Christi Rankin of Martopia and Martopia Public Relations Group has over 25 years of executive level business experience. Her background has included tenures in marketing and sale with Fortune 200 companies and an array of other top management positions. Based on her first hand experience, the LA2M audience gained greater insight into the key components of business reputation management.
Rankin began by asking those attending if it is possible for a company to influence how it is perceived. She explained that many factors influence corporate reputation, so a company must decide to make their reputation management a priority. Rankin said in the past the reputation model Good Work=Good Reputation was a reliable method for companies to build a positive perception. She explained, “Reputation is built by character, character is formed by integrity and fair play,” unless other factors influence that perceived reputation.
Rankin emphasized today, business reputation is decided by diverse factors and many stake holders. Most large companies have a defined group of stake holders where business reputation is influential, she explained. For investors; ROI, confidence in leadership and corporate future are key issues influencing their perception. How investors feel about a company can have on impact on their investing behavior. Employees look for stability, opportunity and positive corporate behavior. Employee perception can lead to continuity or an unstable work force. Communities where companies are located are interested in company growth and environmental policies. Customers look for fair pricing and good customer service. Missteps in either of these areas can lead to lost business.
Rankin commented that companies navigate differing views from varying stake holders. Company communication shouldn’t be just outbound, she explained. Social media and surveys work well for two way communication with the public. Internal training and encouraging feedback are good tools in getting employees on board with company culture and vision. Companies need to be transparent and accessible to avoid a communication disconnect.
Rankin pointed out that how one feels about a company is emotional, “like a relationship,” based on personal experience, the media and colleagues. The highest indicator of reputation with an individual is personal experience, she explained. But she warned that social media makes it possible to destroy reputations in minutes, giving individuals and small groups disproportionate impact. Rankin used the example of Domino’s Pizza and the unappetizing YouTube video posted by a then employee. Rankin praised the response by Domino’s but noted that the video initially cause a big hit to their sales.
Rankin stated, “The handling of a crisis can build a reputation or destroy it.” She said people will decide about your company integrity based on how and what you communicate. Rankin pointed out that companies and organizations have “reputation equity” based on past positive experience. Positive “reputation equity” is valuable in helping companies bounce back from a crisis, especially if it is handled with honesty and contrition. Rankin spelled out the value of a positive business reputation. She said 63% of a corporation’s value is attributable to its reputation. She added companies with good reputations outperform the Standard & Poors 500 by around 6%. She said a corporate crisis that effects a company’s reputation can have a long term impact since “people are remarkably swayed by negative information.”
Rankin concluded by explaining that business reputation management is complex and based on many factors. She said it’s important for the company’s vision, mission and core values to be reflected in any business initiative. Rankin can be contacted at rankin@martopia.com.
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