Reputation and the importance of a good reputation is well understood; for businesses reputation is a vital and valuable commercial asset, albeit intangible. But how do organisations actively protect their reputation and manage the risks to it being damaged?
That is a harder question to answer. The 2014 Forbes Insights Survey found that 39 per cent of companies surveyed rated the maturity of their reputation risk programmes as “average” or “below average,” and only 19 per cent gave themselves an “A” grade for their capabilities at managing reputation risk. Clearly there is still much to be done – but what? In this blog, I offer some ideas for consideration and debate.
Influencers of corporate reputation
External perceptions of quality, transparency and trust are key influencers of corporate reputation, as found by research published in the Edelman Trust Barometer (an annual survey of more than 5,000 informed publics in 23 countries), the Fortune 500 listing of the world’s most admired companies and the Reputation Institute. But herein lie the first two problems for reputation risk management. Reputation is an intangible asset and its gift is in the hands of your stakeholders; both factors make it harder to gauge. Continue reading