Last month, John Wright posted a blog on “Battered TRUST” that highlighted and crystalized a few things for me:
- Corporate value is tied tightly to corporate reputation. A negative impact/event on the latter, affects the former. For example: I.e.: Ubers treatment of a female engineer (2018) -> loss of respect of company leaders (internally and externally) -> financial and talent loss. (Though we’ve all continued ‘trust’ it’s product, we’re not lining up to back it financially, as we once did).
- Reputation is a factor of corporate vision, strategy, operational readiness, respect & trust (internally and externally);
- With the attribute of ‘trust’ deteriorating*, I wonder if Boards of Directors are actively assessing/reviewing if they are ‘respected’ in their industry?
I sense that Boards-of-Directors remain reviewing traditional brand reports from large ad & creative agencies for assessments of their reputation based on market-share, brand-awareness, employment practices/policies and ‘trust barometers’, to name a few.
Not that the above is wrong. But in 2021, it just needs a new approach.
As we emerge from the pandemic into an entirely new business world, company leaders need to understand if & how their company is respected (and why/why not). Company leaders need to listen to the general public not (self-serving) ad-agency/consultancy studies.
Our research and awards are intended to start flushing this out … with some wonderful, current examples.
Executive Director, Canada’s Most Respected Awards Program
* As John impactfully noted: “if TRUST were a stock you had invested in that had tumbled 20 to 30 points – wiping out massive amounts of your portfolio value – would you keep riding it, or would you find something else to tie your fortune to?”