This document discusses the evolving role of the Chief Reputation Officer (CRO) in managing corporate reputation, emphasizing the need for integrated communication strategies and direct involvement with company leadership. A study reveals that a growing number of companies are recognizing the importance of dedicated corporate reputation areas, with expectations for increased visibility and responsibility within executive management. The CRO's responsibilities encompass establishing consistent messaging, supporting sustainable relationships with stakeholders, and monitoring the integration of reputation management across all organizational levels.

1. Articles
Strategy Documents
A02 / 2011
Reputation
Chief Reputation
Officer (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 the
1. Chapter 5 of the doctoral thesis “the Chief Reputation Officer (CRO), a new model of corporate reputation”, Ana María Casado, Universidad de Málaga, 2011
2. 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. Chief Reputation Department of communication is 10%, since that 9. To advise and to support the CEO and top
Officer (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:
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3. Chief Reputation According to Morten Albaek, senior Vice President takeover bids, mergers or crisis, the CRO must
Officer (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
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4. Chief Reputation different audiences are from different corporate not a figure to ensure corporate reputation, and
Officer (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
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5. Chief Reputation in measurement tools and the development of tools directorates are proactive and non-reactive
Officer (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 of
3. When we talk about communication, also includes Institutional Relations, Public Affairs, External Relations, Corporate Communication, Internal Communication,
Business Communication, Financial Communication, Crisis Communications, etc.
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6. Chief Reputation labor. In addition, the CRO must advise CEO when The companies within this Foundation represent
Officer (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 one
4. 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).
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7. Chief Reputation further step and export corporate reputation models CSR, brand or marketing. The CRO should report
Officer (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 principles
6. 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.
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8. Chief Reputation of dialogue, transparency, credibility, 9. To monitor and detect risks and reputational
Officer (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
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9. Chief Reputation understand that they must focus their strategy on directorates should be a functional dependency of
Officer (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.
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10. ©2011, Corporate Excellence - Centre for Reputation Leadership
Business foundation created by large companies to professionalize the management of intangible assets and contribute to the development
of strong brands, with good reputation and able to compete in the global market. Its mission is to be the driver which leads and consolidates
the professional management of reputation as a strategic resource that guides and creates value for companies throughout the world.
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