At a time when a negative press story can wipe millions off a company’s share price, the old adage that “there’s no such thing as bad press” no longer holds true.
Close to three quarters of people (70%) want to work for firms with a good reputation according to Everyone’s Business, the CBI’s latest business reputation tracker in collaboration with Porter Novelli and Opinium. Similarly, 70% of UK adults will buy from a company with a good reputation. The benefits of demonstrating firms’ positive impact can affect everything from the talent it attracts to a company’s bottom line and must be a priority for business if we are to achieve prosperity, shared.
Business reputation is improving but business can do better
Amid another difficult year for firms, the reputation of business has improved. Last year, a series of events and scandals in the business community had a chilling effect on business reputation. But 2019 has seen this reputational chill start to thaw, with a 4-point rise in those thinking business reputation is good (60%).
Three in five UK adults also think business is a force for good in society (59%). High profile initiatives by Richer Sounds, BT, Capita and others show business doing more than ever before to ensure the UK’s prosperity is inclusive.
However, with just over two in five (42%) believing that businesses are working to improve people’s lives in their local areas, there is a clear opportunity for businesses to amplify the good they do in their communities by creating jobs and supporting public services.
Employees remain vital for unlocking a reputation dividend
A good reputation is built on many factors. However, consistently at the top of the list is how a firm treats its employees with 61% of people saying this is the main way to improve a company’s reputation.
Employees are also some of the best company ambassadors and the public trust their voices and seek them out. Four in five people (81%) are more inclined to trust information from customers or employees about a company. Coordinating a network of customer and employee supporters can help a business celebrate its achievements and value in a way that resonates with the public.
The next generation will reward companies with a clear purpose
Being clear about the purpose that underpins your business is a good long-term investment. More than half of the public state that they are more likely to buy from (55%) and apply for a job (53%) with a company that has a clear social purpose. In the race for top talent, those who ignore this shift in societal attitudes do so at their peril.
But don’t forget to do the basics well
With ongoing Brexit uncertainty, one in two (49%) adults think businesses will find the next year difficult. People are concerned about what this will mean for jobs, wages and our ability to tackle significant social challenges. People want businesses to focus their efforts on the basics like continuing to offer training and development (53%) and a focus on health and wellbeing (49%).
As the UK steers its post-Brexit course, a new wave of economic, social and technological change will reshape our country, posing challenges and opportunities for how we live and work. More than ever, business and government need to answer how do we become a country of prosperity, shared? The latest Everyone’s Business tracker outlines the pathway for starting to reach that summit.