Your Reputation

Reputation - what’s it worth to your business? An article in the December 2020 issue of Global Finance magazine, entitled “Reputation- In crisis, the risks and rewards related to reputation are greater than usual” speaks to this question.

The article looks at corporate reputation and the impact it has on the market value of high-profile publicly traded companies. These companies are evaluated by annual surveys that look at stakeholder perceptions of trust, vision, growth, products and services, culture, ethics, and citizenship. However, even if your business isn’t surveyed, the concept applies at all businesses of any size and description because concern for how you measure up in these areas is becoming ever more important to your customers and employees.

Many business owners are very concerned about reputation. Some worry about maintaining their good reputation while others don’t think about it unless they’re faced with a situation that may damage their reputation. How would your business rank if it were part of a reputation survey? Your customers and your employees already have a ranking of your business in their heads. How do you rank in the areas of trust, vision, growth, products and services, culture, ethics, and citizenship? What you hope it is may or may not be accurate. The answer may be different for your customers than it is for any investors that you may have. Employee response might vary depending on whether you ask senior management or front-line employees. If you have never asked your customers or your employees to rate your business in these areas you might consider doing so. Once you have the results you will know where you stand. With this information you can put a strategic plan in place to protect your reputation. Further, you can develop plans to improve any areas that are not where you want them to be. Consider sharing your appreciation for this stakeholder input by sharing actions that you are taking to address concerns so that they know you care about their opinions and are actively addressing what matters to them. Stakeholders are increasingly concerned about transparency so open communication about survey results and action to address concerns will enhance your reputation even more.

A proactive approach demonstrates to customers, employees, and other stakeholders that your business is concerned about building and maintaining the best reputation that you can. This will enhance your brand and set your business apart from your competition. It also sets you up to effectively address anything that may happen in the future that could have an adverse impact on your reputation. If you are already in the habit of responding to concerns about your company’s reputation, you’ll be better prepared to step up and deal with anything that may adversely impact your reputation. Finally, this approach enhances your businesses culture. The best people will want to work for your business in part because of your awareness of the importance of reputation. Excellent people care about their own reputations and want to work for businesses where they will not be putting their own reputation at risk. People also tend to live up (or down) to the expectations of those around them. If your business has a passion for maintaining excellence when it comes to trust, vision, growth, products and services, culture, ethics, and citizenship, you’ll have a team that shares that passion.