Managing Corporate Reputation : A Must Or A Nice To Have

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

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

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Is managing Corporate Reputationa must

ora nice to have?

VI Regional Debate EACD, Lisbon 2010

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

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

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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 andengaged 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 or a nice to have?

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

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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.

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

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

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

“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.”

Charles Fombrun, 1996

Fundador Reputation Institute

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

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

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Why does this happen? Behaviors are shaped by perceptions.

Business Results

Strategic Goals

CorporateInitiatives

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 or a nice to have?

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

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How to build a strong Reputation platform?

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

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

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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.

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

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

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Choose a model and stick to it over time.

Model should…

• have an emotional measure of the relationship as well as provide the evaluation ona set of rational dimensions/attributes to be acted upon;

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

• always include benchmarks;

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

• should quantify the relationship between reputational perceptions and supportivebehaviors.

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

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

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GRP2010 Portugal Country Results: Reputation drivers.

DRIVERS DA REPUTAÇÃO

EM PORTUGAL, 2010

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

Ambiente de Trabalho 14,9%

18.5%10.9%

12.7%13.8%

14.9%13.1%

16.1%

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

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

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GRP2010 Portugal Country Results: PSI20 Ranking.

2

71,58

70,14

69,12

68,48

67,62

66,41

63,96

63,58

62,28

61,90

1

3

4

5

6

7

8

9

10

EDP Renováveis

Jerónimo Martins

Sonae Com

Sonae

Cimpor

Sonae Industria

Portucel

Teixeira Duarte

EDP Energias

Galp Energia

12

59,42

57,87

57,15

56,34

55,84

54,17

54,15

53,32

11

13

14

15

16

17

18

Millennium BCP

Banco BPI

BES

Zon Multimedia

Brisa

Mota-Engil

Ren

Portugal Telecom

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

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

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GRP2010 Portugal Country Results: Supportive behaviours.

Q: I would recommend 'Company' to others.

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

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

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

“We don’t need to waste money onmore research on our Stakeholders”

… because…

“I’ve been around for too manyyears”

“If I don’t know my clients wellenough then who will?!”

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

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

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The answer? It’s up to you.

Obrigado.