Businesses have always lived or died base on their reputations. At present, an important part of the value of an organization corresponds to its intangible assets, the most important being the corporate reputation as it generates greater value for the company’s stakeholders. An excellent reputation generates credibility and facilitates the growth of revenue in a company in the short and long term.
Most managers agree on the importance of the company’s reputation with its success and future. In fact, according to the Reputation Institute 2020 Global Trends study, 70.2% of reputation leaders say that managing the reputation of their company is more important now than it has ever been.
The Reputation Institute have collected the principal current reputational trends through interviews with more than 200 reputation leaders (C-level, vice presidents and directors) across 18 industries in North America, EMEA, Asia Pacific and Latin America, at companies with a variety of revenues and employee counts. The most important trends for 2020 cited are:
1. Higher purpose – Companies need to deliver on a corporate brand purpose and embrace cultural values, at an emotional level that transcends the products and services they sell.
2. Data privacy – Cyber and data breaches are an everyday reality and a growing threat for all major companies.
2. Responsible investing – Considering ethical and environmental concerns before making financial decisions.
4. Impact of technology – AI, Internet of Things, Big Data, and drones are impacting consumers and businesses.
5. Climate change – Countries, governments and businesses are expected to protect and manage their impact on environmental change.
6. Influencers – Some stakeholders and individuals can have extraordinary influence on public opinion and reputation. These may be private individuals, politicians, or subject matter experts.
7. Mistrust of big institutions – The public’s mistrust and the questioning of the integrity of big institutions such as businesses, governments, and media.
8. Sustainability and responsible sourcing – There is an expectation that companies source materials responsibly and minimize environmental impact through their supply chain.
9. CEO activism – CEOs of major companies are increasingly taking a public stand on political, social, and values-based issues, and are not just concerned about their bottom lines.
10. Equality, diversity, and inclusiveness – Businesses are judged based on the demographic profile (gender, ethnicity, race, etc.) of their workforce.
For more information, www.reputationinstitute.com