This document discusses brand and reputation management from a leadership perspective. It makes the following key points: 1. CEOs and boards feel unprepared for managing reputation risk, but reputation is critical and needs to be strategically managed like other business risks. 2. Brand and reputation are interrelated but often misunderstood. A strategic process is needed to identify values, build stakeholder relationships, and connect brand to reputation to drive business outcomes. 3. Values, behaviors, and consistent communications both internally and externally are foundations for strong reputation. Financial returns are a proxy for strong employee and customer satisfaction and reputation.

1. Brand & Reputation: A Leadership Perspective Reputation Conference 2008 Henley Business School John Madejski Centre for Reputation November 25, 2008 Elliot S. Schreiber, Ph.D. Clinical Professor Bennett S. LeBow College of Business Drexel University Philadelphia, Pennsylvania, USA [email_address]

10. Fear, Uncertainty & Doubt Complexity of Information in Decision Low High High Brand and Reputation Strategies Depend on The Nature of the Organization 6 Driver: Personal Need Brand Strategy: House of Brands Demand Created by: Advertising & Direct Mail Value of Corporate Reputation: VERY LOW Value of Product Brand: VERY HIGH (P&G, Unilever) Driver: Social Acceptance Brand Strategy: Endorsed Brands Demand Created by: Advertising & Product Endorsements Value of Corporate Reputation: LOW to MODERATE Value of Product Brand: HIGH (Air Jordan, Martha Stewart, ) Driver: Safety & Security Brand Strategy: Branded House Demand Created by: Relationships and 3 rd Party Referrals Value of Corporate Reputation: VERY HIGH Value of Product Brand: VERY LOW (Dell, Cisco, AT&T) Driver: Ingredient Performance Brand Strategy: Sub-Brands Under a Masterbrand Demand Created by: Integrated Communications & Referrals Value of Corporate Reputation: HIGH Value of Product Brand: HIGH (Intel, Pharmaceuticals, Marriott)

12. Values are the Foundation of Reputation Reputation Internal Controls & Governance Stakeholder Perceptions Resource Allocation Consistent, Trustworthy behaviours Consistent Communications Employee Commitment Policies & Practices Business Objectives Values

16. Putting It All Together

17. Leadership Through a Council of “Stakeholder Relations” Communications Marketing Sales R&D Legal Investor Affairs Government Affairs Human Resources Strategic Planning

20. Brand and Reputation Leadership Helps Companies Align Objectives & Activities at All Levels Corporate Group Division Provides a framework for Corporate strategy Process also provides a framework for governance Governance Management Strategy Source: adapted from Balanced Scorecard Collaborative, 2003 Board CEO