Reputation Management Keeps Enterprise Value Value

No era has ever been like today, and the reputation of an enterprise will become garbage overnight.

Ten years ago, the products provided by the company could not meet the needs of consumers. Some actions taken by consumers may rarely be widely disseminated. No one will know about the scandal. But today, with such strong social networks as Twitter, Facebook, micro-blog and so on, there seems to be no escape from the company's mistakes, and corporate reputation is at an unprecedented risk.

"Enterprises should set up a system of quantifying corporate reputation internally, and should also take the business as an example. Reputation management Integrate into Enterprise Strategy and Operation plan In every aspect, we should earnestly fulfill the commitments made by the enterprises. CIMA Andrew, global executive director of the Royal Chartered Institute of management accountants, is the world's largest organization of management accountants, and recommended in its report entitled "corporate reputation: why is so important and how to manage"?

　 Brand is not the whole of reputation.

A lot of people think that it is wrong to control the reputation of a company by making good public relations and good corporate brand. In an interview with the first financial daily, Andrew Harding said: "corporate reputation is more about the value of an enterprise than the brand itself."

Andrew Harding believes that corporate reputation is the outsider's initiative cognition to the company. It depends on how to deal with suppliers and how to treat their employees.

Its construction also needs a long process.

The difference is that the brand building of enterprises is only a phased matter, for example, enterprises can invest in building a brand or invite some professional advisory bodies to promote these brands. The brand of an enterprise reflects the image that an enterprise wants to build in others' mind, which can be controlled by an enterprise.

For example, TOYOTA's powerful brand is familiar to everyone, and the company's marketing is also very strong. But this strong brand is built on the reputation of the company. TOYOTA was famous for its high quality and reliable products because TOYOTA focused on the quality control of the whole process and implemented a continuous improvement plan in the production process.

Later, TOYOTA's management set new goals. The company wanted to catch up with GM and become the world's largest car manufacturer. Therefore, the Executive Committee of the company focuses on improving sales and sales, thus ignoring continuous improvement and quality control projects. In 2006, the company's reputation of high quality began to show signs of decline. After that, TOYOTA continued to suffer some failures. However, management did not take measures to deal with it. Finally, the problem became a public scandal.

Although the TOYOTA brand itself has not changed, the marketing method has not changed, but the reputation of the company has been greatly damaged, which has also led to the decline of the value of the enterprise.

"Enterprises must realize that the key to corporate reputation lies in the actions of enterprises." Andrew Harding recommends that in today's new media power is so strong, every move of enterprises should take into account the possible impact on reputation.

　 Integrating into daily operation

How do companies integrate reputation management into strategic and operational plans?

Andrew Harding believes: "the key is to determine what priority should be given to the enterprise, that is, what the value of an enterprise is. What the enterprise must do is to reflect the value of the enterprise in terms of its strategy, objectives and employee behavior standards, so the establishment of reputation must also be combined with the strategy, objectives and staff behavior standards of the enterprise." {page_break}

Apple Corp, led by Steve Jobs, has always regarded customers as the core of the company's development. He believes that the existence of products is to bring enjoyment and happiness to customers. The company passes this objective to every employee, making every employee work in this direction.

When Apple iPhone 4 had a signal problem, Steve Jobs immediately stood up and said to the users of the world: "we will take all measures to spare no effort to satisfy our customers. If we have to buy a special envelope for each customer, we will be willing to do it." It is very clear that the value of the company, Steve Jobs naturally made such a response.

"Business leaders should believe in the value content they propose, but not just on the level of speaking, but also in every aspect of business operation. And the value that leaders believe will be the driving force for corporate change. Andrew Harding added.

An important reason for the BP oil spill in the Gulf of Mexico is that the company has not done what it says. Although the company's new CEO claims that the top priority of the company's management strategy is "safety first", the company still has safety accidents in practice, and is often fined for breaches of safety regulations.

"For those who understand BP, the occurrence of the massive oil spill in Mexico Bay is not surprising, because many safety problems before the company have not been solved, and the company has not declared the strategy to be operational." Andrew Harding said.

　 Quantifying corporate reputation

Andrew Harding also suggests that enterprises establish a reputation quantification system.

"By quantifying reputation, we can add new contents to the behavior, the way of doing things and the way of looking at things. In management accounting, we should take the initiative to quantify the change of corporate reputation and give a concrete value to let companies see that their specific behavior will have a real impact, "Andrew Harding said." so the whole company will pay attention to reputation and do something positive and right. If we don't pay attention to reputation, it will generate great risks, such as BP. "

Corporate reputation can be quantified in two aspects at least. First, it can quantify the impact of behavior on corporate reputation, such as profitability and stock price. For example, the behavior of BP led to the collapse of share price, and the value of reputation was quantified to specific value by management accounting expertise.

The second is to quantify the reputation of an enterprise from the missing opportunity. For example, the enterprise missed a chance, but the competitor seized the opportunity and took action. Enterprises can observe how the competitors change their profitability and share price after taking action, and then pass the professional transformation of management accounting to quantify the impact of the missed opportunity on the reputation value of the company.

Andrew Harding points out that the quantification of reputation is more meaningful for globalized companies: "some well managed large international companies have reputational quantification systems, because companies need to analyze and assess specific behavioral decisions in detail to help companies overcome the crisis and how much impact they will bring to corporate reputation, and what benefits can be brought to the company in terms of reputation protection and restoration, so that companies can better carry out their business globally."