Reputation Management

"According to a recent study conducted by McKinsey and Co., as much as 50% of a firm's market value is made up of intanglible assests. That represents a remarkable amount of value potentially up for grabs." - Arlo Brady, Ethical Corporation Magazine Why is managing your reputation important? "The importance of a good reputation has been described in this way: a company will succeed only for so long as it enjoys public consent. The point is, in today's globally competitive business environment, public consent, i.e., a good reputation, can no longer be assumed; it must be earned, and earned continuously." - The Osborne Group "Reputation - state of being well thought of’’ - Oxford English Dictionary What do people think of you and your business? Have you ever considered just how your reputation affects your ‘bottom line’? Do you attract top people because of your image? What is your organisation’s considered social responsibility (CR)? Reputation/Branding research has shown these intangible assets can give you a competitive advantage over your competitors. Why do you need to consider these issues? Most companies only think about their reputation when something goes wrong. The hard but true fact is that once a reputation has been tarred, it takes years and years to repair, if it can be repaired at all. With hindsight, companies who have lived through this experience know the financial cost involved. Some clear examples are: Nike claims clean slate on rights More>>> Branding is not about communicating a message; it’s about engaging in a relationship, and that isn’t easy, especially in a marketplace dominated by distrust, anxiety and scandal. Examples: www.stopesso.com www.pwcglobal.com Your reputation can be your most valuable asset as a company or as an individual. You can develop it, trade off it, and must protect it always. Fortune 500 companies are assessed and ranked according to nine criteria. How do you/your organisation rate against each: 1. quality of management; 2. quality of products and services; 3. innovation; 4. long-term investment value; 5. financial soundness; 6. ability to attract, develop, and retain talent; 7. responsibility to the community and the environment; 8. wise use of corporate assets; and 9. global business acumen Clearly, these are heavily based on stakeholder perceptions. A company's overall ranking is based on the average of the scores in all nine categories. "Consumers only allow a small repertoire of brands into their lives, and they want the relationships with those brands to be meaningful." – Coots, Beyond Disruption: Changing the Rules in the Marketplace. How we can help? We at Cornerstone work with organisations and individuals to help create and develop sustainable, ethical reputations. We do this by guiding your organisation through a process to: Determine what your current reputation is, by accessing and assessing your stakeholder’s (i.e. employees, competitors, shareholders, customers and clients, capital investors, community) perceptions and experience of you. Create a reputation model which is aligned with your future needs and goals, Implement a program of business ethics, reputation management and/or social responsibility strategy, Communicate it, and Monitor the effects and outcomes. For Organisations: Build the loyalty of your stakeholders by communicating effectively the company’s strategy and policy, Employ the right people in your company by highlighting the company’s collective values when hiring new employees and keeping them aligned. For Individuals: Determine your current reputation as it really is, Define and build an image in line with your career ambitions, Build a strong network in line with your career and business needs and goals, Develop a mentorship relationship to aid your network and development, We at Cornerstone work one-on-one with business owners, senior executives and entrepreneurs to guide and support them in building sustainable, ethical and socially responsible businesses. We focus on the critical role that reputation plays within this development at both the individual and organisational level. If you would like to discuss coaching possibilities please contact one of our principals to discuss your organisation’s needs, and how a partnership with us can provide the catalyst you are looking for to move ahead. Articles Consistency is the key to success in corporate social responsibility. Ethical Corporation Magazine. More>>> Reputation: Managing a Core Asset. The Osbourne Group. More>>> Trust in the Future. Fast Company Magazine More>>> Companies must ‘walk the talk’ More>>> Nike claims clean slate on rights More>>> What do people think of you and your business? More>>> Links Global Reporting Initiative: http://www.globalreporting.org The GRI has developed an internationally accepted set of key performance idicators for business. They are "harmonizing the reporting of relevant and credible corporate enviornmental, social and economic performance information to enhance responsible decision-making." The GRI's Sustainability Reporting Guidelines are designed to assist organisations publish reports. Reputation Institute, A global network of academics and practitioners whose aim is to advance knowledge about corporate reputations and to improve the practice of reputations management. www.reputationinstitute.com Ethical Corporation Magazine, news, comment, practical advice and leading-edge thinking in global corporate citizenship. www.ethicalcorp.com Warwick Business School. provides research, education, training, facilitation, mentoring and consultancy in the multi-disciplinary field of corporate citizenship across all sectors of business and society world-wide. www.wbs.ac.uk Workshops & Events NOVEMBER 2002 13th 2002, London - 2nd Annual Retail Sustainability Conference. For details www.brc.org.uk 2003 February 17-19th 2003 - Ethical Corporation Asia 2003 Business conference and workshops. For details www.ethicalcorp.com/asia2003.asp May 22nd-24th, 2003 – 7th International Conference on CORPORATE REPUTATION, ITDENTITY and COMPETITIVENESS. For details contact Gary Davies gdavies@mbs.ac.uk