Reputation Management

Tony Langham, PRCA

• Publisher: Emerald Publishing Limited
• Year: 2018
• ISBN:
  9781787566095
• Topic: Negocios y empresa
• Subtopic: Industria de medios y comunicaciones

A good reputation is vital to success in business and in life. Organisations with the best reputations outperform rivals in a myriad of tangible ways; they recruit higher quality staff, succeed with smaller marketing budgets, and exert greater influence over Governments. Although in the long term reputation is based on reality and behaviour, short term examples of organisations and individuals building unfair advantage can be seen all around us. Despite this, reputation remains an often misunderstood and neglected asset.
In Reputation Management: The Future of Corporate Communications and Public Relations, Tony Langham argues that reputation management is the future incarnation of public relations and corporate communications. Featuring specially commissioned essays, as well as exclusive interviews with leading CEOs, influencers and celebrities, the book covers issues as diverse as fake news, AI, James Bond, cyber security and internet bullying. Also included are contributions from thirty-nine of the world's leading reputation managers who exclusively reveal the time they made the most difference to an organisation's reputation.
Reputation Management provides a complete blueprint and toolkit for reputation management and is essential reading for CEOs, Board Directors and shareholders in businesses who ultimately bear the responsibility and costs of reputation management. It will also prove indispensable to all professionals and students working in or studying business, marketing, corporate communications and public relations.

1

WHAT IS REPUTATION?

Reputation is real and yet not real at the same time.

Everyone who writes about the subject agrees that the only way to have a great reputation is to be a great company. Rolex is currently the company with the best reputation in the world¹. It can only be the company with the best reputation because it makes great watches. If it didn’t make great watches, it couldn’t be the company with the best reputation in the world.

Reputation is first and foremost about what an organisation does. What it produces and how it behaves. It is based on reality.

Yet, Rolex could make great watches but not have a great reputation, at least for a period of time.

That’s because an organisation’s reputation belongs to others. You are whatever other people say you are. As my first boss, Bob Worcester, Founder of MORI (now part of Ipsos MORI) used to say, ‘corporate image’ is about ‘perceptions not facts’. In this sense, reputation is not reality.

Understanding and living with this dichotomy is fundamental to understanding reputation and reputation management. As is understanding that reputation exists. But I’m getting ahead of myself.

MY FAVOURITE DEFINITION OF REPUTATION

Eminem had it right in his song The Way I Am, but I didn’t ask for permission to reproduce that lyric here. In any event, my favourite definition of reputation comes from John Doorley who co-authored Reputation Management² with Helio Fred Garcia and who I’ve come to see as the father of reputation management.

His formula is reproduced in the wonderful essay on pages 71–76. It states that reputation is the sum of images of others, and it comes from performance plus behaviour plus communication. And that it can only be sustained if an organisation is authentic and true to its purpose or to a set of values.

That says it all.

MULTIPLE REPUTATIONS

However, it’s vital to acknowledge that an organisation or individual can have multiple reputations. Or different reputations with different audiences at the same time. At the time of writing, the British Virgin Islands (or BVI) has an excellent reputation with those who set up companies for international investment, but a less rosy reputation with the European Union or NGOs (non-governmental organizations) like Christian Aid.

This aspect of reputation is very well described by David Waller and Rupert Younger in their excellent book, The Reputation Game (2017). They split an organisation’s ‘character reputation’ (moral and social qualities) from its ‘capability reputation’ (fulfilling specific tasks). David updates some of their core arguments in his essay on pages 82–86 of this book.

CHIEF EXECUTIVES, PRESIDENTS AND CELEBRITIES DON’T CARE ABOUT DEFINITIONS

Books on reputation management love to debate definitions, such as the difference between brand and reputation. Senior professionals in traditionally structured companies also love to create silos, debating whether something is the responsibility of corporate communications or public affairs or marketing or HR. In commercial life, caring about definitions or silos is usually in inverse proportion to the importance of the task.

The CEO or President or celebrity doesn’t care about definitions, indeed they often blur definitions that academics take for granted. Jeff Bezos, the founder of Amazon, is one of many CEOs to use the phrase ‘brand reputation’ (Bloomberg, 2004).

Leaders care about being successful. They care about being able to enter a completely new market. Or being able to influence Government more than their rivals. Or being able to win the next starring role. Or negotiating a favourable trade deal. Or being able to increase sales with a relatively low marketing spend.

These things are more readily achieved by those with the magic ingredient that we variously call respect, trust, brand equity, image amongst other things. We all understand implicitly what this is – that seemingly indefinable quality that makes success more likely. That magic ingredient is best described as a reputation. It can be built, maintained, protected, measured and managed.

But before we discuss reputation management, let’s first glory in some great reputations and what makes them.

2

WHAT MAKES A GREAT REPUTATION?

In this chapter, we admire some great reputations and probe the foundations beneath them. Nitin Mantri outlines the six keys to a great reputation: retaining the customer’s trust, consistent innovation, happy employees, an able leadership team, social responsibility and continuous engagement. Two fabulous essays and two interviews then bring these attributes to life.

At the core of every great reputation is greatness itself. International best-selling author Anthony Horowitz explains the enduring appeal of James Bond, ‘a creation of genius’ in 1952, who endures to this day. He concludes that in the world of celebrity ‘you’ll keep your reputation so long as you’re loved’.

Holmes Report CEO and Global Editor-in-Chief Arun Sudhaman dissects the importance of Unilever CEO Paul Polman, who has collected a string of international awards and accolades for his commitment to sustainability. Arun echoes Polman’s view that ‘capitalism can no longer prosper at the expense of society’.

THE DRIVE FOR AUTHENTICITY AND PURPOSE

The drive to be seen as a purpose-driven business is currently the number-one trend in global reputation management. All around the world, Governments, organisations and companies are working hard to convince their staff, their customers and society at large that their very existence benefits everybody. In our jargon-filled world, this drive can be called purpose, vision and values, corporate narrative, storytelling or can even be phrased in plain English: ‘Why do we exist?’ or ‘What are we here for?’

Where these projects are authentic and real, they can be stunningly successful. We believe LEGO, the company with the second-best reputation in the world, when CEO Niels Christiansen says its purpose ‘is to inspire and develop the builders of tomorrow’ (Reputation Institute Reptrak 100, 2018). One of the most impressive transformations is CEO Indra Nooyi’s ‘Performance with Purpose’ reorganisation at PepsiCo. Badging Pepsi and Doritos as ‘fun-for-you’ products is credible. There is no ‘spin’ or unbelievable overclaiming. Diet Pepsi is billed as ‘better-for-you’ – allowing Tropicana and Quaker Oats to flourish as ‘good-for-you’ products (ChiefExecutive.net, 2018).

I’ve been into so many corporate headquarters and seen words like ‘integrity’ and ‘quality service’ plastered on the walls, that I have a degree of scepticism over the tsunami of ‘purpose projects’ currently going on. I fear that many companies will overclaim in their purpose, mission, vision and values. This will actually sow the seeds of future reputational problems when it’s discovered that their deeds don’t match their fine words.

For this book, I’m delighted to be able to showcase a set of truly authentic values. In my interview with the 11th Duke of Richmond and Gordon – owner of The Goodwood Estate in Sussex, England – he takes me through four core values that fit a business built on the appeal of fast and beautiful cars, planes and horses. If you’ve ever been bored reading a set of corporate values, I guarantee that you won’t be this time.

OBSESSION AND PARANOIA

Many (some would say most) of the world’s great businesses have been driven by the vision and passion of one or two people. In the past, this has included Walt Disney in the USA, Jamsetji Tata in India, Masaru Ibuki and Akio Morito (Sony) in Japan. More recently, we think of Bill Gates and Mark Zuckerberg in the USA, Richard Branson in the UK or Jack Ma (Alibaba) in China. This driving force is a key part of many of the world’s success stories and these people do not approach their jobs in the same way as the rest of the population.

In this chapter, the two interviews with business owners give some insight into what it takes to drive and transform a business from the top. Britain’s most trusted man, Martin Lewis, Founder of Money Saving Expert (MSE), says that his secret is ‘paranoia’ adding that ‘no one is as critical of what we do as I am’. When I put this word to the Duke of Richmond and Gordon, he said he understood it. One of his values is the ‘obsession for perfection’. He said that he worries all the time and if anyone has a poor experience at Goodwood ‘it’s a dagger to the heart’.

SOME COMPANIES CAN’T AFFORD A GOOD REPUTATION

I’ve sat in meetings, particularly with banks, where it has become clear that it’s simply not possible to do what consumer groups and commentators judge to be trustworthy and at the same time meet shareholders’ expectations of the business. Martin Lewis touches on the same issue in his interview. His judgement is that

lots of companies want to be trusted, but are not willing to pay for it and it would be better if they were at least honest with themselves about this.

I think this applies to most areas where competition is intense and confusion marketing predominates, including energy and telecoms. The answer is to not overclaim in describing corporate purpose.

On that note, I’ll leave you to read Nitin Mantra on what makes a great reputation, my interview with the Duke of Richmond and Gordon on obsessing for perfection, Arun Sudhaman on Paul Polman and my interview with Martin Lewis, ‘Britain’s most trusted person’. The chapter is completed by Danny Rogers, Editor-in-Chief, PRWeek UK and author of Campaigns That Shook the World: The Evolution of Public Relations (2015) who writes of his admiration for Dove and John Lewis. I’ll re-join you on page 29 to talk about the value of reputation.

WHAT MAKES A GREAT REPUTATION?

Nitin Mantri

Group CEO AvianWE; Vice President, ICCO; President, PRCAI

Reputation is a valuable, strategic asset for every business. Even though it is an intangible concept, reputation gauges the degree of trust that the consumers, clients, marketplace and the industry as a whole, hold for a brand. From driving consumer preference and facilitating growth, to ensuring public support in times of crisis, a good reputation is the most important thing that a company can build and have.

Building a good reputation is not easy. It requires years of effort, patience and time to build a good reputation and just one misstep to destroy it. Yet, companies like Rolex, Google, Microsoft and Walt Disney are consistently featured in lists of the world’s most reputable organisations. So, what gives these organisations a stellar reputation? Let’s find out.

RETAIN THE CUSTOMER’S TRUST

Honesty is the foundation of a good reputation. An organisation that behaves ethically is admirable, trustworthy and worthy of respect. The presence of integrity and transparency in all dealings is an essential ingredient for building an impressive outlook. The maintenance of financial and economic resources should be performed responsibly and without any ambiguity.

The turmoil that Nestlé in India had to endure after Maggi failed to secure FDA approvals inflicted a major dent on the brand’s global reputation. However, the brand’s constant devotion to their customers with honest assurances and confessions ensured one of the greatest comebacks of all time and great lessons on brand reconstruction.

INNOVATE CONSISTENTLY

The brand that services an irrefutable product quality is bound to be in consumers’ good graces. A good personal experience ties an indiscernible string of faith of a consumer to the brand. A token of that would be the consistency in Rolex’s brand reputation throughout the years.

To cement their status, Rolex pioneered several industry’s firsts, including the first waterproof watch and patenting the self-winding mechanism, as well as others. Upon their twin principles of unwavering product quality and timely innovation, the Swiss watchmaker has built a name for itself.

HAPPY EMPLOYEES

An employee who enjoys working at your company is likely to spread a word about the geniality of your business. Investing in their individual growth will result in greater satisfaction leading to better results. An organisation is nothing but what its employees make it to be and what its consumers deem it to be.

Google’s mantra of employee satisfaction has constantly ranked it amongst the best places to work. The implementation of a cheerful work culture and a host of office perks has always made it the yardstick for an ideal employer.

AN ABLE LEADERSHIP TEAM

Great brands always need inspiring leaders to spearhead their way, but no leader is greater than their brand. Last year, when an ex-Uber employee’s essay detailing the prevailing culture of sexism and sexual harassment surfaced on the internet, the organisation found itself rushing into an unforeseen predicament. To make matters worse, a video of then-CEO Travis Kalanick berating an Uber driver was also leaked within a few days of that incident. Kalanick was compelled to make a public apology followed by his resignation from Uber.

Reputation is fragile but there is nothing that a well-structured rebuilding cannot beget. Under the guidance of great management and an envisaging leadership team, brand consolidation becomes a promising goal. Microsoft under the leadership of Satya Nadella has done just that and has risen up in most reputation rankings since he took over.

BE SOCIALLY RESPONSIBLE

It is important for a business to communicate on a humane level, while being able to help the society move ahead with the times and as a whole. When a company addresses concerns beyond its anticipated role, a sense of belief ignites amongst its people. For years, Tata Sons has sustained the faith of its consumers because of the legacy of philanthropy that is regularly associated with them.

Corporate social responsibility is the unspoken accountability of every business to its people. It is important to imbibe such values in your culture and take a stance on issues of social relevance. Ensuring generosity and having relations built purely out of goodwill goes a long way in fortifying the eminence of the business.

CONTINUOUS ENGAGEMENT

It is also worth noting that with the dawn of the digital age, looking after brand reputation is even more critical. As the channel of communication remains wide open at all times on social platforms, preserving the integrity of the brand becomes challenging. Begin with taking ownership of the business on social media platforms and engage constantly, especially during times of crisis. Engagement across stakeholders is key.

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