Reputation management – The wider role of meaningful stakeholder consultation

What various stakeholders think of you matters increasingly in this image-conscious world. Indeed, you can now take degree courses in reputation management, and the term itself is becoming popular as a general description of what your PR department is all about.

But what part does consultation play in building, securing and defending an organisation’s reputation? How relevant is it? Is additional effort in this area likely to produce a return on such investment? And what is the penalty for getting it wrong?

Private companies have long recognised that their overall image influences stock market perceptions, and therefore the share price. That, in turn affects a Chief Executive’s salary. That is why many top firms spend a small fortune tracking the opinions of key stakeholder groups such as shareholders, employees, distributors or financial journalists. It matters in the day-to-day market-place too; consumers’ loyalties can evaporate quickly if a firm’s reputation suffers; Remember Ratners! Or ask Northern Rock!