Hartford Business Journal

EXPERTS CORNER Shaping your company's reputation matters By Alice Ferreira T his year has presented what are likely two of the biggest reputational tests for businesses in our time: the COVID-19 pandemic and the social justice movement. You have prob- ably been focus- ing on the health and well-being of your employees and customers and taking a stand against racial injustice, and your handling of both challenges could have profound impacts on the reputation of your business. Your customers are also viewing reputation more seriously. Seventy- nine percent of consumers expect a company's leadership to respond to COVID-19 and racial inequality. It's important to understand that people's perceptions are deeply rooted in past and current experiences, cus- tomer recognition and news gathered by the public. Here are some ways to take control of your company's reputation today: Let your purpose be your guide. Your consumers expect you to care about more than making a profit. Purpose is the manifestation of your company's values into actions that help people and communities and one of the top reputation drivers. Are you providing financial and vol- unteer support to communities with food insecurities, or taking steps to support minority-owned businesses? These types of actions help strengthen your company's reputation. Recognize that your CEO is the brand. Fifty percent of a company's reputation is attributed to the top leader. During these uncertain times, the CEO sets the tone, leading the way by his/her actions, communication style and how they treat their employ- ees and customers. Take care of your employees. Em- ployees play a critical role in preserv- ing the reputation of your business. Ninety-three percent of employees believe that it's more important than ever before that companies lead with purpose. They expect their employers to have a positive impact on society, and they feel more empowered to share their perspectives on how their employers are behaving. So support your employees and the causes that are important to them. They will thrive and your reputation will benefit. Focus on social media. Word-of- mouth has moved online, and you must be vigilant in monitoring your online presence. More importantly, ap- propriately share your company's good work and deeds by posting positive content in the right places and making it part of your SEO strategy. Be a thought leader. The media, industry organizations, trade associa- tions and local officials want to hear from subject-matter experts like you. Not to tout your products or servic- es, but to share insights and perspec- tives that can help other businesses and communities navigate the myriad of issues during these uncertain times. Monitor your competitors because they are watching you. Are they of- fering unique products/solutions? Are they taking care of their customers and employees in ways that put people over profits? Make moves that benefit the long term. If your business makes a product or service that helps to fight the COVID-19 pandemic, be cautious it doesn't seem like you are capitalizing on the situation. Similarly, if you have made a public statement on the need for social jus- tice on social media or elsewhere, be prepared to back that up with mean- ingful support. The public (and your employees) view companies negatively if there is a perception that you are making a short-term gain from un- fortunate situations, or if your words aren't supported with actions. We will emerge from this unique time in a different, and we hope, stronger way. Every company must be mindful that each interaction matters. Keep this famous Buffett quote in mind: "We can afford to lose money – even a lot of money. But we can't afford to lose reputation – even a shred of reputation." Alice Ferreira is the senior vice president of corporate communications and public affairs at Webster Bank. Alice Ferreira EDITOR'S TAKE CT can't afford a public insurance plan T he state of Connecticut will begin assessing a 0.5% employee payroll tax Jan. 1, as part of an effort to stand up an ambitious paid family medical leave program that will offer workers as much as three months of paid time off per year to treat an illness or care for a sick family member. While officials from the quasi-public Paid Family and Medical Leave Insurance Authority work to ensure the long-term solvency of the program, employers remain wary they'll need to foot the bill if the payroll tax doesn't cover the cost of benefits, which kick in Jan. 1, 2022. Meantime, Connecticut's leading progressive Democrats recently an- nounced they will push hard again in 2021 for a public health insurance option, which could give small employers, nonprofits and labor unions access to the expensive state insur- ance plan. Taxpayers, of course, will be the backstop if such a plan is launched and can't cover the cost of benefits. Both efforts are laudable in their attempts to help average workers, but they also pose significant risk to taxpayers at a time when Connecticut faces continued budget uncertainty. While Gov. Ned Lamont hopes a Biden administration will help float Connecticut's coffers with new stimulus funds, there is no guarantee the president-elect will be able to come to terms with a GOP-led Senate on a plan that bails out states from COVID-19-related budget issues. However, even without the pandemic, Connecticut's budget was in a pre- carious position, facing the likelihood of short- and long-term deficits. Yes, the state has built up a $3-billion-plus rainy day fund, but the goal should be to preserve as much of it as possible. Plus, we don't know how long it will take the economy to recover from the pandemic. Employers are also facing higher unemployment insurance costs in the years ahead, as Connecticut is now borrowing federal dollars to pay out jobless claims. These are all reasons why Connecticut shouldn't move forward with a pub- lic insurance option, the cost of which is unknown. We simply can't afford it. Not to mention it will also risk thousands of well-paying insurance jobs in Greater Hartford. Last year Cigna Corp. CEO David Cordani reportedly threatened to uproot his Bloomfield-based health insurer if Connecticut pushed ahead with the adoption of a public insurance plan that competed with the private sector. The plan died shortly after that. To be fair, we can't allow corporations to call the shots on important public policy matters, but Connecticut also can't afford to turn its back on one of its key industries. Job growth is a hard enough challenge for the state. Comptroller Kevin Lembo and other top-ranking Democrats who are pushing the public insurance option are all well-meaning public officials truly trying to bring more affordable health care to individuals and small businesses. The cost of health care remains a major problem for all Ameri- cans, particularly small employers. And public-option advocates would be right to ask the question, "if not now, then when?" The reality is health insurers and the state's leading business associations will never support a public insurance plan. Health insurers will oppose it for obvious reasons, but other groups simply don't trust the government to launch another potentially expensive program that could contribute to future deficits. Given Connecticut's fiscal track record can you blame them? OPINION & COMMENTARY Greg Bordonaro, Editor 28 Hartford Business Journal • November 30, 2020 • www.HartfordBusiness.com

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