There is no slam-dunk answer to this question. But the facts are indisputable. While it is still job one to produce solid revenue and profit, those metrics are no longer the only measure of how a company is judged. Today, more and more investors are scrutinizing a company’s reputation before they invest.
- Since the launch of the Ecomagination campaign, the value of GE’s brand grew from $42 to $52 billion, according to a 2007 Interbrand study. (GE, 2007 Annual Report)
- With one of the best reputations among the nation’s airlines, Southwest has a market cap of $5 billion, more than American, United, Continental and Jet Blue combined. (6-10-09)
- PepsiCo’s share price is $6 higher than that of Coke, even though Coke’s market cap is $30 billion higher than Pepsi’s. Many suggest it’s because of the perception that PepsiCo has superior management and fiscal control. (6-10-09)
Is it in the mission statement?
Investors are looking for companies that are stalwart when it comes to Corporate Social Responsibility (CSR). Today, a company’s commitment to being a truly responsible corporate citizen must be part of its mission statement. Companies compete around the globe to improve society whether it is building a water project for the poor in India, promoting sound agricultural practices in Africa, leading the way in promoting diversity in the workplace or ensuring that their products and procedures meet environmental standards.
- Is a company a good corporate citizen in dealing with customers, suppliers, employees and other stakeholders?
- Does it go beyond its statutory obligation to comply with legislation?
- What is the company doing to insure it improves the quality of life of its employees, their families, their communities and society?
- How green is the company when it comes to environmental responsibility and stewardship?
The net zero challenge.
- Investors want to know if a company is walking the walk on sustainability.
- Is a company doing everything it can to become energy efficient?
- Does it use renewable resources in its manufacturing process?
- Are there internal and external controls on recycling?
- Are hard dollars committed toward creating a “greener world” to minimize a company’s impact on the environment?
Your company may be an outstanding example when it comes to CSR and sustainability but is that story being told in a compelling and consistent manner and to the right audiences? Is it being heard on Wall Street and Main Street? If not, share price could be severely impacted.
The untold story: Promoting a company’s charitable giving.
Companies make great contributions by giving. Corporate profits filtered into foundations create new opportunities for people around the world. Often those stories are not told.
- Did you know that Coca-Cola collaborated with the U.S. Agency for International Development to form the Water and Development Alliance to protect and improve the sustainability of watersheds, increase access to water supply sanitation, and enhance productive use of water in 17 countries in Africa, Asia, Latin America and the Middle East?
- Did you know that the National Football League has joined the fight against childhood obesity with a campaign called “What Moves U” that goes beyond gym class and aims to get kids out of their chairs in the classroom?
- Did you know that the Xerox Corporation and the National Cristina Foundation teamed up to facilitate the donation of pre-owned printers from Xerox customers to people with disabilities, students-at-risk, economically disadvantaged individuals and job training programs in the U.S. and Canada?
- Did you know that IBM, along with representatives of the world’s leading science, education and philanthropic organizations, launched World Community Grid, a global humanitarian effort that applies unused computing power to unlock genetic codes that underlie diseases like AIDS and HIV, Alzheimer’s and Cancer, improve forecasting of natural disasters and support studies that can protect the world’s food and water supply?
So how can you ensure that your company’s story is told and resonates with Wall Street and Main Street to add value? How do you tap into the power of perception? Armed with the right reputation management strategy, you don’t have to be flying blind. Click on the Services tab> to find your flight plan.
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