CORPORATE REPUTATION

John’s best friend borrowed a huge amount of money from him,

with a sincere promise to repay it within two months. Four

months have passed and John has heard nothing from his

friend. He phones, leaves messages, but gets no response at all.

John himself is getting into trouble now, as he has bought a new

computer for his son, and cannot make the repayments without

the money his friend has borrowed. His house rent is also in

arrears. John has been informed that the computer will be

removed from his home this afternoon

CASE STUDY

John is thinking: ‘What am I going to tell my son? And if I get

blacklisted for not meeting my financial obligations? How will it

affect my future chances of securing a loan?’ John decides to

speak to his neighbour about his problems, only to find out that

the neighbour too has also lent money to his friend, and that his

friend has used it to pay a gambling debt. John feels totally

shocked and decides to go to his friend’s house to confront him.

He rings the door bell, and as nobody responds, he opens the

door himself — only to find his friend in a warm embrace with

his neighbour's wife.

Effect on reputation of John’s friend?

How long will it take John’s friend to

repair his reputation?

Will giving the money back to John and

apologizing to the neighbor be enough?

How long will it take John and his

neighbor to forgive and forget?

Will John ever have the same regard for

his friend he had before?

As individuals develop a reputation, organisations also

develop one .

Takes years to build up a good reputation, and is destroyed by

a single event or act.

To build up and preserve a good reputation, organisations

need to carefully consider how their practices are viewed by all

stakeholders.

Companies need to clearly define and appreciate the role of

the human recourses department .

REPUTATION

TWO MAIN COMPONENTS

PERCEPTION REALITY

HOW COMPANY IS PERCEIVED BY ALL STAKE HOLDERS

TRUTH ABOUT COMPANY’S POLICES, PRACTICES, PROCEDURE, SYSTEMS & PERFORMANCE

MEANING : A company’s corporate reputation is

the sum of all the views and beliefs held about the company based on its history and its future prospects, in comparison to the close competitors

THREE ELEMENTS TO REPUTATION

BRAND REPUTATION

ORGANISATIONAL REPUTATION

STAKEHOLDER REPUTATION

ELEMENTS OF REPUTATION

IMAGESWHAT STAKE

HOLDERS THINKS OF COMPANY

IDENTITYWHAT THE

COMPANY SAYS IT IS

PERSONALITYWHAT THE

COMPANY IS ALL ABOUT

ALIGNMENT OF THESE FACTORS IS VITAL TO BUILD, SUSTAIN AND PROTECT ON ORGANIZATION’S REPUTATION

Definitions:

• “Reputation is the sum values that stakeholders attribute to a company, based on their perception and interpretation of the image that the company communicates over time”

-John Dalton

• “Reputation is the principal means through which a market economy deals with consumer ignorance”

- Professor John Kay.

ETHICAL EMPLOYEES/WORKPLACE

FINANCIAL PERFORMANCE

LEADERSHIP

EMOTIONAL APPEAL

RELIABLITY

QUALITY

CUSTOMER FOCUS

SOCIAL RESPONSIBILITIES

MANAGEMENT

COMPONENTS

CORPORATE REPUTATION

SOCIAL RESPONSIBILI

TY

EMOTIONAL APPEAL

FINANCIAL PERFORMANCE

PRODUCTS & SERVICES

VISION & LEADERSHIP

WORKPLACE ENVIRONMENT

FACTORS:

ENHANCE GOOD NAME AND REPUTATION.

FAVORABLE : IN THE WORKPLACE AND MARKETPLACE

ESTABLISH PRACTICES, POLICIES, PROCEDURES, SYSTEMS

AND STANDARD THAT WILL AVOID DAMAGE TO ORGANIZATION

REPUTATION.

ESTABLISH GUIDELINES FOR DEALING WITH SITUATIONS WHERE

THE COMPANY’S REPUTATION HAS BEEN TARNISHED.

PREPARE & EQUIP MANAGEMENT TEAMS TO TAKE FULL

RESPONSIBILITY FOR MANAGING THE COMPANY'S REPUTATION.

REPUTATION MANAGEMENT

ARE COMPANIES EXPERIENCE SAME REPUTATION

MANAGEMENT ISSUES GLOBALLY ?

USA INDIA

UK AFRICA

JAPAN CHINA

Decrease productivity : sick and compassionate leave.

Increased overhead cost : health care and insurance.

Reduction is available skill base.

Contracting consumer base.

Changes in consumer spending patterns.

Reduced profitability.

Diminishing investor confidence

IMPLICATIONS FOR ORGANIZATION(IF UNABLE TO DEAL EFFECTIVELY)

IMPERSONAL & DISCOUNTERS BEHAVIOUR.

o VALUE TO CUSTOMERS.

o ATTITUDE OF COMPANY.

INCREASING EXPOSURE THROUGH ON EXPANDING

INTERNET.

ACTING TOO LATE.

SOURCES OF REPUTATIONAL RISK

ISSUE HAS MORAL MOTIVES OF PREVENTING UNNECESSARY HARM TO

OTHER S.

FAILURE OF WHISTLE – BLOWING COULD LEAD TO SERIOUS DANGER.

USE ALL AVAILABLE INTERNAL PROCEDURE BEFORE PUBLIC DISCLOSURE.

EVIDENCES THAT PERSUADE REASONABLE PERSON .

ACT IN ACCORDANCE WITH EXISTING RESPONSIBILITIES FOR AVOIDING

AND / OR EXPOSING MORAL VIOLATION'S.

GUIDELINES TO WHISTLE BLOWER

RESPECT & HEED LEGITIMATE EMPLOYEE CONCERN

ABOUT THEIR SAFETY AND CAREER .

REMEMBER THAT THERE ARE TWO SIDES TO EVERY

ISSUE.

MAKE CLEAR THAT ABUSING PROCESS BY RAISING

UNFOUNDED ALLEGATIONS MALICIOUSLY IS A

DISCIPLINARY MATTER.

OFFER TO REPORT BACK TO EMPLOYEE ABOUT

OUTCOME OF INVESTIGATION OR ANY ACTION THAT IS

PROPOSED.

GUIDELINES FOR MANAGEMENT OF WHISTLE - BLOWERS

INVOLVE EMPLOYEES AND LISTEN TO THEIR SENSE OF RIGHT OR WRONG

EXPLAING WHAT FRAUD ENTAILS AND IT EFFECT ON ORGANIZATION.

DISCUSS MALPRACTICES THAT MIGHT SERIOUSLY DAMAGE THE ORG.

DEAL MALPRACTICES OPENLY & TRANSPARENTLY. MAKE IT CLEAR THAT THE

ORGANIZATION IS WHETHER INSIDER OR OUTSIDER.

ASCERTAIN THAT EMPLOYEES KNOW WHAT PRACTICES ARE UNACCEPTABLE

(i.e. – RECEIVING GIFTS) ENCOURAGE THEM TO ASK MANAGEMENT IN

DOUBT.

GET STAFF UNIONS TO SUPPORT AND PROMOTE THIS APPROACH.

GUIDELINES TO MANAGE OF WHISTLE - BLOWERS

B

1. Helps reduce the risk customers perceive when buying products or services

2. Helps customers choose between products and services

3. Increases employee job satisfaction

4. Provides access to better quality employees when recruiting

5. Acts as a powerful signal to your competitors

6. Provides access to the best professional service providers

7. Helps raise capital on the equity market

BENEFITS OF GOOD CORPORATE REPUTATION

• Reputation is a continuous process.

• Reputation is an intangible and complex concept, which takes time to change.

• Reputation is a companies most competitive asset

• Reputation is won everyday.

• Reputation is hard won, easily lost.

.

THEREFORE :

CASE STUDY

YOU ARE OWNER OF A VERY POPULAR SUPERMARKET GROUP THAT

CATERS SPECIFICALLY FOR THE RICH AND FAMOUS. YOUR COMPANY

HAS DEVELOPED A NAME OF BEING ONE OF THE BEST SUPERMARKET

GROUPS TO HAVE ITS OWN WEBSITE, OFFERS ONLINE ORDERING AND

SAME-DAY DELIVERY WITHIN A SPECIFIC GEOGRAPHICAL RADIUS. ONE

MORNING, WHILE ON YOUR WAY TO WORK, YOU SPOT THE FOLLOWING

NEWSPAPER HEADLINE: ‘UP-MARKET SUPERMARKET DEFRAUDS

CUSTOMERS’. YOU STOP TO GET THE NEWS PAPER TO FIND THAT

SURELY, IT IS YOUR SUPERMARKET THAT THE HEADLINE IS REFERRING

TO.

CASE STUDYYOU FEEL YOUR BLOOD PRESSURE INCREASING AS YOU SCAN THE REPORT: ‘…

COMPLAINTS … WRONG DELIVERY … INCORRECT INVOICE … CHEAP

SUBSTITUTES … FOURTEEN PHONE CALLS … STILL NO REPLY … WARN OTHERS …

INTERNET.’

YOU RUSH TO WORK, START YELLING AT PEOPLE, AND MAKE MANY FRANTIC

PHONE CALLS. IT TURNS OUT THAT THE EVENTS ARE TRUE BUT THAT THEY ARE

LIMITED TO ONE SPECIFIC STORE. IT SEEMS VERY LIKELY THAT THE MANAGER

OF THIS STORE IS THE MAIN CULPRIT.. YOUR COMPANY HAS NO FORMAL

REPUTATION MANAGEMENT PROGRAMME AND YOU ARE NOW IN CRISIS

MANAGEMENT.

CONCLUSION

REPUTATION MANAGEMENT ENTAILS PERCEPTION & REALITY.

REPUTATION IS AN ASSET THAT SHOULD BE MANAGED

PROACTIVELY.

ORGANIZATION REPUTATION IS INFLUENCED BY INTERNET

EXPOSURE, IMPERSONAL AND DISCOURTEOUS BEHAVIORS AND

ACTING TOO LATE IN A GIVEN SITUATION .

REPUTATION MANAGEMENT BY VULNERABILITY AUDIT,

COORDINATED BY HRM DEPARTMENT.

Crisis response and communication plan assist organization in dealing constrictively

with crisis.

Special communication needs of various stake holder groups.

Internet as communication tool offers both challenges and opportunities during a

crisis.

Have office emergency plan deals with physical crisis situation such as hire.

Corporate ethics can't be separated from reputation management

?