Reputation is a commonly held opinion of an entity. Corporate reputation can be affect based on six aspects:
- Social responsibility
- environmental responsibility
- leadership
- quality of products or services
- financial performance
- treatment of staff
We will look at examples that accurately represent some of the above.
Treatment of staff & quality of service
The reality show Tabatha's Salon Takeover helps the salon Brownes & Co. and discovers that the problem lies with its owner Nikki Mallon, who is a tyrant when treating her staff. She has a negative attitude and is an imperious diva who supervises her employees with remote camera. This results in low morale from staff as they are frustrated with the constant demeaning attitude of Nikki and hence they treat customers in an unfriendly manner which drives away customers eventually.
"If Nikki doesn't respect or support her staff, she may as well close her doors right now," Tabatha says.
The first part of the episode shows a preview of how the staff are treated. After this episode of Tabatha's Salon Takeover, many viewers posted negative comments on Brownes & Co. facebook and Yelps page. As described, reputation of the company was adversely affected as the result of a bad image by Nikki Mallon.
Social Responsibility
Starbucks understands the importance of being socially responsible and ethical in its operations hence a compromise is made with Ethiopia's farmers, their coffee beans supplier, for mutual benefits even at the expense of profits. Starbucks releases a corporate responsibility report each year which outlines and discusses the company's behavior in relation to its corporate responsibility objectives. The company also has a message board which addresses any current rumors about Starbucks and confronts any rumors firsthand. Its commitment to improvement and resolution of responsibility issues demonstrates an
element of social responsibility found in few companies.
Environmental Responsibility
Platte Chemical formulates insecticides, herbicides and fungicides for agriculture use. In 2001, a leak from a caustic tank at Platte caused a fish kill. Two months after that, a defect in a chemical reaction resulted in an evacuation of all residents near the area.
The company's inability to fulfill society's expectations for environment responsibility caused the company's reputation to suffer. Many lawsuits against Platte was filed.
These case studies show the importance of reputation management to a company. However, reputation management do not imply only the up-keeping of corporate image, more than that, it is an unwritten code of ethics that should be adhered to. Public relations practitioners should advise clients and companies to show the highest standards of responsibility in the above mentioned aspects by highlighting the benefits of doing so.
These case studies show the importance of reputation management to a company. However, reputation management do not imply only the up-keeping of corporate image, more than that, it is an unwritten code of ethics that should be adhered to. Public relations practitioners should advise clients and companies to show the highest standards of responsibility in the above mentioned aspects by highlighting the benefits of doing so.
Hi Joane,
ReplyDeleteInteresting post about reputation management and its various aspects. You gave some good examples of companies like Starbucks, which manages its reputation very well in contrast to organisations like Platte.
I'd like to pose a question, though. Ethics and social responsibility are all elements of managing a company's corporate reputation. However, some companies actually resort to UNETHICAL means to protect that very reputation that we've been discussing.
Where do you think organisations should draw the line when it comes to upholding their reputation. Let's face it – sometimes, doing the right thing may lead to putting your company's reliability, name and reputation at risk. If sacrificing ethics and CSR leads to saving the company from certain collapse, should a PR practitioner proceed to take such actions? Or do you feel that telling the truth and following a code of ethics is still the best decision to make?
- Syaz
Hey Syaz,
ReplyDeleteIn today's society, it is actually pretty difficult to keep something under wraps for long. Things will eventually be exposed as employees themselves will each have their own ethical restraints. Concerned public or groups these days are also proactive in unrevealing unethical practices in organizations. Hence I feel that the truth and adhering to ethical behavior will always be a better option to take. Choosing to be unethical as the easy way out might just backfire.