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