What Is Driving Corporate Reputation?

Corporate reputation is becoming increasingly important to organisations because of a number of different drivers.


  • Stakeholders are increasingly active and engaged. All stakeholders are taking more of an active interest in an organisation. Expectations of engagement and responsiveness are placing new demands on businesses.


  • Stakeholders are influencing each other as they are more connected.  Digital communications are allowing stakeholders to connect to eachother, about the organisation, without the need to involve the organisation.


  • The speed and reach of digital communication is growingEver-increasing speed and reach of digital communications through channels such as social media is bringing new levels of engagement across stakeholder groups.


  • The increased expectation of transparency and ethical behaviour. Connected and engaged stakeholders are better informed on many issues, bringing expectations for an organisation to be ethical and transparent.


  • There is a greater market sensitivity to reputation risk. Markets see the share price tumble as a reputation incident occurs and are increasingly sensitive and familiar with the value of reputation and the effects of reputation risk. 


  • Investors, employees, customers and partners are scrutinizing reputation. The level of information about a company (but not from the company), that is available to stakeholders is growing. This allows anyone with an interest in the organisation to get some understanding of its reputation before it chooses to deal with it.


  • An increased expectation of reputation leadership is being placed on the CEO and the board. It is normal to expect a CEO to be on twitter and to respond to an incident within an hour.  New levels of visibility and transparency are demanding increased accountability, reaction and behaviour from organisations and leaders. Leadership teams must now be leaders in reputation enhancement, not just reputation protection.