. 2006

19.1 2005

13.0 2004

Palomar Medical Technologies 2.6 2003

7.6

8.1
8.9
Hologic 8.8

7.1

0.0 20.0 40.0 60.0 80.0 100.0

16
The Governor’s Impact on the Economy

Approximately three-quarters (74%) of area executives say it is either too early to tell or
they don’t know if the Governor and his administration have had a positive or negative
impact on the economy. Almost one-fifth (18%) say Deval Patrick and his administration
have contributed positively to the economy, while 8% say the contribution has been
negative.

Do you think Deval Patrick and his

administration have contributed positively or
negatively to the economy?
C o ntrib u ted
n eg atively
8%
Co ntrib ute d
p o sitiv ely
18%

T o o e arly to
te ll
5 0%
Do n' t kno w
24 %

17
Green Practices

Over three-quarters of area executives say their company has implemented at least some
green practices in the interested of environmental sustainability. Thirty-eight percent say
they have implemented many green practices, while 40% say they have implemented
some. Only 15% say their company has not implemented any green practices, and 6%
don’t know if anything has been done in this area.

Has your company implemented green practices

in the interest of environmental sustainability?
(If yes) Have you implemented many green
practices, or just some?

Ye s, ma ny
38%

D on't know
6%

Y es, s om e
40%
No
15 %

18
Company Recycling Programs

Almost all area executives say their company recycles; about one-third (30%) only
recycle paper, while 62% say they recycle paper and other materials. Only six percent
say their company does not recycle, and 2% don’t know if recycling is offered.

Does your company recycle?

(If yes) Do you recycle paper only, or other
materials as well?

Y es , paper
only Yes , pap er
3 0% and oth er
ma ter ials
6 2%

Do n' t kn ow
2%

No
6%

19
Main Drivers of the Green Business Movement

Thirty-eight percent say increased awareness of environmental problems and causes is

the main driver of the green business movement, while 18% say it is the severity of
environmental degradation. Eighteen percent say the primary driver is the opportunity to
reduce energy and other operating costs, and 10% say it is the desire for a socially
responsible reputation.

Only six percent say the primary driver of the movement is consumer preference and
profitability of green companies, and 10% don’t know what the primary driver is.

Which of the following do you think is the

primary driver of the environmental or “green”
business movement?

Increased awareness of environmental 38%

problems and causes

The severity of environmental degradation 18%

Opportunities to reduce energy and other

operating costs
18%

Desire for a socially-responsible reputation 10%

Consumer preferences and profitability of 6%

green companies

(Don’t know) 10%

20
Increasing Virtual Interaction

Thirty-eight percent say the main effect from increasing virtual interaction will be an
increase in the amount of time to spend at home and with families, while 22% say it will
reduce person-to-person interaction, which will negatively influence employee morale.
Sixteen percent say small companies will more easily be able to increase their reach to a
global market, and 6% say it will reduce labor costs. Three percent say it will make
branding more difficult, and 14% say they don’t know.

Which of the following effects do you anticipate

will result from increasing virtual interaction?

Virtually hosted meetings will reduce required travel time,

enabling employees to spend more time at home and with 38%
family

Virtual interactions will decrease person -to-person 22%

interaction, negatively influencing employee morale

Virtual capabilities will enable small companies to

obtain a global reach without establishing branches 16%
overseas
Virtual connectivity will decrease the cost of labor,
granting companies access to skilled virtual workers 6%
across the globe
High internet traffic and volume of content will make
establishing unique, recognizable brands more 3%
difficult

(Don’t know) 14%

21
Adoption of the Chief Reputation Officer

Almost two-thirds of area executives say they have never heard of a Chief Reputation
Officer. Almost one-in-ten (9%) say corporations will adopt the concept, and 21% say
they will not. Ten percent don’t know if the concept will catch on, or not.

Do you think corporations will adopt the

concept of an in-house Chief Reputation
Officer?

No
21%

Yes
9%

D on 't know
1 0%

I h ave n ever
heard of suc h
a ro le
60 %

22
Commercial Real Estate

When it comes to Boston’s commercial real estate industry, 42% of area executives say
prices will increase, while 18% anticipate that prices will remain stable. Sixteen percent
say prices will decrease, and almost one-quarter (22%) say they don’t know where prices
are headed.

What do you think will be the future of the

Boston commercial real estate industry?
Do you think:

Pr ices will
incr eas e
4 2%

P r ice s will
decr ease
16%

D on't know
22%
Pr ices will
sta y about the
same
18%

23
The Housing Market and the State Economy

Thirty-eight percent of area executives say the cost of living in the Greater Boston Area
will continue to rise, forcing people to leave. Almost one-quarter (24%) say this is an
excellent time to buy a house in the surrounding communities, and 16% say property
prices are dropping.

Which of the following statements do you think

best describes the effect the housing market
will have on the Massachusetts economy?
The c osts of
living in close
p roxim ity to
Bo ston co ntin ue
to rise, fo rcin g
Th is is an p eo ple to leave
exce lle nt tim e for 38%
individua ls a nd
fa milies to
p urchas e in
co mm u nities
arou nd B oston
P roperty price s
24%
are d rop pin g,
making the
Bo sto n are a
a pp ea lin g to
D on 't kno w individ ua ls an d
22% families
16 %

24
Employment Levels

Almost one-half (48%) of area executives say they will increase their employment levels
in 2008, while 40% say they will remain the same. Three percent expect their
employment levels to decrease, while 8% say they don’t know which direction they are
headed in.

Do you expect to increase, maintain or

decrease your employment levels in 2008?

Incr ea se
48%

D ec rea se
D o n't k now 3%
8%

M aintain
40 %

25
Biotech Sales

About one-third (32%) say the sale of locally based biotech companies will have a very
negative (10%) or somewhat negative (22%) effect on the Greater Boston economy.
Thirty-eight percent say it will not affect the economy negatively at all, while almost one-
third (31%) say they don’t know what effect it will have.

Do you think the sale of locally-based

biotechnology companies to larger
pharmaceutical companies will affect the greater
Boston economy:
Somew hat
negativ ely
22 %

Very
negative ly
10%

Not ne gatively
at a ll
38%

Don 't know

3 1%

26
The Upcoming Election

A little over one-third of area executives say they will support the Democratic Party in
the upcoming Presidential election, while 12% say they are behind the Republican Party.
Sixteen percent say they won’t support either party, and 35% say they don’t know which
party they will back.

Which party will you support in the upcoming

Presidential race?

D em oc ra t
36%

Repu blican
12%

Neither
16%
D o n't k now
35%

27
Business Challenges in the State

When asked for the greatest challenges to doing business in Massachusetts, many
mention some type of cost; 29% cost of living, 28% cost of insurance, 20% taxes, 18%
cost of real estate, 2% cost of labor/business. Five percent mention regulations or
bureaucracy, 4% mention finding suitable employees, 2% agree with all options, 1%
mentions health care in general and 1% cites state funding or payments.

What is your greatest challenge to doing

business in Massachusetts?

(Cost of living) 29%

(Cost of insurance for employees) 28
(Taxes) 20
(Cost of real estate) 18
Regulations/bureaucracy 5
Good/skilled employees 4
Cost of labor/business 2
All of the above 2
Health care 1
State funding/payments 1
(Other) 2
(Don’t know) 18

28
Growth Within the State

Sixty percent say they plan to grow their business within the state, while 12% plan on
growing it outside the state. Sixteen percent say they don’t have any plans for growth,
while 12% don’t know.

If you plan to grow your business, will you

grow it here, or outside the state?

Here
60%

D o n't kn ow
12%

O utside the
No p lans to s tate
gro w 12%
16%

29