Interesting article in the Holmes Report, although it lacks the detail I'd have liked to have known.
Basically the article says that the negative feelings towards corporation is at an all time high....
"Says reputation research veteran John Gilfeather, who has been working with Vision Critical on ReputationPlus: "In 40 years of studying corporate reputation, I have never seen this level of vitriol aimed at larger corporations. It is not just an erosion of positives, but also a rise in distinct negatives. If companies do not start communicating—and communicating better—about why they should be respected, this trend will continue."
If you read the book "Good to Great" by Jim Collins, it's not really surprising. Many corporations today are driven by one thing, which is the bottom line and the share price.
While the bottom line obviously matters, the irony is that focusing first and foremost on the bottom line seems to hurt the bottom line. What appears to help the bottom line the most is a corporate mentality wherein the long-term sustainability of a corporation is paramount - in essence, building a company that is built to last.
Obviously the recession impacts people's sentiment towards corporations, but let's also be honest, corporations are doing next to nothing to counter this. Instead they remain overly-fixated on reassuring the market that they are viable and keeping pace with their competitors.
I'm not saying this isn't understable, in fact the opposite, it's totally logical to take this tract because the share price is ultimately the measure by which investors judge a company. But to sacrifice your brand and reputation in the same breath isn't logical... and I would argue it's not even necessary.
I get that when times are tough companies have to batten down the hatches... and this results in a bunker mentality. Yet, continuing to support and build your brand - to continue living your brand and to continue standing for 'something' - is perhaps even more crucial for the long-term success of a company.
A recent survey found that only 23 percent of current employees are intent on staying with their employer after the recession ends. You can read about this in BusinessWeek - The Role of Employee Engagement in the Return to Growth
The view that people have towards corporations today, in my opinion, is the result of public relations and human resources not having a great enough say at the executive table. Both of these business functions concern themselves not just with the company in its present state, but both are visionary functions that spend time and effort thinking about what the company will be in the future.
PR concerns itself with all facets of the business and whether internal competency and growth strategies are present to support a strong brand in the market while HR is focused on recruiting and retaining the best (and right) employees to equip the company to reach its goals.
In a recession PR is often slashed down to the bare bones and HR, unfortunately, ends up spending most of its time managing lay-offs and consoling employees who are scared of losing their job or having issues coping with increasing workloads.
So it's no surprise that corporations essentially appear to the public as big (and dumb) giant T-rex dinosaurs focused on nothing else than making as much money as possible at any cost - 'at any cost' including the long-term sustainability of their company and how they are viewed by the public and their employees.
Basically the article says that the negative feelings towards corporation is at an all time high....
"Says reputation research veteran John Gilfeather, who has been working with Vision Critical on ReputationPlus: "In 40 years of studying corporate reputation, I have never seen this level of vitriol aimed at larger corporations. It is not just an erosion of positives, but also a rise in distinct negatives. If companies do not start communicating—and communicating better—about why they should be respected, this trend will continue."
If you read the book "Good to Great" by Jim Collins, it's not really surprising. Many corporations today are driven by one thing, which is the bottom line and the share price.
While the bottom line obviously matters, the irony is that focusing first and foremost on the bottom line seems to hurt the bottom line. What appears to help the bottom line the most is a corporate mentality wherein the long-term sustainability of a corporation is paramount - in essence, building a company that is built to last.
Obviously the recession impacts people's sentiment towards corporations, but let's also be honest, corporations are doing next to nothing to counter this. Instead they remain overly-fixated on reassuring the market that they are viable and keeping pace with their competitors.
I'm not saying this isn't understable, in fact the opposite, it's totally logical to take this tract because the share price is ultimately the measure by which investors judge a company. But to sacrifice your brand and reputation in the same breath isn't logical... and I would argue it's not even necessary.
I get that when times are tough companies have to batten down the hatches... and this results in a bunker mentality. Yet, continuing to support and build your brand - to continue living your brand and to continue standing for 'something' - is perhaps even more crucial for the long-term success of a company.
A recent survey found that only 23 percent of current employees are intent on staying with their employer after the recession ends. You can read about this in BusinessWeek - The Role of Employee Engagement in the Return to Growth
The view that people have towards corporations today, in my opinion, is the result of public relations and human resources not having a great enough say at the executive table. Both of these business functions concern themselves not just with the company in its present state, but both are visionary functions that spend time and effort thinking about what the company will be in the future.
PR concerns itself with all facets of the business and whether internal competency and growth strategies are present to support a strong brand in the market while HR is focused on recruiting and retaining the best (and right) employees to equip the company to reach its goals.
In a recession PR is often slashed down to the bare bones and HR, unfortunately, ends up spending most of its time managing lay-offs and consoling employees who are scared of losing their job or having issues coping with increasing workloads.
So it's no surprise that corporations essentially appear to the public as big (and dumb) giant T-rex dinosaurs focused on nothing else than making as much money as possible at any cost - 'at any cost' including the long-term sustainability of their company and how they are viewed by the public and their employees.
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