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Why are there so many articles on managing reputation?

December 05, 2011 by Rob |

Tagged under: investor relations, corporate governance, reputation management

8

I feel like I've spent the better part of 2011 reading articles just like this - another day, another plea for someone/anyone to pay more attention to corporate reputation as part of enterprise risk management.

Don't get me wrong - I absolutely agree that managing and measuring reputation is critical (Shoot, I work for a firm that has a whole practice dedicated to just that so I better like how that Kool-Aid tastes!)... and I also agree with most of the recommended steps being bandied about.

I guess I just don't understand why so many articles covering the same ground are required.

To the best of my knowledge, no one has come out and said, "Managing reputation is a terrible waste of a time for a leadership team or for its board of directors." Maybe I missed it but I've not seen anyone deny that reputation has a meaningful impact on a company's stock valuation. Similarly, I haven't seen any trailers for a new Michael Moore movie called "Reputation: A Fairy Tale" or read any reviews for a new Stephen Colbert book called "Your Reputation Is What I Say It Is (And You'll Like It!)"... so why so many articles on the need to manage reputation? Who are these people who think managing reputation is not important?

The Conversation

Alan T on December 07, 2011

Reputation comes from corporate culture, not PR or communications. If PR wants to have a real role in reputation managment it must have influence over policy; usually not the case.  Only then can it influence behavior that brings reputation damage and crisis.

Rob Berick on December 07, 2011

Alan… I’m not sure I’m following you… can you say more? I don’t believe anyone is trying to suggest that the culture isn’t the epicenter for the reputation - rather, it’s whether or not management and/or the Board should be monitoring reputation as part of the enterprise risk management function.

Alan T. on December 07, 2011

Rob: My comment was generic, not specifically in reponse to your post. Finding a functional home for reputation managment is indeed a challenge.  It probably should be part of ERM, but risk managers show little interest.  The Board already is charged by the SEC with pubicly reporting on their risk oversight process, but reputation isn’t at the top of their list either. So the challenge of bringing reputation management or reputation risk management onto center stage remains despite the continuous decline of overall corporate reputation in the US.

My own feeling is that positiong reputation risk management as effective crisis prevention may be the best path forward, as that approach could gain CEO attention & I don’t see much interest from the risk management community.

Tom Newberry on December 07, 2011

Alan brings up an interesting point in that PR, IR, government relations and marketing communications are discrete functions with identified audiences and practicing professionals.  Reputation is a sum total image that includes the customer experience with the product, desirability of the workplace, and other factors that are diffuse throughout the organization with no single professional having full responsibility.  The issue is not so much if an organization wants a good reputation as much as how do you build an integrated program that supports it across all functions.

Alan T on December 07, 2011

Tom has stated it well.  I would add that the new function must not replicate exsisiting disiplines and must have its own body of knowledge. Some of this content is now being developed.  Most is not around communications.  This raises the question of whether reputation management should be in the hands of PR. Too few PR people have the authority necessary to influence policy, culture and behavior, the true drivers of reputation.  Will a new profession evolve?

Rob Berick on December 07, 2011

@Alan - thank you for the additional color. Makes perfect sense and agree with your premise of “crisis prevention” (or, perhaps more appropriately, crisis mitigation). As the stakes only get higher, I can’t image how a new profession or corporate function does not emerge if no existing mechanism takes full ownership.

@Tom - well said. I will be quoting you.

Alan T on December 12, 2011

Rob: Do you recall where you saw any of the articles you reference in your original post?

Rob Berick on December 12, 2011

Honestly, Alan, they’ve all blurred together over the past 12-15 months. I suspect many will pop via a basic search.

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About rob

Position:Senior Managing Director

Rob Berick

Rob oversees Dix & Eaton’s investor relations practice and is a member of the firm’s Leadership Committee. Over his nearly 20-year career, he has developed and executed investor relations programs for companies in a wide range of industries and market cap sizes.

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