Студопедия

Главная страница Случайная страница

Разделы сайта

АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатикаИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханикаОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторикаСоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансыХимияЧерчениеЭкологияЭкономикаЭлектроника






Reputation management






I. Read and translate the text.

Unit V Reputation_____________________________________________________________

 

Many businesses have public relations departments dedicated to managing their reputation. In addition, many public relations firms describe their expertise in terms of reputation management. The public relations industry is growing due to the demand for companies to build corporate credibility and hence reputation. Incidents which damage a company's reputation for honesty or safety may cause serious damage to finances. For example, in 1999 Coca-Cola lost $60 million (by its own estimate) after schoolchildren reported suffering from symptoms like headaches, nausea and shivering after drinking its products.

Despite the rising interest in reputation, few companies have reputation officers. Although many companies will say company reputation is the job of the CEO, managing reputation is a daily function and can best be given to an individual in the organization.

For example, Hoover's has a list of officers with the term " reputation" in their titles. Foro de Reputació n Corporativa is a group of 11 companies in Spain that has reputation officers. Despite the great interest in reputation, there only remain 25 or fewer people as reputation officers. Some would argue reputation-building and protection is the job of the CEO and not any direct report. Others would say that the CEO has too many responsibilities to focus on reputation.

Reputation can be managed, accumulated and traded in for trust, legitimization of a position of power and social recognition, a premium price for goods and services offered, higher customer loyalty, a stronger willingness among shareholders to hold on to shares in times of crisis, or a stronger readiness to invest in the company's stock. Therefore, reputation is one of the most valuable forms of " capital" of a company.

According to Joachim Klewes and Robert Wreschniok, delivering functional and social expectations of the public on the one hand and manage to build a unique identity on the other hand creates trust and this trust builds the informal framework of a company. This framework provides " return in cooperation" and produces reputation capital. A positive reputation will secure a company or organisation long-term competitive advantages. The higher the Reputation Capital, the less the costs for supervising and exercising control.

The stakeholder theory says corporations should be run for the benefit of all " stakeholders, " not just the shareholders. Stakeholders of a company include any individual or group that can influence or is influenced by a company's practices. The stakeholders of a company can be suppliers, consumers, employees, shareholders, financial community, government, and media. Companies must properly manage the relationships between stakeholder groups and they must consider the interest(s) of each stakeholder group carefully. Therefore, it becomes essential to integrate public relations into corporate governance to manage the relationships between these stakeholders which will enhance the organization's reputation. Corporations or institutions which behave ethically and govern in a good manner build reputational capital which is a competitive advantage.

 

Unit V Reputation_____________________________________________________________

 

According to Fombrun, a good reputation enhances profitability because it attracts customers to products, investors to securities and employees to its jobs. A company's reputation is an asset and wealth that gives that company a competitive advantage because this kind of a company will be regarded as a reliable, credible, trustworthy and responsible for employees, customers, shareholders and financial markets.

Reputation is a reflection of companies’ culture and identity. Also, it is the outcome of managers' efforts to prove their success and excellence. It is sustained through acting reliably, credibly, trustworthily and responsibly in the market. It can be sustained through consistent communication activities both internally and externally with key stakeholder groups. This directly influences a public company's stock prices in the financial market. Therefore, this reputation makes a reputational capital that becomes a strategic asset and advantage for that company. As a consequence, public relations must be used in order to establish long lasting relationships with the stakeholders, which will enhance the reputation of the company.

(From Wikipedia, the free encyclopedia)






© 2023 :: MyLektsii.ru :: Мои Лекции
Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав.
Копирование текстов разрешено только с указанием индексируемой ссылки на источник.