A Framework for measuring Corporate Reputation

The Reputation Quotient of Harris-Fombrun allows organizations to gauge how
corporate stakeholders perceive the reputation of the company. The Corporate Reputation Quotient can be used by organizations that benefit from understanding how their organization’s reputation is perceived by stakeholder’s verses their perception of the competitors.

By using 6 categories which encompass 20 individual factors the Corporate Reputation Quotient is able to establish the view stakeholders have of the reputation of an organization. The 6 categories are Emotional Appeal, Products and Services, Vision and
Leadership, Workplace Environment, Financial Performance and Social Responsibility.
These categories were selected to measure multiple views of the organization’s
reputation.

To measure the corporate reputation quotient, surveys are used through
which questions are asked for all the 20 factors in the 6 categories. Maintaining a strong
positive view of reputation is incredibly important to organizations as the support of the
stakeholders can make or break the business.

The 6 categories of the Reputation Quotient are:

1. Emotional Appeal includes factors which indicate how the stakeholders feel about the company. Examples include good feelings, trust, admiration and respect of the company.
2. Products and Services includes factors which measure the value that stakeholders perceive they get from the products and/or services. Examples include high quality, innovative, good value, and stands behind products and/or services.
3. Vision and Leadership includes factors which reveal how stakeholders feel regarding the organizations vision for the future and role/behavior of leaders. Examples include excellent leadership, clear vision of the future and capitalizing on market opportunities.
4. Workplace Environment includes factors which measure whether stakeholders feel that the management is doing a good job and that the company would be a good place to work for. Examples include good employees, good company to work for and well managed company.
5. Financial Performance includes factors which assess how stakeholders perceive the monetary strength of the company. Examples include record of profitability, appear to be a low risk investment, have strong prospects for future growth and tend to outperform competitors.
6. Social Responsibility includes factors which gauge the stakeholders view of how the company complies with its responsibility to the environment and society in which it operates. Examples include supports good causes, are environmentally responsible and treat people well.

Surveys which are designed as tools to calculate the Reputation Quotient are inline with
market research guidelines. These surveys should be conducted randomly. Their results overtime guide the organization in becoming a more respected and/or visible
organization.

The subsequent attributes of the 6 drivers of corporate reputation can be listed as following:

Emotional Appeal

• good feeling about the company
• admire and respect the company
• trust the company

Products and Services

• stands behind products/services
• offers high quality products/services
• develops innovative products/services
• offers products/services that are good value

Vision and Leadership

• has excellent leadership
• has a clear vision for the future
• recognizes/takes advantage of market opportunities

Workplace Environment

• is well managed
• looks like a good company to work for
• looks like it has good employees

Financial Performance

• record of profitability
• looks like a low risk investment
• strong prospects for future growth
• tends to outperform its competitors

Social Responsibility

• supports good causes
• environmentally responsible
• treats people well

Making random checks, these criteria taken together result in lists of most reputable and/or visible companies.  The result obtained by the Reputation Quotient can only be compared with similar organizations in a specific industry. Factors within the 6 categories are also generally industry specific. Results compared across various industries have been found to be relatively meaningless.

As usual I did a short presentation for you. You can watch it below or download it via visiting my Slideshare account…