Companies with better reputations are stronger in the face of crisis
The University of Navarra's IESE Business School held the first edition of its Annual Corporate Reputation Conference lecture
The crisis has had a negative effect on the image of companies and is most significantly affecting those with the worst corporate reputations. This was stated by Fernando Prado, director general of the Reputation Institute, during the Annual Corporate Reputationlecture held at campus of IESE 's IESE Business School at the University of Navarra in Barcelona. The first edition of the meeting was organized by IESE's Center for Business in Society at partnership with the Corporate Reputation Forum and the Reputation Institute.
In this regard, Jordi Canals, director , confirmed that this aspect has become more important with the crisis: "Reputation goes beyond purely economic variables; it is a necessary and essential value for firms to stop being merely mercantile institutions and not forget that they are made up of people and are oriented to serve them.
Impact on stakeholders
Professor Canals highlighted three variables core topic: the reaction of companies to those who collaborate with their project in times of crisis; the business-customer relationship, because in a recession the markets are on demand and it is necessary to study how to add value to the final product in the right way; and the expectations of citizens, which increase in a difficult economic situation.
On the other hand, Professor Charles Fombrun, President of the Reputation Institute, stated that reputation has a direct impact on the profit and loss account through its impact onstakeholder behaviors. Professor Fombrun stressed the need for consistency in what signature says and does, because both dimensions influence the way it is perceived.
Under the slogan "Reputation in the income statement," the first edition of the Annual Corporate Reputationlecture was attended by several companies from the Corporate Reputation Forum: Agbar, Metro de Madrid, Gas Natural, Iberia, Repsol, BBVA, group Telefónica, Ferrovial, Iberdrola and Danone, who shared their experience through case studies. IESE professors Vicente Font, Joan Fontrodona and Antonio Argandoña from the University of Navarra also participated in workshop .
Interview with Fernando Prado: "Reputation is an intangible value, but quantifiable" (Expansión, October 21, 2009) PDF