Proactively Developing a “Good Reputation”

Reputation is much more than ‘image’. It is an enduring ‘perception’. Image (a transitory perception), public relations, and advertising mean nothing if what is behind them is perceived as less than sound by the stakeholders involved in the business. Reputation is hard to build and easy to destroy, but lasts at lot longer in the human memory than transient imagery.

It is ultimately the reputation that an organisation holds with its many stakeholders that determines the effectiveness and sustainability of its business. Trust is built over a period of time, during which positive reputation co-lateral is stored in the minds of stakeholders. The value of such co-lateral can really only be seen at times of conflict and crisis amongst the stakeholder constituency, but a good reputation will always be reflected in excellent business performance and profitability.

Reputation and Business Effectiveness

A good, sound reputation with Key Stakeholders means that:

• Customers return to buy
• Suppliers deliver
• Employees are motivated and loyal
• Local Communities and Neighbours support
• Regulators and Environmental NGOs trust
• Media report positively
• Shareholders invest

A good, positive reputation builds trust, thereby allowing managers to focus on developing, manufacturing, and selling the company’s goods, rather than spending costly time dealing with issues of misunderstanding and mistrust. The justification for proactive reputation management is clear:

• makes good business sense to work on a good, positive reputation
• needs continuous effort and therefore continuous attention to detail
• boosts sales – generates cash
• increases profits – makes money
• reduces waste – saves money
• improves supplier confidence – saves money
• motivates employees, minimises staff
  turnover, maximises attendance
• saves management time – cuts costs

Resonato is a consultancy service that assists senior managers, predominantly from SMEs and chemical manufacturing sites, to handle and enhance their company’s reputation with its stakeholders.