What you really need to know in 2020 about reputation
The new year sees the release of numerous reputation / trust reports and countless trends predictions, issue watchlists and an avalanche of wise commentary. And that’s not even including Davos! So, we have taken it upon ourselves to save you the time of having to wade through the reams of copy and have curated this synopsis of all you need to know about reputation in 2020.
Managing reputation more important than ever
According to the ReputationInstitute’s 2020 Global Trends Report, 70.2% of leaders of high reputation companies say that managing the reputation of their company is more important now than it has ever been.
Which if you consider the depressing findings from the Edelman 2020 Trust Barometer that points out that none of the four main institutions (Media, Governments, Companies and NGOs) are trusted, means that something is wrong. Within this gloomy picture it is worth noting that businesses enjoy a stronger reputation than governments which quite simply means that there is a growing expectation that business must lead on social and environmental challenges before being forced to do so by regulators – and companies that do will reap the benefits:
66% of consumers identify as belief-driven or impact-conscious buyers
73% of employees want the opportunity to impact society
75% expect business leaders to drive change rather than waiting for government
Fear is the order of the day
The majority of respondents in every developed market do not believe they will be better off in five years’ time, and more than half of respondents globally believe that capitalism in its current form is now doing more harm than good in the world. Add to that, 83% of employees are worried about losing their job, attributing it to the gig economy, a looming recession, a lack of skills, cheaper foreign competitors, immigrants who will work for less,automation, or jobs being moved to other countries.
As we know, fear is one of the strongest human emotions and generally drives irrational behaviour. Companies need to work hard to bring a sense of security back to their stakeholders and therefore must focus on integrity,dependability and purpose, the ethical drivers which account for 76% of the trust capital of business, while competence accounts for only 24%.
The Top Ten Lists
Unsurprisingly, there is much overlap between the various published “Top Trends” lists. We know what should be done to build sustainable businesses and economies, but the results show that we need to do – not pontificate - more.
Top 10 Global Reputation Trends
Top 10 Global Issues Influencing Trust
Top 10 Drivers of High Reputation Companies
Top 5 Trends in Corporate Citizenship
Top 5 takeaways from Davos
Higher purpose
A sense of inequity is undermining trust
Community relations
Transition to
stakeholdercapitalism
and acceleration of ethical investing
Natural disasters and resource scarcity will demand
collective action
Data privacy
Capitalism is underfire
Industry leadership
Heightened focus on climate change and environmental sustainability
Data responsibility and digital safety will take centre stage
Responsible investment
Fears about the future are eclipsing hopes
Ethics and values
Increased employee activism and support for diversity and inclusion
U.S. election season will be a litmus test for climate change
Impact of technology
People are worried about the impact of technology
Corporate culture
Rise of the flexitarian diet and plant-based protein
Supply chain
transparency
will become table stakes
Climate change
Stakeholder engagement
fosters long-term company success
Training and support for employees
Growth in global collaboration and pre-competitive alliances
The Fourth Industrial Revolution will accelerate
sustainability
Influencers
CEOs are expected to lead from the front
Quality of senior leadership other than CEO or Chair
Mistrust of big institutions
Trust is built on competence and ethics
Diversity and inclusion in the workplace
Responsible sourcing
No institution is seen as both competent and ethical
Governance
CEO activism
Ethics is three times more important to company trust than competence
Environmental responsibility
Inequality, diversity, and inclusiveness
Partnership between business and government on jobs is essential
Philanthropy or charity support
Companies can no longer claim neutrality in the issues of our day… you’re either helping to create a sustainable future, or you’re out.
What’s at Stake
Intuitively we all know that companies with a strong reputation perform better. Exactly what the quantum of this is, depends on who you are asking, but the latest Weber Shandwick survey of global leaders gives the average as 63% of market value is due to reputation. The UK is quite surprisingly at the bottom of the scale, but this is possibly a reflection of a modest culture? The point remains, that it makes a significant bottom-line difference and should be proactively managed at all stages of the business life cycle.
#ReputationWithPurpose
Having seen the writing on the wall years ago, we haveharnessed the science of reputation and sustainability as well as the art ofcommunications and connection and developed a simple model for businesses build their reputationthrough purpose.
Through a series of discovery sessions and workshops we’ll create a strategy and implementation plan that works for you – and we’ll hold your hand all along the way to make sure it makes a difference.
Benefits of #ReputationWithPurpose
Our unique #ReputationWithPurpose model will help you defineyour purpose, embed this in your business, implement the actions required tomake it authentic, and build your reputational capital.
The outcome?
Happier, more engaged and innovative employees
Enhanced support and understanding from stakeholders
More and more loyal customers
Increased resilience to business shocks
Better bottom-line performance
Get in touch today to start your journey.