How important is your company’s good name? Studies have demonstrated the powerful impact reputation has on profits and stock value. It can take years to build an excellent reputation and only hours to destroy it.
As a society we are better educated, more informed and far more discerning about with whom we spend our money. We expect companies to behave in a socially responsible way, with environmental and socio-economics concerns no longer the plight of minority pressure groups.
With this in mind, the results of last month’s survey are of particular interest with only half our respondents employing an internal public relations department or corporate communications person.
Now, more than ever before consumers have greater choice over what they buy and from whom they buy it. Price is no longer the deciding factor, as consumers look more closely at what businesses contribute to society and the environment before making their purchase decision.
This change in consumer behaviour makes the job of managing corporate reputation far more complex. Looking after corporate reputation is no longer a low priority task, with resounding acknowledgement from senior executives around the world agreeing that maintaining a strong corporate reputation is a business’ greatest asset. In fact, an annual survey conducted by international PR firm Hill & Knowlton found that 93% of consumers surveyed considered corporate reputation to be either important or extremely important.
This mentality has brought about the concept of the triple bottom line where organisations gauge their success not only on profit, but also their standing in the community and their contributions to the environment.
So what’s the best indicator of a good reputation? The answer is credibility. Credibility is the most tangible measure of an organisation’s corporate reputation. Building and maintaining the credibility of your organistaion does not need to be a laborious, in depth task. Experts on the subject list four basic points to adhere to:
How important is your business’ reputation? If you’re still struggling to find an answer to this question, consider this: 51% of senior executives surveyed by Hill & Knowlton believed that there was a direct link between sales and corporate reputation.
An interesting parallel can be drawn with our survey results with 47% of our respondents believing the most important goal of public relations is supporting sales and marketing.
With this being the case, it’s critical that a corporate CEO and their management team understand the need to invest in and value your corporate reputation, knowing that it will impact directly on your profit and share value.
Furthermore, supporting the need to build and maintain a sound reputation is the ability to attract and retain the right employees. The message is clear; looking after your reputation is looking after your bottom line.