Quality and Transparency Help Corporate Reputation

Not surprisingly, the more open and trustworthy a company is, the better its reputation. According to an annual survey, only 45% of Americans trust business. This is a decline from previous years where more than half of Americans had greater faith in the corporate sector. The proliferation of negative news reports and the availability of more information on the activities of big corporations, apparently are contributing factors.

With the advent of "information ubiquity", the primary way a company can maintain or improve its sterling corporate reputation is to provide quality, become more transparent, ensure employee welfare, and be more trustworthy. Of course, this mandates more, not less, communication across various platforms for CEOs and other business leaders.

In the U.S. 85% of "informed publics" aged 25-64 believe corporations should create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. Another 61% believe government should regulate corporations’ activities to ensure business behaves responsibly. The U.S. is surpassed only by Germany, the U.K., Ireland and China in these opinions. For much greater detail, check out the Edelman Trust Barometer, a fascinating study of how well-informed people across the world feel about business.

Marriott Rejects Porn

Congratulations to the Marriott Corporation for its decision to not broadcast adult-oriented movies in its hotel properties in the future. As reported in the media, this move will affect over 600,000 rooms throughout the system when Marriott changes from the current in-room video offerings to an Internet based, video-on-demand, system.

As one of the world's most identifiably wholesome hotel brands, we would expect nothing less from Marriott. I know many families, including ours, that build their vacations around Marriott hotels because it engenders an environment in which kids of all ages feel welcome and included.

I don't know how much money will be lost from this decision, but the benefits in corporate reputation and business leadership will far outweigh the costs.

Lead the Way in Philanthropy

"There is a natural law, a Divine law that obliges you and me to relieve the suffering, the distressed and the destitute. . . The practice of charity will bind us... will bind all men in one great brotherhood."

Conrad Hilton, founder, Hilton Hotels


Corporate philanthropy is a good thing and there can never be too much of a good thing. Today, we find a handful of companies at the top of the chart in corporate philanthropy, while many more companies barely register.

The wonderful thing about philanthropy is that it has a multiplier effect. When your company makes a contribution to a worthy organization, event or program, it strengthens the capacity of the recipient to deliver the benefits it promises.

But philanthropy is not without some controversy. There are some who believe that the role of business is to provide better goods and services at better prices so that consumers can have better lives. Philanthropy, they assert, is better left to foundations and individuals rather than to corporations.

I disagree. There are many ways to give to charity—money, in-kind donations, product giveaways, volunteerism, loaning executives and other opportunities to make a difference. As a business leader, you can develop a wide range of strategies that will position your company in the forefront of corporate philanthropy. Your reputation will be enhanced.

(c) Adonis E. Hoffman, 2008.

Become the Champion

"We don't think of ourselves as do-gooders or altruists. It's just that somehow we're trying our best to be run with some sense of moral compass even in a business environment that is growing."

Craig Newmark, founder, Craig’s List


Do you remember the true-life story of a major American shoe manufacturer in the northeast who refused to shut down his plant even as the shoe making business was migrating offshore?

That CEO said he could not in good conscience close his factory and devastate the small New England community in which he had been operating for decades.

Needless to say he became a beloved figure in that community and his reputation for embodying corporate responsibility became a national story. His retort was simply: “I care about the community in which our company lives.”

I’m not sure how many other CEOs would have chosen to make the same decision, after all there were big dollars at stake. I suppose the point of all this is to reinforce the notion that companies are responsible to more than shareholders in today’s market.

Putting the needs and interests of communities in which you operate may not be at the top of the corporate agenda—but it should never be left off the agenda altogether. Championing the community is good.

(c) Adonis E. Hoffman, 2008

Do Right by Your Employees

"Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day. You can't expect your employees to exceed the expectations of your customers if you don't exceed the employees' expectations of management."

Howard Schultz, President Starbucks


In any company, people are your greatest assets. In the run-up to increase revenues, boost profits, and build shareholder value, many leaders forget about the employees and workers who make up the backbone of their company.

It takes followers to be a leader. Great leaders take the time to develop their people by treating them fairly, righteously and judiciously. Your reputation as a corporate boss will turn not only on the bottom line, but how you manage and treat people.

If you came up through the ranks, don’t forget how it feels to be in the lower and middle rungs of the corporate ladder. If you helicoptered in from a top post at another company, you might want to spend a little time getting to know the people who make up your workforce. It will be time well spent.

Finally, try your best not to isolate yourself and your top executives from the people who work for your company. Avoid the bubble syndrome.

I know it’s hard to identify with regular people now that you have use of the corporate jet, limousines, executive retreats, exclusive clubs, golf memberships and other great perks. But be sensitive, be engaged, and be righteous. Your people want to work for a “good guy.”

(c) Adonis E. Hoffman, 2008.

Seek External Guidance

It is not easy to allow outsiders into your corporate world and ask them to critically assess how well you are doing business. But that is exactly what you as a good leader must do to get the best results for your organization and its customers, shareholders and employees.

External validation goes a long way toward establishing a great corporate reputation, if it is conducted with transparency, integrity, and purposefulness. For example, compliance audits, corporate social responsibility assessments, diversity assessments and audits, in addition to the mandatory Sarbanes-Oxley reviews, are a few ways you can obtain the considered opinions of others.

When you engage outside consultants, do your best to go beyond the big three consulting firms. You just might find that smaller, niche, firms will do just as good a job and be easier to work with. More law firms are providing these types of assessments or “audits”.

After it’s all done, report to the public on your status, especially if the assessment is mostly positive. Convene a press conference and tell your shareholders, just how good you are, and allow surrogates from your outside advisory groups to give their assessments too.

(c) Adonis E. Hoffman, 2008.