Opinion centre YouGov has released the findings of its latest survey which suggests that close to three quarters of senior in-house communicators hold the opinion that the concept of corporate reputation holds a strong link with the financial performance of the business that reputation concerns.
The survey was conducted by professional opinion center YouGov, who partnered with the PRCA in a bid to interview leading in-house communications directors on their opinions on the role that reputation holds in the world of modern business. In total the survey was taken by 46 senior in-house communicators that came from many sections of both the public and private sectors including charities, membership organisations, the financial services and the technology industries.
What came back from these investigations, and what was subsequently presented at the PRCA 2013 National Conference, was a resounding statement that a strong link exists between the reputation a company holds and their bottom line. The official figure given was that 72% of senior in-house comms directors held this view. In a stark contrast, just 6% of those surveyed saw a weak correlation between the two and only 9% believed that there was no link at all. Looking deeper into the 72% figure, 48% defined it as a ‘reasonably strong link’ and 24% identified it as an ‘extremely strong link.’
Further figures released from the survey reveal that 52%, that’s just over half, of in-house comms managers and directors were of the opinion that their company board of directors took responsibility for their companies reputation and the effect it had on their total bottom line. In contrast to this 24% of the directors surveyed were of the opinion that their board of directors reviewed the company’s reputation performance, however did not hold any accountability for it, 12% said their board took some interest and 6% said their board held little to no interest.
Compare and contrast this with a recent Deloitte and Forbes Insight Survey of 300 Executives from around the world that found that industry professionals now find reputation to be the number one risk they had to contend with. Furthermore 56% highlighted data mining and analytics and 40% cited social media as threats to their business model.
All these figures show that industry experts are increasingly coming to recognise that reputation, especially online reputation, can make or break a company; this ultimately leads to the notion that a company’s reputation can actively contribute to its profit margins or share price. If you want to be successful in today’s market, you have to take this into account.