Reputation Management

By:
Susanne Dida
l
Less 1
Warren Buffet, Investor kawakan dan CEO Berkshire
Hathaway INC, dikenal karena kebijaksanaannya.

• If you lost dollars for the firm by bad decision , I will

be very understanding. If you lose reputation for the
firm, I will be ruthless.
Definition of Reputation
• For man y years CEO’s and other leader have echoed a similar mantra, “
Reputation is our most important asset. (Doorley and Garcia, 2015,p
46).Reputation is a corporate asset of substantial and measurable values.
• Reputation is formed over time, based on what the organization has
done and how it has behaved ( Balmer and Greyser, 2003,p 177)
• Corporate reputation thus reflect a firm’s relative standing, internally
with employees and externally with other stakeholders, in its competitive
and institutional environment ( Bromley, 2002,p 36)
• Corporate reputation is a synthesis of opinions, perceptions and attitudes
of organization ( Post and Griffin, 1997,p 165)
Reputation today
• Reputation in corporate context is based on perception of the
characteristics, performances and behavior of company.
• Essentially , reputation is reflection of how well or how badly different
group of interested people – stakeholder view a commercial name.
• Reputation implies a value judgement about the attribute of a
company and its usually established over time.
• Reputation needs quality information and successful relationships.
• Reputation depend on successful relationships inside and outside the
business , based on mutual trust and belief.
So…..
• Reputation = Sum of Images = Performance + Behavior +
Communication.

• This definition helps make it clear that performance and behavior , as

well as communication, are critical components of reputation
According to Asia’s most Admired companies
survey
• In today’s turbulent economic time, a fine reputation is arguably
more important than ever before.
• Building and maintaining reputation , takes careful thought,
meticulous planning and constant hard work over years. And it can be
lost overnight.
• Strong reputations needs to be actively managed and resourced long
term, reflecting the delivery of demonstrable performance criteria
reinforced by effective communication with and between stakeholder,
or source-holders, as they fashionably called today.
Reputation: where it comes from and what it
is made of
• Basically corporate reputation derive from, four sources of reputational
perceptions can be extracted from the literature: the firm itself, the
media, the individual’s experiences and others communicated
experiences. ( Hem, Gobbers,Storck,2011,10)

• Most literature dealing with the construct reputation such as favorable

outcome include ease of acquiring new and retaining current customers,
capitalizing on customers augmented willingness to pay, ability to attract
and keep the best workforce, gain access to capital markets, all of which
result in improved financial performance and corporate success ( Caruana
2006)
Reputation Management
• Six basic ideas about managing corporate reputation:
• It reputation that drives corporate value in the place place
• Corporate value de[ends on the behavior of various stakeholder groups
• Reputation management aims at creating shares interests with stakeholders
• Stakeholder perceptions is generated by every member of an organization
• Building and protecting the right reputation is a fundamental part of
leadership
• Reputational goals need to be linked to corporate strategy.