Corporate Reputation and Risk Management

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Corporate Reputation & Risk Management Brian Cronkhite – August 4, 2010


“A good name is better than riches.” -- Don Quixote


Reputation is shaped by perceptions • • •

They are formed by what people know, see, hear, read and experience They determine how people think and feel — and, therefore, how they behave Perception = reality

What do you see?


Reputation is shaped by perceptions • • •

They are formed by what people know, see, hear, read and experience They determine how people think and feel — and, therefore, how they behave Perception = reality

What do you see?


Reputation is shaped by perceptions • • •

They are formed by what people know, see, hear, read and experience They determine how people think and feel — and, therefore, how they behave Perception = reality

What do you see?


A good reputation is forged over‌


And a consistent, complex web of interactions‌


When reputation is good‌ Recommended as a place to work

Give the benefit of the doubt Recommend as JV Partner Recommend stock Pay more for products / services


When reputation is bad‌


“It takes 20 years to build a reputation and five minutes to ruin it.� -- Warren Buffet


A CHANGING ENVIRONMENT



6 communications trends re-shaping the RM equation


#1 Professionalism - of NGOs, Activists




#2 Transparency



#3 Accountability


#4 Dialogue


#5 Alignment


#6 Speed





What role should communications play in RM? 1.

Corporate sensor –

identifies and assesses stakeholder sentiment

3. Corporate communicator –

Source: Harold Burson’s view on the role of Corp Communicator

speaks for the corporation in a truthful, timely manner

2. Corporate conscience –

contributes and participates in the decisionmaking process

4. Corporate monitor –

ensures company is delivering on its promises


Discussion


Brian Cronkhite

Talk to B-M online:

Managing Director, Corporate Practice, Greater China T: 86 21 5403 6950 brian.cronkhite@bm.com

http://www.burson-marsteller.asia


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