Written by ROMEO P. VIRTUSIO - Chairman, Virtusio Public Relations, Inc., Context Communications
Reputation is the way we are seen by the market; in business it is not even entirely what we are, but the way we are perceived. This is what makes the management of our reputation extremely important. Virtually no one gets to know who we are when we keep to ourselves.
It was not until Jollibee began winning regional and international
awards for excellent performance that Jollibee, and Tony Tan Caktiong,
started to acquire the kind of reputation that it has now—a
world-class Filipino firm that has transcended its humble beginnings
and growing pains, through quality products, highly effective
organization that respects and unstintingly serves its customers.
Until it raised its voice above langhap-sarap and harnessed all its
positive values, little victories, and its long struggle for
leadership-- and being Filipino-- in one long sustained drive, it
would have stayed a big successful company, but without a vivid
story, a unique character, and a strong reputation.
A corporation wins respect via excellence in its main business--product
and service, but that is just the starting point. A corporation has to
keep on enhancing its reputation. There are a number of ways I can see
a corporation doing it.
1. Excel in corporate governance. The demands on business and on its
readiness to obey the laws of the land willingly --without need for
government or stakeholders to seek legal enforcement of its
obligations-- are growing daily. Government, stockholders, the
community, NGOs and media will be even more aggressive in seeing to
it that a corporation operate according to law, and to the
satisfaction of those who have stake in it. A corporation cannot build
a reputation on shallow foundations.
2. Keep helping others--your community, society and the country, but be
more imaginative, be more long-term in vision, planning and
resource-allocation in choosing your projects. Seek now to build
alliances with other corporations and organizations to address the real
big needs of the country, with larger funds and resources, and more
judicious planning. Reapply perhaps the PBSP model, which highlights
the advantage of size created by a strong alliance and the benefits of
diverse but disciplined work.
3. Teach others by example. Show other corporations how you have done
well in your main business and what you are doing to fulfill your
corporate social responsibility. Which is a way of saying-- use
judicious and good-taste PR to share with others your experience in
business and in CSR. This may earn you good copy and awards as you go
along, but these should be welcome, for these will give you the kind
of authority that you will need to keep multiplying the results of
your experience.
4. Strengthen the concept of reputation as a part of your culture.
Teach your people the value of good reputation as a good thing in
itself but also as an imperative. Good reputation--the kind that is
won over a long time by exemplary work-- multiplies the business and
helps assure you of a loyal market. Reputation, which is another name
for pangalan or karangalan, is a most precious asset. Live as nobly,
i.e., according to the high standards of your business and those of
fair play and social responsibility, as you can, to inculcate the
ideal of good reputation. Over time, your organization will get to
understand that good reputation is part of the engine that will give
you continued strength, growth and enduring viability.
Charles J. Fombrun (Realizing Value from the Corporate Image) sees a
competitive advantage in the asset called reputation: “A company with a
large reputational capital actually gains a competitive advantage
against rivals because its reputation enables it to charge premium
prices for its products, to achieve lower marketing costs, and to
benefit from greater freedom in decision making. In other words,
reputation building is a form of ‘enlightened self-interest.’ "
That is all true, but I see even something else. A corporation with a
good reputation wields something that its products may not be able to
give it all the time: a defense against being maligned or against
baseless accusations. Jollibee, in its early years, used to be bugged
by complaints on quality of its products; now, could anyone imagine
that Jollibee does not have the discipline, the resources, or
experience, to ensure that all the product it offers are of good, even,
excellent quality?
We maintain reputation, first by being true to what we have won it for
in the first place: giving our best as an organization, offering
our best product or service day in, day out even to the point, if
need be, of sacrifice, walang patawad. Companies with reputation are
rich with stories of the extra-mile, of employees going beyond the call
of duty in fulfilling commitments to customers. Betraying one or two
customers with poor service may be forgivable, but deliberate neglect,
dishonesty, chicanery are fatal to one’s reputation, and to his
business.
Then, we chart out a reputation management program. What you put in it
depends on who you are, your product or service, or your vision. Your
end- objective will be to keep your corporation worthy of the trust,
patronage and respect of all your constituencies. Enlist the voice and
prestige of the CEO to communicate the vision of the corporation and
get him to marshal the entire organization to keep this vision alive
through a program --a facile, not frenetic kind of program - of
corporate presentations. Awards per se, for instance, do not mean
much; they had better be given by organizations that themselves have
the know-how and the prestige that make the awards believable and
inspiring. Quantity of exposure went out of fashion a long time ago,
but especially in reputation management. Exposure has to be relevant,
thoughtful and targeted.
Pay priority attention to ethical conduct. A corporation has no valid
and credible vision without commitment to ethics. There is no
reputation to be built in a corporation that is not animated by vision
and is not tempered and held in place by ethical conduct. Commitment to
what is good, right, lawful and proper must suffuse the entire
organization. Some of the saddest chapters in U.S, business, for
instance, have been written in the last ten years or so--those on the
downfall of corporate leaders who were misled and did mislead others,
who, dazzled by huge amounts of ill-gotten money, threw away
reputation, theirs and their employers. Would that such stories could
not happen in the local scene.
The corporation has to be zealous in defending itself against attacks
on its reputation. A free society often makes the corporation helpless
against unfounded attacks. The CEO must be primed up to come to the
defense of the corporation and never hope that it will be immune to
attack. His mode of defense must be measured, reasoned, and clear,
but fast. Knowledge of issues management, regional and global
relationships, meaningful corporate social responsibility and
commitment to ethics and positive values will help enhance and defend
corporate reputation.