Sascha Matuszak (email@example.com) is a reporter at SCCE in Minneapolis, MN.
A good reputation has always been the cornerstone of any successful partnership.
A company with a solid reputation will be more successful than a company with a poor reputation. This success can create a positive feedback loop, further enhancing a company’s reputation and leading to even more success, propelling earnings, and raising the value of a company. The inverse holds true as well — poor performance followed by a reputation hit can send a company into a tailspin.
“A company’s reputation should be managed like a priceless asset and protected as if it’s a matter of life and death,” wrote the authors of a 2014 report from leading consulting and advisory firm Deloitte. “Because from a business and career perspective, that’s exactly what it is.”
As early as 1992, researchers defined reputation as a strategic intangible asset, and in the last decade and a half, with the fallout from the Great Recession and the rise of social media as the dominant medium of discourse, the impact a company’s reputation can have on earnings has never been greater. Corporate executives increasingly recognize reputation as a business asset central to maintaining and increasing business value.
So whose job is it to manage an organization’s reputation? The short answer is: everyone’s. However, as compliance and ethics professionals know, “protecting an organization’s reputation” stands among the top reasons for having an effective compliance and ethics program. In fact, the work of preventing, uncovering, and responding to corporate misconduct is compliance and ethics professionals’ contribution to the overall job of reputation risk management.