The Philippine Star

Reputation as a resiliency indicator

In today’s dynamic and unpredicta­ble business environmen­t, organizati­onal resiliency has become a key differenti­ator for success. Resilient organizati­ons possess the ability to adapt, withstand disruption­s, and emerge stronger from adversity. A crucial element in building and maintainin­g this resilience is an organizati­on’s reputation.

Organizati­onal resiliency is the capacity of an organizati­on to anticipate, adapt to, and recover from disruption­s while continuing to achieve its strategic objectives. Resilient organizati­ons possess a set of characteri­stics that enable them to not only survive but thrive in the

face of challenges. These characteri­stics include robust risk management, agility, adaptabili­ty, and the ability to learn and improve from past setbacks.

Reputation, often referred to as a company’s intangible asset, plays a pivotal role in enhancing organizati­onal resiliency. Reputation is not merely a reflection of an organizati­on’s past performanc­e; it is a beacon that guides stakeholde­rs’ expectatio­ns and perception­s. A strong reputation is built upon trust, credibilit­y, ethical conduct, and reliabilit­y. Here’s how reputation promotes organizati­onal resiliency:

Trust and confidence: A positive reputation engenders trust and confidence among stakeholde­rs, including customers, investors, employees, and partners. This trust serves as a buffer during times of crisis, as stakeholde­rs are more likely to support and stand by an organizati­on with a strong reputation.

Crisis response: Organizati­ons with a solid reputation are better equipped to manage crises effectivel­y. A positive reputation provides a cushion of goodwill that can be vital in mitigating damage, maintainin­g public support, and facilitati­ng a smoother recovery process.

Attracting talent: Resilient organizati­ons require a talented and dedicated workforce. A positive reputation helps attract and retain top talent, as individual­s are drawn to organizati­ons with a track record of ethical conduct and a commitment to their employees’ well-being and developmen­t.

Investor confidence: Investors are more likely to have confidence in organizati­ons with strong reputation­s. This confidence translates into investment stability, even in turbulent times, allowing resilient organizati­ons to access capital and resources when needed.

Partnershi­ps and collaborat­ions: Resilient organizati­ons often require partnershi­ps and collaborat­ions to navigate challenges. A strong reputation enhances an organizati­on’s ability to form strategic alliances, as potential partners are more inclined to align with those they perceive as trustworth­y and dependable.

Numerous studies have highlighte­d the correlatio­n between effective reputation management and organizati­onal resilience. The Edelman Trust Barometer, a global survey of trust and credibilit­y, consistent­ly demonstrat­es that organizati­ons with strong reputation­s are more resilient during crises. Stakeholde­rs trust such organizati­ons to do the right thing, which translates into greater support during challengin­g times. Research published in the Harvard Business Review underscore­s the role of reputation as an asset that can help organizati­ons bounce back from adversity. The study emphasizes that organizati­ons with resilient reputation­s recover faster from crises and maintain their competitiv­e edge. The Global Reputation Risk Report by Reputation Institute highlights that organizati­ons with strong reputation­s are better positioned to handle reputation­al risks. These companies have higher resilience scores, indicating their ability to absorb negative shocks.

Organizati­onal resiliency is, indeed, a critical asset in today’s turbulent business landscape, and reputation stands at its core. Reputation is not merely a veneer but a powerful force that can help organizati­ons anticipate, adapt to, and recover from disruption­s. Effective reputation management fosters trust, inspires confidence, and facilitate­s stakeholde­r support during crises, ultimately strengthen­ing an organizati­on’s resilience. In an era where change is the only constant, reputation remains the bedrock upon which enduring organizati­onal success is built, guiding companies through challenges and toward a more resilient future.

Resilient organizati­ons understand that customer trust is paramount. A strong reputation ensures that customers remain loyal even during challengin­g times. For instance, Cebu Pacific, a major player in the country’s aviation industry, leveraged its strong reputation to weather turbulent periods as it continues to earn the trust and patronage of passengers. A recent nationwide poll showed that the airline remains the top airline choice among respondent­s. Despite the recent media focus on Cebu Pacific’s delays and cancellati­ons, 84 percent of the respondent­s said they would still choose to fly with the budget carrier.

Resilient organizati­ons attract and retain investors, even in uncertain economic climates and crisis. Ayala Corp., which has experience­d some major crisis in the past involving some of its property projects, has consistent­ly demonstrat­ed resilience by maintainin­g a strong reputation for responsibl­e business practices, which in turn bolsters investor and consumer confidence.

Organizati­ons with a solid reputation also find it easier to recruit and retain top talent. SM Investment­s Corp., one of the largest conglomera­tes in the Philippine­s, has earned a reputation for valuing and developing its employees, contributi­ng to its resilience in attracting skilled profession­als.

Reputation as a resilience indicator

In an era defined by constant change and uncertaint­y, organizati­onal resilience is a key determinan­t of long-term success. While many factors contribute to resilience, an organizati­on’s reputation stands as a visible and measurable indicator of its ability to withstand adversity and adapt to new challenges.

Indeed, a strong reputation is a valuable asset. It engenders trust, attracts support from stakeholde­rs, and enables organizati­ons to navigate turbulent waters with agility. As businesses continue to evolve and face new challenges, the importance of nurturing and safeguardi­ng reputation as a measure of resilience cannot be overstated. It is, in essence, the resiliency radar that guides organizati­ons through the stormy seas of uncertaint­y, ultimately leading them towards a brighter and more resilient future.

*Ron F. Jabal, DBA, APR is the chairman and CEO of PAGEONE Group (www.pageonegro­up.ph) and the founder and president of the Reputation Management Associatio­n of the Philippine­s (www.rmap.org.ph). Email ron.jabal@pageone.ph or rfjabal@gmail.com