How Corporate Reputation Is Influenced By Stakeholders

By Author: Akansh
Total Articles: 67
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Corporate reputation indicates a value judgment with respect to a company’s attributes. A corporate reputation slowly evolves over time as a result of consistent performance reinforced by effective communication. Needless to say, all corporates covet a favorable reputation in the eyes of their stakeholders such as customers, suppliers, retailers, distributors, retailers, financial institutions, bankers, joint venture partners, shareholders, government agencies, social organizations, employees and the general community.

Depending on the reputation of your company in the eyes of these groups, they will extend or deny support towards the products and services of your business. Hence, it is extremely important to be in the good books of your stakeholders. To this end, you need to formulate a corporate reputation management strategy and constantly monitor its impact. It is important to identify the factors on which every stakeholder group will assess your company’s reputation. For instance, customers would form their opinion on the quality, price and reliability of the products and services; banks would look into the financial ...
... stability and performance; employees would judge based on policies and salary structures. While it is true that each stakeholder group would have a fairly different perception of the company as each interacts with a different aspect of operations; good corporate reputation managementeffectively maintains a consistent reputation among all stakeholder groups.

It is thus evident that managing corporate reputationis vital to the growth of a business. At the same time it is an intricate process which involves multiple groups of stakeholders. To maintain a consistent favorable corporate reputation, it is best to hire the services of a specializedreputation management firm. Typically, reputation management services include:

-Monitoring all mainstream media, combating any negative tactics by competitors, ensuring that there is intellectual property violations with regard to logos, brand image, content. In case of any such crisis situation, taking instant measures to remedy the same in a diplomatic manner, coordinating with PR and being responsive

-Maintaining online reputation, monitoring online reviews and taking immediate measures to fix any grievances or negative reviews with diplomacy

-Creating content as per latest social media trends, search engine optimization (SEO), generating leads by writing appealing reviews, posting digital assets and intellectual capital regarding the company’s products and services

-Identifying opportunities to increase organic search and non-paid media exposure

Corporate reputation can directly impact profitabilityand is one of the most valued and lasting assets of a business.Hence it is important for companies to invest in managing corporate reputation so that they can safeguardand develop this asset.Corporate reputation could be valued as high as one-third of a company’s market value and is highly vulnerable to the opinion of its stakeholders.To successfully thrive, corporates need to establish a reputation that reflects ethical behavior along with technical and business acumen in the eyes of their stakeholders.

Author Bio-Akansh Malik writes this article, giving an insight into the role of stakeholders in building and managing corporate reputation. He advises companies to invest in the services of a professional reputation management firm that is experienced in managing all stakeholder groups.