Guidelines for improving and protecting corporate reputation Corporate reputation, a key (albeit implicit) responsibility of business continuity managers for years, has become a topical and vital asset and risk for companies to manage. With so many forces (to name just a few) affecting it such as heightened public sensitivity to corporate responsibility, media scrutiny, the quest for extracting value from intangible assets and the constant request by stakeholders for transparency and trust to be restored and demonstrated, managing reputation has become a key priority. In the South African context, very few companies (if any) have adopted a formal strategy to deal with and manage corporate reputation. Reputation risk management is dealt with piecemeal as the preoccupation is with the traditional risk streams and crisis management. One of the requirements of the King II Recommendations on Corporate Governance is that sound risk management and internal control frameworks should be part of the daily operational activities of a company, and should not be viewed independently of normal business activities. However to manage reputation adequately necessitates a multi-disciplinary approach and allocation of necessary resources. Managing reputation is not that easy. Those who have taken up the task, face many obstacles to success. These obstacles range from difficulties in identifying the drivers of reputation to prioritising company actions to support these reputation drivers in driving behavioural change within the organisation. Change Agents will tell you that driving behavioural change across any organisation is a daunting and difficult task and challenge with many difficulties. Other problems range from prioritisation to focusing. Here are a few specific company actions that I believe should be in place to boost and bolster reputation: 1. Design and develop a Corporate Reputation Risk Management framework for the organisation Required action: Operationalise this concept and make it actionable for the organisation. Questions to ask: Do we have an all inclusive framework, documented and approved by the board? Whose responsibility is this from board level down? Who will prepare and research this framework? 2. View reputation as a holistic concept and build supporting processes Required action: Although corporate communication has become the steward of reputation in many organisations, additional resources and approaches will be needed to manage this asset. One way to create a holistic approach is to educate managers in reputation management competencies; another is to create a Reputation Risk Committee. 3. Track reputation by conducting ongoing research to view progress against company-defined specific goals and to help diagnose opportunities for change Required Action: Partner with a research organisation that can help you do this tracking. 4. Drive behavioural change through using key tools such as awareness exercises, training and development, performance management and traditional communication techniques Required action: Include reputation leadership, reputation management, reputation risk management training and other interventions and make it part of your company's learning and development agenda. 5. Implement programs using specific stakeholder groupings to channel and concentrate resources. Required action: Conduct stakeholder analyses and research their needs, wants and preferences. Reputation is derived from your stakeholders. A relationship is a connection between one person and another. In the economic world, maintaining good relationships is essential to business success. Therefore, managing stakeholder relationships' should be high on the agenda of many companies. Questions to ask: Have we done all we can to maximise our reputation and relationships with our stakeholders. Author: Deon Binneman, reputation management speaker, consultant and trainer, deonbin@icon.co.za
•Date: 23rd May 2006 • Region: Africa/World • Type: Article •Topic: Op. risk |
