The Two Headed Coin

CHAPTER 7What Reputation Do We Want? With Whom?

In Chapter 6 we discussed the multiple dimensions of reputation risk. Old-style risk managers may think that if they manage all the risks below reputation risk on the risk pyramid that all is well. That is not so—it is necessary but not sufficient. It is table stakes. Reputation risk is important because it captures the entirety of how the organization's promises (value proposition) are met. The strategic questions are what reputation do you want and with whom? The desired reputation captures the content of your value proposition and your ability to deliver on it. The “who” identifies your target market and introduces the saliency of stakeholders. You can't be everything to everybody.¹ Strategy is about making choices, which is made clear when you focus on reputation management. And the threats to corporate reputations are increasing in this age of social media.²

Stephen Kehoe, Global Chair, Reputation at Edelman, of Edelman Trust Barometer fame, asserted the following: “Guided by the belief that increasing the level of trust in a company is the cornerstone of protecting reputations and strengthening relationships, we work in close partnership with corporate clients to engage employees, deepen customer relationships, attract investors and align government and public interests.”³ Although we recognize that trust and reputation are not the same things, we do believe they are highly correlated. Reputation means that a target group ...