Brand identity is one of the company's most valuable assets. The main goal of any company is protecting their brand identity and maintaining a strong reputation in the industry.
Although reputation is an intangible concept, research show that good reputation enhances corporate value and provides a sustainable competitive advantage.
Crises can negatively affect the image of a brand and a company itself. Successful companies with deep understanding of brand value and business reputation hire crisis communications experts to preserve the company's reputation from various threats and unwanted challenges.
Active and fast communication is crucial when a crisis occurs. A company should have a communication plan in crises, which will be the basis for spreading information among people affected by that difficult situation. Without a right strategy and practice in crisis reporting, people and business environment may react to it incorrectly. So, false or inaccurate data will be distributed, which could compromise the company’s security.
A business can more easily achieve its goals by having a good reputation among key stakeholders, such as major customers, opinion leaders in the business community, suppliers, current and potential employees, and state agencies. Even state bodies do not “risk” applying tough measures against companies with a strong reputation or their managers in critical situations. Such companies solve crises easier and faster using reputation as their main tool.
Businesses need to work on creating and maintaining a good and strong reputation. This process should be constant and systematic.