3 out of 10 companies lack a clear reputation strategy

Reputation in organizations improves the credibility and trust of consumers and investors and although 90% of companies say that it is a very importantits management is still a challenge, since it is necessary to promote strategies.

The study “Corporate reputation management in Mexico: evolution and scope (2015-2022)” developed by EGADE Business School and JeffreyGroup indicates that 30% of the organizations interviewed lack a clear reputation strategy and 40% are unaware of the indicators for measure reputation.

Mariela Pérez Chavarría, a researcher at the Tecnológico de Monterrey, says that organizations risks have not been identified Lacking reputation management, there are also no online communication policies to act in the event of an attack on the corporate image.

“The risks are there, and in a second the work we have done for many years can fall.”

The study carried out on 102 organizations and nine CEOs highlights that 62% of the participants consider the reputation of Maximum priority; 28% as an issue that is constantly addressed; 8% that only occasionally; while for 1% it is not relevant, and another 1% said that little attention is paid.

They underestimate the importance of loyalty

Pérez points out that a good reputation brings various benefits such as attracting talent, standing out from other organizations, reducing the impact of a crisis, increasing consumer loyalty and increasing investments.

However, the organizations say the loyalty and legality are not relevantsince they are placed in the last position, while talent and risk management, innovation and communication are placed in the first positions.

“Ethical conduct is necessary to have a good reputation; however, there is ignorance and a false understanding of what reputation is (…) It has been shown that a company with a good reputation is an honest, consistent company, between the values ​​it has, what it does and what it says”, highlights the researcher .

CEOs drive strategy

Although managers are aware of the benefits, because at the market level it has an economic impact, it is still required that the policies permeate the entire organization and the culture of reputation be transversal.

“87% of those interviewed think that the leader is consistent and committed, but only 74% see him as active and committed to the community. Likewise, 64% say that more time and resources are needed for corporate reputation management.

Main challenges

Incorporating risk assessment, creating a responsible area and eliminating the silos that impede the progress of a good reputation are the main challenges that organizations face.

Mauricio Gutiérrez, president and founding member of the Corporate Reputation Circle and Ambassador of Corporate Excellence, says that it was thought that there was no need to manage a reputation because there were no problems in this regard, but over the years organizations have sensitized and committed to it.

For Gutiérrez there are main challenges: the first is to move from strategy to action, that is, not only design a reputation plan, but also implement it.

The second is to design a measurement model and the third is the congruence of the CEOs, between what they say and do.

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Pérez adds another challenge, the Online reputation management, because the opening of data, transparency and the wide dissemination of information, make the actions taken by companies more visible and users are increasingly interested in knowing the actions of companies.

In addition, 45% of companies lack a online reputation management practicetherefore it is necessary to identify online reputational risks (cyber threats), establish communication policies online and constantly train employees.