Reputation Combat: Protecting Your Company's Online Reputation
Your Bottom Line is Showing: Why reputation management matters to Investor Relations
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Transcript of Your Bottom Line is Showing: Why reputation management matters to Investor Relations
Your Bottom Line is ShowingWhy reputation management matters to Investor Relations
Carolyn McGill-DavidsonPresident & CEOCNW Group
Reputation
Reputation is the degree of trust, admiration,
esteem and good feeling that stakeholders
have for a company.
- The Reputation Institute
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Reputation
Reputation and your bottom line
• Reputation capital constitutes up to 63% of the average
company's market value
• On average, 20% of a company’s sales can be explained by
reputation
The web has changed everything
• Consumer behavior
• News creation – The New Newsroom
• The investment community
• Investor decision making
How often do you use social media outlets to research products and services before making a purchase?
At least Occasionally 61%
• Because users find social media to be believable, it is not surprising that they choose to use this venue as a source of information about products and services before making a purchase decision. Three-fifths do so at least occasionally and three-in-ten do so most of the time.
• Regionally, Quebecers are more likely to use social media for research at least occasionally (71%).
Base: Users n=1516
Users are Turning to Social Media for Researching Purchases
Social media reaches mass adoption
Source: North American Technographics® Interactive Marketing Online Survey, Q2 2009 (US), North American Technographics Media And Marketing Online Survey, Q2 2008, and North American Social Technographics Online Survey, Q2 2007. Forresters Research, Inc.
Base: US online adults
The Past
The New Newsroom
The web has changed the newsroom
There are no deadlines anymore. The concept of a
deadline is something that was oh, so six months
ago. The deadline is now.
David Akin, National Affairs correspondent, Canwest News
Service (currently Sun Media National Bureau Chief, Ottawa)
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The web has changed the newsroom
You can’t sit back and relax. The deadline is now
and now and now and now. And it’s a constantly
evolving story.
Scott Anderson, Editor-in-Chief, Canwest News Services
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The web has changed the newsroom
The metabolism of media has been sped up to the
point where you don’t have hours to respond. You
have minutes. Things can go from molehills to
mountains instantaneously.
Mathew Ingram, senior writer
GigaOm blog network.
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Investors can no longer be considered just stock
buyers. They are consumers and business buyers – of
technology, energy products and everything else that a
company sells – and probably great communicators
when they buy something they like. They rely on media
as a primary source of information to guide their
purchase, whether it is a position in a company or the
widget that a company products.
Miri Segal & Henry Feintuch, IR Alert
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Institutional investors take the time to troll around
social media outlets and in many cases might
prefer to get the sort of raw opinion of somebody
inside a company who may be writing something
on Facebook or posting something to a message
board because it’s unfiltered.
Lorne Gorber, Vice President, Global Communications and
Investor Relations, CGI
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Social media is blurring the lines of IR & PR
The new
reality
On the web, good news spreads fast. Bad news spreads faster.
Motrin Moms
• On November 16, 2008 a blogger offended by a controversial
online video promoting Motrin for mothers set off a wave of online
discussions
• Within two hours of the post, anti-Motrin comments were the most
popular topic on Twitter
• Less than 24 hours later, Motrin pulled the ad from its website and
posted an apology from their VP of Marketing
Today, many business leaders are again asking
the wrong question: ‘What will social media do for
us?’ instead of ‘What will social media do to us?’
Augie Ray, Senior Analyst of Social Computing, Forrester
Research
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In today’s environment, markets react quickly to both
positive and negative news, and public companies
need to be in a position to respond quickly. Time was,
companies were only concerned about a 24-hour news
clock and responding by the end of the day. In today’s
environment, an accurate statement is required as
soon as possible – with regular updates – in order to
stay on top of the story.
Frank Switzer, Sun Life Financial
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We are aware of the potential impact on our reputation
from tweets and blogs, both positively and negatively.
We monitor all mentions of Sun Life and bring any
issues to the right place in the organization, while being
mindful of the confidentiality of our clients’ business.
Frank Switzer, Sun Life Financial
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Solutions to reputation risk start with locating existing
risks for the business and then understanding the
impact on reputation if these risks occurred. An early
warning system that identifies and possibly prevents
potential problems as well as communications and
contingency plan are the most effective ways of
addressing reputation risk.
AON Global Risk Management Survey, 2009
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Reputation Management
An effective reputation management program enables
business leaders to:
•Have real-time access to information and conversations
•Respond quickly and confidently to negative reports propagated
anywhere
•Assess shareholders, customers, partners and other stakeholders
to determine levels of satisfaction, investor sentiment and matters
requiring improvement;
•Anticipate best and worst case scenarios
•Plan, develop and adjust strategies
I think companies should be monitoring and should
be aware of what’s being said about them, because
a lot of the time you can shut down a rumour very
quickly if it is, in fact, not true, or at least deal with it
in a relatively timely manner. The broader story of
what social media is going to mean to businesses.
Andrew Willis, The Globe and Mail
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Your reputation is who you are. Perception to the
external world is reality. So it’s one to manage, or
to monitor, what is being said about you. It’s
another thing to take that information and to do
something with it, to act proactively.
Bryan Tucker, Media Relations,
Rio Tinto Alcan
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Any good communications professional who’s at a company
and seeing what people are saying about them on Twitter or
Facebook should be able to see where the stories are going,
should be able to get one step ahead, get the talking points
ready, sit the CEO down, tell him to shut up, whatever needs to
be done. I think that yes, you need to be there as a
communications person in a company and you need to be
paying attention because you can see where the media is
going to be a few steps ahead.
Boyd Erman, The Globe and Mail
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The new reality of reputation management
Seven things your company can do
• Be proactive
• Improve customer support
• Listen
• Participate
• Respond
• Move faster
• Realize everyone is a marketer
Augie Ray, Forrester Research
Resources
• ‘Safeguarding Reputation’ – Webber Shandwick
• Millward Brown’s Corporate Reputation Study, January 2007
• AON Risk Management Survey, 2009
• Social Media Reality Check
• North American Technographics Interactive Marketing Online
Survey, Forrester Research
• Break Down the Walls: The Advantages of True IR & PR
Integration, Miri Segal & Henry Feintuch, May 10, 2010
• Motrin Moms Backlash by the Numbers, Web Strategy by
Jeremiah
• Seven Things Your Organization Must Do Because of Social
Media, Augie Ray, Forrester Research Blog