2.1 What roles does corporate reputation play within organizational performance and social responsibility? Develop a list of factors or characteristics that different stakeholders may use in assessing corporate reputation. Are these factors consistent across stakeholders? Why and why not?1
2.1.1 Assessing Corporate Reputation1
2.2 Assume you have become the CEO at Coca Cola. Outline the strategic steps you would take to remedy the concerns emanating from the company’s board of directors, consumers, employees, business partners, government s and the media. What elements of social responsibility would you draw from in responding to these stakeholder issues?3
2.3. What do you think of Coca Cola’s environmental initiatives? Are they just window dressing or does the company seem to be sincere in its efforts?5
2.1 What roles does corporate reputation play within organizational performance and social responsibility? Develop a list of factors or characteristics that different stakeholders may use in assessing corporate reputation. Are these factors consistent across stakeholders? Why and why not?
Corporate reputation affects the way in which various stakeholders behave towards an organization, influencing, for example, employee retention, customer satisfaction and customer loyalty. Not surprisingly, CEOs see corporate reputation as a valuable intangible asset. (Institute of Directors, 1999). Therefore it’s right to say the introduction of CSR has changed the way decision are made as it takes into account how both stakeholders and shareholder s are affected, no longer are the bottom line profits the main focus but instead the impact of the decision to the external world are of major significance. A difficult question is for each company is how to operationalize this concept within its organisation. The introduction of corporate social responsibility (CSR) has given stakeholders leverage in decision-making, and as brought about the idea of transparency in organisations. No longer are organisation making decision based solely on the interests and opinions of the shareholders, especially when they affect the public. With this taken into consideration it is in every organisations interest to have a positive perceived corporate reputation especially in the stakeholder view(Friedman1998,2002; Zain et all,2001). Companies with a strong corporate reputation and culture are seen as better equipped to handle negative press well and have the backing of the stakeholders which is a bonus; it can also help to optimise shareholder value.
2.1.1 Assessing Corporate Reputation
There are many ways in which to evaluate corporate reputation, while the organisation cannot directly place value on these decisions it can influence it. Factors stakeholders can use to use to assess the reputation are: * Reputation Value- hard to generate and very sensitive. It’s an intangible asset of immense value to the organisation and when threatened it can depreciate. The value is determined by external factors that the organisation has no control over but can influence such perception from the consumers etc. Very volatile and can change faster than most other assets and has an adverse effect on all offerings from the organisation. * Perception of control-
* Stakeholders- this are the interest groups affected by the reputation, stakeholders are crucial to issues. * Quality- this is depends on the relative values of the sector or its stakeholders. * Damage- the state of the reputation, the way it reacts and how the threat is handled, all this play a part. It is in every organisations best interest to try to limit the impact of a threat and militating against such reoccurrences and also to bounce back as quickly as possible. These are the main factors to consider when assessing/measuring corporate reputation; these are not prevalent regarding all the stakeholders. There are several other...