Slow Economy add Pressure to Companies

The stock market closed on a sour note today making the first month of 2008 a miserable one on Wall Street.  With the economy down, fear and panic overcome the public.  While customer spending slows, it seems that the reputation of businesses means more now than it ever has. Well-known companies that now find themselves hurting turn to public relations to help overcome this struggle.  

The loss of customer loyalty and huge drops in stock prices make it appear as though successful companies such as Starbucks and Circuit City are out of strategies.  Kasper Nielsen, from Reputation Institute, is one advisor to offer advice.  It is important for any business and especially CEO to understand that building and sustaining corporate reputation in hard times such as these is no easy feat.  Nielson stresses that, "mending reputations can't be done overnight."  

Reputation Institute's process involves a seven-step analysis of why the companies image has deteriorated, who is affected by it, what they want, and lastly what must be fixed.  Nielson explains that although it is common for a business to focus on their image only following a crisis, it should actually be on the forefront of the mind constantly in order to build a "reputation platform."

Although rebounds are not immediate following a slump, it is crucial to keep employee morale high.  Crisis public relations can only do so much to improve a companies image, but morale is up to top management and CEO's.  

In times like these when reputation can fade so quickly, a comeback is a slower process. However, with good use of PR, cooperation from CEO's, and support from employees and others affected, success is attainable in time.