What is and how to manage corporate or business reputation
Nowadays, corporate or business reputation is a fundamental concept for any organization. This is not only because it can represent a competitive advantage over other companies, but also because it can have a significant impact if it is not managed properly. Next, we are going to tell you what corporate reputation is and how to manage it optimally to obtain the best results.
What is corporate reputation?
To define what we are talking about when we talk about corporate or business reputation, we can say that it is about the image that the company projects to the public. Also the perception that the company’s stakeholders have of it. Including both internal and external people of the organization. This image is based on external and internal actions.
In other words, we can say that corporate or business reputation is, ultimately, the sum of the intangible aspects that society perceives regarding the organization. Such as its quality, its honesty, its ethics, its labor relations, its reliability, among other things. It is important to note that corporate reputation does not refer to what the company says about itself, but to what the public perceives about it.
Why is corporate reputation important?
Considering the above, we can affirm that the importance of corporate or business reputation lies mainly in providing competitive advantages to companies in a market that is increasingly homogeneous and more competitive. It is, therefore, an important intangible value for companies, because it works as a differentiating element and makes people choose one company over another.
Such is the importance of corporate or business reputation that, at present, different specialists refer to the “reputation economy“. Where it also becomes an economic value for companies. This, because it allows obtaining benefits in other areas such as customers, investors, the environment, the social part, among other things. It must be taken into account that corporate reputation influences the choice and loyalty of customers. But also of the investors and shareholders who choose the company, the workers who decide to bet on it and the different social entities.
How to manage corporate or business reputation?
Good management of business reputation is one that takes into account the different variables related to reputation. And also seeks solutions for both reputational crisis prevention and crisis management and maintenance of a good reputation. In this sense, the keys to good business reputation management are:
It is necessary to define the objectives and establish the aspects for which the company wants to be recognized by people. These objectives must be known and shared by the different areas of the company, thus achieving cross-cutting management.
Secondly, a diagnosis must be made of the situation from which the company’s corporate reputation starts among the different interest groups.
It is necessary to monitor the management of the company’s reputation and the reputational risks that could lead to a potential crisis, in order to find the most appropriate solutions for each case.
Both to report the solution of errors or problems and to convey what should be done in each crisis context, communication is one of the most important keys in all corporate reputation management.
At 202 Digital Reputation we are specialists in digital reputation management, controlling the reputation of clients from start to finish so that they can obtain the best results.