Reputation management

REPUTATION MANAGEMENT

☺ The beliefs or opinions that are generally held about someone or something.

☺ Activities performed by individual or organization which attempt to maintain or create a certain frame of mind regarding themselves in the public eye.

REPUTATION

Types of Reputation:

*. GOOD REPUTATION.

*. BAD REPUTATION.

Developing a Good Corporate Reputation

Be obsessed with your product or service.

Deserve confidence. Be available. Admit mistakes. Engage people’s interest. Have something to say.

Benefits of Reputation

Attracting customers Motivating employees Generating investment interest Increasing job satisfaction Garnering positive comments from financial

analysts Generating positive news media coverage Attracting top employee talent Improving financial performance

REPUTATION MANAGEMENT

Reputation management is the practice of understanding or influencing an individual’s or business’s reputation.

It is the practice of monitoring the reputation of an individual or brand, addressing contents which are damaging to it, and using customer feedback to get feedback or early warning signals to reputation problems.

Most of the reputation management is focused on pushing down negative search results.

Objectives of Reputation Management

Maintain a favourable reputation in the workplace and marketplace.

Enhance and build the organization's good name and reputation.

Establish acceptable practices, policies, procedures, systems and standards that will avoid damage to the organization's reputation.

Prepare and equip the management team to take full responsibility for managing the company’s reputation.

Reputation Management Process

Building:

Build a good reputation to maintain it for your business.

Maintenance:

Keep a company’s good image superior in the public eye.

Recovery:

For recover a company’s good reputation, if the company has gotten a bad reputation for any reason.

Most Reputed companies in India

• Survey by Nielsen Corporate Image Monitor

• It represents the views of 1,790 people from different walks of life, including policy makers, influence groups, the financial community, investors, corporate peers and the general consumer, across the top seven metros.

Most Reputed companies in IndiaCOMPANY RANK 2012-13 RANK 2011-12

Aditya Birla Group 1 2

Tata Motors 2 1

LIC 3 -

ITC 4 8

Infosys 5 -

Wipro 6 7

RIL 7 4

HUL 8 6

Tata Steel 9 5

SBI 10 -

Does a Good Reputation Protect Against Reputational Damage?

• Benjamin Franklin: “It takes many good deeds to build a good reputation, and only one bad one to lose it.”

• Donaldson: “The old saw that a reputation takes years to accumulate, but can be destroyed overnight, is only half true. If you have a good reputation, you are given the benefit of the doubt. If a company has a bad reputation, it gets the detriment of the doubt.”

A Good reputation might help in 3 ways when bad things happen:

1. The reputational capital hypothesis.

2. The shield hypothesis.

3. The benefit-of-the-doubt hypothesis.

Stressing good reputation in bad times

Nonexistence Strategies

(“There is no crisis.”) Distance Strategies (“It’s not our fault.”) Ingratiation Strategies

(“But look at the bigger picture.”) Mortification Strategies (“We messed up,

we’re sorry, and we’ll make it right.”)

Nonexistence Strategies (“There is no crisis.”)

Denial

Clarification

Attack

Intimidation

Distance Strategies (“It’s not our fault.”)

Excuse

Denial of intention

Denial of Volition

Ingratiation Strategies (“But look at the bigger picture.”)

Bolstering

Transcendence

Praising Others

Mortification Strategies (“We messed up, we’re sorry, and we’ll make it

right.”)

Remediation

Repentance

Rectification

Reputational Risk

• Reputational risk, often called reputation risk, is a type of risk related to the trustworthiness of business.

• Damage to a firm's reputation can result in lost revenue or destruction of shareholder value, even if the company is not found guilty of a crime.

SOURCES OF REPUTATIONAL RISK

Increasing exposure

through an expanding

Internet.

Impersonal and

discourteous behaviour.

Acting too late.

CONCLUSION

Nothing is more important to a business than its reputation. Without a good reputation, success is limited and a company’s long-term future is cast in doubt.

Thank You!

Presented ByN. Vignesh.