Weber Shandwick, in partnership with KRC Research has released The State of Corporate Reputation in 2020: Everything Matters Now. This new survey was conducted among executives from 22 markets worldwide and examines what drives a company’s reputation, why it is important to be highly regarded and the benefits that come with having a strong corporate reputation. The study also touches on topics such as corporate culture, CEO and employee activism, crisis and risk.
The research confirms that corporate reputation is an invaluable asset with an appreciable impact on a company’s bottom line. On average, global executives attribute 63 per cent of their company’s market value to their company’s overall reputation. Additionally, there is an important segment of executives that attributes at least 76 per cent of their market value to company reputation. This group is referred to in the research as the 76 Percenters and represents companies that are leveraging their company reputations for maximum financial returns.
Another key finding from the research is that reputation is “omnidriven.” That is, a company’s reputation is influenced by a variety of factors, with no one driver having a greater impact than all of the rest. This lack of distinction suggests that companies can no longer solely focus on and prioritise just a few key drivers of reputation but on many multiple. From quality of employees, to quality of products, to financial performance, to corporate culture, everything matters to managing corporate reputation today.
Greg Prager, Chair, EMEA Corporate Practice, Weber Shandwick commented: “What we do and make, how we operate and behave, and the impact we have on our employees, customers, partners and communities are all key components of how society perceives the value that companies provide. This complex mix requires companies to take an integrated approach to building and protecting their reputations. By understanding audience expectations, clearly defining purpose and creatively engaging audiences where they are on the topics that are important to them, companies can strengthen their reputation and have a corresponding positive impact on company value.”
The State of Corporate Reputation in 2020 provides companies with insights for building reputation for greater market value. These recommendations are derived from substantial differences between the average global executive and the 76 Percenters.