John’s best friend borrowed a huge amount of money from him,
with a sincere promise to repay it within two months. Four
months have passed and John has heard nothing from his
friend. He phones, leaves messages, but gets no response at all.
John himself is getting into trouble now, as he has bought a new
computer for his son, and cannot make the repayments without
the money his friend has borrowed. His house rent is also in
arrears. John has been informed that the computer will be
removed from his home this afternoon
John is thinking: ‘What am I going to tell my son? And if I get
blacklisted for not meeting my financial obligations? How will it
affect my future chances of securing a loan?’ John decides to
speak to his neighbour about his problems, only to find out that
the neighbour too has also lent money to his friend, and that his
friend has used it to pay a gambling debt. John feels totally
shocked and decides to go to his friend’s house to confront him.
He rings the door bell, and as nobody responds, he opens the
door himself — only to find his friend in a warm embrace with
his neighbour's wife.
Effect on reputation of John’s friend?
How long will it take John’s friend to
repair his reputation?
Will giving the money back to John and
apologizing to the neighbor be enough?
How long will it take John and his
neighbor to forgive and forget?
Will John ever have the same regard for
his friend he had before?
As individuals develop a reputation, organisations also
develop one .
Takes years to build up a good reputation, and is destroyed by
a single event or act.
To build up and preserve a good reputation, organisations
need to carefully consider how their practices are viewed by all
Companies need to clearly define and appreciate the role of
the human recourses department .
TWO MAIN COMPONENTS
HOW COMPANY IS
PERCEIVED BY ALL
SYSTEMS & PERFORMANCE
A company’s corporate reputation is the sum of all
the views and beliefs held about the company
based on its history and its future prospects, in
comparison to the close competitors
THREE ELEMENTS TO REPUTATION
ELEMENTS OF REPUTATION
ALIGNMENT OF THESE FACTORS IS VITAL TO BUILD, SUSTAIN AND
PROTECT ON ORGANIZATION’S REPUTATION
• “Reputation is the sum values that stakeholders
attribute to a company, based on their perception and
interpretation of the image that the company
communicates over time”
• “Reputation is the principal means through which a
market economy deals with consumer ignorance”
- Professor John Kay.
ENHANCE GOOD NAME AND REPUTATION.
FAVORABLE : IN THE WORKPLACE AND MARKETPLACE
ESTABLISH PRACTICES, POLICIES, PROCEDURES, SYSTEMS
AND STANDARD THAT WILL AVOID DAMAGE TO ORGANIZATION
ESTABLISH GUIDELINES FOR DEALING WITH SITUATIONS WHERE
THE COMPANY’S REPUTATION HAS BEEN TARNISHED.
PREPARE & EQUIP MANAGEMENT TEAMS TO TAKE FULL
RESPONSIBILITY FOR MANAGING THE COMPANY'S REPUTATION.
ARE COMPANIES EXPERIENCE SAME REPUTATION
MANAGEMENT ISSUES GLOBALLY ?
Decrease productivity : sick and compassionate leave.
Increased overhead cost : health care and insurance.
Reduction is available skill base.
Contracting consumer base.
Changes in consumer spending patterns.
Diminishing investor confidence
IMPLICATIONS FOR ORGANIZATION
(IF UNABLE TO DEAL EFFECTIVELY)
IMPERSONAL & DISCOUNTERS BEHAVIOUR.
o VALUE TO CUSTOMERS.
o ATTITUDE OF COMPANY.
INCREASING EXPOSURE THROUGH ON EXPANDING
ACTING TOO LATE.
SOURCES OF REPUTATIONAL RISK
ISSUE HAS MORAL MOTIVES OF PREVENTING UNNECESSARY HARM TO
FAILURE OF WHISTLE – BLOWING COULD LEAD TO SERIOUS DANGER.
USE ALL AVAILABLE INTERNAL PROCEDURE BEFORE PUBLIC DISCLOSURE.
EVIDENCES THAT PERSUADE REASONABLE PERSON .
ACT IN ACCORDANCE WITH EXISTING RESPONSIBILITIES FOR AVOIDING
AND / OR EXPOSING MORAL VIOLATION'S.
GUIDELINES TO WHISTLE BLOWER
RESPECT & HEED LEGITIMATE EMPLOYEE CONCERN
ABOUT THEIR SAFETY AND CAREER .
REMEMBER THAT THERE ARE TWO SIDES TO EVERY
MAKE CLEAR THAT ABUSING PROCESS BY RAISING
UNFOUNDED ALLEGATIONS MALICIOUSLY IS A
OFFER TO REPORT BACK TO EMPLOYEE ABOUT
OUTCOME OF INVESTIGATION OR ANY ACTION THAT IS
GUIDELINES FOR MANAGEMENT OF WHISTLE - BLOWERS
INVOLVE EMPLOYEES AND LISTEN TO THEIR SENSE OF RIGHT OR WRONG
EXPLAING WHAT FRAUD ENTAILS AND IT EFFECT ON ORGANIZATION.
DISCUSS MALPRACTICES THAT MIGHT SERIOUSLY DAMAGE THE ORG.
DEAL MALPRACTICES OPENLY & TRANSPARENTLY. MAKE IT CLEAR THAT THE
ORGANIZATION IS WHETHER INSIDER OR OUTSIDER.
ASCERTAIN THAT EMPLOYEES KNOW WHAT PRACTICES ARE UNACCEPTABLE
(i.e. – RECEIVING GIFTS) ENCOURAGE THEM TO ASK MANAGEMENT IN
GET STAFF UNIONS TO SUPPORT AND PROMOTE THIS APPROACH.
GUIDELINES TO MANAGE OF WHISTLE - BLOWERS
1. Helps reduce the risk customers perceive when buying products or
2. Helps customers choose between products and services
3. Increases employee job satisfaction
4. Provides access to better quality
employees when recruiting
5. Acts as a powerful signal to your
6. Provides access to the best professional
7. Helps raise capital on the equity market
BENEFITS OF GOOD CORPORATE REPUTATION
• Reputation is a continuous process.
• Reputation is an intangible and complex concept, which takes time to
• Reputation is a companies most competitive asset
• Reputation is won everyday.
• Reputation is hard won, easily lost.
YOU ARE OWNER OF A VERY POPULAR SUPERMARKET GROUP THAT
CATERS SPECIFICALLY FOR THE RICH AND FAMOUS. YOUR COMPANY
HAS DEVELOPED A NAME OF BEING ONE OF THE BEST SUPERMARKET
GROUPS TO HAVE ITS OWN WEBSITE, OFFERS ONLINE ORDERING AND
SAME-DAY DELIVERY WITHIN A SPECIFIC GEOGRAPHICAL RADIUS. ONE
MORNING, WHILE ON YOUR WAY TO WORK, YOU SPOT THE
FOLLOWING NEWSPAPER HEADLINE: ‘UP-MARKET SUPERMARKET
DEFRAUDS CUSTOMERS’. YOU STOP TO GET THE NEWS PAPER TO FIND
THAT SURELY, IT IS YOUR SUPERMARKET THAT THE HEADLINE IS
YOU FEEL YOUR BLOOD PRESSURE INCREASING AS YOU SCAN THE REPORT: ‘…
COMPLAINTS … WRONG DELIVERY … INCORRECT INVOICE … CHEAP
SUBSTITUTES … FOURTEEN PHONE CALLS … STILL NO REPLY … WARN OTHERS …
YOU RUSH TO WORK, START YELLING AT PEOPLE, AND MAKE MANY FRANTIC
PHONE CALLS. IT TURNS OUT THAT THE EVENTS ARE TRUE BUT THAT THEY ARE
LIMITED TO ONE SPECIFIC STORE. IT SEEMS VERY LIKELY THAT THE MANAGER
OF THIS STORE IS THE MAIN CULPRIT.. YOUR COMPANY HAS NO FORMAL
REPUTATION MANAGEMENT PROGRAMME AND YOU ARE NOW IN CRISIS
REPUTATION MANAGEMENT ENTAILS PERCEPTION & REALITY.
REPUTATION IS AN ASSET THAT SHOULD BE MANAGED
ORGANIZATION REPUTATION IS INFLUENCED BY INTERNET
EXPOSURE, IMPERSONAL AND DISCOURTEOUS BEHAVIORS AND
ACTING TOO LATE IN A GIVEN SITUATION .
REPUTATION MANAGEMENT BY VULNERABILITY
AUDIT, COORDINATED BY HRM DEPARTMENT.
Crisis response and communication plan assist organization in dealing constrictively
Special communication needs of various stake holder groups.
Internet as communication tool offers both challenges and opportunities during a
Have office emergency plan deals with physical crisis situation such as hire.
Corporate ethics can't be separated from reputation management