Reputations come in many shapes and sizes but the benefits of maintaining a strong reputation cannot be questioned. However, whilst the focus is often on their value to businesses, other organisations too need to take steps to develop and protect reputations. It is not just corporate reputations that have value.
Charities, individuals, membership organisations etc all have to take action. For many the absence of the media spotlight in the past has provided some ill-founded comfort. But the media are now just as interested in them as they are in the corporate sector. Charities are no longer perceived as untouchable. Whether it’s spending or pay or the behaviour of individuals the media are interested. Personally, I believe that the NGOs and other campaigning bodies will be next to come under the spotlight.
Similarly, politicians and Parliament now take a more active interest. The work of the Public Administration Select Committee, the initial emphasis on the Big Society and, of course, the provisions in the Lobbying Bill have all caused charities, voluntary bodies and others to think more deeply about risk, reputation and engagement.
Public sector bodies too need to consider their reputations. The Charity Commission and Ofsted are but two recent examples of bodies that have had the media spotlight turned on them.
Anthony Hilton wrote in the Evening Standard about the report, Roads to Resilience, by Airmic and the Cranfield School of Management. The working assumption of the report, explains Hilton, is that businesses now have risk control systems in place. In my experience this is not always the case and whilst it may be common practice amongst bigger firms, especially listed and/or heavily regulated ones, is does not filter through to all bodies.
The need to have a rapid response team to deal with crises, highlighted in the report, can often sit within just one part of the organisations, for instance communications or external relations. To be really effective it needs to be integrated both internally, with other departments, and externally, having advisers already lined up.
Hilton also cites the work of Reputability and the need to identify risk that sits in the behaviour of all employees, at all levels. Facing challenges such as these brings with them a whole lot of not just behavioural and cultural issues but also legal and communications requirements.
Furthermore a report from Reputation Dividend suggested that 38% of stock market value of FTSE 100 companies could be attributed to the reputation of the business. This has doubled in the past four years. Sandra Macleod, director at Reputation Dividend, said: ‘Communications leaders should take a lot of credit for building the value of the assets in their charge.’ A useful summary of the report can be found at PRMoment.
There are also question marks over the old assumptions of marketing. According to a Harvard Business Review blog by Itmar Simonson and Emanuel Rosen, brand, loyalty and positioning can no longer be replied upon. These marketing beliefs are under pressure from the changing way in which consumers make their decisions.
So all paths lead to the importance, and value, of reputation. It should not be a concern just of the big corporates but should instead be factored into the actions of all. Operational and reputational risk have to be considered, measured and actions taken regardless of who you are.
The trouble is that reputations are relevant to all but not everyone takes the necessary steps to protect them. So the plea should be to plan and take steps now, regardless of what type or size of organisation you are.