What Is Your Corporate Reputation?

What Is Your Corporate Reputation?

Your corporate reputation is the collection of perceptions and beliefs held about an organisation by all those with an interest in it. These perceptions and beliefs may or may not be true, however, where they are held they form the reality in which an organisation operates.

Corporate reputation, as a set of perceptions and beliefs that are held across stakeholders, form a valuable and increasing asset for an organisation. In terms of value they can be accounted for on the bottom line in a number of ways.

Traditionally, an organisation’s corporate reputation has been perceived as ‘ a risk to manage,’ with the task being to simply prepare well for something which may go wrong.

Now, in a digital and connected world, reputations change quickly and the value of corporate reputation is being realised.  The task of actively managing it as an asset, not simply being prepared to handle a crisis well, is the key to unlocking organisation’s market value and the way to secure its performance and its licence to operate in the longer term.

As an example, Hilton Hotel's reputation is now more valuable as an intangible asset than its property portfolio.

Compare this with Airbnb which, as an online brand,  has transformed the bed and breakfast market. It's reputation is largely played out online and its reputation capital is its most valuable asset.

Corporate Reputation: The Basics:

·      Every business has a reputation

·      No business owns its own reputation

·      The reputation of any business is held in the minds of its stakeholders.

·      Reputation is the collective perceptions and beliefs, held about an organisation, by its stakeholders.

·      As an organisation, it is possible only to influence corporate reputation through active management.

 

 

Corporate Reputation Management: The Aims

·      Listen to all stakeholder groups, at all times to understand the perceptions and beliefs, why they are held and how they are changing.

·      Understand how reputation differs across all stakeholder groups.

·      Set the reputation to which you aspire and one which supports broader corporate strategy.

·      Know how it differs from the reputation you currently hold

·      Know what and who is driving your reputation, who is influencing and the conversations and topics that are changing it.

·      Align your internal reputation with your external reputation.

·      Address and fulfil every aspect of reputation, among all stakeholder groups.