Corporate reputation is something that is widely recognised as important. It is an asset that affects sales, drives share prices, builds employee morale and more. Corporate reputation can make or break a company. However, it is difficult to define, measure, build and control, and this means that companies often struggle to manage reputation risks.
With today’s lightning speeds of communication, understanding and managing corporate reputation risks is more important than ever. In the UK alone, there have been a number of high profile corporate reputation scandals in recent years – among both large and small companies – that have wiped millions off the value of companies, tarnished markets and affected investor confidence.
The following five guidelines will help you manage your company’s corporate reputation.
1. Corporate governance and corporate reputation go hand in hand
Good corporate governance inspires trust between a public company and its shareholders; it creates and protects value by reducing the risks that a company faces as it seeks to create growth in long-term shareholder value. Without trust, there will be no appetite from shareholders to invest further or remain shareholders.
2. It is not enough to just have good governance – you have to report on it too
Companies need to implement sound governance processes and procedures and then report on them regularly. While institutional investors may get face time with companies and know them well, private investors do not. Therefore they need to be able to see what the company is doing to ensure that it is creating and protecting value and being run in the best interests of all shareholders.
Sign up to our newsletter
– to stay up to date and gain access to regular bulletins, news and our insight on current events
IN OUR LATEST NEWSLETTER
“Business continuity in a recession”
– as the double-dip looms, our November White Paper spotlights operational risk
“Crisis management helps a company to cope with the sudden death of its CEO”
– this month’s featured case study
“Tips for productively working from home”
– our latest Snapshot outlines seven ways to avoid getting sidetracked
“Competitive advantage and USPs”
– if you’re not sure what yours are, watch our November video
“Generous leaders win in the end”
– guest author Gary Coulton, CEO of Adaptive Intelligence Consulting, explains why