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An organization desires a reputation that encourages both consumers and qualified workers to
choose its organization over its competitors.
To stay competitive the organization tries to maintain its corporate reputation to achieve its
goals. Some of large organizations’ example “Arthur Anderson” learned hard lessons about
how a bad reputation harms employee and customer loyalty.
Not only logos and names are the most important elements of an advertisement that reflect
a reputation
.
Kitchen and Shultz, (2001) define:
Identity is that “ what the organization is “consist on a organization that defines its
employees clients and market
Desired identity “ what the organization says it is” it should know itself before
worrying about what others are saying to them, and this is what gives organization its
competitive advantage
Image “what the customers think it is” an organization is seen from different point of
views from stakeholders. The objective is to prove who you are in the market to
answer their questions.
Financial statements do not accurately reflect the value of an organization’s intangible
assets such as customer relationships, talent, innovation, patents and reputation. Intangible
assets such as reputation are now central to organization attractiveness and effectiveness. Alan
Greenspan, (2012) says: “In today’s world, where ideas are increasingly displacing the
physical in the production of economic value, competition for reputation becomes a
significant driving force, propelling our economy forward.”
The value of a good reputation lasts to propagate generally because of the competitive
advantage and market distinction it delivers higher sales generated by satisfied customers and
their referrals; relationships with the right strategic and business partners; ability to attract,
develop and retain the best talent; benefit of the doubt by stakeholders if crisis strikes; spread
of positive word of mouth; potential to raise capital and share price; and in some cases, the
option to charge premium prices. Dutton et al; Gioa and Thomas
(1996)
explain that
the key
benefits of a good corporate reputation can be found in:
Customer preference in doing business with an organization while other firms’
products and services are available at a similar cost and quality;