Corporate reputation -David Weiner
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Transcript of Corporate reputation -David Weiner
- 1. Corporate Reputation: Opportunity and Risk Presented by: David Weiner Senior Partner (Retired) NATIONAL Public Relations
- 2. Agenda
- 3. Confused definitions Image Identity Brand Whats the difference between brand and reputation? Brand is what you say about yourself - What message is being sent? - You are in control Reputation is what others believe about you - What message is being heard? - Market is in control
- 4. Corporate Reputation A potential competitive advantage or A potential business risk
- 5. A Competitive Advantage A corporate asset Brand value - differentiator Environment conducive to corporate goals Builds public trust confidence - loyalty Mitigates impact of adverse events Enhances deal-making capacity Premium on share price Social license to operate
- 6. Many Reputations Stakeholders define reputation based on: Their values Nature of their relationship/interaction with the firm Region or geography Metrics change over time
- 7. Many Reputations Employees Good work environment Motivated, committed to success Attract top talent Customers Quality well-priced products Recommend to others Loyalty Investors Financial performance Sustainable P/E multiple
- 8. Many Reputations Media Accessibility Fair representation Supplier Fair payer Favorable terms Government Responsible Voice in public policy
- 9. 10 Components of Reputation Ethical: behaves ethically, is admirable, worthy of respect, trustworthy. Employees/workplace: has talented employees, treats its people well, an appealing workplace. Financial performance: financially strong, record of profitability, growth prospects. Leadership: a leader rather than a follower, innovative. Management: well managed, clear vision.
- 10. 10 Components of Reputation Social responsibility: recognizes social responsibilities, supports good causes. Customer focus: cares about customers. Quality: offers high quality products and services. Reliability: stands behind products, consistent service. Emotional appeal: I feel good about it, is kind, is fun.
- 11. Corporate Reputations
- 12. Whats Changed Reach, immediacy of social media Erosion of public trust Greater scrutiny of business Economic crisis Power of NGOs Reputation goes beyond PR spin Operational changes Insight into root causes Measure and modify
- 13. Managing Reputational Risk: The Challenge Definition - Amorphous concept Cause or effect? Not captured in enterprise risk mapping Deal maker or deal breaker? By-product of business/operational risk Reputation/reality gap Role/responsibility of directors
- 14. Carnival Corporation Carnival, Royal Caribbean shares sink on disaster Reuters, January 17, 2012
- 15. Menu Foods Pet food maker Menu Foods to be acquired by Simmons Pet Food for $239 million - Canadian Press August 9, 2010
- 16. BP 2010 Part I Explosion in Gulf of Mexico
- 17. BP 2010 Part II $20-Billion recovery fund
- 18. Directors Responsibilities Corporate reputation oversight Define role of reputation in enterprise Establish appetite for risk Ensure appropriate stakeholder prioritization against reputation metrics, corporate goals How to anticipate major triggering events? What techniques are used to assess likelihood and impact What strategies to mitigate their effects? Understand nature of reputation in enterprise- wide risk
- 19. A Board Responsibility: The Unilever Approach Public Policy and Corporate Reputation Committee appointed by the Board of Directors of AT&T Inc. to assist the Board in its oversight of policies related to protecting the Companys reputation, including its public policy positions, social responsibility efforts and the Companys brands.
- 20. A Board Responsibility: AT&T Public Policy and Corporate Reputation Committee appointed by the Board of Directors of AT&T Inc. to assist the Board in its oversight of policies related to protecting the Companys reputation, including its public policy positions, social responsibility efforts and the Companys brands.
- 21. Case Study
- 22. BP: The Controversy Texas City refinery disaster 15 deaths, 180 injuries Prudhoe Bay Shutdown Corroded pipeline Prudhoe Bay Methanol spill Canadian oil sands CO2 emissions Baku-Tbilisi-Ceyhan pipeline Human rights, environment, safety Columbian pipeline Paramilitary Mist mountain project
- 23. Beyond Petroleum or Beyond Pompous Beyond Pretension Beyond Platitudes Beyond Posturing Beyond Presumptuous Beyond Propaganda
- 24. 2010