Standards in Focus...A GOOD CORPORATE REPUTATION IS IMPORTANT

Standards in Focus…A GOOD CORPORATE REPUTATION IS IMPORTANT

Sep 27, 2015 News

What takes 20 years to build and five minutes to ruin? Answer? Reputation, at least according to Warren buffet, one of the richest men in the world.
Many organizations consider their greatest asset to be their good name or reputation. Thus, they work actively to build the “bank of goodwill” towards them.
The main benefit of a healthy corporate reputation can be found in:
– Customer preference in doing business with you
– Stakeholder support for your organization in times of controversy
– Your organisations value in the financial marketplace
Although reputation is an intangible concept, research universally shows that a good reputation demonstrably increases corporate worth and provides sustained competitive advantage.
A business can achieve its objectives more easily if it fosters trust among its stakeholders, especially key players such as its largest customers, opinion leaders in the business community, suppliers, and current and potential employees.
That said, reputation is very fragile and it only takes one small slip to cause irreparable damage to a company’s image. A recent corporate survey reported in Insurance Journal suggests that reputation is the hardest risk to manage. The study indicates that 81% of companies see their brand identity as their most significant asset but are challenged in knowing how to protect it.
Oftentimes, long established brands have their reputation seriously tarnished and these problems are compounded when social media is added to the mix. Further, it’s not just offensive images trending on social media that can spiral a company’s image out of control. Accusations of bribery and corruption real or perceived can also destroy a company. What’s significant about these scandals is the damage they do to the cooperate image.
As one reads this article, one is tempted to consider: How might standards help? What would occur if standards were used more wisely? The answer is clear: a lot. Quite a lot would be different.
Anti-bribery and online reputation are two new subjects that are now taking actual, practical shape in the International Organisation for Standardisation (ISO). The future ISO 37001 standards will take account of internationally recognized good anti bribery practice.
It will apply to all organization, regardless of type, size and nature of activity, and whether in the public, private or voluntary not-for-profit sectors.
Equally anticipated, is another ISO standard on online reputation, which is in the pipeline. It will help companies manage the pitfalls of online mudslinging, be it from other businesses, serial companies, ex-employees, or quite simply dissatisfied customers. If you can’t beat them, join them, as many companies learn to use customer feedback, both positive and negative, to their advantage.
Warren Buffett’s famous quip was probably right. I say “probably” because with all due respect to Mr. Buffett, he wasn’t thinking about the potential of standards when he said it.
Source: ISO Focus Issue #107

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