Reputation risk reminder
Reputation Institute recently released a study on reputation risk. They looked at 154 companies across seven industries, accounting for more than 100,000 ratings across five major global markets, to ascertain the most common risks. The six top reputation risks are:
- Product defects/recalls
- Turnover of talent, especially large staff reductions
- Lack of transparency
- Environmental damage
- Accounting malpractice
- Financial malpractice (“averaging private gifts and making financial donations to influential politicians”) [Not sure this is so clear to me…maybe this means bribery!]
I was surprised that cyber threats/hacking did not make it to the list and it would have been interesting to see differences by market. However, many of these risks appear on other top 10 lists.
In their introduction, they mention the importance of making the intangibles of reputation tangible. I think that is a valuable reminder for companies. Charting out your company’s reputation drivers and then figuring out how to make them tangible to your stakeholders makes good sense. Measuring how those intangibles are tangible would be recommended as well. Good reminder for all.