Counting the cost of a reputational hit

Ups and downs of reputational management

Building a company’s reputation is a long-term investment which takes years of consistent effort, trust-building, and strategic communication. But the destruction of reputation happens in a matter of moments. We thought we’d take a closer look at how investment in crisis communications and risk preparation reduces the impact of a reputational hit.

Building a reputation: The value of long-term effort

1. Consistency and Trust:
– Years of reliable performance, transparency, and delivering on promises

2. Quality and Excellence:
– Continuous provision of high-quality products or services and maintaining high standards

3. Positive Relationships:
– Nurturing relationships with customers, employees, and the wider community

4. Strategic Communication:
– Regular, strategic engagement and storytelling to highlight successes and values

5. Resilience and Adaptability:
– Demonstrating strength in handling challenges and adapting to changes

According to research from Pentland Analytics (pdf), companies recover from share-price losses faster when senior management communicates with stakeholders swiftly and launches an active program of social responsibility that directly addresses the damage associated with the crisis.

20% improvement in market value 30% Loss in market value

Don’t waste years of hard work. Prioritise proactive reputation management and effective crisis communication to protect your brand integrity.

To help you we’ve created a tool to discover how safe your company’s reputation really is. Think of it as the first step of a Reputation Audit.

To take a look, please visit our Reputational Audit page.