Reputation Management in

a Crisis

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 If you lose dollars for the

fi rm I will be understanding. If you lose reputation for the fi rm, I

will be ruthless.

Warren Buff ett

What is corporate

reputation?O U R D E F I N I T I O N

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Corporate reputation is the sum of

opinions about and attitude towards an

organisation.

Reputation is a result of behaviour and

may vary depending on the experience

and perceptions of the organisation’s

various stakeholders.

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Generate and maintain investor confidence

Provide a platform for innovation

Build stakeholder trust and advocacy

Protect equity values in times of crisis

Enhancing competitive position

strong corporate reputations are powerful strategic assetsWHY DOES REPUTATION MATTER?

Attract and retain top talent

What role does reputation play when things go

wrong for companies?

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Justin King, CEO Sainsbury’s

It’s astonishing how a robust reputation will be resilient against

fact

Source: CityAm 2014

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Source: lexisnexis

Source: Health impact news

REPUTATIONAL CRISES

Expert advice for managing

reputation in a crisis

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1. Inform key stakeholders before the media does

2. Be internally prepared to engage through new information channels

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#o2outage

Customer (@gay_platform): "@O2 We're still waiting for that apology..or maybe they texted me and I can't see the message because my phone DIDN'T WORK"O2 response: "@gay_platform Firstly, here are our deepest apologies. Network should be back up and running for you. How's your service?"

Customer (@24vend_Ltd): "@O2 had to travel to Italy to get signal -- desperate times!!!"O2 response: "You can come back now. We're back in business :)" @Carole29 tweeted As much as I really don't like @O2 you really have to give whoever handles their twitter, massive credit lol.O2 response Thank you for the massive credit! We'll hang it on the massive credit wall.

 Nothing good happens

without trust. With it you can overcome all sorts of obstacles. You can build companies that everyone

can be proud of.

Jim Burke, CEO J&J (1976-1989)

3. Act quickly and communicate frequently

4. Take the lead and make widespread industry changes

Source: World’s Most Admired Companies by Fortune Magazine

Fortune ranking: World’s Most Admired Companies

2014

2013

2012

2011

26th

24th

18th

13th

5. Measurement for effective management

Global consulting company’s sponsorship of international sportsman

Bribery within Pharmaceutical industry

Long term tracking for when a crisis hits

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#5 Measurement for effective management

#2 Be internally prepared to engage through new information channels

#1 Inform key stakeholders before the media does

#3 Act quickly and communicate frequently#4 Take the lead and make widespread industry changes

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But even with bad crisis

management…all is not lost

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BUILDING

Diagnoseand define reputation objectives

SUSTAINING

Monitor and manage

current position

MANAGING CHANGE

Change management

and protection planning

RECOVERING

Review, redefine

and restore reputations

RESEARCH AT EVERY STAGE FOR A STRONG REPUTATION

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 When written in Chinese,

the word 'crisis' is composed of two

characters. One represents danger and the other

represents opportunity.

J F Kennedy

Reputation Management in

a Crisis

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