By Njeri Kagwe
Building a successful business takes years, from registration to profitability and scaling. Yet, a single incident can damage its reputation and bring everything crashing down. In today’s competitive business environment, cultivating and safeguarding a positive public image is no longer optional but a strategic necessity.
According to a 2020 study titled The State of Corporate Reputation in 2020: Everything Matters Now by Weber Shandwick and KRC Research, up to 63% of a company’s market value is directly tied to its reputation.
Additionally, research by the Harvard Business Review and Nielsen indicates that 68% of consumers are willing to pay up to 15% more for products or services from a business with a strong reputation. These insights underscore the significance of a company’s image on customer trust, pricing power, and overall financial success.
Despite this, many businesses only begin to value reputation management when a crisis hits—when investors and customers start walking away, prompting rushed responses to negative comments online or hurried clarifications through the media. Being proactive is far more effective than reacting under pressure.
This reactive approach often stems from the misguided belief that reputation management is only relevant for large corporations. Some small and mid-sized businesses see it as an unnecessary expense or assume it has little impact on their bottom line. However, in my experience advising both corporates and small enterprises, I have found that protecting a company’s image is critical for small players and industry giants equally.
Contrary to the popular saying, not all publicity is good publicity. However, with the right preparation, even negative attention can become an opportunity for growth and resilience.
Therefore, the big question is: How can businesses crisis-proof themselves and remain profitable? It starts with understanding the specific risks within your sector. Some industries are more vulnerable to crises than others are, and identifying potential pitfalls allows for better preparation. Mapping out possible issues enables faster responses or even crisis prevention.
To achieve this, businesses should develop an issues management plan that clearly outlines the resources and actions required to handle each potential crisis. A key component of this plan is the development of holding statements; pre-drafted messages that can be quickly shared with the media and stakeholders to provide context and prevent speculation. The goal is to control the narrative from the outset.
Open communication within the business is equally important. Employees are often the first to detect when something is going wrong. Encouraging early reporting can prevent escalation. Employees are also the company’s first brand ambassadors. In times of crisis, they can either defend the brand or distance themselves from it. A company with strong internal relationships is far more likely to withstand public scrutiny than one grappling with internal discord.
It is also vital that your team knows how to handle media inquiries. In today’s digital era, anyone can publish content, often without verifying the facts. Allowing untrained or unauthorized staff to speak to the media or the public can cause more harm than good. That is why businesses should invest in media training for key spokespersons. This ensures consistent messaging and helps avoid public contradictions.
Beyond internal preparedness, businesses must monitor what is being said about them externally through continuous intelligence gathering. This can be done via tools like Google Alerts or more advanced social listening platforms. These tools track mentions and gauge public sentiment in real time, enabling early responses to negative narratives before they escalate. They also allow for prompt engagement with customer concerns, enhancing customer relations and loyalty.
Reputation management should also include sector monitoring. Knowing which topical discussions your company should engage in and which to avoid helps reinforce your image and avoid unnecessary exposure to controversy.
Ultimately, reputation management should be embedded into everyday operations. A positive image builds customer trust, attracts opportunities, and ensures long-term success. Conversely, a damaged reputation can lead to customer loss, declining sales, investor withdrawal, and even business closure.
The good news is that maintaining a positive image does not have to be expensive or complicated. It begins with being proactive: understanding your business environment, identifying potential risks, and putting in place practical, affordable mitigation measures. At the end of the day, a business is only as good as its reputation.
Njeri Kagwe is the Managing Director, Communicis Ltd | Email: kagwe@communicis.co.ke
