Reputation ROI

What others think of your brand can cost you.

Echo Research just released its annual “Reputation Dividend” report, finding that corporate reputation added $3.19 billion to the market capitalization of the Fortune 500. The ‘reputation dividend’ wasn’t enjoyed by all; Apple’s value is enhanced by 58% by its popularity, while Sears’ shaky image has eroded 39% from its value, according to the Echo analysis.

Echo helpful provides a rundown of the most important factors that drive and support corporate reputation. This amounts to a handy priority list for those who manage conversations. Echo’s top three factors are:

  • Value of the company as a long term investment
  • Quality of the company’s goods and services
  • Global competitiveness

A strong messaging methodology will ensure that everyone engaging in conversations on behalf of the company can reinforce the company’s most important reputation drivers.  It’s not enough to understand the building blocks of a reputation that supports corporate value: it’s up to chief communication officers to translate those to a plan — and to put that plan into action.


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