The Tata Group has been voted as the most trusted corporate house in a poll conducted by Equitymaster to gauge the trustworthiness of various corporate groups of India, it said. The equity research firm said it had carried out the poll on 17 of India’s most well-known corporate groups and a total of 5,274 people participated in it.
“This poll helps us to understand whether big corporate groups are able to earn the trust of the investors and how trust plays a great role in their long-term success and growth. The poll results also reveal that superior investments are directly related to effective corporate governance,” Equitymaster said in a statement.
“Thus, it’s always wiser to invest in companies that evoke a sense of trust. What stands out starkly about the poll results is that there’s a huge gap between the winner and the rest of the corporate groups,” it said.
The Tata Group has garnered 66.3% of the total votes, which is more than double the number of votes (31.8%), it had received in the last such poll conducted in 2013.
Following Tata Group are Aditya Birla Group and Mukesh Ambani Group [Reliance Industries Group] in the second and third place with 5.1% and 4.7% of the votes received respectively.
Rahul Bajaj group has came in fourth with 3.5% votes followed by Mahindra Group which received 2.8% votes. TVS Group and Godrej Group received 2.4% and 1.9% respectively. Adani group and Kirloskar group received 1.8% and 1.5% respectively.
The group that received the least number of votes (0.8%) is the RPG Group.
Rahul Shah, Co-Head of Research at Equitymaster quoted, “If we look at company valuations today, an increasing portion of a firm’s value resides in intangibles such as goodwill and reputation. And when it comes to making intangibles tangible, nothing is more important than trust.”
“The attribute flows from a company’s leadership through the organisation to its external stakeholders which ultimately increases profitability over the long-term. However, if not paid attention to, a lack of trust can have the opposite effect,” he added.
