Joachim Klewes Robert Wreschniok. Editors. Reputation Capital. Building and Maintaining Trust in the 21 st Century
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1 Reputation Capital
2 Joachim Klewes Robert Wreschniok Editors Reputation Capital Building and Maintaining Trust in the 21 st Century 123
3 Editors Prof. Dr. Joachim Klewes Pleon GmbH Bahnstr Düsseldorf Germany joachim.klewes@pleon.com Robert Wreschniok Pleon GmbH Theresienhöhe München Germany robert.wreschniok@pleon.com ISBN e-isbn DOI / Springer Heidelberg Dordrecht London New York Library of Congress Control Number: c Springer-Verlag Berlin Heidelberg 2009 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg Printed on acid-free paper Springer is part of Springer Science+Business Media (
4 Contents Reputation capital Building and maintaining trust in the 21st century...1 by Joachim Klewes and Robert Wreschniok Introduction...1 Acknowledgements...7 Part I: Reputation in the 21st century Good or evil? Trust and reputation in the age of globalisation...11 by Mark Eisenegger Trust and reputation Fundamental and indispensable...11 The true, the good and the beautiful Three-dimensional reputation..12 Why is reputation important?...15 Regularities...16 In conclusion: The financial market crisis and its consequences...20 Reputation or: How I learned to stop worrying and love the market...23 by Jonathan Silberstein-Loeb Reputation and testimony...24 Reputation and the market...26 Propositions...30 Markets, information, and reputation...31
5 VI Contents Part II: The business case for reputation Recognition or rejection How a company s reputation influences stakeholder behaviour...39 by Manfred Schwaiger, Sascha Raithel and Matthias Schloderer Reputation as a management objective...39 Our approach to corporate reputation management...42 Reputation and capital market performance...46 Reputation and the war for talents...49 Conclusion...51 What s measurable gets done Communication controlling as a prerequisite for a successful reputation management...57 by Reimer Stobbe The basic model of communication controlling...57 Reputation in the impact level model of communication controlling..68 Conclusion and implementation...69 The role of corporate and personal reputations in the global war for talent...73 by Kelvin Thompson And yet the war for leadership talent rages on...73 Talent and the science of assessment...74 Reputation matters more than ever...75 The search begins...77 Why executive search can help...80 The CSR myth: true beauty comes from within...83 by Matthias Vonwil and Robert Wreschniok Corporate social responsibility an approximation...85 CSR as a function of social reputation...87 Social reputation in the public s perception...88 Actively cultivating social reputation as a reputation risk...92 Beyond CSR: towards a new approach to corporate social responsibility...96 Summary: Questioning CSR...97
6 Contents VII The Brussels reputation story the interplay of public affairs and reputation by Peter Lochbihler Reputation and the European Union Reputation and public affairs How does an organisation s reputation have an impact on public affairs activities with EU institutions? A glance at public affairs in practice What characteristics of a good reputation matter especially in Brussels, and how must an organisation present itself there to enjoy the trust of EU institutions? Part III: The 21st century of reputation crisis Managing reputational risk A cindynic approach by Sophie Gaultier-Gaillard, Jean-Paul Louisot and Jenny Rayner The essential triangle: the organisation, its message and its partners expectations The mechanisms of reputation Potential dissonances impacting negatively reputation Reputational risk management A vital approach within the ERM framework Managing reputational risk Case studies by Alex Hindson and Jean-Paul Louisot Case study 1 Tylenol product recall Treating contamination? Case study 2 Coca-Cola product contamination Leaving a bad taste Case study 3 Mattel recall Playing with safety? Summary of the lessons learned from the cases Managing reputational risk From theory to practice by Sophie Gaultier-Gaillard, Jean-Paul Louisot and Jenny Rayner What is reputation? Why is reputation valuable? Implementing risk management for the risks to reputation...168
7 VIII Contents Reputation and regulation by Hans Caspar von der Crone and Johannes Vetsch The mechanism of reputation Emergence of regulation Regulation and risk awareness Re-establishing the reputation Regulation of financial markets Self-regulation and government regulation Measuring risks to reputation by Frank Herkenhoff The location of reputation risks The basic model of risk management Theoretical basis: selection research The process of risk management Risk management Crisis management in the media society Communicative integrity as the key to safeguarding reputation in a crisis by Ansgar Thießen The value of reputation for organisations Crisis situations as a threat for reputation Safeguarding corporate reputation through crisis communications Conclusions and outlook Getting the stain out of sustainable brands by Jeremy Cohen In PR terms Green is red hot Green branding A new industry Beyond PR The cardinal sin The 3 Es Conversational marketing In conclusion...247
8 Contents IX Our reputation is at stake Corporate communications in the light of the global economic downturn by Dirk Popp This crisis is especially vicious. Isn t it? Media in downturn Crisis communication in upturn Globalisation and new media act as accelerants Day-to-day business is eating up strategy Crisis communications in practice: Proven instruments have to be deployed strategically Telling bad news and keeping morale high Part IV: New perspectives for reputation management in the 21st century Community reputation communicates change to the world by Joachim Kuss Reputation is people s business Community reputation is a phenomenon of globalisation If you concentrate too much on your image, you endanger your reputation Use and communicate the full range of events Community branding is the core of reputation management Practical rules for community reputation management EU accession: Turkey s reputation on its journey towards EU membership by Arzuhan Doğan Yalçindağ and Julia Schankin How does country reputation management work The TUSIAD campaign: Managing Turkey s reputation The role of the media The role of opinion leaders Measuring a country s reputation Dialogue as a trust building measure
9 X Contents Consistency: a proven reputation strategy. How companies can optimise their message by Joachim Klewes Corporate Messaging A challenge similar to herding cats? Reputation A complex concept Observing the reputation building process The Reputation Experiment Strategies for successful corporate messaging The Agora of the 21st century: On the invention of many-to-one communication by Robert Wreschniok Onwards comrades, we have to go back Reputation opportunities and risks in the media society The Agora of the 21st century The democratisation of communications Are companies ready for many-to-one dialogue? People seek dialogue The leader's role in managing reputation by Gary Davies and Rosa Chun The potential role The spill-over from leader to corporate reputation The curse of the charismatic CEO The personality of the leader The leader s role in a crisis The role of other leaders Coca-Cola Hellenic reputation case study by Jens Rupp Reputation and trust Building reputation responsibility Corporate social responsibility Watching reputation grow...336
10 Contents XI Never underestimate the importance of details by Tomaso Galli Building reputation in luxury today The role of the fashion press Critical assets for a luxury brand reputation Luxury brand strategies Luxury brands and corporate communication Learning from the luxury business Is there no prescription? Reputation in the pharmaceutical industry by Andrea Fischer All just a question of communication? A long way: Approaches to improving reputation We market our products according to strict rules We produce safe products We care about others We can work better Part V: Reputation strategies for the 21st century Who wants to be a millionaire? Investment strategies for reputation management in the 21st century by Robert Wreschniok and Joachim Klewes Reputation as a strategic investment Return versus risk One man, one company, two sectors: The first reputation millionaires of the 21st century Part VI: Appendix About the authors Index...393
Part I: Reputation in the 21st century Good or evil?
Reputation capital Building and maintaining trust in the 21st century...1 by Joachim Klewes and Robert Wreschniok Introduction...1 Acknowledgements...7 Part I: Reputation in the 21st century Good or evil?
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