What happens when an entity's business reputation is cracked? Much like a cracked foundation in a house, damage can seep in. We've mentioned the importance of keeping your business' reputation polished in previous posts, but it bears mentioning again, particularly in light of the latest expose on the Better Business Bureau in Los Angeles. You can read the full article here. The Los Angeles branch was reported to have issued an A- rating back in 2010 to the Hamas terror group.
What are the legal ramifications of a damaged reputation? Depending on the nature of the event that caused the damage, there can be legal consequences to the structure of your business and leadership. A damaged reputation may coincide with lawsuits, even if it is not the direct cause of such action. So how does a business go about maintaining a polished reputation?
1. Remain transparent
The best way to cultivate a stellar reputation is to conduct business in a transparent manner--then there is never a need to be concerned that someone will happen upon a skeleton in the closet. Businesses can remain transparent by encouraging a two-way communication with clients and prospects.
2. Regularly review mission and values
In the course of conducting business, managing overhead, the bottom line, employees, product and service creation and distribution, it's easy to step off the beaten path. Businesses that enjoy a good reputation regularly review the mission and values that were set out at the start. It may be that these change over time, but they act like a map, allowing a business to stay on track and deliver what's promised.
3. Reach out for help
There are organizations that will help a business build, manage and even repair a reputation. It might seem like the pot calling the kettle black, but be sure to research the reputation of these providers before engaging their services. After all, an organization that cannot manage its own reputation will hardly be able to help you with your business' reputation.