Reputation and Perception

In the July 9th edition of BusinessWeek there was an article about corporate reputation and how important a company's good name is to stock prices. The most telling example of this was in the case of Wal-Mart versus Target.

As a consumer and a resident of the Twin Cities, home of Target, my perception of Target is that it is innovative, creative and fun. To me, Target is a good corporate citizen and a friend to the environment. On the other hand I see Wal-Mart in a negative light. They do not pay their employees well, they do not provide adequate benefits and they are responsible for killing main street USA. According to this article the difference in their reputations amounts to a 4.9% difference in stock values. That amounts to $9.7 billion dollars of market value. (http://www.businessweek.com/magazine/content/07_28/b4042051.htm)

I am sure that some of these perceptions are grounded in truth. Reputations can not be built on just spin and press releases. In order to have a lasting impression there must be some truth. That said, is Wal-Mart really the bad guy? Is Target the perfect company? Much of their reputations are directly related to their PR efforts and the value of their communication.

This article emphasised the reasons that I am embarking on a career change. As PR practitioners you have the unique opportunity add stock value for your clients and to truly effect how they are viewed. I am excited for the opportunity to help make a real positive difference in the reputations of my clients.