Wanting to quantify the extent of this impact, according to the top managers involved in the survey , 63% of the company's market value is attributable to reputation . And there's more : companies that focus more on corporate reputation rely on the key principles of correct and effective brand management to generate value and profit.
The importance of investing in corporate reputation and brand management
In order to grasp the importance of corporate reputation as a strategic asset for any business, it is useful to first frame the concepts of corporate reputation and brand management . Corporate reputation represents everything a company is built on and has to do with a series of strategic assets that concern the identity , image , notoriety and recognisability of the company itself. In essence, it is the perceived value on which customers and consumers base their loyalty to a brand . More specifically, according to the definition of the Financial Times , corporate reputation refers to the “collective judgements of a company's stakeholders based on assessments of the financial, social and environmental impacts attributed to the company over time”.
Brand management is a set of effective and coherent “business intelligence” strategies and techniques that help protect corporate reputation and thus contribute to the success and market value of the company. The challenge of brand management is to “cultivate the resilience” of corporate reputation with a cohesive strategy , supported by technology , that generates lasting value in the perception of the markets and that is resistant to any crises.
From this we can understand that corporate reputation is today a crucial issue for many managers and executives, both in the consumer and B2B sectors , because it has to do with the recognisability of a company towards its stakeholders , adhering to their interests and expectations. Reputation , in short, has a crucial impact on the deep identity of a company denmark telegram data and, in essence, indicates how high or low the level of public consideration of an organisation can be . So much so that many top managers , today, consider brand management as one of the priorities for their work.
Having made this necessary premise , how important is corporate reputation for a company's market value ? Which drivers are perceived as more strategic by corporate CEOs?
What is the impact of brand management strategies in increasing the perceived value of the company and, by extension , the brand equity ?
These and other crucial questions are answered in the aforementioned Weber Shandwick survey , conducted in collaboration with KRC Research , which involved more than 2,000 senior managers of large-turnover companies in 22 different markets .
For top corporate management, reputation accounts for over 60% of the company's market value
The most significant data that emerged is , as mentioned, the fact that the top managers interviewed from all over the world attribute 63 % of the company's market value to reputation . The purpose of the survey , however , is not limited to this: in addition to quantifying the role of brand reputation in determining the success and "recognition" of the company , it shows how today more than ever , a set of different factors contribute to building a solid corporate brand management , all equally significant for " nourishing " corporate reputation and for preventing the erosion that leads to the crisis of corporate reputation , a central theme that many companies , even successful ones , have had to deal with in their history.
