Reputation determines a person's social position in society. It's a measure of their influence. A person who enjoys a good reputation is definitely preferred for better jobs and for taking on leadership roles. And good reputation has never hurt anyone.
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-to-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. Our reputation represents the way others look at us and, as such, is both extremely important and utterly trivial. Although the framework mentions virtually every other imaginable risk, it does not contain a single reference to reputational risk.
Second, executives tend to believe that their company has a good reputation if there is no indication that it is bad, when in reality the company has no reputation in that area. Yes, you can do things that build your online reputation and influence how people feel about your business, but ultimately you have no control over what people say—or read—about your online business. Here are some more revealing statistics that show exactly why it pays to spend time and effort to maintain a positive online reputation. Whether you apply for a job or attract business opportunities, a good reputation affects your bottom line.
A Framework for Managing Reputational Risk Understanding the factors that determine reputational risk enables a company to take steps to address them. This person can then identify all parts of the organization whose activities may affect or pose risks to its overall reputation and improve coordination between its functions and units. Reputation comes from a person's judgment and then becomes a cloud of darkness as it poisons the collective judgment imposed on a person or company. Reputation management and its contribution to the success of companies is now the key factor discussed in boardrooms and C-suites.
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. Another valuable new tool for managing reputational risk is visualization software, which uses colors, shapes and diagrams to communicate key points of financial and operational data. The moment when unrelated decisions are made can also put a company's reputation at risk, especially if it causes a group of stakeholders to reach a negative conclusion. Promoting your success on social media is how you use your positive reputation to grow your customer base.
One of the easiest and most effective ways to increase trust in your reputation is through social proof. In addition, when endowed with a good reputation, an online business can succeed in avoiding lawsuits, as a plaintiff may admit that the company's excellent public reputation could frustrate its chances of winning.
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