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MANAGING RISK. Dr. Leslie Gaines-Ross Chief Reputation Strategist. REPUTATION RISK RISES. reputation risk is high on the agenda. REPUTATION LOSS – THE “STUMBLE RATE”. 43 %. Of world’s most admired companies lost reputational status in 2010. PERCEPTION IS REALITY.
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MANAGING RISK Dr. Leslie Gaines-Ross Chief Reputation Strategist
REPUTATION LOSS – THE “STUMBLE RATE” 43% Of world’smost admired companies lost reputational statusin 2010
PERCEPTION IS REALITY Reputation Institute
GOOD REPUTATION PAYS, POOR REPUTATION COSTS World’s Most Admired CompaniesOUTPERFORM industry peers and the market as a whole one year three year five year ten year Hay Group 2010
IT’S A REPUTATION ECONOMY • Sociopolitical Issues • Business is News • Collateral “Industry” Damage • Chaos in Public Square • Doing Well by Doing Good • Activist Attacks • CEO Reputation • Insta-Rep • Reputation Recovery “ Reputation is the new oil.” Michael Fertik, reputation.com
5 things to know as an investor 1 Negative publicity Environmental & safety concerns Succession/turnover/governance The visible hand Crisis-preparedness 2 3 4 5
“ Reputation is an important enforcement mechanism. Reputational sanctions ensure people act appropriately and fill the gap between poor or unethical conduct and law-breaking. It ensures that people are penalized for their mistakes and inappropriate behavior. It is the most important of oils that ensures that the capital markets work.” 04/2011 Thank you