# The lesson of 2020: ignore your corporate reputation at your peril Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-11-25 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Corporate Reputation: Key Growth Area in PR Meta Description: Discover the latest survey findings on the importance of corporate reputation and strategic consultancy in PR, and how companies can proactively manage their URL: https://financedigest.com/the-lesson-of-2020-ignore-your-corporate-reputation-at-your-perilhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-2020-11-25t191021-1736838699304-compressed.jpg) _By **Tim Jotischky,** Director of Reputation at_ [_The PHA Group_](https://thephagroup.com/) Corporate reputation and strategic consultancy are the two biggest growth areas in public relations, ahead of both social media and community management and marketing communications, according to a global survey by the International Communications Consultancy. And, when asked to look ahead over the next five years, strategic consultancy and corporate reputation are again identified by global agencies as the two areas of business which will see the biggest growth. A survey of 600 C-Suite executives in companies with more than 1000 employees across 12 countries appears to back up this finding; one in three say that reputation plays an important part in setting long term business strategies and that they always consider it. However, perhaps we should be more surprised that two out of three apparently do not. If this extraordinary [year has taught us anything it is that a company’s](https://www.financedigest.com/why-companies-need-to-rethink-retirement-tips-for-ensuring-a-happy-life-in-later-years.html "Why companies need to rethink retirement – Tips for ensuring a happy life in later years") reputation is priceless. That might also explain why, in every region of the world, corporate purpose has also moved up the agenda, a trend that is most pronounced in the UK and [North America](https://www.financedigest.com/north-america-europe-industry-power-distribution-component-market-to-develop-rapidly-by-2020-2030.html "North America & Europe Industry Power Distribution Component Market to Develop Rapidly by 2020-2030"). When a company’s values are called into question, the fall-out can cause serious reputational damage. Lockdown losers earlier this year included Sports Direct, who insisted that all [staff continue working and tried to claim that that trainers were ‘essential’ items; Tottenham Hotspur Football Club, who furloughed non-playing staff whilst announcing a £3m bonus](https://www.financedigest.com/unicredit-to-pay-bonus-replace-850-older-branch-staff-in-italy.html "UniCredit to pay bonus, replace 850 older branch staff in Italy") to chairman Daniel Levy; and Britannia Hotels, which sacked its staff and gave them 24 hours to leave their accommodation – before implausibly blaming an administrative error. There are two ways of looking at reputation: one is pro-active and the other reactive. Too many [companies](https://www.financedigest.com/factbox-european-companies-offer-one-off-bonuses-hike-pay-amid-cost-of-living-crisis.html "Factbox-European companies offer one-off bonuses, hike pay amid cost-of-living crisis") only consider the impact on their reputation when they are already in crisis mode rather than thinking about how they can avoid the crisis in the first place. [Risk mitigation](https://www.financedigest.com/new-isla-standards-provide-the-foundation-for-resource-optimisation-efficiency-and-risk-mitigation.html "New ISLA Standards Provide the Foundation for Resource Optimisation, Efficiency and Risk Mitigation") is as important as responding to a crisis once it has hit. Preparation is key: putting the right structures and processes in place. The key elements are: - A crisis manual that sets out the risks to a business, with a clear process in place for assessing the level of risk; sharing and [communicating information to staff](https://www.financedigest.com/how-communication-technology-can-help-relieve-pressure-on-staff-in-the-financial-services-sector.html "How communication technology can help relieve pressure on staff in the financial services sector ") and stakeholders; and responding to media attention - Crisis training for the senior [leadership team](https://www.financedigest.com/zivver-expands-leadership-team-names-three-new-c-level-executives.html "Zivver Expands Leadership Team, Names Three New C-level Executives") to prepare for a reputational crisis and to handle media interest - [Media training to learn how to communicate key messages succinctly and effectively](https://www.financedigest.com/dutch-to-spend-16-billion-to-cushion-effects-of-inflation-media.html "Dutch to spend billion to cushion effects of inflation -media") - [Social media](https://www.financedigest.com/elon-musk-goes-viral-on-chinese-social-media-with-ancient-poem-post.html "Elon Musk goes viral on Chinese social media with ancient poem post") monitoring and real-time measurement of brand sentiment by tracking conversations across all platforms But the [coronavirus pandemic has also reinforced another important](https://www.financedigest.com/oil-falls-1-as-coronavirus-slower-china-imports-hit-demand.html "Oil falls as coronavirus, slower China imports hit demand") truth. Good [communication begins inside a business](https://www.financedigest.com/business-texting-an-essential-communication-tool.html "Business Texting: An Essential Communication Tool"), not outside it. In an era when anyone can be a publisher, anything that is communicated internally could quickly be communicated externally. No business can afford to share information with staff or stakeholders that it would not be comfortable [seeing in the public](https://www.financedigest.com/italy-slashes-2023-growth-forecast-but-sees-public-finances-improving.html "Italy slashes 2023 growth forecast but sees public finances improving") domain. And, in a [time of uncertainty](https://www.financedigest.com/adapting-payments-to-reassure-consumers-and-safeguard-profitability-during-times-of-uncertainty.html "Adapting payments to reassure consumers and safeguard profitability during times of uncertainty"), when difficult decisions are sometimes made with little forewarning – decisions which might have been unthinkable months, or even weeks, before – internal communication has never been more important. Whether it is a CEO addressing a Town Hall event, or sending an All Staff email, the same thought and [preparation needs](https://www.financedigest.com/what-banks-need-to-prepare-for-eba-pillar3-disclosure-of-esg-risks.html "What Banks Need to Prepare for EBA Pillar3 Disclosure of ESG Risks") to be given to it as it would be for a high-profile media interview. The other way of looking at reputation is to take a positive, pro-active approach. For example, the events [industry contributes £84bn to the UK economy](https://www.financedigest.com/industrial-automation-incentives-by-governments-in-emerging-economies-drive-industrial-robots-market-fmi-study.html "Industrial Automation Incentives by Governments in Emerging Economies Drive Industrial Robots Market: FMI Study"), employing more than 1.5 million people, ![Tim Jotischky](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/pha-group-tim-jotischky-114-450x619-1736838698903-compressed.jpg) Tim Jotischky but has effectively been mothballed since March; three out of four events [businesses say](https://www.financedigest.com/uk-needs-to-make-politically-unpopular-reforms-to-boost-growth-business-group-says.html "UK needs to make politically unpopular reforms to boost growth, business group says") they will not survive beyond next February if live events do not resume. The industry has, traditionally, been deeply divided, with different sectors operating in silos and a proliferation of overlapping trade organizations. Whilst the [hospitality industry](https://www.financedigest.com/what-can-small-hotels-do-to-succeed-in-the-hospitality-industry.html "What Can Small Hotels Do to Succeed in the Hospitality Industry?") has made its voice heard, the events industry was too fragmented to make an impact until a coalition of businesses was brought together under the banner, One Industry One Voice. Crucially, however, the guiding principle was that it should convey an optimistic, forward-looking message rather than handing round a begging bowl; its #wecreateexperiences campaign celebrates the power of events and experiences to [grow businesses](https://www.financedigest.com/should-you-take-out-a-personal-loan-to-start-or-grow-your-business.html "Should You Take Out a Personal Loan to Start or Grow Your Business?"), support society and touch all our lives. The calculation the campaign’s founders have made is that there is more to be gained from educating [business leaders](https://www.financedigest.com/how-business-leaders-can-adapt-or-replace-covid-related-perks-to-the-post-pandemic-world-while-keeping-employees-on-side.html "How business leaders can adapt or replace Covid related perks to the post-pandemic world while keeping employees on-side") about the value of live events, and reminding consumers about what they have missed, rather than dwelling on the negatives of lost revenue and destroyed livelihoods. That is an example of forward-looking reputation management. Conversely, the [Premier League](https://www.financedigest.com/soccer-standing-areas-at-premier-league-grounds-to-be-allowed-from-january.html "Soccer-Standing areas at Premier League grounds to be allowed from January") has been badly damaged by the fall-out from the coronavirus, dogged by divisions amongst its 20 members and mixed messages. First came the revelation that leading [clubs wanted to restructure the league, with the apparent objective of consolidating their own power at the expense of smaller clubs in the top](https://www.financedigest.com/spains-top-soccer-clubs-to-get-cash-boost-from-3-2-billion-la-liga-deal.html "Spain’s top soccer clubs to get cash boost from .2 billion La Liga deal") tier. Then there were accusations that clubs were ripping off supporters by charging them £14.95 to watch pay-per-view matches. Thirdly, the Premier League was lambasted for failing to offer adequate financial support to clubs further down the football pyramid. In fact, in each of those instances there were mitigating circumstances and two sides to the argument. Yet the Premier League makes a convenient scapegoat because of the top clubs’ financial riches and it has suffered from a leadership vacuum since the departure of long-serving [chief](https://www.financedigest.com/boohoo-says-exposure-to-sterling-plunge-is-limited-finance-chief.html "Boohoo says exposure to sterling plunge is limited – finance chief") executive Richard Scudamore. If you leave a vacuum it will be filled and that is true of any business, any organization, and any sector. The Premier League is the UK’s biggest export and contributes £7.6bn to our GDP, but it has gone from poster boy to whipping boy because it has failed to [communicate a coherent message and been forced on to the back](https://www.financedigest.com/why-poor-customer-communication-is-holding-open-banking-back.html "Why poor customer communication is holding open banking back") foot. The coronavirus pandemic will soon be vanquished by the development of a vaccine, but the growing scrutiny on [businesses – the way](https://www.financedigest.com/five-ways-businesses-can-prepare-themselves-for-the-digital-economy-be-kaler-pilgrim.html "Five ways businesses can prepare themselves for the digital economy – Be Kaler Pilgrim") they conduct themselves and the expectation that they will behave responsibly – is here to stay. And any [business that ignores the risk to their reputation by not having an effective communications strategy](https://www.financedigest.com/albumin-market-in-depth-analysis-business-strategies-and-growth-rate.html "Albumin Market In-depth Analysis, Business Strategies, and Growth Rate") in place does so at its peril. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---