Firestone and Ford Were Not Paying Attention
4 September 2000
According to Bearsworth Communications, Firestone and Ford Were Not Paying Attention to Their Most Important Asset: Their Reputation
CHATSWORTH, Calif.--Sept. 1, 2000--"Reputation is the heart and soul of a company," said Michael Turner, president of Bearsworth Communications Inc., a firm that specializes in crisis communications and reputation management.The fate of Firestone and Ford now lies in the hands of the public since both companies were not paying attention to their most precious asset, their reputation.
According to Turner, "Reputation is earned over time and is the public's perception of its trust, credibility, respect and confidence in a company."
Unfortunately, many companies spend little time managing their reputation. The reasons include pressure to meet self-imposed deadlines and sales quotas, competitive forces and keeping pace with new technology, focusing attention on securing new clients and keeping current customers appeased, building greater profit margins and placating stockholders.
The recent recall of 6.5 million Firestone tires, including the 15-inch ATX, ATX II and Wilderness models, which were found mostly on Ford Explorer, one of this company's most popular and profitable vehicles, will certainly give Firestone and Ford corporate black eyes and sullied reputations.
During August, Firestone's stock dropped about 42 percent in value while Ford's stock plummeted about 16 percent.
"This situation could have been avoided," said Turner. Through a proactive Reputation Management Program both companies would have been in the position to be alert to potential problems before they would take on a life of their own and spin out of control.
Such a program requires a company to continuously monitor internal and external forces that are constantly being exerted against a business, such as management and board decisions, quality of products and services, employee morale, customer satisfaction, public opinion, competitors and the government.
"The question that now begs answering is: Can Firestone and Ford repair their reputation and restore the customer's faith in their products? It can be done; however, it will take time and the combined efforts of many, including senior management, line employees, suppliers and the National Highway Safety Traffic Administration," said Turner.
The first step will be quickly replacing the tires and settling lawsuits stemming from deaths and injuries allegedly caused by the tires. "With that behind them, Firestone and Ford will need to show they have established new quality control procedures and testing standards for tires," said Turner. "They will also have to demonstrate there are processes to speedily access future problems and that they can be resolved in a timely manner."
Turner has 30 years of public relations and marketing experience, and has worked for such clients as Del Monte Foods, United Way, American Heart Association, the Los Angeles Jewish Home for the Aging, California State University, Northridge and the University of North Dakota.