The importance of constituency management

Abstract

PurposeToday, many companies manage their corporate reputation in a reactive or ineffective way. Bad press, damaging rumors, and public outrage over corporate scandals has impacted a number or organizations’ bottom lines as of late.Design/methodology/approachWith case studies and real‐company examples, we show the reader how a negative reputation can be the demise of a company, and how managing a company’s constituents holds the key to the success of a positive reputation.FindingsUnfortunately, too many companies are still coming up short in this critical arena. Some remain more reactive than proactive, waiting for a crisis to hit (by which time it is too late) before investing seriously in a constituency management program.Practical implicationsConstituency management is the answer for managers who are looking for a way to grow through optimizing corporate strategy, building brand equity, and addressing key corporate issues. And, it is not just about enhancing reputation; it is about the bottom line.Originality/valueCompanies that proactively invest in a constituency management program rather than waiting for a crisis to hit will ultimately have more control over their reputation, and their company’s value to investors.