corporate reputation

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corporate reputation

  1. 1. 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 CASE STUDY
  2. 2. 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.
  3. 3.  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?
  4. 4.  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 stakeholders.  Companies need to clearly define and appreciate the role of the human recourses department .
  5. 5. REPUTATION TWO MAIN COMPONENTS PERCEPTION REALITY  HOW COMPANY IS PERCEIVED BY ALL STAKE HOLDERS  TRUTH ABOUT COMPANY’S POLICES, PRACTICES, PROCEDURE, SYSTEMS & PERFORMANCE
  6. 6. MEANING : 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
  7. 7. THREE ELEMENTS TO REPUTATION  BRAND REPUTATION  ORGANISATIONAL REPUTATION  STAKEHOLDER REPUTATION
  8. 8. ELEMENTS OF REPUTATION ALIGNMENT OF THESE FACTORS IS VITAL TO BUILD, SUSTAIN AND PROTECT ON ORGANIZATION’S REPUTATION
  9. 9. Definitions: • “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” -John Dalton • “Reputation is the principal means through which a market economy deals with consumer ignorance” - Professor John Kay.
  10. 10. ETHICAL EMPLOYEES /WORKPLACE FINANCIAL PERFORMANCE LEADERSHIP EMOTIONAL APPEAL RELIABLITY QUALITY CUSTOMER FOCUS SOCIAL RESPONSIBILITIES MANAGEMENT
  11. 11. CORPORATE REPUTATION SOCIAL RESPONSIBILITY EMOTIONAL APPEAL FINANCIAL PERFORMANCE PRODUCTS & SERVICES VISION & LEADERSHIP WORKPLACE ENVIRONMENT FACTORS:
  12. 12.  ENHANCE GOOD NAME AND REPUTATION.  FAVORABLE : IN THE WORKPLACE AND MARKETPLACE  ESTABLISH PRACTICES, POLICIES, PROCEDURES, SYSTEMS AND STANDARD THAT WILL AVOID DAMAGE TO ORGANIZATION REPUTATION.  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. REPUTATION MANAGEMENT
  13. 13. ARE COMPANIES EXPERIENCE SAME REPUTATION MANAGEMENT ISSUES GLOBALLY ? USA INDIA UK AFRICA JAPAN CHINA
  14. 14.  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.  Reduced profitability.  Diminishing investor confidence IMPLICATIONS FOR ORGANIZATION (IF UNABLE TO DEAL EFFECTIVELY)
  15. 15.  IMPERSONAL & DISCOUNTERS BEHAVIOUR. o VALUE TO CUSTOMERS. o ATTITUDE OF COMPANY.  INCREASING EXPOSURE THROUGH ON EXPANDING INTERNET.  ACTING TOO LATE. SOURCES OF REPUTATIONAL RISK
  16. 16.  ISSUE HAS MORAL MOTIVES OF PREVENTING UNNECESSARY HARM TO OTHER S.  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
  17. 17.  RESPECT & HEED LEGITIMATE EMPLOYEE CONCERN ABOUT THEIR SAFETY AND CAREER .  REMEMBER THAT THERE ARE TWO SIDES TO EVERY ISSUE.  MAKE CLEAR THAT ABUSING PROCESS BY RAISING UNFOUNDED ALLEGATIONS MALICIOUSLY IS A DISCIPLINARY MATTER.  OFFER TO REPORT BACK TO EMPLOYEE ABOUT OUTCOME OF INVESTIGATION OR ANY ACTION THAT IS PROPOSED. GUIDELINES FOR MANAGEMENT OF WHISTLE - BLOWERS
  18. 18.  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 DOUBT.  GET STAFF UNIONS TO SUPPORT AND PROMOTE THIS APPROACH. GUIDELINES TO MANAGE OF WHISTLE - BLOWERS
  19. 19. B 1. Helps reduce the risk customers perceive when buying products or services 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 competitors 6. Provides access to the best professional service providers 7. Helps raise capital on the equity market BENEFITS OF GOOD CORPORATE REPUTATION
  20. 20. • Reputation is a continuous process. • Reputation is an intangible and complex concept, which takes time to change. • Reputation is a companies most competitive asset • Reputation is won everyday. • Reputation is hard won, easily lost. . THEREFORE :
  21. 21. CASE STUDY 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 REFERRING TO.
  22. 22. CASE STUDY 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 … INTERNET.’ 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 MANAGEMENT.
  23. 23. CONCLUSION  REPUTATION MANAGEMENT ENTAILS PERCEPTION & REALITY.  REPUTATION IS AN ASSET THAT SHOULD BE MANAGED PROACTIVELY.  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.
  24. 24.  Crisis response and communication plan assist organization in dealing constrictively with crisis.  Special communication needs of various stake holder groups.  Internet as communication tool offers both challenges and opportunities during a crisis.  Have office emergency plan deals with physical crisis situation such as hire.  Corporate ethics can't be separated from reputation management

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