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• examine company reputation drivers and how their active management…

- - - - • Social media management requires rapid response to negative information in circulation
- - - - • sell goods and services
        
        • attract investors
        
        • attract (or retain) talented employees
        
        • influence important stakeholders, such as government.
    - - An organisation should decide what reputation it wants
        
        Some tools or tactics used to influence reputation drivers are described in the following sections.
        
        ─ Change practices as necessary.
        
        CROCS
        
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        ─ Communicate: report actions and their consequences.
        
        RMED
        
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        ─ Engage with stakeholders.
        
        • Engage actively with multiple stakeholders, including those who are the most critical, to understand their issues and expectations better. This includes relationships with individuals and with other organisations. This may require active engagement in a range of industry and consumer organisations, as well as engagement in social media and other online activities.
        • Seek external and reputable recognition through awards, industry bodies and advocates.
        
        • Identify key drivers of its reputation strategy and tactics:
      - is a long-term strategy that revolves around transparency, trust, efficient communication and solid long-term relationships with internal and external stakeholders of the organisation.
      - Given the short-term and unpredictable nature of reputational events, it is important for businesses to develop a well-planned risk control strategy for managing these events, and to be ready to respond to events in a rapid and effective manner.
      - Crisis
        
        Effective responses to reputational events are critical and, if managed well, businesses can recover from these events. AON (2013, p. 26) reports that in some cases, ‘companies that successfully navigate a crisis can actually build additional value’. Increasingly, evidence suggests that companies with strong positive reputations also deliver better financial results.
        
        While not all crisis events can be anticipated, all organisations should develop a strategy for dealing with such events as part of an overall risk management strategy.
        
        This should include a crisis communication plan covering not only appropriate responses and escalation procedures for anticipated events, but it should also include which communication channels to use.
        
        The organisation should ensure that appropriate staff are available to put the plans into action immediately.
        
        The credibility and reputation of an organisation are heavily influenced by the perception of its responses during crises. Open and consistent communication throughout the hierarchy is essential to successful crisis management.
        
        Crisis communication can take many forms, and should be pitched at a level to suit the affected audience.
        
        When a social media response is required, the appropriate approach and language may be quite different to that used in traditional press releases. In any case, respect should be shown to the affected audience.
        
        Three elements are common to most definitions of a crisis: SET
        
        a threat to the organisation;
        
        the element of surprise; and
        
        a short decision time.
        
        Therefore, a fourth element in a crisis is the need for change
        
        If change is not needed, the event could more accurately be described as a failure or an incident.
        
        The required change may be in the way that the impacted organisation interacts with stakeholders, or it may be a major rethink of strategy.
      - To manage its reputation, an organisation will need to do the following:DDSRS
        
        Understand the status quo—what is actually happening, not what management is aspiring to or would like. This requires a constant awareness of the whole business environment, including careful monitoring of traditional media such as news services, as well as active engagement in social media.
        
        Understand the relative importance and influence of respective reputation drivers— not everything will be of equal relevance.
        
        Develop an overarching strategy outlining where the organisation wants to be in the future and what type of reputation it wishes to have. This needs to be visionary yet realistic—companies often set visions that either are not delivered or are not aligned with stakeholder expectations and that may harm their overall reputation.
        
        Understand individual driver performance—through market research, opinion polls, social media, audits and reviews, organisations can better understand opinions and what they can and cannot influence. Often, organisations will undertake the assessment but they find the next step difficult to implement, particularly when they are uncomfortable with the findings.
        
        Develop and implement aligned driver strategies—each driver will need to be managed independently and through different mechanisms. Focus resources on what can be changed and influenced. For example, employees and culture will require engaging and honest internal communications, and relationships with trade unions, as well as transparent and fair reward and remuneration policies.
    - - The AON 2015 global risk management survey (AON 2015, p. 18) found that ‘damage to reputation’ was rated as the number one threat to value. Reputation is particularly important in industries where competition is high, such as the retail, aviation and hospitality sectors.
  - - - reflects the perception (good or bad) of an organisation held by the different stakeholders affected by an organisation’s activities
  - - - In the AON 2013 survey, companies surveyed reported ‘losses of income [due to reputational damage] … rising from 8 per cent in 2011 to 40 per cent in 2013’. Surprisingly, in the AON 2015 survey this figure decreased to 7 per cent. The 2015 report suggests that the decrease is due to ‘heightened awareness’ (p. 44).
  - - - PIGCWLF
        
        products and services;
        
        innovation;
        
        workplace;
        
        governance;
        
        citizenship;
        
        leadership; and
        
        financial performance (Reputation Institute 2015, p. 4).
        
        Companies that deliver on all domains gain the most support from their entire stakeholder base—customers, investors, staff, regulators and the media. It was found that the top six companies on the 2015 report delivered outstanding performance across all seven reputation domains (Reputation Institute 2015).