In this market, reputation is the key to growth and success for a company. The recent Harris Poll Reputation Quotient Survey indicates that 50 percent of the public thinks of today’s CEOs as ‘bad’. Given that the Reputation Dividend report, published earlier this year, stated that corporate reputation now accounts for $566 billion of the Canadian resource industry’s shareholder value, CEOs’ reputations are directly linked to a company’s success.
The fact that half of the population has such a bleak view of today’s CEOs is alarming because this is dictating the public’s behaviour towards the company. Especially if you are a mineral exploration or mining company, gaining social licenses is vital to the success of your project.
Corporate Reputation Management: key to business success
Today’s public is an informed decision maker who seeks reputation information on corporates from various mediums. “Corporate behavior is of mass interest, and common dinner table conversation”, states the Harris Poll Survey. As per the survey, 44 percent of the public participated in a conversation with others about how a company conducts itself. And, 40 percent of the public also indicated they decided not to do business with a corporate due to bad reputation.
In a world, where information, good or bad, is readily available to the general public, it is critical for companies to ensure the public has factual knowledge about its projects delivered proactively.
Effects of ill-timed and poorly crafted communication were evident in the now infamous United Airlines incident. Was there a possibility of the company to save its reputation by responding and delivering a different crisis communication statement? Definitely.
Instead, the CEO remains under attack on social media, further driving down the reputation of the brand and its leadership.
So, what is the consumer seeking in a CEO?
The Harris Poll survey clearly indicates that the five most important CEO traits are:
What’s driving corporate reputation beyond products?
Importance of the CEO’s reputation is further affirmed by the responses to the question “What’s driving corporate reputation beyond products?” Statistics reflect that over the years, vision and leadership have become increasingly important to a consumer while making a decision. In case of the resource industry, the public’s opinion of a company’s projects is dependent on the reputation, the vision and the leadership of the company.
Opening the channels of communication, encouraging a meaningful dialogue and bringing in transparency to build trust and thereby reputation will go a long way in the success of today’s business environment.