Heroes, Villains and Victims: Understanding and Managing Reputational Risk

TCH Banking Perspective
Wednesday, October 15, 2014

With the rise of 24-hour media coverage and unpredictable user-generated content, damage control has become increasingly difficult for companies. The public generally blames companies for their failings, but do not feel sorry for companies when they are victims -- even if they were harmed by criminals, as during the Target breach. Daniel Diermeier of the Harris School of Public Policy writes that rather than hoping for sympathy, companies should play the role of heroes who come to the rescue of the perceived victims -- their customers. Diermeier also advocates institutionalizing the function of reputation management by empowering a chief reputation officer or a corporate reputation council.