As recent corporate events have made it clear, an organization’s reputation is of paramount importance to its success as well as survival. This is because the happenings leave the corporate credibility at stake while public mistrust spills over into investment markets. As such, there is a need to restore public faith. Reputation accounts for a large portion of a company’s market capitalization and is one of its most important long term assets. It impacts the organization in several ways including stock price as well as the ability to attract and retain customers and employees (Michael and Judy, 2008). Organizational reputation is seen in such factors as the quality of products and services it offers, earnings and business performance, level of integrity in business practices, stability and fairness as an employer, involvement in local communities as well as the degree of honesty and openness. However, with the increased distrust of corporate world, corporate credibility is of paramount importance. Companies today must realize that they are at the mercy of the public (external environment). There is growing realization of the need to foster a good reputation through development of positive relationships with the various components of the external environment. It is for this reason that reputation management has become an integral part of public relations in organizations. Is reputation management an adequate description of the role of public relations in contemporary organizations? This paper aims at analyzing the role of modern public relations with emphasis on its contribution to the achievement of marketing and other organization goals.
As the name suggests, reputation management implies managing the reputation of the organization. It involves ensuring that the general estimation in which the organization is held by the public is not put at stake. It is the process of tracking an organizations actions as well as other entities and stakeholders opinions about the actions, reporting on the actions as well as opinions and reacting to the reports. It involves managing the reputation of an organization of any size whether a large one with an intension of self promotion or a recently established company that wants to make its name known. There are three types of reputation management namely;
Building reputation management- which involves building the reputation for a business that has just been established. It involves both building a good reputation for the business and maintaining it.
Maintenance reputation management aims at keeping an organizations good image superior in the eyes of the general public (Edward, 2004). It is meant for companies that are already established and have good reputation already.
Recovery reputation management- this kind of reputation management is meant for companies that have gotten a bad reputation for any reason.
Reputation management is an integral part of public relations and plays a...