Which companies have great reputations and why? Questions like these are interesting to think about because they speak to the visibility that some companies achieve over others and to the trust and respect we have for the many things they do. They therefore speak to a company’s reputation with consumers. Companies rightly care about being recognised (as well as what they are recognised for) because a good reputation attracts support from customers, investors, and potential employees.

There’s no doubt that companies today are increasingly under the public microscope. With soaring unemployment and company debt, employee lay-offs are the order of the day. I don’t think the public begrudges companies who for valid commercial reasons need to lay-off staff to stay afloat. Of course, lay-offs should be viewed as a last resort to other measures, but there needs to be equal pain shared across executives and the workforce. The manner in which staff-layoffs are dealt with should reflect fairness, openness and honesty.

All too often, company CEO’s fail to look at the big picture in announcing lay-offs and inadequate workforce communication. Let’s take the prime example of the actions of Pacific Brands. One could argue the commercial grounds on which 1,850 employees lost their jobs in February. But surely the way it was handled both internally and in the public domain was a PR disaster. What compounded the issue was the revelation that senior management had been given a generous salary increase whilst shedding its workforce. Oh the pain they must have felt! The public outcry was enormous and relentless. Customers voted with their feet by boycotting Pacific Brands. Unions boycotted Pacific Brands containers at the wharf. And as for Pacific Brands being viewed as an employer of choice in the future, good luck. Employees are not stupid, they have long memories. Reputation does matter and if not managed well, companies like Pacific Brands should rightly pay the price.

Qantas has had its fair share of negative publicity of late given its aircraft safety issues. I personally think that Qantas has managed the crisis well. It has been upfront at all times and put out its dirty laundry for all to see. It’s also been the victim of a fair bit of media bashing. One would only have to recall a headline in The Age newspaper "747’s crash". What a disaster, think about the scores of innocent lives lost. Only one catch, the incident involved two 747’s being towed on the ground at a maintenance base. Is this a media beat up or what? Having traveled all over the world, there’s a sense of automatic trust stepping on board a Qantas jet. It oozes the Spirit of Australia and for Qantas its reputation does matter. Well done Qantas.

If you’re thinking that companies with great reputations never make mistakes, you’re wrong. If you want to build a strong reputation, mistakes will occur. It’s how you prepare for these mistakes and how these are handled that is important. How your organisation responds whilst under fire reflects the health of your brand, culture and values. The mark of all great companies is to be resilient in the face of adversity. Keep in mind the following simple points:

* Be honest
* Take responsibility
* Be willing to change and adapt
* Be consistent
* Tell your staff before the bad news breaks

Remember, it takes a lifetime to build a great reputation, mistakes occur in an instant.