REPUTATIONAL CRISIS: SAVING THE MOST VALUABLE A COMPANY’S ASSET
Keywords:corporate reputation, reputational crisis, reputational capital.
The paper deals with presenting the concept of reputational crisis as an issue in its own rights rather than just one of subsequences of any other crisis. Growing interest in reputation crisis management is determined by acknowledging a company’s reputation to be a valuable corporate asset that has to be managed and protected, as well as growing environmental pressure to a company to be best and reliable player. Growing power of media should be acknowledged as one of the most important factors determining reputational crisis’ run and outcome. Despite growing concern in protecting ones reputation, there is still more case studies of reputational crisis than theoretical conceptualizing of crisis in a company’s reputation.
The paper aims at revealing the construct of reputational crisis. The following four questions presented below are being discussed in the paper: how can be a company’s reputational crisis defined? what are the possible sources of reputational crisis? what are the possible concequences of reputational crisis? what should be a company’s response to reputational crisis? The research method of logical, systematic and comparable analysis of scientific literature was applied.
In the paper the definition of reputational crisis is generated; the possible sources (from social irresponsibility, too aggressive and shocking marketing, inadequate behaviour of leaders, up to failure to comply with regulatory obligations, defamation, etc.) highlighted and possible subsequences of reputational crisis are presented. Additionally, a company’s response to reputational crisis is discussed and some guidance for dealing with reputational crisis presented.