Reputation and Trust -- Impact on the Bottom Line. Michael Cherenson

1. TRUST & REPUTATION Michael G. Cherenson, APR Executive Vice President, Success Communications Group 2008 Chair-elect, PRSA Board of Directors October 2008

4. DWYSYWD D o W hat Y ou S ay Y ou W ill D o Credibility is:

7. REPUTATION = “CAN I TRUST YOU?”

8. “ To be persuasive, we must be believable; to be believable we must be credible; to be credible, we must be truthful.” -- Edward R. Murrow

12. Greatest Business Risks Source: Economist Intelligence Unit, “Reputation Risk of Risks,” 2005 Senior Executives

16. STUDY: JOB PERFORMANCE Is There a Link Between “Reputation” and Job Performance? 98% of HR professionals and 91% of employees say yes.

17. STUDY: FINANCIALS MBA STUDENTS

18. People Take Action On Companies They Do Not Trust Have you ever done this to a company you do not trust?

20. 2008 Trust in Institutions Source:

21. 2008 Trust in Institutions

22. NOT ALL ARE EQUAL… Source:

23. Source:

24. Media Fragmentation

25. Media Fragmentation

26. NEW MEDIA MODEL TRADITIONAL MEDIA MODEL

28. Who is Credible? In general, when forming an opinion of a company, if you received information from (INSERT PERSON) about this company, how credible would the information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all? 36 Regular employee of company 12 Public relations executive 9 Blogger 11 Entertainer/ Athlete 22 CEO of a company 51 A person like yourself 49 Doctor or healthcare specialist 44 Non-profit organization or NGO representative 47 Academic 43 Financial/ Industry analyst 31 The CEO/leader of your company or employer* 16 Lawyer 22 Government official or regulator (%) TOP 2 BOX Source:

29. Who is “A Person Like Me?” Ranking All other things being equal, which THREE of the following characteristics are most likely to increase your trust in someone sharing information about the company? Are you MOST likely to trust the person if he/ she… [RANDOMISE LIST. ACCEPT THREE] 5 Is the same religion as you 3 Is from your local community 2 Holds similar political beliefs to you 1 Shares common interests with you 4 Is the same profession as you 6 Is the same nationality as you 7 Is the same gender as you 8 Is the same race/ ethnicity as you Source:

32. How do you build a good reputation and restore Trust?

33. Source:

34. REPUTATION Visible Transparent Distinctive Consistent Authentic Source: Charles Fombrun

35. HOW TO BUILD CREDIBILITY? COMMUNICATE

36. Listening to Employees Builds Trust Which are the THREE most important actions for a global company seeking to build trust among its employees?

43. TRUST – “I’M SORRY” Veterans Administration Hospital Lexington, KY … a large percentage of patient dissatisfaction was generated by physician attitude and denial, rather than the negligence itself. … close to half of malpractice cases could have been avoided through disclosure or apology… … what a majority of patients really wanted was simply an honest explanation of what happened and, if appropriate, an apology.”

44. I’M SORRY?

45. Source:

47. Q&A

48. Michael G. Cherenson, APR Executive Vice President, Success Communications Group Chair-elect, PRSA Board of Directors [email_address] 973-992-7800 x. 104 www.successcomgroup.com