Archive for November 17th, 2006

A substantial majority of global business executives (79 percent) believe that companies with strong corporate responsibility track records recover their reputations faster after crisis than those with weaker records. The finding comes from our survey, Safeguarding Reputation, that was conducted in 11 markets worldwide. I quote from our press release on the survey findings.

• “Reputation recovery is increasingly driven by more than financial metrics,” said Weber Shandwick’s International Head of Corporate Responsibility & Sustainability Brendan May. “As social, economic and political agendas increasingly influence consumer and market issues, companies now recognize that a record of corporate responsibility can inoculate a company against long-term reputation failure. Responsibility is no a longer nice-to-have. It is now a must-have corporate mandate.”

Global business executives were also asked to rate factors that build company reputation today. Over one-half (55 percent) surveyed report that being recognized as committed to corporate responsibility contributes “a lot” to a company’s overall reputation. European and Asia Pacific executives were more likely than their North American counterparts to agree on the importance of corporate responsibility in driving reputation.

Companies have awakened to the fact that corporate responsibility is a business imperative in building a good reputation today. Leaders understand that responsible companies attract the best talent, earn valuable trust and generate more positive word-of-mouth. In fact, KPMG International reports that 52 percent of the largest 250 firms of the Fortune 500 publish corporate social responsibility reports, an increase of 45 percent from three years ago.

Will companies such as BP and Shell have an easier time recovering due to their responsibility platforms? Time will tell. I personally agree with what business executives say.

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corporate respoonsibility, reputation recovery, Shell, BP, Safeguarding Reputation, Weber Shandwick, Brendan May, CEO reputation, sustainability
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Have started seeing a few blogs mention that Dell CEO Kevin Rollins’ head is about to roll. The drumbeat for someone to blame for Dell’s slippage usually begins a few months before reality hits. The problems at Dell have been exasperated by HP’s terrific quarterly performance and Dell’s postponement of its third quarter numbers. Dell cited the “complexity” of an ongoing investigation of the company by the U.S. Securities and Exchange Commission (SEC).

My experience is that someone has to pay for reputation damage before a company can move on. As our research continues to show, the CEO usually takes most of the blame regardless of the circumstances. The Dell clock is probably ticking.

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Dell, Michael Dell, Kevin Rollins, SEC, reputation, CEO reputation, blame
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