ArticlesStrategy DocumentsA02 / 2011ReputationChief ReputationOfficer (CRO)1                                A strategic di...
Chief Reputation   Department of communication is 10%, since that          9. To advise and to support the CEO and topOffi...
Chief Reputation   According to Morten Albaek, senior Vice President            takeover bids, mergers or crisis, the CRO ...
Chief Reputation   different audiences are from different corporate                      not a figure to ensure corporate ...
Chief Reputation               in measurement tools and the development of tools                       directorates are pr...
Chief Reputation                 labor. In addition, the CRO must advise CEO when                           The companies ...
Chief Reputation               further step and export corporate reputation models                  CSR, brand or marketin...
Chief Reputation       of dialogue, transparency, credibility,             9.	 To monitor and detect risks and reputationa...
Chief Reputation   understand that they must focus their strategy on          directorates should be a functional dependen...
©2011, Corporate Excellence - Centre for Reputation LeadershipBusiness foundation created by large companies to profession...
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The Chief Reputation Officer (CRO)


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In the 21st century, big corporations need a sustainability and differentiation model as products and services offered to customers by different companies are becoming more and more similar. In this context, companies understand that their strategy should be focused on intangibles, such as the brand, communication, public affairs, etc. Reputation is turning into the field of competition for companies, countries and institutions. In order to successfully navigate in this new reputation-focused economy, we need leaders capable to understand the new environment, who possess deep knowledge of the expectations of the stakeholders.

This new role, a Chief Reputation Officer, is discussed in the research titled The Chief Reputation Officer, a New Model of Corporate Reputation, carried out by the University of Malaga.

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The Chief Reputation Officer (CRO)

  1. 1. ArticlesStrategy DocumentsA02 / 2011ReputationChief ReputationOfficer (CRO)1 A strategic direction for corporate reputation During the months of January and February 2011 strategic audiences will authenticate and reach a NetEquity has produced a study on the corporate consensus on their company perception which will reputation management trend (in hereinafter guarantee the future of it. In the dialogue with the CR) in enterprises of our country2. This study stakeholders, the commitment should reach on was conducted on a sample comprised of a total what the company can give but never to create of 187 interviewed on first-level positions (CEO, expectations that cannot be they guaranteed. General Managers, advisors, etc) major foreign and Spanish multinationals in this country. In the trends study on corporate reputation in Spain companies expected, as shown in Graphic 2 of the As noted in Graphic 1 “The CR importance “existence of the CR area in the organizations in in the coming years”, corporate reputation will Spain”, this area develops up to 16.9%. In the become more important in the coming years research is confirmed that in a 45% there is already with an increase of 20%, becoming important a specific area of corporate reputation, considering to 69% of the large multinationals. There are as such which has at least one person on staff. companies that have incorporated this new According to the trends study, the corporate discipline within General Directorates of first reputation will have direct dependence framed on level in the contributions made in the current the first corporate level in the next two years, as analysis of corporate reputation. confirmed in Graphic 3 the “Growth of CR areas in Spain”. Specifically, the sample collected says This is due to major corporations and multinationals that ideally that this profile has increased direct currently are involved in very complex relationships dependence of the Presidency and CEO or General with their audiences and markets as a result of the Directorate and it reduces their dependence on the global scenario that they are living both in the Communication Directorate. Therefore, the main financial sector and in the information sector. CEO and managers of this country consider that Companies need to ensure their sustainability corporate reputation should evolve in a direction and dependent on sustainable relationships with that increasingly more dependent on the Presidency their strategic public in short and long-term. But or the Chief Executive and less of the area of to achieve them, the company must perform its communication. Very similar figures are given to work under values professionally ethical, not only support this study that currently these directorates under values legally recognized in the country have 30% a direct dependency in Presidency or the where operate without forgetting that they move Chief Executive and 40% of President Offices or in a globalized world. Thus, anywhere in the world Chief Executive. However, the dependence of the1. Chapter 5 of the doctoral thesis “the Chief Reputation Officer (CRO), a new model of corporate reputation”, Ana María Casado, Universidad de Málaga, 20112. Study carried out by NetEquity and loaned byel Foro de Reputación Corporativa for research of the doctoral thesis “the Chief Reputation Officer (CRO), a new model of corporate reputation”, Ana María Casado, Universidad de Málaga, 2011
  2. 2. Chief Reputation Department of communication is 10%, since that 9. To advise and to support the CEO and topOfficer (CRO) in the study the communication directorates have executives in building and maintaining been integrated in the Presidency Offices, because his/her personal reputation. of the multidisciplinary dedication in many more 10. To develop an integrated management areas were not exclusively for communication and dashboard to measure the corporate where worked already intangible assets. In addition communications, brand, reputation and to finding the first specific corporate reputation intangibles assets, and to reveal the impact directorates in Spanish and foreign companies at accounting level towards the business and multinationals studied, appears in the year and the return of investment (ROI). 2001, a new name that identifies this figure Chief Reputation Officer or CRO. There are other evidences at international level of the CRO, where reference is made to the importance “Nowadays, the of creating this new role to eliminate the fragmented manner in which the companies deal with their Corporative Reputation strategic publics. According to Charles Fombrun, Directorates have a 30% CEO of Reputation Institute, this fragmentation is given by the departmental area as functional of Presidency and 40% silos (marketing, finance, human resources), with a of the Chief Executive minimum chance to contact or to be coordinated. This applies, for example, in relationship areas with the dependency“ shareholder, customer, employee, the Government, the community, etc. This is what makes that there is Recently, in May 2011 created in Wikipedia (the a reduced overall understanding of the determining section of Management Occupations) the name and definition of this figure: “Chief Reputation Officer Importance of CR in the coming years (CRO) is a new Executive position in a corporation, company, organization or institution, usually reports directly to the CEO or the Board of Directors and 100%– Has taken / will belongs to the Executive Board of Directors.” “He/ 90%– 44% become more She is responsible for the reputation, brand, Public 80%– 49% important. 70%– Relations / Public Affairs; He/She is in charge of 64% Maintains / 60%– the integrated management, and effective and 50%– maintain its 54% importance. efficient coherence and consistency of all internal 40%– 48% and external communications, all in all virtual 30%– 35% Decreased / and physical points of contact, in order to create 20%– decrease its 10%– importance. a favorable base for strong and lasting relationships 0%– with the stakeholders on which the Organization Last 2 This Next 2 years year years depends”. CRO main functions: Source: The Chief Reputation Officer (CRO): A New Model 1. To implement an integrated communication for Reputation, 2011. policy actively incorporated into the organization’s global business strategy. 2. To understand the market, and company aspects for reputation. This fragmentation damages strategic public and to provide knowledge and the company competitiveness and increases the risk tools to the business to improve perceptions and and vulnerability to the crisis. behaviors favorable to the company. 3. To build strong relationships Fombrun suggests that to exploit the reputation with the stakeholders. capital and build strong companies, a new figure 4. To support the organization in or role at the Executive level must be developed in creating strategic alignment of a the companies, as it is the case with the CRO. He company’s vision, mission and values, remind that many companies appoint a CFO (Chief both internally and externally. Financial Officer) to safeguard the financial capital, 5. To help the organization in creating a COO (Chief Operating Officer) to monitor a strong corporate brand. operations, and a CIO (Chief Information Officer) 6. To advise the organization in creating and to control and manipulate the corporate databases. enhancing a sustainable reputation. For this reason, he suggested that to address the 7. To support and to advise the intangible assets of a company and to build leading organization in the identification and companies, it should institutionalize new roles and mitigation of reputational risks. structures, as it is the case of the CRO. In the past 8. Preparing top executives and management two years, there are some more precise definitions throughout the business for intense persuasive which demonstrate that the CRO is a figure that is communication with the stakeholders. implemented in international companies: Articles 2
  3. 3. Chief Reputation According to Morten Albaek, senior Vice President takeover bids, mergers or crisis, the CRO mustOfficer (CRO) of Marketing & Customer Insight, Vestas of have an important weight in the advice to Reputation Institute Denmark, “the description of manage that change. It begins to see, but in small the CRO work emerges at the same time that the percentages, reputation directors that they are reputation management comes to be regarded as a involved in the adaptation process in a takeover vital professional career for the next generations bid or who run the crisis Committee. Also notes of corporate strategists”. He continues confirming how, within his/her institutional functions that it is time that companies invest in training already commented, the CRO advises the for the reputation directorate and it is built on Human Resources Department on management five types of skills (cognitive, analytical, processes, and change of the organization culture aspects. communication and organizational) necessary to create strengths that enhance the worldwide most 4. Communication skills. It is important that the respected companies of the future. This will create CRO has the capacity to establish the different reputation intelligence within an organization to types of messages and strategic contents on find out how to manage a strong enough reputation corporate reputation, both in traditional media as the company survives as a single leader and and the new online media. In some answers generate favorable market conditions”. issued in the study to the CRO on their roles, some of them declared that they had to watch “The CRO must have over the messages issued from any area of the company were consistent, both internally and cognitive, analytic, of externally, and were along the lines of action process, communication of the company. The function of watching over the consistency of the transmitted message is and organization skills important in the CRO role, but should not to interact with the have as main daily task the communication with media, as showed still as a trend in the stakeholders” research that it had been done. For that there are the Communication Directorates or the On the other hand Anthony Johndrow, managing Press Directorates. CRO maximum function is partner for North America of Reputation Institute, to set up and establish systems and procedures confirms that the CRO to develop this function to work globally, at all levels and positions, in must fulfill five types of skills: a model of corporate reputation to provide values to their audiences and differentiate them 1. Cognitive skills: They must have knowledge in time. Against the brand management in the about the business functions as well as notions 20th century with a differential positioning of in communication, especially of KNOW-HOW companies mainly based on the features of the better: “savoir-faire” in their specific sector. product and service communication, nowadays As mentioned in our study, a multidisciplinary the brand is surrounded with other aspects such as profile with training in communication and its own reputation and the company reputation, economic is important and, also a business wide something that cannot be built quickly and is knowledge, preferably with experience in various not about specific communication campaigns. positions within the company and the sector. If We are talking about the brand is surrounded the CRO does not have these abilities it will be with aspects that must be managed transversely very difficult to introduce transversely in the in the company, such as: the transparency values, company the corporate reputation. And this is professionalism, credibility and confidence that one of the main functions, the ability to lead the we generate through the company performance company globally towards a model of reputation and the experience that the clients have with to ensure the company sustainability. the company’s brand. In this point the CRO has a lot of to contribute in the coming years. 2. Analytical skills: They must a causal thinking and analyzing situations in context. It is very 5. Organizational skills. It is important is the ability important, with the acquired knowledge, to to persuade, to align corporate directorates towards analyze and to interpret the reputation reports their areas management or how to contribute or perception studies to analyze the different to the corporate reputation improvement and, contexts, to understand them and to know the in a nutshell, to attract revenues and value to causes that generate within the organization or the company. We have a new model aimed to externally certain perceptions. seek the “prestige” excellence in management relationships with our stakeholders. 3. Process skills. It is the ability to manage the change, as well as to facilitate the coordination According to Cees M. B. Van Riel, Professor at and implementation. In this sense, when the Erasmus University of Rotterdam, and Charles companies undergo new adaptation situations, Fombrun, communication and relations with the Articles 3
  4. 4. Chief Reputation different audiences are from different corporate not a figure to ensure corporate reputation, andOfficer (CRO) areas and the interests in the treatment and to companies where this figure stems for in some promote their relations with each of them are cases accidentally or by an exclusive investment in very focused on their departmental objectives and communication. When this type of inconsistency the holistic vision is lost in many cases. This can happen, the company suffers with their audiences prompt to contrary perceptions, fruit of an overall a loss of credibility hard to recover, in addition inconsistency and not work towards a global to viewing damaged their sustainability and their reputation model, where it has to be thought about leadership position and competitiveness in the the impact of an overall action. market. In the 21st century, companies not already lead by themselves and by their good products, but There are clear examples of this inconsistency. audiences are that validate their leadership. The British American Tobacco, the same day that the companies are positioned not only because they are manufacturer carried out an advertising campaign doing everything very well, are public/stakeholder very ostentatious and expensive in a German which should have that perception. And begin to newspaper, in the same newspaper and on the create a consensus on this new reputation model opposite page announcing the dismissal of 123 starting with the organization itself. employees at the Amsterdam branch. A similar inconsistency damaged the AT&T image in January 1996, when the company announced plans to reduce ‘‘Communicative 50,000 jobs, at the same time as the financial pages inconsistencies generate announcing record income for shareholders. Public negative impact on the stakehoders perceptions, Existence of the RC area organizations in Spain and a reputation damaged with the passage of time’ Companies are increasingly closer in terms of what they offer to their strategic publics. What 16,9% 36,9% makes them really different are intangible assets This already exists as their corporate reputation, their brand, their 23,1% 63,1% contribution to the governance of the country This does not exist or countries where the companies fulfill their activity (public affairs), their commitment to their It is planned to create public (corporate social responsibility or CSR), it in the next 2 years No, there are no plans to create it their identity values, and their corporate culture or way to work and interact with their audiences (their truth, credibility, ethics and trust). And Source: The Chief Reputation Officer (CRO): A New Model for Reputation, 2011. this is one of the CRO functions: to coordinate these intangibles assets that are fragmented by different departmental directorates and requiring a centralization of its management to monitor and lynching that these companies received damaged create sustainable business in the long term. their reputation completely. Another example was the leading manufacturer of Boeing airlines. The company decided to put a full page advertisement In the coming years will be shown a greater number on the back page of The Economist the same day of companies that will integrate this new corporate of the second anniversary of September 11 attacks reputation model as a priority in enterprises that bet on New York: tragic date in that fundamentalist by a strategic direction to ensure their sustainability terrorists hijacked Boeing aircrafts to use them as and their leadership. missiles and thus destroy the twin towers. In this new company management model, intangible From these situations can be deduced that there assets will be the differentiating factor and the figure was a systematic failure of traversal integration in or role of the CRO will lead systems and processes the communication systems of these companies and for implementation. Therefore, in addition to that the instance from which were managed these report to the first level, in this new model the CRO communications, this instance does not thought could occupy positions as the CEOs and participate about the impact on the repercussion on the as a member of the Board of Directors, in decision- overall reputation. These inconsistencies generated making at the highest level. The trend is that the negative impacts on the strategic public perceptions, decision of intangible assets strategies will work and a reputation that had been a result of many years with the President or CEO, and reputation rates and of work could discredit by lack of coordination. the economic impact on the company value report These examples show companies where there is directly with measurement tools. However, training Articles 4
  5. 5. Chief Reputation in measurement tools and the development of tools directorates are proactive and non-reactiveOfficer (CRO) that are integrated into the organizational balanced in the definition and implementation of scorecard, it is one of the subjects to improve, processes and homogeneous systems in the and in some cases to develop. Among the CRO broadcasting of messages consistent with tasks will be ensuring that all persons who work these strategic corporate values and work with within the organization, are aligned with corporate a global calendar of actions to not overlap reputation as a global company strategy and think aspects that might damage the perception of how it impacts their work and their relations of the organization at the global level or with the public on the reputation. This must be corporate areas or to specific Business Units. like that because, in short, the professional work of each employee of the company and its consistency However, the CRO cannot control everything, or with the corporate values in the performance of be everywhere. What he/she should done is to have their work, can generate favorable perceptions of a management or strategic area that work with the their public/stakeholders, which can be translated different general directorates and business units, in a revaluation, becoming a reference in the involving all corporate areas, familiarize them, train markets where work and thus to attract capital them in this discipline at the operational level and and investment. Examples of companies who are work contact points with audiences for what he/she working transversely with the rest of corporate needs to report their actions. directorates to implement corporate reputation in the global strategy of the company have already ‘In the next few years seen. However, proposed that to guarantee their implementation, is not only important consensus can see a greater number with the different departments, but also there of companies that will must be a dependency of the different directorates (Marketing, Communication, Human Resources, integrate a new corporate Operations, Financial, etc.) in the direct reporting reputation model as a of actions that impact on corporate reputation. priority in their leadership’ For this to happen, this profile needs: Ultimately the CRO and the entire department will • First of all, work at the forefront with CEO work to implement processes and continuous and or managing directors of the Board. unified monitoring tools within the organization these tools will be used by all departments. In • Second, is needed to be granted sufficient this way, he/she will have alert systems that authority to implement the corporate will facilitate the work not only CRO, but the reputation model in directorates or different corporate areas. These systems will allow departments when the consensus with the knowing in which points of contact with the different areas with which the CRO is public potential risks / opportunities have been working, is lengthened so much in time and identified and how to resolve them quickly or take it is necessary to make agile decisions. advantage of them as business opportunities for the • Thirdly, should achieve that the reputational company. The Spanish multinationals are currently corporate values are integrated as part of the working on this management implemented the work performance of the internal audiences’ reputation as a strategic model. Therefore, the day by day (at all hierarchical levels) and CRO is a strategic directorate which must decide are part of the reputation of the President or together with the CEO and senior management CEO, Member of the Board of directors or the the strategy of intangible assets: the company’s corporate governance Committee. This way, reputation, the reputation of the CEO, brand, CSR, ensure that do not create inconsistencies within identity, corporate culture and communication3. the organization. In this aspect, the CRO must Hierarchical dependence of the CRO should be advise and also work with the Human Resources direct CEO; given the contribution of value the directorate because these are the foundations intangible assets contribute to the sustainability for building a company’s reputation. and leadership of the company. This is reflected by • Fourthly, the CRO must work with all those currently engaged in this function and made departmental areas which have relations reports that measure the quantitative impact that with external audiences to work externally have intangible assets on the company’s global with consistency and not forgetting the strategy. For the rest of General Directorates, they corporate and ethical values that contribute would depend on the CRO in what concerning the to corporate reputation.To that end, reporting of those aspects that can affect intangible it is important that different corporate assets which would be within his/her competence of3. When we talk about communication, also includes Institutional Relations, Public Affairs, External Relations, Corporate Communication, Internal Communication, Business Communication, Financial Communication, Crisis Communications, etc. Articles 5
  6. 6. Chief Reputation labor. In addition, the CRO must advise CEO when The companies within this Foundation representOfficer (CRO) deciding on the global strategy through a reputation 70% of the market capitalization of the Ibex 35 model that will allow knowing: companies listed in Spain. Within their objectives is the intangible assets consolidation as a key factor 1. What is the relationship and the perception of to achieve excellence in the company businesses the strategic public and if these relations are and introduce the institutionalization in their sustainable over time. companies in a new role, the CRO, as a strategic 2. Risks and opportunities that can generate such senior management, who directs the management management. of the intangible assets5. This new institution 3. How to reduce the risks to save costs to businesses makes an international leap to help companies to and take advantage of these opportunities to be manage their intangible assets anywhere in the leaders and improve profit and loss account. world of their reputation, and to provide ethical and technical training of the figure that should ‘The employees lead this direction, the CRO as well as the roles of persons who are under the direction. Delegations professional work and their consistency with the Growth Areas in Spain RC corporate values in the 100%– Others performance of their work, 3% 3% 2% 7% 7% 7% 6% 90%– 3% 7% 4% 7% 9% Secretary generate favorable to the 80%– General / Legal 70%– 41% 41% 38% and risk area stakehodlers perceptions’ 60%– 50%– Marketing area 40%– 37% 37% 37% Area Human Resources Companies to continue developing and promoting 30%– Communication a model of corporate reputation and intangible 20%– 29% 29% 29% area and / or 10%– assets management in their global strategic plan Institutional Relations 0%– in the coming years will ensure their success, Últimos Este Próximos 2 años año 2 años CEO / General leadership and sustainability. But this is not only Presidency achieved with a cross-cutting implementation made by a consultant, this multidisciplinary figure needs to know the particularities of the business, Source: The Chief Reputation Officer (CRO): A New Model the public, the sector and the surroundings, the for Reputation, 2011. scope of the communication will not be his/her top priority in his/her functions and ordinary tasks. His/her main priority must be the integrated of foreign multinationals in our country are mainly management of the intangible assets to ensure dedicated to adapt the local corporate reputation consistency and alignment of the audiences with strategy, but in many cases they have no knowledge the company at all levels.To that end, it is essential nor training in tools through which could measure to develop channels that encourage continuous if their local actions are contributing not only to dialogue with the strategic public, both internal the reputation of their company in the country but and external. A company which based its global their contribution at the global level. What is due strategy on a model of corporate reputation will to unique monitoring they have are data offered be more tangible value in the profit and loss on market shares, studies on the sense of social account the support and acceptance of their networks or media analysis, but not much more. audiences and markets where it operates, and will And their appearance in the rankings was the result be the cover letter to enter new markets where of having done well the actions marked from their the company wants to enter. A significant step in head quarters. Therefore, the internationalization this direction has been the birth of La Fundación of this Foundation will allow creating a platform Corporate Excellence - Centre for Reputation to implement training in reputation management Leadership, May 29, 2011. This Foundation, fruit models, to publicize the tools for its measurement of the work developed over a decade by el Foro in over 60 countries or branches where the Spanish de Reputación Corporativa and el Instituto de multinationals of this institution are present, and Activos Intangibles4, was publicly presented at enforced over 750,000 employees and more than international level on June 28, 2011. 1,800 million customers and consumers. It is one4. Corporate reputation Forum (fRC), created in 2002 by four large companies Agbar, BBVA, Telefónica and Repsol, has worked during this time with its members in reputation steering and management models to help adding value to their companie-members. On the other hand the need to create a intangible assets doctrine and its management, led to the creation in 2004 of the Institute of Intangibles Assets – Instituto de Activos Intangibles - (IAI) formed by large companies, consulting firms, business schools and organizations which participated in its development.5. This documentation in relation to this Foundation (objectives, guidelines, etc) has been provided by the same in a presentation called “Corporate Excellence-Centre for Reputation Leadership” and presented at the 15th International Conference on Corporate Reputation, Brand, Identity and Competitiveness in the USA (18-20 May 2011). Articles 6
  7. 7. Chief Reputation further step and export corporate reputation models CSR, brand or marketing. The CRO should reportOfficer (CRO) as well as their knowledge from their head quarters directly to the Presidency and of course, work with to their branches in other countries. In addition, reputation decision support systems. Through these they proposed to help companies achieve business systems can measure and monitor the perceptions excellence, work on: of their strategic audiences in different countries where he/she operates and detect Corporate Affairs 1. The establishment of six activity of interest to the company. Study the different lines based on intangible assets of monitors, tools, and most important (SAD - Sistemas reputation, brand, communication, de Ayuda a la Decisión) decision support systems that public affairs, metrics and training. work with, proposes a global model for the corporate 2. Models and internal management tools. reputation management and proposes a SAD for 3. How to avoid inconsistency in the the measurement of the direct perception of the company communications. stakeholders. Multinational companies have the need 4. The achievement of alliances. This is of this profile, and in some cases, their departments what this Foundation understands that already have a number of people working in this area. the CRO must lead from a new area. According to the study conducted by the demand of major multinationals in this country, this professional In line with the professional field where will profile is growing and will continue to develop over be professionally develop this discipline, it is the next few years. understood that the term CRO is that best defines this profile for two reasons: ‘The CRO priority must be 1. Although the term is Anglo-Saxon, is in line the integral management of with creating a unification in the position naming and functions at the international intangible assets to ensure level in multinational enterprises (as also consistency and alignment happens with: CEO, CFO, CCO, etc.) and thus avoid the diversity of denomination. of face to the public’ 2. Although not all intangible assets defined In conclusion, it detects the existence of career above are equal, all generated reputation opportunities in which academically and in the because all of them have an impact on the field of research will be very interesting to train perceptions and opinions of the stakeholders. professionals, both in the direction of intangible Reputation is defined as perceptions that their assets, as in the management, the development of audiences have of the company behavior SAD systems and the development of measurement and performance over time. The term CRO tools. The main national and international simplifies and unifies the management of companies need to count on profiles in this discipline these intangible assets in a single term. to contribute not only to improve corporate reputation of enterprises at the local level, but also Among the functions of this profile would ensure in other countries where the company wish to start consistency and the unification of the transfer operating. We must not forget that we are in a global of values and principles of action from within environment, both financial and informatively, and outward. It must align the ethical values and issues in which ICT (information and communication of concern of the company with the expectations technologies) are playing a decisive role6. of the public through dialogue, perceptions of each of the audiences at these points of contact would be welcomed with coherence, credibility and CRO specific definition confidence in the long term. The CRO is a strategic directorate which decides jointly with the CEO and senior management This profile must have a multidisciplinary training in the intangible assets strategy in the organization: three areas: communication, business and law. It is corporate reputation, CEO reputation, brand, recommended the CRO knows well the organization corporate social responsibility, identity, corporate and the sector where he/she works, because cross- culture and communication7. As strategic director relations with the different corporate directorates are participates in the strategy definition in the medium essential in the performance of his/her management. and long term in three ways: It is much better if the professional CRO profile is in-house and has directed some of the strategic 1 CRO generates sustainable relations with its departments of the company, such as communication, strategic audiences based on the principles6. Social networks and the world 2.0 and 3.0 allow customers to share their experiences and perceptions with others from other countries about the company; or analysts whom consult the state of a company in different countries; or international media groups or organizations like Greenpeace that monitor environmental actions.7. When we talk about communication, also includes Institutional Relations, Public Affairs, External Relations, Corporate Communication, Internal Communication, Business Communication, Financial Communication, Crisis Communications, etc. Articles 7
  8. 8. Chief Reputation of dialogue, transparency, credibility, 9. To monitor and detect risks and reputationalOfficer (CRO) commitment and professional ethics. opportunities opposite the competence, 2 CRO contributes to the acceptance, within the sector and by country, and recognition and leadership across time of the establish measures and processes with company in its sector, market, environment the involved corporate directorates. and country in which it operates. 10. o work on a SAD system to integrate T 3 CRO develops a proactive policy to detect in management dashboard the impact reputational risks and business opportunities. of the customer’s perceptions, contact points and how influence in the Current position: Reports directly by 30% to company profit and loss account. the Presidency and 40% to the Chief Executive 11. o work in strategic alignment T Officer. And he/she is part of the Executive between the company interests and Steering Committee. the all stakeholders expectations. 12. o ensure the internal and external T Ideal Hierarchical Dependence: In those consistency of their communications companies where they bet for integrating intangible and in carrying out their actions to avoid assets in their strategic plan and strategic vision confusion and noise on perceptions that as guarantee of sustainability and leadership, stakeholders have of the company. this management must be independent and 13. o define, redefine or adapt the corporate T hierarchically depend directly of CEO, President identity and the organizational culture. or the Board of Directors. In addition, corporate 14. o redefine and implement new T directorates must have direct dependence of business principles in code of the CRO in aspects of reputation and their conduct to improve reputation. intangible assets to ensure success in the transverse 15. o perform all functions as area director. T introduction of the company’s reputation model. CRO is linked with the different corporate The CRO should be part of the Crises, Corporate managements, currently more to implement the Governance, CSR and risk committees. strategic reputation model of the company, are, by order of importance, Communication, Human When an enterprise has a corporate reputation Resources, Sales & Marketing, Risk, Legal, Financial commission in the Board of Directors and an and, finally, R&D directorates. The participation Audit Risks Commission, CRO should report both with Presidency is 70% for the implementation of directly. In the case of the risks Commission CRO the corporate reputation model. must report and work with issues related to the reputational risks. Training: His/her training must be multidisciplinary, primarily in different areas as communication, The CRO functions are as follows: economic, marketing and law. It requires knowing the company and the sector, it is therefore 1. To define the strategic plan of reputation recommended that the CRO has worked in different and the rest of intangible assets corporate directorates, because so he/she will have according to the global strategy. exhaustive knowledge of the work processes and it 2. To lead and strengthen the reputation and will be easier for the CRO to implement reputation leadership of the President or local CEO. programs with the different areas. 3. To adjust the plan locally for each country and export it to their delegations. The discipline which has greater interest and 4. To Define training program for the which needs to study in deep is in SAD systems establishment the corporate reputation for the corporate reputation management, in the culture: concepts, procedures integrating them into the balanced scorecard of and internal systems for employee the company. These systems allow him/her to profiles and management positions. facilitate the intangibles assets measurement, 5. To define the reputation positioning to work expedite his/her decision-making, detecting together with the communication management. with immediacy potential risks and reputational 6. To participate in the strategic forums or opportunities and corporate directorates and meetings of reference on the public agenda Business Units involved and, finally, evaluate of the community or environment where areas of improvement and impact of corporate the company performs its activity. reputation in the company at the global level. 7. To participate in the decisions of the crisis cabinets. Conclusions 8. Advising, tutoring, involving and In the 21st century corporations need a model managing the various General Directorates of sustainability and differentiation because in the field of corporate reputation products and services offered to their customers are and rest of intangible assets. increasingly similar. In this situation, companies Articles 8
  9. 9. Chief Reputation understand that they must focus their strategy on directorates should be a functional dependency ofOfficer (CRO) intangible assets, such as brand, communication, this figure it refers to the management of reputation Public Affairs, etc. and intangible assets that have an impact on it. Only in this way it will be easier for companies to manage All of these intangibles assets are aimed at achieving their reputation, and ensure an implementation and the corporate reputation that the companies need transversal management of corporate reputation to increase their market value, strengthen their with success, which will allow the company to leadership and develop sustainable relationships maintain sustainable relationships in time with its with their audiences. strategic public and contribute to the plan for the future of the company. These relations are only possible if the company is able to align in the management model the perceptions Otherwise, if his/her dependence is not direct, it will that strategic public have about it, and if the company be very difficult to have a perspective or position of integrates corporate ethical and professional values distance when assessing the impact of the actions in the good performance of the organization for of the other areas on reputation. In addition, the their audiences, generating a confidence climate and CRO will be given a reduced view of the corporate credibility sustained over time. reputation management, because it would apply primarily on areas and audiences that most affect To ensure to introduce successfully the reputation the corporate governance, thus losing the holistic and the intangible assets management, the CRO view on the overall reputation management. Less must have a separate management, but with a than a decade already confirms that 33% of the direct relationship with Presidency and the Board CRO contribute to the definition of the overall of Directors. In addition, the rest of corporate company strategy. Articles 9
  10. 10. ©2011, Corporate Excellence - Centre for Reputation LeadershipBusiness foundation created by large companies to professionalize the management of intangible assets and contribute to the developmentof strong brands, with good reputation and able to compete in the global market. Its mission is to be the driver which leads and consolidatesthe professional management of reputation as a strategic resource that guides and creates value for companies throughout the world.Legal NoticeThis document is property of the Corporate Excellence - Centre for Reputation Leadership and has as its objective to share businessknowledge about Brand, Reputation, Communication and Public Affairs Management.This document is directed exclusively towards its addressee and contains confidential information, subject to professional secrecy, whosedisclosure, copy or non-authorized use is against the Law. If you receive this document by mistake, let us know immediately and erase itwithout keeping a copy.Corporate Excellence - Centre for Reputation Leadership is the owner of all the intellectual property rights of the images, texts, designsand any other content or elements of this product and has the necessary permission for its use, and therefore, its copy, distribution, publicrelease or transformation is prohibited, without express authorization from the owner.