About the Center for Corporate Reputation Management

The mission of the Center for Corporate Reputation is to identify best business practices and provide thought leadership in reputation management to organizations of all sizes, both public and not-for-profit. Because business education exists at the intersection of theory and practice, the Center strengthens the professional learning community through the interaction of students, business leaders, and faculty. This strategy provides the foundation for the collaboration of practitioners and academics in LeBow College of Business' teaching and research activities. The Center stimulates teaching and research in the area of corporate brand and reputation management, and sponsors forums to bring business leaders together with the academic community to enhance understanding and business practices. To assure that the Center is attuned to the needs of the business community, it has established a world-class Advisory Council.

What is Reputation and Why is It Important?

• Corporate Reputation is estimated to be worth about 4 to 5 percent of sales per year.
• Reputation is the most valuable asset entrusted to a CEO by the board and shareholders.
• Reputation Management is a holistic business activity, combining elements of strategy, management, marketing, customer service, communications, and human resources.
• Reputation Risk is the No. 1 risk concern of CEOs globally (Aon Insurance study, 2007).
• Reputation management is not the same as advertising, corporate social responsibility, or corporate identity.

Reputation is a perception of value or distinctiveness vis-a-vis peers and competitors - that is held in the mind of stakeholders and prospective stakeholders. Reputation Management, then, is a systematic approach to management where decision-making is informed by the perceptions of value vis-a-vis peers and competitors that are held by an organization's stakeholders.

• Reputation builds competitive advantage. Studies have found that organizations with better reputations do better financially, attract and keep talent at lower costs, have lower costs of capital, and more easily gain support from government and other stakeholders in times of need.
  
• Every organization will have a reputation, whether or not they help shape that reputation. People judge organizations in a variety of ways-by what they do, by what they say they do, and by what others say they do. Those organizations that do not manage their reputations will have it managed for them by competitors, critics or others.
  
• Reputation management is a process, not an event. Activities like corporate social responsibility, crisis management, and the like are important tactics, but they will not be successful if the organization does not align itself to behave in ways that build reputation, credibility and trust among those who determine whether or not it will succeed.

Wondering if your organization is properly focused on reputation? Check the 10 Maxims of Corporate Reputation to see how your organization stacks up.