As long as there have been businesses, reputation has mattered. Your business’ reputation is the intangible thing that drives people to buy from you or to want to work for you. It spurs customers to recommend you, without prompting. And it is ultimately the essence of who you are and what your business does. But what is new is how a business’s reputation is affected (for good or bad) – this has changed dramatically with the advent of social media, such that it is now more of a day-to-day concern for those running businesses than it ever has been before.

In today’s world, reputation can be irreparably damaged in a matter of hours, or even minutes, as a direct result of the dramatic increase in the use of social media. This affects every single business. I have met many CEOs of large business-to-business companies who genuinely believe that social media is a consumer-driven game and really has no major impact on them. I believe that view is fundamentally flawed.

One of the major pitfalls that I have seen companies come undone by is their lack of transparency on social media. With global social media platforms enabling transparency – both personal and professional, the stage has been set and businesses need to play along. Gone are the days where companies held all their cards close to their chest. Today, the currency of reputation is built on trust and transparency.

So how can you ensure transparency on social media and why is it important?

  1. In the first instance, it is really important to ensure you are clear on your brand’s personality. This was less important several years ago, but the broad use of social media now means that people’s expectations have changed. They generally expect businesses to have a more human face, while still offering a professional product or service. You need to make sure that you are walking the walk and that the personality you put out on social media is a true reflection of your culture in all levels of the business, in case you are exposed from the inside!
  2. Consider whether or not you are using social media as a platform to get your story out there and to help people experience your brand. Social platforms help you get your story heard, in the way you believe it should be told. It’s the most powerful way to connect directly with your audience. It puts some of the reputation-shaping power back into your own hands, but you need to be careful that you are not spinning your way to victory. Earnest communications is the key. And apart from simply telling ‘your’ story, are you giving your audiences the information they want to hear from a company like yours? What will genuinely pique their interest? If you don’t know…why not ask them?
  3. A careful audit of online conversations can give you solid insights into general public opinion. This might influence your social media strategy, specifically how you will communicate with your audience. Engage with your communities (online and off) in a human way. Use social media not only as a platform for content distribution, but to have genuine conversations. This means that you need to identify which platforms your audience uses most and tap into this community with insightful commentary.
  4. Consider who is managing social media communications. 82 per cent of employees say they trust a company more when the CEO and leadership team communicate via social media (eMarketer). This is no doubt due to the human feel and promise of transparency from within the business.
  5. Finally, when an employee shares something potentially damaging about the business on a social media platform, it is simply not possible to go into shutdown mode and try to hide the truth. Seeking to develop a sense of secrecy about how your company operates suggests old-fashioned thinking. Be honest, be authentic and be real. Sometimes that is going to mean owning your mistakes.

With the dawn of social media, it is safe to say that reputation management will never be the same again. The power to make or break your company’s reputation lies firmly in the hands of all those you interact with. But shaping their perceptions is up to you. Whether you choose to embrace social media or not, it will have an impact on how you and your business are perceived. Can you afford to miss a trick?

As CEO of a business, the important thing is not that you know the ins and outs of social media, but simply that you ‘get it’ and its importance when it comes to your reputation. And critically, acknowledging the significance of acting in line with your core values, across every area of your business, ensures that you are minimising the risk of damage to your reputation. A company that is seen to ‘do the right thing’ time and again will build up enormous goodwill among important stakeholders, and for good reason.

When it comes to corporate reputation management and the role of social media, no one has all the answers. But I do believe that those business leaders who seek to offer transparency are the ones who will win in the long run.

 

By Jennifer Janson, author of The Reputation Playbook and managing director of Six Degrees.


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