4. Confused definitions
• Image – Identity – Brand
• What’s the difference between brand and
reputation?
• Brand is what you say about yourself
- What message is being sent?
- You are in control
• Reputation is what others believe about
you
- What message is being heard?
- Market is in control
6. A Competitive Advantage
• A corporate asset – Brand value -
differentiator
• Environment conducive to corporate
goals
• Builds public trust – confidence - loyalty
• Mitigates impact of adverse events
• Enhances deal-making capacity
• Premium on share price
• “Social license to operate”
7. Many Reputations
• Stakeholders define reputation based
on:
– Their values
– Nature of their relationship/interaction with
the firm
– Region or geography
• Metrics change over time
8. Many Reputations
Employees
Good work environment
√ Motivated, committed to success
√ Attract top talent
Customers
Quality well-priced products
√ Recommend to others
√ Loyalty
Investors
Financial performance
√ Sustainable P/E multiple
10. 10 Components of Reputation
• Ethical: behaves ethically, is admirable, worthy of
respect, trustworthy.
• Employees/workplace: has talented employees,
treats its people well, an appealing workplace.
• Financial performance: financially strong, record
of profitability, growth prospects.
• Leadership: a leader rather than a follower,
innovative.
• Management: well managed, clear vision.
11. 10 Components of Reputation
• Social responsibility: recognizes social
responsibilities, supports good causes.
• Customer focus: cares about customers.
• Quality: offers high quality products and
services.
• Reliability: stands behind products, consistent
service.
• Emotional appeal: I feel good about it, is kind,
is fun.
13. What’s Changed
• Reach, immediacy of social media
• Erosion of public trust
• Greater scrutiny of business
• Economic crisis
• Power of NGOs
• Reputation goes beyond “PR spin”
• Operational changes
• Insight into root causes
• Measure and modify
14. Managing Reputational Risk:
The Challenge
• Definition - Amorphous concept
• Cause or effect?
• Not captured in enterprise risk mapping
• “Deal maker” or “deal breaker”?
• By-product of business/operational risk
• Reputation/reality gap
• Role/responsibility of directors
19. Directors’ Responsibilities
• Corporate reputation oversight
• Define role of reputation in enterprise
• Establish “appetite for risk”
• Ensure appropriate stakeholder prioritization
against reputation metrics, corporate goals
• How to anticipate major triggering events?
• What techniques are used to assess likelihood
and impact
• What strategies to mitigate their effects?
• Understand nature of reputation in enterprise-
wide risk
20. A Board Responsibility:
The Unilever Approach
Public Policy and Corporate Reputation
Committee
“…appointed by the Board of Directors of AT&T
Inc. to assist the Board in its oversight of
policies related to protecting the Company’s
reputation, including its public policy positions,
social responsibility efforts and the Company’s
brands.”
21. A Board Responsibility: AT&T
Public Policy and Corporate Reputation
Committee
“…appointed by the Board of Directors of AT&T
Inc. to assist the Board in its oversight of
policies related to protecting the Company’s
reputation, including its public policy positions,
social responsibility efforts and the Company’s
brands.”