Managing Corporate Reputation a must have or a nice to have_EACD_Pedro Carneiro

Is managing Corporate Reputation a must have or a nice to have?1

Is managing Corporate Reputation

a must have

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

a must have

or

a nice to have?

Is managing Corporate Reputation a must have or a nice to have?2

The current context we’re faced with is different

The World out there:

• Changing at the speed of a click;

• Markets, Consumers, Costumers and Employees increasingly connected and

engaged in the traditional and social media – no more secrets;

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

engaged in the traditional and social media – no more secrets;

• Increasing distance and lack of confidence versus institutions, politicians,

Government and corporations;

• Credibility of the message sources dramatically changing towards “word-of-mouth”

and personal recommendation;

• Cost reduction, expenditure control, crisis.

Is managing Corporate Reputation a must have or a nice to have?3

Evidence shows highly reputed companies are fitter

Higher reputed companies suffer less from crisis turbulence and recover faster when

confidence is restored. They enjoy higher benefit of the doubt from its Stakeholders.

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Is managing Corporate Reputation a must have or a nice to have?4

Why does this happen? We’re talking about perceptions.

Charles Fombrun, 1996

Fundador Reputation Institute

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

“A reputação corporativa é a percepção que se tem sobre as acções passadas e

expectativas futuras de uma empresa, e que identifica a sua atractividade para

com os Stakeholders quando comparada com os seus principais concorrentes.”

Is managing Corporate Reputation a must have or a nice to have?5

Why does this happen? Behaviors are shaped by perceptions.

Business

Results

Strategic

Goals

Corporate

Initiatives

Indicators of Reputation

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Indicators of

Support

•

• Purchase products

• Recommend products

• Trust company

• Support verbally

• Invest in company

• Recommend investment

• Work for company

• Recommend to work

• Products/Services

• Innovation

• Workplace

• Governance

• Citizenship

• Leadership

• Performance

Reputation

Assessement

Is managing Corporate Reputation a must have or a nice to have?6

How to build a strong Reputation platform?

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Is managing Corporate Reputation a must have or a nice to have?7

What should managers do? Measure and act upon objective info.

• Identify the key Stakeholders for their businesses;

• Assess their perception about company and competitors;

• Align messages, activities or company reality.

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Is managing Corporate Reputation a must have or a nice to have?8

Choose a model and stick to it over time.

Model should…

• have an emotional measure of the relationship as well as provide the evaluation on

a set of rational dimensions/attributes to be acted upon;

• be comparable over time and across geographies, enabling industry, sector and

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

• be comparable over time and across geographies, enabling industry, sector and

country analysis;

• always include benchmarks;

• provide definition of the Reputation drivers for the company, industry and country;

• should quantify the relationship between reputational perceptions and supportive

behaviors.

Is managing Corporate Reputation a must have or a nice to have?9

GRP2010 Portugal Country Results: Reputation drivers.

DRIVERS DA REPUTAÇÃOEM PORTUGAL, 2010

Produtos e Serviços 18,5%

18.5%10.9%

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Produtos e Serviços 18,5%Governo de Sociedade 16,1%

Ambiente de Trabalho 14,9%

12.7%13.8%

14.9%13.1%

16.1%

Is managing Corporate Reputation a must have or a nice to have?10

GRP2010 Portugal Country Results: PSI20 Ranking.

2

71,58

70,14

69,12

68,48

1

3

4

EDP Renováveis

Jerónimo Martins

Sonae Com

Sonae

12

59,42

57,87

57,15

56,34

11

13

14

Millennium BCP

Banco BPI

BES

Zon Multimedia

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

67,62

66,41

63,96

63,58

62,28

61,90

5

6

7

8

9

10

Cimpor

Sonae Industria

Portucel

Teixeira Duarte

EDP Energias

Galp Energia

55,84

54,17

54,15

53,32

15

16

17

18

Brisa

Mota-Engil

Ren

Portugal Telecom

Is managing Corporate Reputation a must have or a nice to have?11

GRP2010 Portugal Country Results: Supportive behaviours.

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Is managing Corporate Reputation a must have or a nice to have?12

The challenge: Do you really know everything about your Stakeholders?

“We don’t need to waste money on

more research on our Stakeholders”

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

… because…

“I’ve been around for too many

years”

“If I don’t know my clients well

enough then who will?!”

Is managing Corporate Reputation a must have or a nice to have?13

The answer? It’s up to you.

VI Debate Regional EACD Lisboa Pedro Cabrita Carneiro | 16 NOV 2010

Obrigado.