Common Threats To Brand Reputation And Possible Solutions
No more than a few decades ago — the 1960s & 70s — running a business was not that challenging compared to what’s now. Then, it centered around trade receivables, payables, gains, and losses.
Let’s fast forward to 2022, the techniques and concepts of operating a firm have evolved significantly. Now, entrepreneurs understand that income and expenses will remain at par as long as the business survives. For the company’s growth, they must prioritize marketing its brand and building a loyal customer base.
Nevertheless, there is one thing that hasn’t changed even the slightest since the 60s (or prior).
Can you guess what it is?
The answer is having a strong “Brand Reputation.”
A well reputed firm earns credibility in the eyes of potential prospects. As a result, the market share increases and goodwill improves.
However, there are certain things that could potentially defame your company’s credibility. These are known as brand reputation risks. Let’s learn about the same in detail.
What Are Brand Reputation Risks?
According to a study conducted by Forbes, 300 executives (C-suite and board directors) reveal that they consider brand reputation among a company’s prime strategic risk areas.
These are hidden threats that could potentially blow businesses, irrespective of their industry or size. Slander claims can lead to the loss of millions (or even billions) of dollars and demand a change in upper management.
In such circumstances, It is best to get assistance from a criminal defense attorney and take immediate action to protect the brand from defamation, especially if the claims are false. They can collect the evidence to justify your actions and protect the company.
However, before you seek help, learning about the latent threats is vital.
Common Risks Associated With Reputational Damage
Through the power of social media, companies can easily connect and engage with their customers. However, social media is a double-edged sword. It gives your followers and customers authority to share their opinion about the product or service. So, if your customers are not happy with your brand, they can likely pose a threat to the brand image by responding negatively.
If an organization practices shady techniques to sell its products, such as overcharging, false product claims, or hidden terms of the agreement, it will suffer its repercussions.
The stakeholders often place their trust in the company’s operations. They believe that the information provided to the organization is in safe hands and used to improve the working procedures. However, if the data is lost or misused, it will break the stakeholders’ trust, damaging their reputation.
Employees are the backbone of an organization. However, if they are not satisfied with the company, they can severely hamper its reputation. For instance, they can falsely accuse the CEO of sexual harassment, affecting the organization’s goodwill.
How To Deal With Brand Reputation Threats?
Poor brand reputation leaves a devastating impact on the organization. Even if the claims were false, recouping the damage would require immense effort on a large scale. Fortunately, the tips below can help the company rebuild its brand.
Bear in mind that prevention is better than cure. You must implement a free flow of communication within the organization. The company environment should be such that employees do not hesitate to consult the management for their disputes. It’ll allow you to identify the possible threats and resolve them before the matter gets out of control.
In case of any crisis, the CEO should host an immediate press conference, explaining the prevailing situation and steps they are taking. It will help control the crowd and lower the impact of the possible negative shadow cast on the event or activity.
Note: Public reporting is a must if the issue is related to a data breach or product defects.
It would be wise to have a separate crisis management team that identifies and resolves the issue. They can work with the media to present a positive image of the company and mitigate the damage as much as possible. This team should be headed by the BOD, CEO, and other top management heads for wise decision-making.
Lastly, the number of defense lawyers should be on the speed dial. They often have hands-on experience in dealing with similar types of issues; thus, they advise you best. Do not take any step without consulting with your lawyers, as it might add fuel to the fire.
The Bottom Line
Maintaining the brand reputation is a no-brainer, determining the survival of the organization. So, ensure your crisis management team is active and seamlessly identifies potential threats.
Let’s fast forward to 2022, the techniques and concepts of operating a firm have evolved significantly. Now, entrepreneurs understand that income and expenses will remain at par as long as the business survives. For the company’s growth, they must prioritize marketing its brand and building a loyal customer base.
Nevertheless, there is one thing that hasn’t changed even the slightest since the 60s (or prior).
Can you guess what it is?
The answer is having a strong “Brand Reputation.”
A well reputed firm earns credibility in the eyes of potential prospects. As a result, the market share increases and goodwill improves.
However, there are certain things that could potentially defame your company’s credibility. These are known as brand reputation risks. Let’s learn about the same in detail.
What Are Brand Reputation Risks?
According to a study conducted by Forbes, 300 executives (C-suite and board directors) reveal that they consider brand reputation among a company’s prime strategic risk areas.
These are hidden threats that could potentially blow businesses, irrespective of their industry or size. Slander claims can lead to the loss of millions (or even billions) of dollars and demand a change in upper management.
In such circumstances, It is best to get assistance from a criminal defense attorney and take immediate action to protect the brand from defamation, especially if the claims are false. They can collect the evidence to justify your actions and protect the company.
However, before you seek help, learning about the latent threats is vital.
Common Risks Associated With Reputational Damage
- Social Media
Through the power of social media, companies can easily connect and engage with their customers. However, social media is a double-edged sword. It gives your followers and customers authority to share their opinion about the product or service. So, if your customers are not happy with your brand, they can likely pose a threat to the brand image by responding negatively.
- Product Or Service
If an organization practices shady techniques to sell its products, such as overcharging, false product claims, or hidden terms of the agreement, it will suffer its repercussions.
- Data Breach
The stakeholders often place their trust in the company’s operations. They believe that the information provided to the organization is in safe hands and used to improve the working procedures. However, if the data is lost or misused, it will break the stakeholders’ trust, damaging their reputation.
- Employees
Employees are the backbone of an organization. However, if they are not satisfied with the company, they can severely hamper its reputation. For instance, they can falsely accuse the CEO of sexual harassment, affecting the organization’s goodwill.
How To Deal With Brand Reputation Threats?
Poor brand reputation leaves a devastating impact on the organization. Even if the claims were false, recouping the damage would require immense effort on a large scale. Fortunately, the tips below can help the company rebuild its brand.
- Effective Communication
Bear in mind that prevention is better than cure. You must implement a free flow of communication within the organization. The company environment should be such that employees do not hesitate to consult the management for their disputes. It’ll allow you to identify the possible threats and resolve them before the matter gets out of control.
- Solid Public Reporting
In case of any crisis, the CEO should host an immediate press conference, explaining the prevailing situation and steps they are taking. It will help control the crowd and lower the impact of the possible negative shadow cast on the event or activity.
Note: Public reporting is a must if the issue is related to a data breach or product defects.
- Build A Different Team For Crisis Management
It would be wise to have a separate crisis management team that identifies and resolves the issue. They can work with the media to present a positive image of the company and mitigate the damage as much as possible. This team should be headed by the BOD, CEO, and other top management heads for wise decision-making.
- Consult The Professionals
Lastly, the number of defense lawyers should be on the speed dial. They often have hands-on experience in dealing with similar types of issues; thus, they advise you best. Do not take any step without consulting with your lawyers, as it might add fuel to the fire.
The Bottom Line
Maintaining the brand reputation is a no-brainer, determining the survival of the organization. So, ensure your crisis management team is active and seamlessly identifies potential threats.
