According to a Forbes survey, the corporate brand and reputation account for 40% of a company's market valuation. In other words, your good name is one of your most precious assets. Perceptions, expectations, and commercial ties all play a role in a company's brand reputation. A lawsuit originating from a bad reputation could ruin your organisation if these factors are not protected. In this post, we'll provide you some helpful hints for avoiding litigation that could harm your reputation.
"The client is always right," as the saying goes. Working with this philosophy protects you against a variety of consumer squabbles. The client may be mistaken at times, but willingness to listen and wanting to explore makes them happy. Remember that a satisfied customer is a satisfied business. On the other hand, if you make a mistake, correct it as soon as possible. Make the correction as transparent as possible, and tell the client that you have made every attempt to resolve the issue.
Employees are the public face of your company. As a result, everything they say and do is a reflection of you. In that situation, you'll want to make certain that you're represented as well as possible. When dealing with clients, teach your personnel how to be professional. Ascertain that they are aware of the dangers of libel and slander. Teach them to always acquire information and managerial procedures when dealing with issues that could have a negative impact on the company.
Promising to do something always appears to be a simple solution to a problem. Unfortunately, the maxim "Act now, apologise later" is not so wise. Overpromising is, in fact, the greatest mistake an entrepreneur can do, and it can be detrimental to their business. Remember that a consumer can sue you if you fail to deliver on your commitments. If you know you won't be able to deliver, don't say you will. Trying to dazzle customers by making promises leads to a loss of credibility, unfavourable reviews, dissatisfied customers, and negative PR.
You've probably heard about the Ashley Alford sexual harassment lawsuit, which resulted in a $95 million settlement for The Aaron's Inc. Perhaps you're perplexed as to how this is feasible! An employee can sue your company for sexual harassment, according to criminal defence lawyer Scott Dattan. Unfortunately, sexual harassment claims not only cost a lot of money, but they also ruin your company's reputation. As a corporation, you must make significant investments in sexual harassment training and prevention strategies. In order to promote the brand's name, it is necessary to have a sexual harassment policy.
Consistently sending out positive messaging is one of the long-term approaches to minimise reputational damage. This promotes a positive public image and reduces the likelihood of future damage. Inform your clients about what's going on and how you're handling incidents. While it is hard to please everyone, concentrate your message on the most important stakeholders.
As an entrepreneur, you may not always have complete control over all areas that could harm your reputation. To handle such expenditures, engage in small business insurance in addition to reinforcing these ideas. Insurance for general liability and professional liability will be beneficial. Additionally, always seek legal advice on best practises for keeping your company safe.
