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Typically, more than 25-percent of a company’s market
value is directly attributable to its reputation and goodwill.
The 2014 Deloitte Survey states that executives perceive the
potential threat of reputational damage as a key concern of
C-suite executives.
Reputational challenges vary by industry. The winners are those who
not only address such challenges, but also see the opportunities that
come with them.
Risks & Rewards By Industry
Companies in the
financial sector
are expected to have a reputation
for impeccable conduct, and to be transparent when it comes to
reporting. They are always under the magnifying glass of regulators,
investors, customers and, ultimately, talent.
In the
oil and gas industry
, enhancing policies geared towards
sustainability and environmental performance shapes a company’s
reputation. At the same time, such challenges offer opportunities to
adopt new technologies and improve operational efficiency.
The
Fast Moving Consumer Goods (FMCG)
industry challenges include
factory and employee conditions, product quality, and outstanding
customer service. The sector’s success relies heavily on transparent
communication with its customers.
The Technology, Media and Telecommunications (TMT)
industry’s
reputational factors involve credibility of posted information,
protection of confidential customer data, and effective protection
systems that can block rapid spread of the cyberattacks.
Each company’s reputation perception unfolds from such concerns.
A business’ reputation informs and supports its ethics and safety
standards, service quality, corporate social responsibility, security, and
ultimately, financial performance indicators.
Proponents to Promote a Positive Reputation
Companies willing to adopt innovation have an opportunity to enhance
their brand value. Customers view innovative companies as game-
changers, directly affecting brand perception, and spurring increased
sales.
One efficient way to promote a brand is to educate employees and
ambassadors about the company’s value proposition, so that word-
of-mouth can travel further with accuracy. When a company spends
the time to support new ideas and enhance ideals in their mission,
employees are eager to unite behind the brand and support the firm’s
reputation.
The main proponent of this intangible asset is the customer.
Regardless of sector, consumers cannot underestimate the power of
feedback and their ability to bring “unseen” issues to light. With the
proliferation of social media, customers have both access to and speed
of communication, so anyone is equipped to spur positive change.
And, as the old adage goes, the customer is always right.
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