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What Is Your Reputation Worth
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Reputations versus Brand?
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At Reputation Management Associates, we believe that a good corporate reputation is a very valuable asset.
In fact, it is a priceless asset that most companies aspire to have. |
A GOOD CORPORATE REPUTATION helps a company attract and retain talented staff. A good reputation is also vital in withstanding the onslaught of negative opinion in times of crisis.
Finally a good reputation helps to gain acceptance in the community or society that your company operates in.
A GOOD BRAND provides confidence in the product you purchase.
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Why pay attention to Corporate Reputations? |
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In today’s “Show Me World” it is no longer enough to manufacture a product or offer a service.
A better educated, more informed public demands to be involved and engaged in all aspects of a company’s operations and plans. In recent times, we have witnessed an avalanche of reputational damage on companies which were once upheld and admired.
| In recent times, we have witnessed an avalanche of reputational damage on companies which were once upheld and admired. A good reputation builds trust and confidence in the public. It reinforces the company’s effort to reach out to their customers and the society it operates in. |
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It is also reflected in how the company handles its business operations and relationships within the public domain especially in a crisis. |
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Does the Research support this? |
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Studies have shown that companies with a well-managed reputation can bring about substantial tangible benefits. An article by Charles J. Fombrun and Christopher B. Foss - "The Reputation Quotient, Part 2: How much is a Corporate Reputation Worth" (The Gauge, Vol. 14, No. 33, May 2001), looked at a study conducted by the University of Texas.
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The study looked at 10 groups of companies with an average value of US$3 billion with similar levels risk and returns but different reputation scores. Results of the research showed that a 1-point difference in the reputation score was worth an additional US$53 in market value. |
"Return on Reputation", the most recent (2006) Hill & Knowlton Corporate Reputation Watch study conducted by Mori polled 282 experienced analysts in North America, Europe and Asia-Pacific. Of this, over 90% of the analysts agree that a company with poorly-managed reputation will ultimately suffer from financial losses. Analysts also ranked 'quality of management' as the most important criterion which influences their recommendation of a company.
With a reputation managed correctly and presented carefully, even a period of crisis or uncertainty need not have any long-term impact on public opinion, market share, position or share price.
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RMA’s own proprietary research on corporate reputations |
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In 2005, RMA launched Singapore’s first Corporate Reputation Index, which helps companies measure their corporate reputation based on public perceptions. |
This is a landmark study which attempts to look at corporate reputation from a consumer, shareholder, financial, market and communications perspective. This research further helps RMA in providing specialist counsel and advice on reputation development and distinguishes the company from others.
Read more about the Corporate Reputation Survey findings of 2005 and 2007 here.
Read about the Corporate Reputation Survey here |
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