Companies with exemplary reputations tend to attract and retain top talent. But what makes some companies more successful at creating and nurturing strong reputations? And how can job seekers discern which companies enjoy the best reputations, particularly for their workplace environment? In this adaptation from his new book "The 18 Immutable Laws of Corporate Reputation: Creating, Protecting, and Repairing Your Most Valuable Asset," Wall Street Journal news editor Ronald J. Alsop describes how some companies make employees their reputation champions.

By Ronald J. Alsop

C

orporate reputation has sunk to an all-time low. The continuing wave of scandals, the many instances of executive greed and sweeping employee layoffs have conspired to make the public incredibly distrustful of companies. In a recent study by Harris Interactive and the Reputation Institute, a stunning three-quarters of the respondents rated corporate America's reputation as either "not good" or "terrible."

In this environment, how can job seekers determine which companies still enjoy positive reputations? It isn't easy, but some companies clearly stand out for both their overall reputation and for their workplace policies.

Reputation rankings like the annual Reputation Quotient (RQ) can be a guide to companies with a stellar image. For the latest RQ ranking, Harris Interactive and the Reputation Institute surveyed the general public and found that UPS, FedEx, Microsoft, Walt Disney, Dell and Johnson & Johnson scored highly on workplace attributes, such as rewarding employees fairly and being a good company to work for.

But such rankings usually include only a few large, well-known companies. It will take more digging on Web sites and in news articles and corporate publications to learn about the reputations of most companies. Important clues for prospective employees include a meaningful ethics program and values statement, corporate-citizenship activities and high scores for customer satisfaction.

Loyalty Ambassadors

Perhaps the most telling question for employees, however, is whether the company considers them critical players in the reputation-management process. Companies with the most stellar images know they must make employees the primary champions of their reputation. If they treat their employees with respect, they know they will likely earn a good reputation with customers and other stakeholders, as well. After all, it's the employees who are on the front lines working with customers, suppliers, shareholders, government officials and other audiences. Companies should make them loyal ambassadors because their effect on reputation is so immense.

Unfortunately these days, many CEOs don't seem to realize that employees can make or break their company's reputation. Research by Towers, Perrin, a human-resources consulting firm, has found a strong relationship between employee engagement and customer satisfaction, which in turn correlates closely with strong corporate reputations and financial performance. However, Towers found that few managers are successfully motivating employees. A minority of employees in the Towers study said managers communicate effectively (28%), empower workers (24%), provide goals and directions (21%), and recognize and reward good performance (21%).

Companies have been slow to involve employees in reputation management, but that may be changing. Sears, Roebuck & Co., for example, started tapping 20 managers it views as up-and-comers and placing them as board members or volunteers at local nonprofit organizations. "Our internal-influencers program will raise Sears's profile in the Chicago community, where we have been less involved since we moved out to the suburbs," says Ron Culp, who recently retired as senior vice president of public relations and government affairs. "Their reputation as bright, energetic, committed people will prove to be a positive for Sears's reputation."

Creating a Culture

To be sure, some companies have long understood the benefit of making employees their biggest boosters. S.C. Johnson & Son Inc., the household-products maker, says in its corporate philosophy statement, "We believe our fundamental strength lies in our people." It encourages employee commitment with many work-life balance programs, such as sabbaticals to "recharge their batteries," including benefits and partial pay, and a "no meeting day" policy two Fridays a month. The meeting-free Fridays allow employees to be more productive so they don't have to take work home on the weekend.

To make employees effective reputation boosters, companies create a culture that supports and motivates them. The employees, in turn, will feel a robust allegiance and go above and beyond the performance expected of them. That's the philosophy at Citizens Financial Group, a regional bank in New England and Pennsylvania that is owned by the Royal Bank of Scotland Group.

Every morning as soon as CEO Larry Fish arrives at his office, his first order of business is sending kudos to a few of the bank's employees. He writes a note to thank them or congratulate them on a job well done. He wouldn't consider conveying his good wishes by e-mail because it lacks the personal touch of a handwritten message. "I spend more than half of my time on people, connecting with them emotionally," Mr. Fish says. "People work for more than their pocket; they also work for their heart. You can't have a successful business without happy employees."

His kind words do indeed seal many employees' commitment to Citizens. Terri Raymond, senior vice president and district sales director of in-store banking, feels as if she's part of a family and a very important contributor to Citizens. When Mr. Fish calls her by name and sends her congratulatory notes about her performance, it's a great ego boost. "The sweetest song to anyone's ears is their own name," she says, citing Dale Carnegie's famous line. "I feel like I'm working directly for Larry. He makes me feel more committed to my job and eager to perform for the bank."

Supporting Employees

Citizens encourage employees to feel comfortable about expressing their concerns to supervisors or even top-level executives. Mr. Fish calls a few branch managers each day to get a status report and ask them what they need from him. They might ask for an additional teller, geraniums for the office planters or a $100 donation to the neighborhood Little League team. Mr. Fish also meets about 15 employees for lunch twice a month "to preach our values of doing right by the customer." He figures they return to their jobs and talk about the lunch with colleagues. So he ends up touching as many as 150 people with one of his lunches.

Mr. Fish also supports employees when he believes customers are unfairly criticizing them or even abusing them. He recalls a woman who treated one of the tellers badly but was a valued customer with $172,000 deposited at the bank. Nonetheless, Mr. Fish called her and told her he understood there had been a problem and that it would be better if she closed her account with Citizens. Flabbergasted, she said, "You can't do that." To which, Mr. Fish replied, "Yes, I can," and arranged for a check to be mailed to her. "You send a message to employees with such an action," he says. "The customer isn't always right."

A Commitment to Diversity

Creating a hospitable environment for all employees, regardless of gender, color, ethnic background or sexual orientation, can contribute mightily to corporate reputation. IBM Corp.'s reputation has certainly benefited from its commitment to diversity, which dates back many decades. IBM was a pioneer in promoting women (its first female vice president in 1943), equal-employment opportunity (a policy letter in 1953) and supporting gay employees (sexual-orientation protections in 1984). As a result, women and minorities have become advocates for the company and its diversity programs.

"A consistent heritage of diversity translates into a strong reputation that helps us attract and keep talented employees," says Ted Childs, vice president for global workforce diversity. "IBM did things long before they were required by law or public opinion. We were driven by our beliefs and sense of morality, not political correctness."

Forging Bonds

Companies with exemplary reputations put a high priority on employee communications and strive to create a feeling of empowerment and ownership in their workers. For example, BMW of North America tries to forge a strong bond with new employees through a two-day orientation. They learn what the BMW brand stands for and the importance of consistently living up to that image of performance and driving excitement. "All employees are ambassadors of the company," says James McDowell, vice president of marketing. "We give them frequent opportunities to drive the cars, and they can lease them at special rates. It's important that they feel connected to the product and enthusiastic about it."

Personal recognition goes a long way toward making employees strong advocates for their companies. Each year, FedEx Corp. gives its humanitarian award to workers who "promote human welfare, particularly in life-threatening situations" and its Golden Falcon award to employees who demonstrate "exceptional performance or unselfish acts that enhance customer service." Winners have included a manager who expedited the delivery of donor organs and a technician who rescued a girl abducted by a stranger.

A Fun Place To Work

The workplace environment must excite and engage employees, too, if they are to give the peak performance that will bolster the company's reputation with customers and other stakeholders. Establishing such a culture is hard work that requires constant attention. No company understands that better than Ben & Jerry's, the ice-cream maker that has become legendary for its commitment to corporate responsibility and enjoys a superb reputation. Community service and environmental protection are important elements of the Ben & Jerry's culture, but it's also about having fun while making fabulous ice cream for consumers.

After the company was acquired in 2000 by Unilever PLC, it became critical to reassure employees about Ben & Jerry's continuing commitment to "improving our planet" and being a lively, creative place to work. That, in turn, would reinforce their commitment to the company and help maintain its positive reputation with the public.

The company decided to form a Culture Club, a team of 15 people from different departments to assess Ben & Jerry's culture historically and at the present time. A Global People Survey measured workers' attitudes about the company, and employees met in focus groups to discuss corporate values. "What I find very different here is the level of commitment and passion -- and fun," says Yves Couette, a Unilever veteran and president and chief executive officer of Ben & Jerry's. "It's been a real eye-opener for me."

Mr. Couette encourages employees to continue many of Ben & Jerry's ways -- from wearing blue jeans and bringing their dogs to work to making the annual Take Your Child to Work day a special celebration. Employees' children create their own ice cream flavors and design their own paper cartons in the Cookie Dough Room and take nature walks around the pond near the company's headquarters.

Ben & Jerry's employees clearly feel pride in the company. It isn't unusual for them to walk into a grocery store and reconfigure a display of Ben & Jerry's ice cream if it's mixed up. When Chrystie Heimert flies on an airplane, she says people see her Ben & Jerry's bag and ask if she really works there. "It makes you feel so proud; people don't react the same way if you have an IBM briefcase," says Ms. Heimert, director of public relations.

The company's esprit de corps means low employee turnover. When Ben & Jerry's does have openings, the human-resources department is swamped with resumes. People even ask to do unpaid internships to get their foot in door.

With its employees so fired up, managers want to make consumers feel as enthusiastic about Ben & Jerry's, too. Ben & Jerry's recently created a "Get Connected" program to encourage employees to interact with and learn more about their customers.

They can answer customer letters, attend consumer focus groups, or visit stores with a sales representative or delivery person and pick shoppers' brains. Some people volunteer to lead factory tours or scoop ice cream at a Ben & Jerry's shop. When they travel, employees might even call a loyal consumer and invite him or her to lunch or breakfast. That is truly getting close to the customer.

Selected by Profiles International Viet Nam
Source: Career Journal