Benefits of corporate reputation still not understood in too many businesses

The Reputation Council Insight and Ideas report out this month, which polled a Reputation Council made up of 40 of some of Europe’s most senior corporate communicators, highlighted that while nine in ten believe reputation is of great interest to CEOs, under half (46 per cent) consider reputation management to be ‘hard-wired’ into business management. Work still needs to be done to widen understanding and prove the benefits of reputation amongst senior management.

Council members also believe a strong reputation attracts the cream of the crop when recruiting, but that employees still view reputation management purely as a PR tool (51 per cent). 95 per cent of those polled see reputation management as a clear contributor to competitive performance – the more positive stakeholder views are the more likely customers are to use an organisation’s services.

Managing Director of the Ipsos Reputation Centre, Milorad Ajder, said:

“The Reputation Council is telling us that there is still a lot more to be done in making the case for effective reputation management – half of Council members don’t think it’s hard wired into organisations. “I think this is a critical issue because the more an organisation’s reputation is at the forefront of its thinking the more it will be inclined to consider the consequences of inappropriate corporate behaviour. Companies that understand its importance generally take a broader perspective on key business decisions whilst those that don’t often sacrifice this intangible but very valuable business asset for short term gains.”