Corporate reputation is how a company is perceived by others. It is the collective judgment and assessment of a corporation’s financial, social, and environmental impact. Hence, the success of the whole sector depends on the corporate reputation of a business. The real corporate reputation is not the image of the brand, neither it can be built through clever advertising campaigns and marketing strategies. Reputation is not spin.
Maintaining a good corporate reputation is a bit difficult task but it takes a minute to ruin it especially when something is promised and not delivered on time. In the era of social media, things can get viral in seconds, and then it takes a lot of time and energy to regain trust.
The Corporate reputation is comprised of 3 elements: Brand, Organizational, Stakeholder reputation. These are the “reputational radar”.
- Brand Reputation: How the target customers comprehend the brand.
- Organizational Reputation: It is not necessarily what the public thinks about the brand that goes with the organization as well. An organization is always a house of brands and sub-brands. Therefore, the public reputation of a company and its brand can vary from each other.
- Stakeholder Reputation: Stakeholders are the person or the organization who has their stakes in the company directly or indirectly. Stakeholder reputation is the reputation that stakeholders have of the brand and the organization.
Importance of Corporate Reputation
Maintaining a positive reputation of a firm is very important. It is directly proportional to the growth of the company. Corporate reputation stands on its 4 important pillars – credibility, trustworthiness, reliability, and responsibility and the stakeholders which are the key people that own and create the reputation.
A positive reputation attracts better people towards the brand and encourages the organization in building quality products for them. If you provide the quality that you promised on time, it will improve the trust among the buyers and they intend to buy a broader range of products and services. More loyal customers to the company, higher price-earnings, and hence, increase in the market value.
Here are some key points which can help in maintaining a good corporate reputation:
- Always deliver what you have promised. The terms and conditions regarding the services and privacy must be clearly mentioned on the website in understandable language. Be polite when it comes to refunds and the payments of the vendors. Trust is always earned and cannot be forced.
- Offer a good value to whatever you are providing to the customer.
- It is very important to ensure that you have a list of happy customers. Provide excellent services by always being responsive and providing some rewards if your business allows. In the era of social media, it takes a min to ruin the reputation of the brand but with your loyal customers, you can easily overcome such a situation.
- Always be ready to communicate clearly all the important professional information. Keep your website and social media pages updated about your mission, vision, and other required information.