An organization’s brand and reputation are valuable assets and weigh very heavily on the organization’s financial health. And now more than ever, decision makers at top organizations are seeing the value in hiring public relations (PR) firms to help bolster their organization’s brand messaging and recognition, as well as providing services for overall reputation management.
According to a recent study conducted by Eisner, LLP, 54% of directors surveyed said that corporate reputation was a main point of discussion at boardroom meetings this year, second only to regulatory compliance. The findings suggest that more organizations are allocating funds to public relations firms to help preserve and enhance their organization’s reputation.
You Don’t Know What You Have Until It’s Gone
As evidenced by some large firms that have recently suffered what seems to be irreparable damage to their reputations, most organizations are seeing first-hand how quickly one incident can lead to the undoing of decades of good press.
And while many organizations have relied on the services of public relations personnel for some time, the need for the expertise of PR professionals can’t be emphasized enough, as organizations are quickly seeing the financial implications of what can happen when an unforeseen incident is reported to the general public.
All they have to do is look at the stock market. If an organization makes a wrong move and it’s publicized, it’s not uncommon to see that reflected in the organization’s stock value. The same effect holds true for positive press. One well-placed article about how an organization made a positive impact in the community by being a good corporate citizen or a blurb about the company’s latest product or service of high quality and you will likely see the stock prices begin to soar.
But it goes deeper than the daily rise and fall of stock value. The way a company is perceived by the general public can have lasting and even permanent effects on an organization’s reputation, which will undoubtedly affect the organization’s long-term sustainability. That’s why the value of having good public relations staff can’t be emphasized enough.