Wednesday, July 04, 2007

What price reputation: BusinessWeek article references Factiva Insight

This week, a BusinessWeek article referenced Factiva from Dow Jones as one of the vendors who can help companies get more scientific about reputation management.

It said:
"That's why companies are trying to get more scientific about reputation management. Many big companies now shell out $2 million a year on image research. This will be a tiny slice of the $4.2 billion spent on PR this year, but such research is growing fast. To get a fix on how companies are seen publicly, they are hiring firms like Factiva and Delahaye that use powerful search engines to track databases of all print, broadcast, and Internet coverage and to search for trends."

The article debates amongst other things, whether a good reputation is linked to better stock prices. This echoes the findings of a white paper Factiva commissioned in 2005, entitled Strong Corporate Reputation Delivers Shareholder Value...But Who Controls It?. Worth a read, but if you want the short answer - yes. Good reputation was found to have impacted share price positively.

It was interesting to note that reputation management was not discussed too much at last week's PR Week Forum, as it had been in earlier years. As I mentioned earlier in the week, there was more focussed on online communities - which can certainly have an impact on a company's reputation.

Anyway, check out the BusinessWeek piece!

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