A good reputation affects all aspects of a company’s operations

The hotel industry has started setting room prices based on reviews from booking websites. According to a Harvard study, reviews on Yelp translate directly to a restaurant’s revenues. An 18 percent difference in profits has been recorded between 3-star and 5-star restaurants. However, while it is fairly easy to check the reputation of a travel company or restaurant, it is a completely different story when it comes to large organizations.

A company’s reputation depends on multiple variables, and factors more beyond mere good press coverage are becoming increasingly important. These factors vary for every industry, ranging from employees’ opinions to comments posted on social media. There is, however, one factor that is common to them all – the image of the company’s CEO. If they are seen and heard to act as true leaders and can convincingly present their corporate vision to the market, then that company stands out from the competition. Customers also expect CEOs to be more involved in current global issues, and not just pressing company matters. A study by Edelman showed that 73 percent of respondents believe that, as well as focusing on boosting profits, companies should takes steps to economically support their local communities. We expect businesses to offer good products and communicate with their customers, but also to act responsibly. Recently, Burger King decided to withdraw plastic toys from its children’s meals, which the fast food chain first introduced back in 1990, copying McDonald’s. Now, the latter will most likely be copying the former considering the significant increase in customer awareness; nowadays, even children understand the need to cut back on plastic. Speaking of which, this single move by Burger King will save up to 320 million tons of plastic.