Reputation is a concept that has been studied in various disciplines, such as psychology, sociology and business management. It refers to the perception that other people have about a person, company or brand based on their behavior, actions and characteristics.
Reputation in organizations has been building its definition and gaining ground in business management since the 1930s, but a good starting point could be inferred around the 1960s with the first approach made by Martineau, Pierre in “Sharper focus for the corporate image” Martineau, P. (1958). with the theorization of corporate image, where it is defined as the “heart of reputation”, with two fundamental characteristics as stated by Balmer, J., & Greyser, S. (2003) on the reputation that
- They are created over time
- It is based on what the organization has done and how it has behaved.
Balmer, J., & Greyser, S. (2003). Revealing the corporation: Perspectives on identity, image, reputation, corporate branding and corporate level marketing. Routledge.(p 177)
Fombrun, C and Rindova V.P. (2000) argue that a favorable reputation contributes to a solid competitive advantage because it is not easily replicable.
From this starting point, meanings have been built towards reputation as the construction of perception and value by the public of organizations based on the information received from them (Capriotti, P. (2009). From image to reputation. Analysis of similarities and differences. Reason and word(70), 1-10.) and together with the boom that generated in visibility and materiality of the matter in the years 1980 -1990 since the first publication of the ranking “Most Admired Companies”, of Fortune magazine, where with this a business value was given to the image and reputation, giving a loudspeaker and a measurable value as stated by the consulting firm Kornferry associated with Fortune magazine that helps to identify the companies in the ranking, it states the main attributes for its evaluation by answering the following question.
What are the reputational attributes on which companies are evaluated to determine industry rankings?
-Ability to attract and retain talented people.
-Quality of management
-Social responsibility with the community and the environment.
-Innovation
-Quality of products or services.
-Intelligent use of corporate assets
-Financial soundness
Long-term investment value
-Effectiveness in doing business worldwide
FORTUNE World’s Most Admired Companies. (n.d.). Korn Ferry.from https://www.kornferry.com/insights/this-week-in-leadership/fortune-worlds-most-admired-companies
“A corporate reputation is the overall assessment of a company’s stakeholders over time. This evaluation is based on direct experiences with the company, and any other form of communication and symbolism that provides information about the company’s actions and/or a comparison of actions with other rivals.”
Gotsi, M. and Wilson, A. M. (2001): Corporate reputation: Seeking a definition,
We can emphasize that reputation is an important asset for any company, as it influences its ability to attract and retain customers, as well as its relationship with suppliers, partners and other market players. According to a survey conducted by the Reputation Institute, 82% of consumers take a company’s reputation into account before making a purchase, and 68% would be willing to pay more for products or services from a company with a good reputation (Reputation Institute, 2019). On the other hand, a bad reputation can have serious consequences for a company, such as loss of customers, decreased sales and difficulty in attracting investors.
To improve a company’s reputation, it is necessary to work on several aspects. First, it is important to maintain impeccable ethics and conduct in all aspects of the company, from decision making to dealing with customers and suppliers. In addition, it is necessary to pay attention to the quality of the products or services offered, since customer satisfaction is one of the key factors for improving reputation.
Taking into account the drivers that are taken into account when evaluating reputation, as proposed by Reptrak in Seven Drivers of Reputation, we can find the quality of products and services along with the user experience, the innovation of the company, to become the first to adapt quickly to changes in this volatile, uncertain, complex and ambiguous world, as well as their behavior in their workspace with respect to workers, the care of pampering and the opportunities provided to them within the labor ecosystem, without forgetting effective, committed leadership with clear objectives, ethical, open and transparent conduct and exemplary practices in doing business, emphasizing that the company must be an exemplary citizen in its territory with commitments and impacts, leading to ESG practices, environment, society and governance is key and of course profitability with its growth prospects.
Seven Drivers of Reputation. (n.d.). reptrak, from https://www.reptrak.com/case-studies/ultimate-reputation-guide/7-reputation-drivers
Another important strategy for improving reputation is communication management. It is necessary to have a clear and coherent communication strategy that transmits the company’s values and reinforces its image to the public, adding that a correct evaluation of possible communication crises and their correct management will help to continue providing the message of trust and values of the company so that the corporate image already built will not be affected or worn out.
Finally, it is important to note that reputation is not built overnight, but requires constant and sustained effort. The company must always be attentive to the needs and expectations of its customers, with a philosophy of
“Customer centric” and act proactively to solve any problems or conflicts that may arise. It is also necessary to maintain a fluid and transparent dialogue with customers and other market players, media, government, suppliers, as well as stakeholders tracked by the company’s power map.
Reputation is a key factor for the success of any company, and its management requires a comprehensive strategy that involves ethical, quality, communication and customer service aspects. To improve reputation, it is necessary to work in a constant and sustained manner, paying attention to the needs and expectations of customers and acting proactively in the face of any problem or conflict.
Bibliography
Balmer, J., & Greyser, S. (2003). Revealing the corporation: Perspectives on identity, image, reputation, corporate branding and corporate level marketing. Routledge.(p 177)
Capriotti, P. (2009). From image to reputation. Analysis of similarities and differences. Reason and Word, (70), 1-10.
Gotsi, M. and Wilson, A. M. (2001): Corporate reputation: Seeking a definition, Corporate Communications, Vol. 6, No. 1, pp. 24-30.
Fombrun,C and Rindova V.P., “The Road to Transparency: Reputation Management at Royal Dutch/Shell. “in M,Shultz,M.J. Hatch, and M.H. Larsen The Expressive Organization,oxford: Oxford University Press,2000.
FORTUNE World’s Most Admired Companies. (n.d.). Korn Ferry.from https://www.kornferry.com/insights/this-week-in-leadership/fortune-worlds-most-admired-companies
Martineau, P. (1958). Sharper focus for the corporate image. Harvard Business Review, 36(6), 49-58.
Seven Drivers of Reputation. (n.d.). reptrak, from https://www.reptrak.com/case-studies/ultimate-reputation-guide/7-reputation-drivers
Winning in the New Reputation Economy – 2019 Global RepTrak. (2019, March 7). RepTrak. https://ri.reptrak.com/hubfs/_PDF/Global%202019_FINAL_March4.pdf
