Corporate Reputation
Article 2
* Corporate Reputation – the most important company asset? * The current widespread public backlash against business and its perceived unethical practices has left industry leaders scrambling to protect and nurture their corporate reputations. While the concept of business having to earn its’ social – as well as its legal- licence to operate, is now well-entrenched with the major business leaders around the world, many now find themselves having to incorporate the two sources of capital – social capital as well as economic – into their business strategies, as both are seen as vital to overall organisational success. * As a response to public backlash, these Sustainable Business Development (SD) practices and Corporate Social Responsibilities (CSR) activities can be seen as the new standard benchmark to demonstrate corporate responsiveness to changing societal values and expectations. These practices are also the most effective way to protect and enhance corporate reputations. * While SD and CSR terms have come to be used interchangeably, SD is generally understood to refer to the acceptance of a new approach to business that seeks to safeguard the planet’s existing natural resources. And CSR is understood to refer to the corporation’s active role of enhancing the community life of the societies in which they operate. * At the same time, emerging research from corporations already engaged in SD and CSR practices indicates that this approach is delivering bottom line benefits. * How does reputation affect business? * The recent spate of spectacular business collapses and the public backlash to business has resulted in an all time low in the public’s perception and confidence in business leaders. Such widening disparity between public expectations and business practices suggests that business leaders are out of touch with what matters to many of their stakeholders, and are inadvertently gambling with their corporate reputations.
* Corporate Reputation – the most important company asset? * The current widespread public backlash against business and its perceived unethical practices has left industry leaders scrambling to protect and nurture their corporate reputations. While the concept of business having to earn its’ social – as well as its legal- licence to operate, is now well-entrenched with the major business leaders around the world, many now find themselves having to incorporate the two sources of capital – social capital as well as economic – into their business strategies, as both are seen as vital to overall organisational success. * As a response to public backlash, these Sustainable Business Development (SD) practices and Corporate Social Responsibilities (CSR) activities can be seen as the new standard benchmark to demonstrate corporate responsiveness to changing societal values and expectations. These practices are also the most effective way to protect and enhance corporate reputations. * While SD and CSR terms have come to be used interchangeably, SD is generally understood to refer to the acceptance of a new approach to business that seeks to safeguard the planet’s existing natural resources. And CSR is understood to refer to the corporation’s active role of enhancing the community life of the societies in which they operate. * At the same time, emerging research from corporations already engaged in SD and CSR practices indicates that this approach is delivering bottom line benefits. * How does reputation affect business? * The recent spate of spectacular business collapses and the public backlash to business has resulted in an all time low in the public’s perception and confidence in business leaders. Such widening disparity between public expectations and business practices suggests that business leaders are out of touch with what matters to many of their stakeholders, and are inadvertently gambling with their corporate reputations.