Collusion not industry image killer

Construction industry reputation not seriously harmed by collusion scandal

Pretoria, 13 November 2013. The construction industry is one of the most visible sectors in South African media, according to Media Tenor research. A recent scandal rocked the industry as construction firms were fined collective penalties totalling R1,46 billion for collusive and anti-competitive behaviour. The industry managed to navigate the scandal with minimal reputational damage when compared to the image of the international banking sector after the 2008 global financial crisis.

According to Media Tenor research, media tonality on the industry only dipped in February when the Competition Commission announced its investigation and in June when the implicated firms agreed to pay the penalties. Only 19% of coverage on the industry focused on the collusion incident with the other 81% of media reporting covering topics ranging from share prices to CSR efforts.

“The balance in diversity of topics coupled with high visibility has most likely served to protect the construction industry’s image from the possible damage the collusion incident could have caused,” said Media Tenor researcher Minnette Nieuwoudt.

The construction industry managed to stay above the awareness threshold – a measure indicating the salience of an issue on the public agenda as a function of its salience on the media agenda – most months in the period of analysis. “This consistency is key to safeguarding the industry’s reputation,” said Nieuwoudt.

Specific companies like Stefanutti Stocks have admitted guilt and as a result bore the brunt of media criticism for the scandal resulting in tonality of -22%. The top six most visible companies in the industry have not been able to escape the incident without serious damage to their respective public images as Media Tenor research indicated negative tonality for all six top players.

The research is based on the analysis of all 41 989 reports in 75 South African print and broadcast media from 1 January 2013 to 30 October* 2013. 1 607 of the reports analysed focused exclusively on the construction industry.

For more information, please contact the principal researcher Minnette Nieuwoudt at This email address is being protected from spambots. You need JavaScript enabled to view it. or +27 12 369 7760