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It may come
as no surprise, given the scandals plaguing corporate
America, but according to a recent Harris poll, public
trust in corporations is down and skepticism is up. In
fact, 74 percent of those surveyed characterized
corporate America’s reputation as “not good” or
“terrible.”
Corporate
reputation management has always been important. But in
today’s market, where consumer trust is at an all-time
low, discerning companies are acknowledging the
importance of their own reputations as corporate assets.
"Investors
want to see companies demonstrate financial strength
while the public wants to see evidence of corporate
social responsibility," said Dr. Joy Marie Sever, senior
vice president of Harris Interactive. "To many people,
these motives are incompatible. Although most
corporations recognize the perceived lack of trust,
they underestimate the communication challenges this
presents—the path to restoring trust, and, with it,
overall corporate reputation, requires an understanding
of how people process the various impressions they have
about large corporations."
This is
where the successful practice of public relations comes
in. It is imperative that legitimate third-party
credibility be established in the form of positive news
stories, reported community activities, socially
responsible behavior, and positive impressions at all
media touch points. Occasional press releases and
business announcements are just not enough.
Dr. Charles
Fombrun, executive director of The Reputation Institute
and co-founder of the annual study, pointed out that
"the average person turns out to be a very insightful
judge of corporate character and isn’t easily fooled
by mere branding campaigns or media spin. If you
look closely at top-rated companies like J&J, UPS,
Coca-Cola, Microsoft, or FedEx, it’s clear that they
invest heavily in doing what it takes to be visible,
consistent, distinctive, authentic, and transparent. And
that’s really a good thing for both financial and
non-financial audiences alike."
For
more information on the survey and a chart of findings
for specific corporations,
click here. |
