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Chapter
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1
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Introduction
to Reputation Management
Corporate communication is
increasingly important for business success. Corporate
communication can look to and shape the future. The
starting point for corporate communication is the area that
needs most attention: setting out the objectives of the business.
Managers often fail to communicate the business objectives
and are poor examples of communication in action.
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2
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Definition
of Terms: What is Reputation Management?
Two books by novelist Daniel
Defoe - Moll Flanders (1722) and Robinson Crusoe
(1719) teach us about the world of reputation management.
Essentially they show us that reputation is what other people
think of us - i.e. it is based on external perceptions and
conventions. Correctly determining your own
corporate culture is vital. A useful way of segmenting your
company is to use the solidarity/sociability criteria put
forward by academics Goffee and Jones. Key
audiences with whom you can communicate are best categorized
into "clusters," such as business partners. This will help
plan both the messages you want to get to them and the channels
you use to deliver these messages. There are
a number of well-formed "disciplines" for reputation management
- practiced largely by the agency business: e.g. issues management
or public affairs. |
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3
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The
Evolution of Reputation Management
Reputation management, as a
formal exercise, really only took off at the beginning of
the last century. American journalist Ivy Lee
Ladbetter established some early principles: "supply prompt
and accurate information concerning subjects which it is of
interest and value to the public to know about." Roosevelt,
Ford, and Insull were all natural born communicators.
Large corporates have led the way in good corporate
reputation management: AT&T, Mobil Oil (issues management),
and Johnson & Johnson (crisis management).
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4
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The
E-Dimension
The ability to circumvent traditional
knowledge bases (e.g. medical) will pose a real problem for
corporations to manage. This can be seen in many medical chat
rooms where victims canvas for allies, which could ultimately
result in a class-action suit against a "culprit" corporation.
Hollywood has also been exposed by www.ain't-it-cool-news.com
when it tries to tailor its endings to suit popular tastes
- or at least avoid a commercial flop. Corporations
simply cannot use the Internet as another "channel" because
the nature of the Web is anarchic and will not be tamed and
oriented for commercial ends so easily. It thrives on the
"pornographic," i.e. that which lies outside acceptable social
norms. The social conventions which e-mail
is overturning (i.e. flattening hierarchies) can be good for
business - but we are in danger of swamping each other with
information of relatively low value.
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5
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The
Global Dimension
The recent high-profile demonstrations
against economic globalization need to be taken seriously
by those wishing to maintain a business reputation across
boundaries. Technology will be a key driver
of globalization but consumers will need to be managed better
if we are to avoid another GM fiasco, when the public got
scared about a positive and harmless innovation. McDonald's
has managed its global drive very well ¿ particularly because
it has adapted to local needs (e.g. differing menus to take
account of cultural or religious differences). Businesses
now need to be able to respond to crises speedily and internationally
or else risk being peripheralized - as happened after the
Guam air crash. |
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6
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The
State of the Art
Corporations who engage in
environmental issues either for "fad" reasons or because it
might inoculate them against NGO attack are being accused
of "greenwashing." "Corporate branding" and
"corporate social responsibility" are two current terms which
summarize the main thrust of corporate reputation management
thinking. CSR needs to exist as practice rather
than mere policy, as evident in the Marine Stewardship Council
initiative begun by Unilever and WWF. Within
the agency world, viral marketing (the ability to create word-of-mouth
positive opinion) ought to be the real driver of new business
- but many struggle to achieve real excellence in this area.
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7
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In
Practice
This chapter takes a look at how corporate reputation has
fared in differing circumstances and in differing parts of
the world. Initially we take an extensive look at how Shell,
one of the world's largest companies, was brought to its knees
by Greenpeace over the dumping of the Brent Spar oil
rig: Reputation Lost. We then look at how reputation
can be regained through looking at how a chemical manufacturer
based in Venezuela - Bitor - rebuilt its tarnished reputation
through reputation building activity: Reputation Regained.
Finally we take a look at how the corporate giant Unilever
looked to establish itself in China: Building Reputation.
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8
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Key
Concepts and Thinkers
This chapter presents an A-Z glossary of reputation management
which includes key concepts and practitioners. |
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9
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Resources
Much has been written on the subject of reputation management.
This chapter gives descriptions of some useful sources of
information, including: books;
seminal articles; organizations and
associations; trade publications; and
additional Websites. |
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10
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Ten
Steps to Making Reputation Management Work
Review business objective
Assess corporate culture Review business
actions Set communication objectives
Assess current communication activities Assess
the mindset and behavior of key audiences involved
Develop key messages Select the best
delivery options Align messages with delivery
options Develop a tactical plan.
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