The Age of instant news has given heed for affiliates of any particular enterprise whereby reputation is at stake. I can imagine that once upon a time, there was a time delay in which the actions of a person, company or organization was Fd not directly affect its reputation due to the fact office delay.But this isn’t the case anymore,the general public is information savvy. And whether an athlete gas failed a drug test, a celebrity has been caught using racial slurs or a corporation has been linked to insider trading, reputation mangagement is crucial.
Contrary to popular belief, reputation is not something one owns and instead is something given to a person by others. “Reputation services from delivery-real or perceived-rather than promise”
There was little to no delay when it came to revoking endorsement deals from a person whose reputation is at stake.
Earlier this month, Maria Sharapova shocked the tennis world when she announced she had failed a drug test at the Australian Open. As it turns out, Ms. Sharpova called a press conference in Los Angeles. Sharpova announced that she had been taking the drug Meldinium for a decade.And as it so turned out, Meldonium was added to the WTA Tour’s banned list of substances January 1.
Sharapova’s PR people at IMG were applauded for getting the story out ahead of the press.As it stood, Sharapovacwas the worlds highest-paid female athlete last year with earnings of $29.7 million,including $23 million from endorsements plus appearances and more from other ventures.
Nike was Sharapovas biggest supporter since she was a teen. Some of Sharapova’s other partners including American Expeess,Evian,Head,Porsche and Tag Heur. Still, just as easily as big supporters are ready to endorse a person like Maria Sharapova is just as easy as they are ready to drop them in flash of a reputation compromised.Nike dropped Sharapova amidst confirmation of these allegations which sets a certain tone in regards to how the company Nike itself values its own reputation.
While its certainly easy enough to confuse reputation with image,there is a difference. Even more so, is it of difficulty for one to put a value on reputation such as price, but essentially when you look at a company’s share price , reputation is a factor of indication.
While Nike may have been taking precaution of the company’s assets by dropping Sharapova, the news still affected Nike’s stock price, and it still is affecting the stock price. “A little bit goes along way.” The stock has dropped as low as $56 dollars from around above $60-$68 per share.
Reputation makes all the difference when it comes to the public perception of an “unexpected event” or crisis that ensues, and more importantly, how the public perceives the way in which a particular brand handles an event, based on its reputation.
As of recent an alleged ‘email spamming act” of the penny stock, Rich Pharmaceuticals (RCHA) caused the stock to fall drastically after a sharp incline. The Beverly Hills based company, positioned to find a non-invade cure for Acute Myelocytic Leukemia (AML/ White blood cell elevation and other blood related diseases). With over 300 million free flowing shares, acts such as email spam are reason enough to suspect that somebody, and most likely a shareholder is trying to ignite volatility to move shares from one hand to the next fool, especially whereby a stock price is stagnate. However, the chief operating officer of RCHA denied any involvement.
PR Newswire is an organization responsible for promoting and managing targeted audiences for clients in various industries, one of the major sectors is Securities and Publicly traded companies.
The incident that happened with Rich Pharmaceuticals is a good example of how while reputation is considered, sometimes there can be a lack of consideration in managing reputation amidst crisis.BP is still suffering diminished share prices after the big oil spill.
Chipotle’s stock (CMG) fell nearly 200 points after its second E. Coli outbreak earlier this year. The stick is currently valued at $470.84 cents per share, down from a high of over $700 per share.
Reputation isn’t always realized until it’s been damaged. When reputation has suffers damage, the value of reputation occurs. The main function of many organizations is to solely, provide statistical evidence using metrics and other measurable indexes, such as surveys, to measure the impact of reputation overtime.
“Fortune magazine’s ‘World’s Most Admired Companies’ index is perhaps the best known. PR agency Edelman’s Trust Barometer” is another. Companies care about their positioning in trust or reputation surveys; whether they are up or down and and how they score against competitors.