Reputation is a big problem for any business. To achieve the highest level of success for your company, you need to pay special attention to reputation. A good business reputation opens the door to opportunity and provides unhindered access to your ideal customer base. Therefore, one of the main issues that CSR specialists are responsible for is reputation, understood not as the opinion that people have of a person, but the opinion that the stakeholders of a company have.
Of course, there are also distinctions between the two concepts and, what is more, there is still no complete agreement on this. In fact, reputation experts admit this close relationship with social responsibility, so much so that one cannot be had without the other; although they point out that the two concepts should not be confused. In addition, they consider CSR to be necessary, but not sufficient, for reputation; because a company that has a good reputation must be socially responsible, but CSR is not enough to guarantee a good reputation. Therefore, reputation requires other conditions or variables in addition to CSR.
In fact, it is these variables that allow us to measure reputation in practice, making it tangible, so to speak, despite their intangible nature, they give us the well-known rankings of the most reputable companies and entrepreneurs, which are so common all over the world and who are so widely advertised, and rightly so. In fact, it is common to include reputation among the main benefits of CSR for a company. And the lack of reputation causes enormous damage, as confirmed by the relentless way in which consumers punish companies with a bad reputation due to irregular practices, such as violation of human and labour rights, corruption or pollution of the environment. Therefore, companies generate substantial profits due to their good reputation, but also huge losses if they don't have it.
This situation will sooner or later have to be reflected in the income statement or balance sheet. Under these circumstances, it is not surprising that reputation is the subject of so much attention today in the business world, including huge sums of money used to improve it through the media and, in particular, advertising or communication and marketing strategies. Executives are aware that increased sales, a key source of revenue, largely depends on reputation and, therefore, brand positioning, name. People pay a lot more for their favorite brands, as is well known.
Therefore, they pay much more for reputation, which consists of this greater value that we have highlighted so much. Some sectors do not see this as something positive, especially when CSR, according to Friedman in his controversial critical essay, is nothing more than “window dressing” for companies whose reputation is important and that are more interested in generating profits from their reputation, prestige or fame, than in the quality of their products. In this case, we are really dealing with a false reputation, manufactured in marketing, communication and public relations offices. This is the opposite of real CSR, which is based on sound moral principles, such as transparency and consistency between what is said and what is done.
In short, there is more reason to defend reputation and CSR than to attack it. Finally, to summarize, current business leadership aims to manage reputation in business, leveraging stakeholder knowledge and aligning their actions across all departments of the company. As the Milan Corporate Reputation Conference concluded, reputation is a key factor in business success. In any industry, reputation is key to success or failure.
Unlike an ingenious marketing campaign or an eye-catching social presence, a reputation is something that takes time to establish, build, and eventually grow. There are no shortcuts, and each individual encounter has the potential to be great or could leave your company making plans for damage control. Brand reputation management is essential to growing a business. A positive brand reputation builds loyalty and increases customer trust in your brand and product, ultimately driving sales and bottom-line growth.
Executives know the importance of their company's reputation. Companies with a strong positive reputation attract better people. They are perceived to provide more value, often allowing them to collect a premium. Your customers are more loyal and buy wider ranges of products and services.
Because the market believes that these companies will generate sustained profits and future growth, they have higher price-profit multiples and lower market values and capital costs. In addition, in an economy where 70-80% of market value comes from intangible assets that are difficult to assess, such as brand value, intellectual capital and goodwill, organizations are especially vulnerable to anything that damages their reputation. While most well-run companies conduct these types of surveys, few take the extra step of considering whether the data suggests that a gap between reputation and reality is materializing or widening. Second, a positive reputation requires that at least 20% of mainstream media news be positive, no more than 10% negative, and the rest neutral.
If your team is in the early stages of managing brand reputation, it's important to use the following methods as a solid foundation for a formidable strategy. No matter how innocent these meetings are, they have great power to strengthen or exhaust a company's reputation. Your business name affects how your target group interacts with your company; however, the reputation associated with your business affects how your entire end-to-end network interacts with your company. The overall reputation of a company depends on its reputation among its various stakeholders (investors, customers, suppliers, employees, regulators, politicians, non-governmental organizations, the communities in which the company operates) in specific categories (product quality, corporate governance, employee relations, customer service, intellectual capital, financial performance, environmental and social management).
Reputation management and its contribution to the success of companies is now the key factor discussed in boardrooms and C-suites. And since your company's reputation is based on information available online, it's absolutely essential to ensure that it has an excellent reputation and that you don't have negative copies or inaccurate information about your company or what you offer. At the end of the day, the success of your person or company will always be reinforced by an excellent online reputation, and there is no doubt that having additional resources to ensure that your reputation within your industry is top notch is the way to go. Although the framework mentions virtually every other imaginable risk, it does not contain a single reference to reputational risk.
Another major source of reputational risk is poor coordination of decisions made by different business units and functions. In industries where there are many competitors offering the same goods and services, a strong reputation is even more important to differentiate yourself from the competition. Finally, a company's failure to live up to its turnover will be revealed, and its reputation will diminish until it gets closer to reality. .