While reputation is an abstract concept, our practice and actual figures show that a good reputation increases corporate value and provides a sustainable competitive advantage. And these are concrete and material things.
A crisis can have a negative impact on the brand image of a company and on the company as a whole. Successful global companies that understand the value of brand and business reputation are developing strategies to safeguard the company’s credibility with the aim of protecting them from various threats and negative challenges.
Active and swift communication is pivotal when a crisis occurs. A company should have a base crisis communication plan for promoting information in the public space. Without the right strategy and expertise to communicate about a crisis, society and the business environment may respond to it in an undesirable way and, respectively, spread false or unreliable information, which can jeopardize a company’s security.
The main goal of crisis communications is to go into the public spotlight with the aim of restoring reputation and/or effectively resolving a recently appearing problem/conflict.
In 80% of the cases when a company does appeal to the public after a problem/conflict has arisen, the problem/conflict at first intensifies and is not resolved. Reputation is not restored, but rather weakened.
When a problem/crisis arises, it is the reputation of the company that becomes the most vulnerable, which can lead to significant financial losses.
Before entering the public spotlight, especially during such aforementioned times, companies need to carefully prepare and form a team and/or anti-crisis command unit.