Corporate Reputation: How Much Could You Afford To Lose?.pdf

This article discusses the current state of small and mid-cap companies in the UK, focusing on several key points:

- Economic Volatility: The markets are troubled by global events and economic uncertainty, leading to a continuation of volatility.
- Company Prospects: Despite economic news, company expectations for their own prospects remain broadly static, indicating they feel more in control of their destiny than the overall UK economy.
- Hiring and Turnover: Fewer companies plan to hire more employees (68%) compared to the previous issue (77%), but expected employment change is at a record high (+7.6%). Sales expectations have also fallen to 13.4%, mirroring early 2012 recession levels.
- Corporate Reputation: The total value of corporate reputation for all UK listed companies could be worth £1.7 trillion, with small and mid-cap companies believing that 28% of their value is accounted for by reputation. Most (79%) consider it very important, but few have dedicated time to managing it.
- EU Membership: The majority of small and mid-cap quoted companies (55%) believe the UK's EU membership has a positive impact on their businesses, up from 40% in April 2014.
- Reputation Risk: An average-sized AIM company could lose £19 million to reputation risks. Despite its importance, corporate reputation is often overlooked.
- Adviser Insights: Advisers highlight the need for better communication and ethical behavior to manage reputation risks, viewing it as an opportunity rather than a compliance exercise.
- Confidence: Confidence in the UK economy and business prospects has slightly decreased compared to the summer 2015 issue.