The importance of constituency management

Abstract

Purpose

Today, 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/approach

With 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.

Findings

Unfortunately, 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 implications

Constituency 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/value

Companies 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.

Citation

Pagano, B. (2006), "The importance of constituency management", Handbook of Business Strategy, Vol. 7 No. 1, pp. 369-374. https://doi.org/10.1108/10775730610619098