Baird's CMC | A Unique Global Communications Management Consultancy

Media Trends Report 2021

Tel: +44 (0) 1495 828300
Email: team@bairdscmc.com
  • E-mail
  • LinkedIn
  • Twitter
Menu
  • Home
    • Sexual and Reproductive Health
    • Stakeholder Mapping & Strategy
    • Training & Skills
    • Qualitative & Policy
    • Communications and Management Consultancy
    • Close
  • About us
    • Privacy Policy
    • Our specialist areas
    • Case studies
      • EDCTP sub-Saharan Africa policy research
      • Emerging Democracies and Green Issues
      • Gauging Attitudes Toward an HIV Vaccine
      • Increasing Immunization Coverage in Central India
      • Close
    • Close
  • Network
    • Network map
    • Associates
      • Michael Acott
      • Ashoek Adhikari
      • Francois Baird
      • Gerhard Butschi
      • Steve Bowers
      • Mark Chataway
      • Lenore Cooney
      • Paul Dillon
      • Marta Dourado
      • Martina Dörmann
      • Dirk Van Eeden
      • Alexandra Fullem
      • Frederick Fussi
      • Ingrid Gavshon MBA
      • Denise Gee
      • Denise Gray-Felder
      • Bert Griesel
      • Aman Gupta
      • Darren Jones
      • Danie Kok
      • Andrzej Kropiwnicki
      • Angelle Kwemo
      • Nikolay Kudryashov
      • Mari Lee
      • Simba Makoni
      • Steve Mallach
      • Terry Mandel
      • Matshidiso Masire
      • Valeria McFarren
      • Hugh McKinney
      • Chris Opperman
      • Ken Rabin
      • Mark Rittenberg
      • Simon Russell
      • Jacob Sesinyi
      • Melinda Shaw
      • Cormac Smith
      • James Snodgrass
      • Hema Viswanathan
      • Mina Volovitch
      • Gillian Waddell
      • Joseph Makwata Wambia
      • Chris Ward
      • Gysbert J Wessels
      • Marion Zibelli
      • Close
    • Senior consultants
      • Simon Hardie
      • Close
    • Close
  • Services
    • New Services
      • Media Training
      • Presentation Skills
      • Staff Engagement
      • Reputation Management
      • Close
    • Services
      • Communications counsel
      • New media strategy
      • Advocacy and coalition building
      • Crisis management
      • Market research
      • Strategic planning
      • Staff training and development
      • Risk management and mitigation
      • Close
    • Close
  • Sectors
    • Vaccine Hesitancy
    • Pharma in top 15 markets
    • Pharma in emerging markets
    • Pharma in underdeveloped markets
    • Pharma headquarters planning teams on market assessment
    • Global Development: Health Issues
    • Global Development: Environmental Issues
    • Health equity and access to care
    • Reproductive health and population
    • Vaccines
    • International Donors
    • Government Relations
    • Political Consulting
    • Telecom Sector
    • Financial Services
    • Close
  • News
  • ShopTalk
  • Get in Touch

Corporate Reputation and Risks: Elements of a Successful Strategy

rep3In our recent posts on this topic, we discussed some of the essentials of reputation management and risks, the repercussions of not having an effective reputation risk management strategy in place, and the role of the CEO.

What are the characteristics of a successful reputational risk management approach? The mistake many companies make is focusing purely on risk avoidance – a reactive approach. No doubt, this is an essential aspect. There certainly are risks that can be averted altogether; continual and careful analysis of key trends can indicate potential threats, and corrective action can be taken accordingly. However, it is also critical to acknowledge the fact that not all risks can be avoided and to expect the unexpected. A proactive approach that acknowledges the possibility of external shifts and prepares for unforeseen events is key to successfully protecting the image of a business.

A business’ reputation is ultimately based on how its various stakeholders perceive it; hence, the importance of communication in reputational risk management cannot be overstated. When it comes to stakeholder perceptions, many companies monitor their customers’ views. Often, however, other stakeholders are largely ignored. This can lead to a rather limited understanding of the potential risks to reputation.

When an unexpected crisis strikes, a comprehensive and well-rehearsed communications strategy can minimise reputational loss – and later repairing the damage. Companies need to respond in a timely and appropriate fashion. Those that don’t may suffer losses that can take years to recover from. In an earlier post, we mentioned RIM’s public relations disaster in the wake of a worldwide BlackBerry service outage.

Another example is British Petroleum’s failure to use communication effectively during and after the Deepwater Horizon oil rig explosion. From downplaying the extent of the damage, to public quibbles between employees, to then-CEO Tony Hayward’s numerous faux pas in the press – the BP strategy left much to be desired. In the public mind, therefore, BP’s former reputation as an environmentally ethical company suffered greatly. Although various other organisations were part of the oil spill, BP became the name most associated with the crisis – accusations of irresponsibility, insensitivity and unethical behavior flew far and wide. In this case, a prepared strategic communications response could have gone a long way in handling the crisis better.

Reputation is not the icing on the cake any longer – it is a company’s most precious competitive advantage as well as an indicator of present and future value. In a world where information is shared instantly and transactions in global financial markets are the work of a moment, it is imperative for businesses to prioritise reputational risk management. Public trust and stakeholder confidence are drivers of enterprise value.

Eroded credibility negatively impacts sales, share value and employee behavior; at the same time, the probability of legal entanglements and regulatory fines increases. According to the Reputation Institute, “Stakeholder perceptions of company behaviour are now the lead driver of enterprise value. Studies show that companies with high reputations are worth as much as 150% more than those with low reputations.”

This post concludes the Corporate Reputation and Risk series.

To see specific case examples and learn how we can help your organisation manage reputational risk, please contact the Baird’s CMC team.

Filed Under: News, ShopTalk Tagged With: Baird's CMC, communications consultancy, communications management, corporate reputation, francois baird, Mark Chataway, Paul Dillon

Contact Us

    Your Name (required)

    Your Email (required)

    Subject

    Your Message

    Please enter the letters below and press Send
    captcha

    Latest Blog Posts

    Global Elite are Bored with Health, Just When It’s Getting Really Exciting

    Using Fewer Antibiotics Isn’t Always the Best Way to Curb Resistance

    Mark World Sleep Day 2022 by prioritising quality sleep

    Copyright © 2022 All rights reserved. Sitemap