2.Uluslararası İtibar Yönetimi Konferansı - Focus on Reputation: The Power of Rumours / Lolita STASANE

Focus on Reputation:

The Power of Rumours Lolita STASANE

University of Latvia

2.Uluslararası İtibar Yönetimi Konferansı 3-4 Ekim 2013, İstanbul

Focus on Reputation:

The Power of Rumours

Lolita Stašāne, University of Latvia

The 2nd International Reputation Management Conference

4.10.2013

What is reputation?

• Company’s reputation is company’s past action’s and future’s

projects detected description

• Reputation describes company’s the general attraction comparison

with other competitive companies

• Reputation contains countless concerned stake holders evaluations

relation to company’s ability to fill their expectations

• For large companies reputation provides unbroken

competitiveness. For little and new companies – base on who to

form business. Reputation is a significant, because it is both

valuable and woundable.

/Charles J.Fombrun/

Threats

• Threats to reputation – whether real or perceived – can destroy, literally in hours or days, an image or brand developed and invested in over decades. These threats need to be anticipated, understood and planned for.

• Public perception of risk has become a constant and recurring threat to reputation. Understanding and communicating effectively around risk perception can help to reduce conflict and gain support and trust – critical attributes in securing and maintaining customer, investor and employee loyalty.

Michael Regester & Judy Larkin

Crisis communication

• Successful management of a crisis situation is about recognizing

you have one, taking the appropriate actions to remedy the

situation, being seen to take them and being heard to say the right

things.

• Companies often misclassify a problem, focusing on the technical

aspects and ignoring issues of perception. But perception is the

reality.

Michael Regester & Judy Larkin

Number of dilemmas

• Risk means different things to different people.

• Basic attitudes are hard to change.

• The public is not looking for zero risk.

• The source of information about risk is critical (Iwhom to trust on

what).

• Emotion is the most powerful influencer of all.

Michael Regester & Judy Larkin

Country’s trust

Trust in banks

Credibility of spokespersons

Rumours

• Webster gives a deffinition of rumor which is professionally acceptable and workable: a story or report current within any known authority for its truth.

• Ralph Rosnow defines rumor as „ a proposition that is unverified and in general circulation”.

• Being unverified is not the same as being untrue. A rumor may turn out to be „ true” , but until it is verified it is subject to the dynamics of rumor. Much of the work on rumor assumes that the communication is interpersonal and by word of mouth, but this is not necessarily.

Issue lifecycle

Hainsworth and Meng

Latvijas Krajbanka – a month before

November 16, 2011

• Lithuania's central bank on Wednesday afternoon to suspend

"Snoras" bank activities and cancel its board. "Snoras" was one of

the "Latvijas Krajbanka" shareholders...

• “Krajbanka": Nothing special has happened

November 23, 2011

http://www.latgaleslaiks.lv/lv/2011/11/25/51046

Until begining of december

• Very active internal communication, Q&A, support for branches, clients meetings etc.

• Clients e-magazines, e-letters

• Social media

• Special materials for employees

• Business results – most of clients choose Swedbank as “the new bank” after Krājbanka (~30 000 new clients in 2 weeks)

• Everythings seems fine, BUT...

December 2011

• Crash of Snoras and Krājbanka,

• Mess around EU and eurozone

background for anxiety and fears

• Credibility of the “officials” is extremely low (14% believe, 86% do

not believe what officials say the financial system. Reason –

catastrophic communication in Krājbanka case)

During the second week of December some individuals start to

express concern about the stability of the Swedbank

On the weekend unreasonable rumors about Swedbank

stability are distributed

There are no certain facts in the rumors, no reference to an

author

Many different unfounded opinions are circulating

First tweets

• Can you guarantee that your bank is safe and can be relied on it?

• Who can give me garantees about stability of banks in Latvia? etc.

December 11 (Sunday)

• Social media, sms, calls

• Activity – 6-7x

• Filling ATM’s, web page

• Media relations

It can’t be true...

Twitter mentions (Swedbank account) by

hours

•

Monday, Dec 12

• Branches were opened earlier

• Activity 2-3x

• Monday evening, Tuesday midday – back to usual

Tuesday, Dec 13

Some conclusions

• Short term:

- more close cooperation with state sector (FSA, State Bank,

government, police)

- employees as “ambassadors”

• Long term:

- Financial literacy

Follower growth on Twitter

Special web page was made to

research “anatomy of rumours”

Results

• Crisis prevented in 2 days.

• Only 6-10% of clients moved money (150 million euro withdrawal

>average). Most of money returned in coming weeks, after 6

months amount of deposits increased by ~120 million euro.

• Gold category at Sustainability Index, 2nd place on Reputation Top,

3rd place in Most Loved Brand 2012

Minds are like parachutes; they work best when

open.

Lord Thomas Dewer

Thank you!

[email protected]