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Reputation Analytics

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Reputation Analytics

Public Opinion for Companies

University of Chicago Press,

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Nobody wants to wake up to a corporate reputation crisis, but avoiding one requires a proactive approach.

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Editorial Rating

8

Qualities

  • Analytical
  • Scientific
  • For Experts

Recommendation

If you think your good business practices or integrity will protect you from a corporate reputation crisis, think again, says Vanderbilt University chancellor and political scientist Daniel Diermeier. Small actions – even inaction – can cascade into a massive crisis, potentially harming your business for years to come. Diermeier explains how to proactively manage your corporate reputation with a scientific approach that draws heavily on statistical modeling, human psychology and political strategy. Learn from others’ crisis management mistakes while taking steps to protect your company’s future.

Summary

Managing your corporate reputation requires thinking like a political strategist.

Managing your corporate reputation is akin to how politicians and their teams manage public opinion. However, companies must consider many more “constituencies,” or “publics,” than political campaigners. Your corporate reputation hinges on the perceptions of customers, potential customers, employees, investors, business partners, suppliers, and external groups such as regulators and the media. Don’t assume that sound business practices will protect you from a reputational crisis. Every company needs to make reputation management an integral part of its strategic operations.

Public perceptions aren’t always rooted in direct experiences. One customer’s bad review can trigger several potential customers to form negative opinions about your company. Your corporate reputation isn’t always homogenous either: It may differ across constituencies, products and markets. For example, McDonald’s reputation may be drastically different in China than it is in France. Managing your corporate reputation will, thus, require you to consider the...

About the Author

Political scientist Daniel Diermeier is the chancellor of Vanderbilt University and the author of Reputation Rules.

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