Four Reasons Why Corporate Reputation Can Be At Risk

by Purvi Dalvi Writer

‘It is wiser to be cautious and careful than to be hasty and rash’ is the perfect phrase that comes to mind when a company suffers a disaster. When a company is at the peak of its success, it not just receives a word of appreciation from the stakeholders or associated brands but also sees an upsurge in the profit margin. A wrong move will see the same stakeholders, associated brands and chain of other linked properties backing out and tarnish the image of the company.

A company’s reputation is of utmost priority. It is necessary to access various threats that put the status at stake. Below are the reasons why an organisation’s reputation can be at risk:

  • Employee factor: A happy employee is a synonym for a healthy work environment. If the actions within the corporate set up are under control, the external danger can be shooed Incentives, hikes, etc. are a way to an employees’ contentment that can lead to a chain of reactions. Their positive word of mouth could bring in more engagement to the company. If proper treatment is not provided to the employee, there are chances of the corporate reputation being at risk. They could very well spill the wrong beans to the outside world.


  • Adherence to Corporate Social Responsibility: CSR is mandatory in several corporate organisations. Investors, stakeholders are on a lookout as to what is the business that they are involved in doing for the environment. Even potential customers can comprehend what their favourite companies are doing to better the planet, courtesy social media. Positive feedback from investors and stakeholders can be deemed wrong if potential customers observe the activity was never done in the first place, leading to damage to the reputation.


  • Customer satisfaction: Another essential aspect where reputation risk crops up is on how well the customers are treated on social media platforms. Consumers want to break the norm of the typical feedback/query sort of conversations and expect the organisations to match up to the current trends. g., recently a brand sparked up social media with its witty reply to a lady who could not find the desired product on their website. The right training to the new employees can teach them the art of winning the hearts of potential clients and customers.


  • Data hacking: Data leaking furore has gripped several corporate organisations. Hackers are everywhere and can quickly gain access to financial know-how, customer information (if an online portal) or secrets within the company. Today, companies imperatively have stronger systems in place to avoid any such mishap. In uncalled circumstances, companies sometimes do not own up to these which could affect associated factors (investors and likes).


Is your company practicing any of the above factors? Then STOP and think over. Employees, customers and other related factors are the keys to upholding a corporate reputation. It is essential for companies to understand the trend and work towards them to disable the potential threats.

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About Purvi Dalvi Advanced   Writer

81 connections, 0 recommendations, 241 honor points.
Joined APSense since, May 24th, 2017, From Mumbai, India.

Created on May 25th 2018 02:28. Viewed 225 times.


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