A company’s name, its brand and reputation are widely recognized as the cornerstones of corporate value. According to a report by Thomson Reuters and Interbrand, around 75% of the average company’s value consists of brand reputational value.
Brand reputational value has four basic elements: expectations, perceptions, business relationships and unique intellectual property assets. Improved quality in each of those areas increases financial value for the organization.
In today’s hyperconnected world, protecting a positive business reputation is a real challenge and reputational risk is a big worry.
Alexander Brigham and Stefan Linssen of the Ethisphere Institute, identified four main avenues by which you can quickly lose your company’s brand reputational value. They are:
- The Internet and social media;
- Subcontracting and outsourcing;
Companies typically spend 12.5% to 15% of their value annually protecting, maintaining and insuring their tangible assets like buildings, equipment and machinery. But many companies don’t invest that way in their intangible brand and reputation assets, despite the rapid growth of their economic importance.
Executives should treat their brand reputational value like any other asset. The cost of a compliance or ethics failure goes well beyond legal fees, fines and penalties. It spills over into turnover, share price and shareholder value and heightened scrutiny in the future.
Brand and compliance audits will help you to protect your company’s brand and reputation, safeguard its integrity, and maximize its value.
DTECT can support you to gain the necessary insight to strengthen and reinforce your company’s brand and reputation ahead of possible risks by analyzing your current position and receiving in-depth knowledge about your:
- Brand integrity;
- Customer experience;
- Operational effectiveness;
- System compliance.
Feel free in contacting DTECT to find out more about our brand, compliance, retail and operational audits that prevent you from losing your company’s brand reputational value.