Background
National Social Security Authority (NSC) is an organization in Zimbabwe created in 1989 under the Parliamentary Act. The NSSA act chapter17:04 authorizes the Ministry of Labour, Social Welfare, and Public Service to develop social security systems for the advantage of the country’s employees (Aswell, 2019). NSSA is authorized to receive financial support and develop every scheme to perform its duty well (Shumba, 2015). Studies have shown that managing corporate reputation is evolving as the central focus of all businesses worldwide. Unfortunately, the studies on corporate reputation management mostly focus on the private sector with limited studies in the public sector. Many public organizations have been experiencing negative corporate reputations over the years. This research will focus on the management of corporate reputation in the public sector with an analysis of the National Social Security Authority case. The study procedure involves a critical evaluation of NSSA’s documents to assess the organization’s reputation management. Questionnaires were also given to the major stakeholders of the organization. The stakeholders served with the questionnaires include the management, NSSA employees, beneficiaries, and contributors. It will also highlight corporate image management; a short-term customer needs to be compared to the long-term corporate reputation management.
Corporate reputation has evolved into a vital driver in modern businesses. Pérez (2015) highlights that a significant percentage of stakeholders have confidence that corporate reputation comprises 30 to 50% of an organization’s market value. Research conducted by the Ethics Resource Center in 2011 showed that corporate reputation significantly influences the consumers to test an organization’s products and services. The research also revealed that corporate reputation is also significant and helps regulators award licenses to businesses, inform investors’ decisions to increase their stock, attract and maintain the organization’s talents (Tererai, 2018). These factors have compelled many organizations to invest significantly in managing their corporate reputation. Many organizations in Zimbabwe, such as National Social Security Authority, Air Zimbabwe, and Zimbabwe Broadcasting Corporation, have been subjected to negative publicity in the media, including high corporate issues and corruption levels, financial mismanagement, and leaders allocating big salaries to their own pockets. In turn, the allegations affect the organizations’ reputation and discourage consumers from using their products and services.
Management of Corporate Reputation
Many researchers argue that managing corporate reputation involves maintaining the popularity of an organization. According to a report ACE, research showed that 90% of the evaluated companies find it hard to manage their corporate reputation since it is challenging to track and predict potential reputation risks (Tererai, 2018). The challenges result from internal and external factors that present troubles in understanding and describing reputation risks. The measurement also becomes a challenge because it is cumbersome to find sufficient information on how to manage and deal with corporate reputation challenges.
Challenges incorporate image, reputation, branding, and identity distinction
The major challenge associated with company reputation is the method through which the term is synonymously applied with corporate branding, identity, and image. The most significant source of confusion may result from the views, attitudes, and perceptions stakeholders have when using the terms. Pérez (2015) shows that the evident appreciation of the definition, understanding, and constituent factors is essential in effective corporate reputation management. Corporate identity involves the primary view that the management and employees have on their organization. Corporate identity defines the principles and values that management and employees use to define their organization (Khan and Digout, 2018). Corporate branding comprises the unique company model and involves establishing its image and, at the same time, portraying the signs, symbols, and strategies that are associated with the critical values of the organization. Image, identity, and branding are fundamental strategies for analyzing corporate reputation (Šontaitė-Petkevičienė, 2015). Good corporate reputation consists of influencing all the stakeholders to accept the shared interest with the company.
Measurement Challenges
The general hypothesis in tactical organization governance is that the organization’s actions must be examinable through monitoring performance and keeping time records. Therefore, corporate reputation should be examinable. According to Doro (2019), corporate reputation includes employee quality, financial performance, and market leadership. Management quality, quality of services and products, an organization’s emotional appeal, ethical behavior, reliability, social responsibility, and customer orientation are other factors.
Gatzert (2015) postulates eight factors with some of the factors identified to the ones suggested by Khan and Digout (2018). The factors include management quality, products, and services quality, social responsibility, and financial strength. The remaining four factors include innovation, and efficiency in corporate asset use, the ability to attract, establish and maintain quality workers and the long-term investment valuation.
Relationship between financial performance and corporate reputation
Different researches have shown a significant association between quality financial performance and good corporate reputation. Investors tend to make higher profits when purchasing goods from companies with better reputations. However various results have also been deduced from research by Doro (2019), where no underlying relationship was developed between financial performance and corporate reputation. Doro (2019), however, has indicated the possible weaknesses found in reputation measures.
Methodology
The National Social Security Authority case study was used to evaluate the importance of corporate reputation management in Zimbabwe. The research applied The Harris-Fombrun Reputation Quotient, a comprehensive and standardized method to understand the perceptions of various stakeholders in corporate reputation management. To evaluate the use of corporate management in the National Social Security Authority, secondary data analysis methods were used.
The secondary approaches involved reviewing the strategic documents of the authority. The materials analyzed include risk management documents, strategic plans, consumer satisfaction reports, and financial reports. Furthermore, questionnaires were also awarded to organization management, employees, beneficiaries, and contributors. The questions in the questionnaires about the significance of corporate reputation required the respondents to evaluate the services regarding the five-pointer Likert measurement. Convenience and cluster selection were used to define the study group. The cluster selection approach ensured that all the stakeholders had representations. Convenience sampling was applied because the respondents in the study were picked according to their willingness to participate in the study and according to their understanding of corporate reputation. A sample proportion of 100 was used in the study. Evaluation and inferencing o0f the information from the documentary reviews were done in the context of the literature provided. The information from the questionnaires was evaluated using SPSS.
Results
Five strategic documents were reviewed in determining the present corporate reputation management of the National Social Security Authority. The documents analyzed include the National Social Security Authority strategic plan of 2010 to 2015, financial reports from 2009 to 2013, consumer satisfaction reports, and strategic risk evaluation information. The primary focus was on the strategic plan and all the verifying documents. From the study, it was discovered that the strategic plan of the organization included eight significant factors. The plans constituted the corporate governing structure, mission, vision, strategic goals, environmental evaluation, values, enterprise risk evaluation structure, essential success factors, and performance analysis structure and action strategies.
Corporate Reputation Management and Corporate Governance structure
NSSA’s corporate structure defines the tasks and duties of the administration, employees, and board, obligation to observe the pertinent rules and guidelines, integrated disclosure and reporting, management of risks, and commitment to stakeholders’ engagement. As a strategy for comprehensive disclosure and reporting, the organization makes publications of annual financial reports. However, the structural reporting of the National Social Security Authority still depends on the less advanced single bottom line rather than the developed triple bottom line.
Vision, values, the mission of NSSA against corporate reputation management
From the research, it was discovered that the organization’s mission, values, and vision influenced the culture of the authority. However, it is significant to notice that organizational culture is not enough to fuel corporate reputation management. Unfortunately, it was challenging to find evidence about the relationship between the company reputation management and the effect of the National Social Security Authority organization’s traditions However, organizational culture should be complemented by visualization and corporate communication.
Strategic Goals-against Corporate Reputation Management
The other key factor in the organization’s strategic plan is these five strategic goals that focus on service delivery, financial viability, and human resource capability, enhancing the authority’s image and products and services. The organization’s strategic plan is based on the stakeholders’ long-term perceptions and the organization’s credibility and performance. The short-term image of the authority focuses on the impression that the customers have of the organization.
Action Plans of NSSA and Corporate Reputation Management
The organization’s action strategies are related to the organization’s strategic goals that help promote the organization’s image. The organization’s action approaches include company communication through electronic and print media, company marking through educating the staff, publicizing the organization’s development projects, stakeholder involvement through seminars, conferences, reviewing standard operation approaches, and company social roles. A review proposed that the company reputation management involved setting plans to meet and predict the customer expectations, focus and maintain tight relationships and engage stakeholders as a factor of achieving the organizational goals and objectives.
Environmental Evaluation and Company Reputation Management
The tactical plan shows the evaluation of the organizational business environment and can efficiently manage the reputation theory recognizing the operation environment. Mendelow’s Matrix is used to evaluate the ability of the shareholder to influence the corporate strategic power and result of stakeholder involvement strategy. The research indicated that analysis of stakeholders’ engagement has been an essential factor in the corporate management of many organizations including the National Social Security Authority.
Vital Success Aspects and Enterprise Vast Risk Management
The essential success aspects outline the service delivery, company governance, shareholder involvement, and organization’s financial performance plans. The factors are critically assessing corporate reputation. Managing the resultant risks is also a significant evaluation factor. The strategy involves defining all the National Social Security Authority’s risks, ranking the risk using different colors, and defining and executing control approaches. In evaluating the risk factors, the more significant percentage was labeled using yellow color, showing that the National Social Security Authority’s risk factors were moderate.
Conclusion
In summary, the researchers discovered that the National Social Security Authority’s strategic plans are centered on company image management, short-term consumer-oriented factors compared to managing the company reputation and strengthening the relationships with other stakeholders. The organizations were found to underestimate the potentials and effects of making corporate reputation management the top priority in the risk management concerns. This is evident in the moderate risk rating and trusting the accountability issues under the director’s umbrella rather than focusing on the overall manager as the top leader in the organization. The strategies by National Social Security Authorities mainly focus on communication in the company as provided by the public relations while neglecting the limitations in managing corporate reputation. However, when the plans and the structures outlined in the management strategy are implemented, a comprehensive reputation strategy may help National Social Security Authority improve and adequately manage the corporate reputation.
Furthermore, the research showed that corporate reputation management has a significant impact on the stakeholders of the organizations, according to the responses. In contrast, some respondents, specifically employees, perceived that company reputation management does not have any critical influence on the public sector. This may present a challenge in observing the organization’s cultures, which may negatively affect the reputation of the National Social Security Authority. Based on the research and the findings from the research, recommendations made to the National Social Security Authority include
Recommendations
National Social Security Authority should shift its approach from using a fragmented corporate reputation management strategy that involves corporate branding, image, and social responsibility of the organization that has proved to limit. The organization should, therefore, adopt a comprehensive strategy for the management of the corporate reputation. The organization must examine its reputation risk perception since the strategy is increasingly becoming the most significant focus of many global organizations. Reputation is a risk that should be addressed at the strategic level where the overall manager is the most accountable person in the strategy and will be answerable to other executive members and bridge the organization with other stakeholders. Additionally, corporate reputation should be addressed in an inclusive manner that will integrate other company functions rather than public relations.
Organizations such as the National Social Security Authority, which operates with the public sectors, should improve their company’s reputation since it is an essential factor in gaining public confidence and obtaining the customers’ loyalty. Since management of corporate reputation in the public sector is influenced by factors such as budget reductions and political changes, it is necessary to embrace changes in policies at the national government level, which will ensure a surge in the corporate reputation management investments and acceptance by the general public. The research on corporate reputation revolved around qualitative data analysis of the responses from perceptions, further research should be conducted to focus on the quantitative approaches to verify the data obtained from the qualitative analysis approach.
Reference List
Aswell, C. (2019) Biometric security systems and their impact on reducing fraud in organisations: case study of National Social Security Authority. Doctoral dissertation. BUSE.
Doro, L. (2019) Role of emotional labour in managing job stress for frontline officers in a service industry: the case of National Social Security Authority. BSc dissertation. Midlands State University.
Gatzert, N. (2015) ‘The impact of corporate reputation and reputation damaging events on financial performance: empirical evidence from the literature’, European Management Journal, 33(6), pp.485-499.
Khan, S. and Digout, J. (2018) ‘The corporate reputation reporting framework (CRRF)’, Corporate Reputation Review, 21(1), pp.22-36.
Pérez, A. (2015) ‘Corporate reputation and CSR reporting to stakeholders’, Corporate Communications: An International Journal.
Shumba, V. ( 2015) Investigation into the impacts of management’s non-implementation of audit recommendations to risks: case of national social security authority (NSSA). BComm dissertation. Midlands State University.
Šontaitė-Petkevičienė, M. (2015) ‘CSR reasons, practices and impact to corporate reputation’, Procedia-Social and Behavioral Sciences, 213, pp.503-508.
Tererai, S.B.F. (2018) An assessment of the feasibility to extend contributory social security scheme to the informal sector by National Social Security Authority. BComm dissertation. Midlands State University.