What is Corporate Reputation?
An organization cannot survive without good Corporate Reputation. Corporate reputation is basically an estimate of how your investors, shareholders and customer-base view you, and indeed that estimate is very important for your organization. Most organizations don’t attach much importance to it, some think of it as too abstract a concept to mull over too much. But it is very important since that is in part what decides your market value, your customer-base and preference when it comes to repeat business. In short, it’s something that you really shouldn’t push to the back of your mind and let it be.
The Importance of corporate reputation
The faith of your stakeholders
Every business has its ups and downs, and during the downs, a little support is required. However, if your company has a history of badly-handled crises or any other incident of disrepute, your stakeholders might desert you faster than rats desert a sinking ship. The dwindling number of supporters is not only hard on your business in such hard times; it can be especially demoralizing for your employees as well. Hence by a long relation productivity of your organization may suffer if your shareholders lose faith in you during times of crisis. Here is where Business reputation management becomes extremely important. Simply a show of your company’s competence can assure their permanent faith if handled well. Business reputation is in a way a security backup during the dark moments of your business.
The impact on your CV
This is important if you are the leader of the organization, the CEO or equivalent. A good business reputation is automatically credited to the CEO as the business in question is thought to be competent and dependable. According to studies, 50% of any organization’s productivity is due to the CEO and so if your company is doing well and if that particular triumph is inconspicuously advertised then the “street cred” of the business world: the business reputation of your company will increase accordingly and it will reflect positively on your CV.
Financially speaking, good business reputation management can contribute more than you think to the market value of your organization. This is because a company which seems dependable and transparent in its work will induce more people to invest in it and attract more clients as well. Conversely, even the hint of a scandal or shady dealings in its past can cause people to turn away from it. There is also the possibility of simply standing still, but where everyone is pushing forward, that option is really not an option. Here is where good business reputation helps you out. It advertises your strength and induces more investment which increases your market value.
Customers pay more for quality
Good business reputation management also leads customers to agree to pay a premium for certain products of quality. This is because customers will know that your services are as good as they are touted to be and hence are deserving of being charged extra. This will not be true for those with a bad reputation or those companies which are not so exceptionally known in their fields. This one is just a bonus for investing in good business reputation management.
How to improve business reputation management
Now that you know what corporate reputation is and what proper business reputation management can give you, it’s time for you to invest some time and energy into it. One of the key things is to get to a good business reputation agency and place yourself in their hands. Let the professionals handle it. Even though it is a new field, there are some good agencies which can help you out like Reputation Defender which specializes in taking care of and managing the online reputation of companies. Online reputation is perhaps the hardest to control and maintain since one serious misstep anywhere can lead to severe bashing on the internet that a successful company simply cannot afford. However, Reputation Defender is designed expressly for prevention of such incidents. It is also the first of its kind and has a level of expertise that can help you level up in terms of business reputation.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.