Small and Mid-Cap Company Reputation
Always enjoy finding some new data on the value of corporate reputation among different subsets of companies. Small and mid-cap companies believe that 28% of their value is attributable to reputation. Thus, the total value of corporate reputation for all UK listed companies could be nearly £1.7 trillion. The research was conducted by BDO LLP and the Quoted Companies Alliance and conducted by YouGov. Other interesting stats:
- 79% believe that corporate reputation is very important
- The person primarily responsible for a company’s corporate reputation is the CEO (34%), followed by the board (32%) and executive management team (21%).
- The people that companies turn to for advice on corporate reputation are PR/Communications professionals (46%), brokers/NOMAD (37%) and then lawyers (13%).
- Greatest threats to reputation are rumors in traditional media (21%), cybersecurity (18%), rumors on the Internet (17%) and fraud (12%). Interesting that hearsay in traditional media leads those on the Internet.
And in case you were wondering, 74% of companies say they are prepared to a reputational crisis and 26% are not doing much. That is better than I expected. They might be taking extra precautions because companies report that they are most concerned that rumors are likely to affect share price (90%), investor confidence (88%) and employee morale (82%). As well, there is the recognition by 60% of companies that reputational issues affect other companies negatively and no one wants fingers pointed at them.