TABLE OF CONTENTS According to The Aon European Risk Management and Insurance Survey 2002 200315, loss of reputation is seen as the second biggest threat to business (after business interruption). These findings were based on the views of risk managers, insurance managers and financial directors of over 100 of Europe's largest companies. Aon's research also shows that the top 2000 private and public sector organisations regard reputation as their biggest risk. The results of a similar survey carried out in Australia revealed a very similar picture, with loss of reputation, business interruption and brand protection topping the list. It was also pointed out that, the key causes of concern for brand management were ethics, corporate governance, compliance and product quality.
'It takes 20 years to build a reputation and five minutes to ruin it.' Fortune Magazine reported Warren Buffett's view in 1991, arguably the world's most successful investor. It now takes more than just good public relations and a clever advertising campaign to successfully secure financial success ongoing reputational due diligence and corporate governance exercises are needed. If a company commits to an idea, it does so in public and will be therefore subject to public scrutiny and examination.
Consultation with stakeholders is the best way to ascertain stakeholder perceptions and expectations about building credibility.
A good corporate reputation can influence:
investors' willingness to hold its shares;
consumers' willingness to buy from it;
suppliers' willingness to become its partner;
competitors' determination to enter its market;
media coverage...
