Internal communication influences corporate reputation

A company can use clear warning signals to recognize when its reputation is in decline. According to a study by Burson-Marsteller and the market research institute Economist Intelligence, companies must initiate measures in internal and external communication when the following alarm lights are flashing: a drop in morale; internal politics becoming more important than professional work; top managers leaving the company, loss of CEO credibility in the public eye; employees passing on problems to the customer. The executives surveyed agree with the course and extent of this corporate development. "The processes within a company are extremely important for the public perception of a company," says Roman Geiser, CEO of Burson-Marsteller Switzerland. The study found that declining morale and employee dissatisfaction can be improved by the accessibility and openness of management, clearly defined management responsibility and optimized internal communication. The survey was conducted online between May and July 2005 among 685 executives in 65 countries. The participants were selected from a cross-section of 19 industries.