The importance of reputation
The importance of a company’s reputation has become increasingly clear as a result of the direct correlation between reputation and corporate success. For example, according to the World Economic Forum, a quarter of a company’s market value can be directly related to its reputation and 87% of executives think that reputational challenges are more important than other strategic risks.
This correlation between success and reputation has been highlighted in various incidents where a company has failed to understand the significance of reputation. For example, when United Airlines responded poorly to the recording of a passenger being forcibly removed from their flight, shares in its parent company, United Continental Holdings, dropped by $1 billion. With almost 4.55 billion people now on social media channels, news spreads like wildfire and responding to any crisis swiftly and correctly is vital to a company’s success.
However, company reputation also has further importance beyond crisis communications. With COP26 still at the forefront of investors’ minds, voicing a company’s ESG policy has never been of greater importance. In fact, a recent survey suggests that millennials are twice as likely to invest in a fund or stock if social responsibility is a component of the value creation narrative. Securing positive profile coverage in influential media can ensure a company continues to demonstrate its purpose. This will enable a company to continue to appeal to its key stakeholders even as their demands evolve. A company seeking to engage with its stakeholders must demonstrate its positive reputation in order to achieve success.
The right strategy
So, what are the fundamentals of a good reputation management strategy? Strategic SEO PR to ensure a brand’s visibility and swift responses to specific issues through Digital PR are essential to optimising a company’s reputation. Considering that global executives attribute nearly half their company’s reputation to the reputation of a CEO, media training and media consul can ensure the most visible individuals in a company are fully supported. Further to supporting a company to navigate any criticism, a good reputation management strategy also prioritises securing positive thought leadership to demonstrate the value a company is providing.
With news travelling faster than ever and reputation mattering more and more, companies looking to take control of their image must utilise a reputation management PR plan. Clear and timely responses to issues of reputation as well as developing the right stories for key stakeholders is crucial. At Sapience we have a wealth of experience in helping businesses across a variety of sectors navigate the intricacies of reputational management.