The Daily Recruiter

The Ezine for Executive Managers … brought to you by The SearchLogix Group.

Your Reputation matters

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” By Denise Lee Yohn, of Dennise Lee Yohn”

This month I’m speaking to an organization about corporate reputation and trust.  The CEO has designated trust as one of their key priorities and they’ve asked me to help their top leaders understand why corporate reputation matters and what role they play in building it.  Given how frequently corporate crises arise these days, I can imagine you might grapple with your corporate reputation too, so I thought I’d share some of my points here and in my next post.

What Is Corporate Reputation

Let’s start with some clarification:  Corporate reputation, as the dictionary defines it, is the collective assessments of a corporation’s past actions and the ability of the company to deliver future results.

Reputation Institute, a leading research and advisory firm for reputation, does a survey every year that measures companies’ reputations on 7 dimensions:

  1. Products & Services
  2. Innovation
  3. Workplace
  4. Governance
  5. Citizenship
  6. Leadership
  7. Performance

They survey 170,000 respondents around the world on their agreement with statements including

  • I believe the organization’s products are high in quality, value and service and meet the customers’ needs.
  • I believe the organization maintains good workplaces, treating and rewarding employees fairly.
  • I believe the organization’s leaders are excellent and visionary managers, and strong endorsers of their companies.

From these responses, they produce a reputation score for each company and publish a ranking.

They have identified what they call “supportive behaviors” that a company’s stakeholders will engage in if it has a positive reputation, such as customers will buy their products, investors will invest in them, and employees will want to work for them.

Ronald Alsop, in his book The 18 Immutable Laws of Corporate Reputation: Creating, Protecting, and Repairing Your Most Valuable Asset, examines these behaviors as well.  Based on these two resources and several others, I’ve compiled the following list of benefits of having a strong corporate reputation among different stakeholder groups.

Corporate Reputation Impact on Stakeholders

  • Investors and financial analysts. An excellent reputation generates higher valuations and stock prices.  Alsop reports on a study of 216 companies where higher stock values were found among companies with a strong reputation and another study of 10 investment portfolios which showed they garnered higher prices if investors were confident they represented less risk — in other words if they trusted the companies more.  And according to PR firm Weber Shandwick, 60% of a company’s market value is derived from its reputation, so the better your reputation, the higher your valuation.
  • With reviews so prevalent and easily accessible, what other people say about you and your products is critical.  Weber Shandwick also found that your advertising and website influence consumer opinion about you far less than online reviews and what people say (56% and 74% vs. 83% and 89%.)
  • When a company has an excellent reputation, its employees have better morale and better productivity. They’re also less likely to leave the company, which can save your organization huge turnover costs.  And they’re more likely to act as brand ambassadors, proudly communicating about and representing your brand to friends and neighbors in their communities, the business partners they interact with, and even prospective employees.  And speaking of potential recruits, reputation also impacts your company’s ability to compete in the war for talent among prospective employees.  You can attract top talent employees with less cost.
  • Regulatory bodies and government agencies pay attention to the public sentiment of companies and their products.  Apple has definitely benefitted from this, not only in getting a more favorable outcome from a Senate hearing on its tax practices, as reportedby The New York Times, but also in getting permits for its new corporate office in Cupertino.
  • Undergirding all stakeholders is the goodwill of the public.  During crucible moments, your reputation determines whether the public gets behind you or demonizes you.   Consider what happened earlier this year when Kraft’s attempt to take over Unilever was squashed.  Kraft had lost public trust after the way it handled its takeover of Cadbury.  It had reversed the promises it made when it initiated the hostile takeover, closing factories, laying off thousands of workers, taking cost out of Cadbury product recipes which changed the taste of its beloved chocolate, and eventually spinning off the snack businesses which signaled that it didn’t value the Cadbury brand which is so beloved by so many. So when Kraft made a bid to acquire Unilever, it quickly found out it didn’t have the support it needed from regulators, from the industry, and most importantly from the public.

Bottom line, the better your reputation, the more you reduce operating costs and risk and increase valuation, revenue, and growth potential. That’s why your corporate reputation matters.

 

Personal Stress

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” By Naphtali Hoff of Smart Brief”

One of the greatest challenges for professionals is to leave behind their personal challenges when they enter the workplace. We all have a job to do, but when there are struggles at home or with family, such as illness, financial pressures or familial discord, it can be really difficult to hunker down and focus enough to get work done.

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Communication Problems

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” By Scott Mabry of Soul To Work”

The key to solving all your communication challenges is to hire for psychic ability. I know, you’re probably asking yourself why you never thought of this before.

To help you get started, here’s a quick test from the Universal Psychic Guild that you can include in your talent acquisition process. (I was below 20% so I probably missed the cut).

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Leadership

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” By Julia Felton of Lead Change Group”

No-one I speak to disputes the fact that we live in a VUCA world full of volatility, uncertainty, complexity and ambiguity. We are living in a world where change is ever greater, where the future is less predictable, where the options increase exponentially, and the way we think about these options has undoubtedly changed.

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Open Mind vs Closed Mind

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” By Ray Dalio of Farnam Street”

Why is it that some people seem to make constant progress in their professional and personal lives, while others appear to be doomed to repeat the same mistakes over and over?

While the answer isn’t cut and dry, I’ve noticed an interesting mindset difference between these two groups: they approach obstacles and challenges very differently.

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Killer Question

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“By Matthew Upton of Linkedin”

It’s the end of an interview. This one was particularly grueling and it was the end of a hectic day as well, but you feel like it went well.

Then there it is…”do you have any questions of us?”…ummm…”well, it seems like you have answered all my questions”…or, you grasp at…”what training will I receive?”.

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Avoid Tough Conversations

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By Scott Savage, of  The Thin Difference”

Are you avoiding a tough conversation with someone at work?

As soon as you read that question, someone’s name and face may have come to mind. You might have developed a gnawing feeling in the pit of your stomach. You may have started to sweat or felt your heart rate increase.

If we were honest, many of us would share at least one conversation we’re avoiding at work. As a leader responsible for others, you might have more than one tough conversation you’re putting off.

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When to Quit

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“LightHouse.Com”

That’s not an easy question, but it’s one of many we’ve heard before.

In the process of growing Lighthouse and writing this blog, we have talked to a lot of leaders. Often, they share a challenge their facing.  Many of our posts are inspired by those conversations.

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Robots Make Us Angry

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By April Glasser, of  The Slate”

The customer service industry is teeming with robots. From automated phone trees to touchscreens, software and machines answer customer questions, complete orders, send friendly reminders, and even handle money. For an industry that is, at its core, about human interaction, it’s increasingly being driven to a large extent by nonhuman automation.

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Green Supply Company

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“By Henry Canitz of  Inbound Logistics”

Sustainability impacts everything from how companies approach product design all the way through to customer delivery. In today’s competitive environment, sustainability must improve profitability and reduce risk.

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