Top tips for managing your corporate reputation

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.

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