Building Reputation Capital
This blog is adapted from my 2022 book Reputation Capital: How to Navigate Crises and Protect Your Greatest Asset, published by Berrett-Koehler.
How well an organization weathers a crisis, and how it’ll be perceived post-crisis begins with how the public views it (i.e., positively versus negatively) in neutral times. That’s why it’s critical to spend the necessary time, resources, and energy, not just perfecting business operations but also on building up reputation capital. This means leaders behaving responsibly, always with the organization’s mission and impact top of mind, so better decisions are made in the first place and these intentions are subsequently communicated.
Reputation capital may be described in a variety of ways, but chief among the themes that run through nearly every definition are:
its intangibility
trust as its central component
its importance in amassing other types of capital like human capital (workforce) or financial capital
The trust in a company and the public’s assumptions about it can serve as a type of armor against reputational threats. If a brand is thoughtfully engaged day-to-day in building and maintaining its reputation, it’s more likely to emerge from even the toughest of challenges relatively unscathed when it comes to public perception. It’s no wonder reputation management strategies are most effective when they’re put into place long before a threat appears on the horizon.
Here are seven recommendations how to begin doing so:
Prioritize Culture
A strong culture begins with how an organization approaches recruiting, team building, mentoring, and maintaining the overall morale of its employees. This determines their productivity and, as a result, the profitability of the business. Over the long haul, culture, and reputation inevitably become intertwined. For instance, if a company has a less-than-stellar reputation, it will have a more difficult time recruiting quality employees, which in turn impacts how those employees and management interact, which in turn can erode key cultural elements such as shared values and standards.
Even during moments of crisis, when there may be great uncertainty, an organization can’t afford to neglect its own culture. That means setting the tone from the get-go through enhanced transparency, collaboration, and communication. It doesn’t matter how successful, accomplished, or revered a CEO is. If they ignore or don’t believe in the importance of interpersonal relationships and how their management team runs day-to-day operations, their indifference will inevitably come back to haunt them and the reputation of the brand. Think HR complaints, lawsuits, and leaks to the press.
Reflect on Feedback
How an organization engages with those inside and outside its own community is the most straightforward and organic way to influence how others feel about you. Is a brand helpful? Is it perceived as honest and trustworthy? Does a brand keep its promises? If a brand makes a mistake, does its leadership admit as much and hold itself accountable?
Today’s consumers have multiple ways to provide feedback in real time. Think about how you conduct research before making personal or professional purchases. Never underestimate the power of reviews left on sites like Yelp, Glassdoor, and Amazon. When poor client/customer service results in negative reviews, it can snowball if not addressed promptly and appropriately.
Monitor what’s being said about your brand anywhere a supporter might be building you up or a critic might be tearing you down. Try to address a complaint or concern directly. You’ll visibly demonstrate that you take criticism seriously and care enough to rectify issues. Don’t ever expect that a boilerplate statement composed of corporate-speak will get the job done. If online posters believe you’re merely paying them lip service, it might make matters worse. In some cases, no reply might actually do less damage than one that’s perceived as uncaring and thoughtless.
Be a Thought Leader
Brands should work to make their CEO and other executives a go-to person in a reporter’s or other influencer’s list of contacts. When journalists write a story on a particular industry trend or a conference organizer is putting together a panel of industry heavyweights, they need experts who can provide context, analysis, and insight. They can presumably reach out to anyone in, or associated with, the industry, such as analysts or researchers who work for a trade group or a government agency. So, when a brand representative appears in a news story or speaks at a prominent event, readers and attendees perceive them as a subject matter expert and a standout leader in their area of expertise.
Consider that consumers view earned media (appearing in a third party news source based on merit and not money) as more trustworthy than advertising. In fact, a 2019 report found that only half of consumers trust paid ads, while 92 percent say they trust earned media.
Additionally, a brand should leverage channels like its own blog, Medium, and the LinkedIn Publishing Platform to share thoughts on relevant ideas and issues to articulate its unique approach and value. This complements earned-media coverage without having to rely on the traditional press to disseminate important messages.
Cultivate an Online Audience
Brands can’t wait until a threat emerges or a crisis occurs to begin a dialogue with their followers on a channel that’s remained relatively dormant. They must spend the time necessary to establish a unique voice across those social media platforms followed most closely by key constituents. Encouraging a back-and-forth with followers helps brands earn online credentials by cultivating a reputation of accessibility.
In the event of a product recall, data breach, or outage, these pages and feeds tend to be the first places those impacted will turn for information and answers. If a business has established itself as trustworthy and responsive, these channels can be integral in assisting those in need and sharing vital information.
Create Content
Every organization today, no matter its focus, is its own media company with the ability to create videos, infographics, podcasts, blogs, e-books, and other collateral that are free to access and that demonstrate the brand’s value. By establishing a rapport with the consumer that isn’t solely transactional in nature, the greater the likelihood of building a long-lasting (and eventually profitable) relationship.
Many brands use this content to employ the type of storytelling once traditionally reserved for the press to humanize their businesses and make it more relatable. For example, posting employee and passenger-centric videos such as “A Day in the Life of a Flight Attendant” and “How We De-ice a Plane,” which aren’t focused merely on cheap fares, helps Southwest Airlines distinguish itself from other low-cost carriers. It’s a soft sell that entertains and informs while establishing a visceral connection with personal and business travelers alike.
Exercise Corporate Social Responsibility
Initiatives aimed at impacting society in a positive way can include everything from a business donating a percentage of its profits to a worthy cause to efforts to reduce its carbon footprint to a hiring process focused on diversifying its workforce. Yet today’s savvy consumer can recognize virtue signaling (the insincere attempt to demonstrate you’re well-intentioned) or purpose washing (the disingenuous embracing of a greater cause), so be prepared to deliver on your promises when committing to be an advocate.
Don’t settle for writing a check or engaging in activities that are more performative than substantive. Strive instead to volunteer time, author opinion pieces that shine a light on the causes your business cares about, sit on boards of like-minded organizations, and talk about your brand’s commitment earnestly online and elsewhere to raise awareness.
While your organization can choose to support any cause or nonprofit, consider those closely aligned with your mission.
Choose a Highest Value
One of corporate America’s most respected CEOs is also one of its sharpest critics. Marc Benioff of Salesforce has gone so far as to call for a “new capitalism,” in which brands don’t just take from society but also give back, insisting the idea that a business must decide between profit or purpose is a false choice.
Accumulating reputation capital is a natural by-product of such a philosophy, one in which a brand regularly demonstrates and communicates that it’s not just out for itself and that it views its employees, customers, and corporate partners as part of one large ecosystem. Central to this, Benioff suggests, is that every CEO chooses an ideal such as safety, truth, trust, or responsibility as their highest value and then figures out how to effectively operationalize it.
Although choosing a highest value can cost a brand revenue and market share in the short term, the understanding is that it will pay off in the long term: the fostering of a better workplace culture leads to the recruitment of better employees, which leads to better service, thus making the brand more attractive to potential customers.
A business that’s continually on a concurrent journey toward profitability and improving the planet will be less likely to generate crises of its own making. It will also be more insulated against reputational damage when one does occur.
To learn more, please contact tjw@essexstrategies.com
