“The way to gain good reputation is to endeavour to be what you desire to appear.” Socrates
Reputation is the overall estimation in which an organisation is held by its internal and external stakeholders based on its past actions and probability of its future behaviour. The organisation may have a slightly different reputation with each stakeholder according to their experiences in dealing with the organisation or in what they have heard about it from others.
When to use it
The two main sources of a corporate reputation are experience and information – a person’s past dealings with your organisation and the extent and nature of their direct and indirect communication with you. So the only time you would need to manage reputation is when these sources deliver harmful and disruptive messages about your company. Reputation can therefore not really be managed but should be integral to daily life. Reputation should always be upheld and maintained.
Why it’s useful
The main benefits of a good reputation are:
- Customer preference in doing business with you when other companies’ products and services are available at a similar cost and quality
- Your ability to charge a premium for products and services
- Stakeholder support for your organisation in times of controversy and crisis
- Your organisation’s value in the financial marketplace