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Brand reputation refers to how a particular brand (whether for an individual or a company) is viewed by others. Brand reputation is essential for any firm to sustain and grow its business. A positive brand reputation builds loyalty & increases customer’s confidence in the brand and product, ultimately driving sales and bottom-line growth. The brand reputation of a company affects the quality of suppliers and the creditworthiness of a company. A company with a good reputation can leverage its reputation to get higher credit limits and longer credit periods unlike companies with a poor reputation who find it difficult to even get credit. Brand reputation also plays a critical role in helping firms get investment. Investors are far more likely to invest in companies with good brand reputation than in companies with poor brand reputation. Thus, this in turn may also influence the share price of a firm.  

Source : Reputation@Risk survey 2014 conducted by Forbes Insights on behalf of DTTL (Deloitte Touche Tohmatsu Limited)

Compliance Management and Brand

Compliance management is the driving force behind a company’s brand reputation. It is the process which ensures that a set of people are following a given set of rules. The rules are referred to as the compliance standard or compliance benchmark, while the process is what manages their compliance. Also, it can take many forms like policies, procedures, documentation, internal auditing, third party audits, security controls, technological enforcement. It can also impact each aspect of the business, in-turn impacting the success/failure of business.

The effect compliance management on different departments 

  • Procurement of raw materials : 

An effective compliance management helps in ensuring raw materials of prescribed standards are procured through reputed suppliers. Organizations should ensure that there is no delay in production .

  • Manufacturing –

The organization should manufacture products as per the predefined quality standards. It helps in ensuring standardization of the products manufactured. The management can monitor and review the timely production of goods in case of any difficulties arising. They can immediately rectify it. Thus, an effective system can help reduce the defects in products and ensure defective products are not shipped to consumers hence resulting in a better brand reputation.

  • Distribution –

After the production of the goods it is essential that the product reaches the customer in a timely and cost-effective manner without there being any damage to the product. One can meet deadlines with a compliance management tool along with adequate precautions to ensure that the product is not damaged in transit. Hence, timely delivery of products to the end-consumers improves the reputation of the company.

  • Human Resources –

A compliance management system helps track the progress of employees. It ensure fulfillment of all the compliance related to employees (such as Provident fund and Employee State Insurance) as and when they are due. It also helps in addressing the concerns of employees which in turn results in a harmonious work environment. Employees are important stakeholders of the company and an effective compliance management results in a happy workforce. Therefore, this helps to improves the brand reputation of the company and helps in retaining and attracting the best talent.

  • Finance –

Compliance management is essential for the finance department as well. It helps the finance department clear its dues towards suppliers in a timely manner. If a firm fails  to clear its dues on time, it could result in reduction of credit period or credit limit and tarnish the reputation of the company. Moreover, it is also essential for the finance department to clear its dues with respects to loans as failure would impact the credit rating of the company. This helps the firm maintain its reputation, in-turn making it easier to get loans and credit from banks and suppliers.

  • Government Compliance –

Everyone deals with a number of  statutory compliance on a regular basis. A compliance management system reduces the risk of missing a compliance or missing the due date. Failure to comply with statutory compliance can have catastrophic consequences ranging from fines and interest payments to even imprisonment. If anyone initiates legal proceedings against the company, it will severely tarnish its brand reputation.

  • Customer Relationship Management –

 A compliance management system helps in resolving the grievances of customers promptly. E.g. If an individual does not complete a task in the specified time frame, the framework should send regular reminders and/or escalations to seniors. Hence, this results in greater customer satisfaction and helps improve the brand reputation of the company.


Managing brand reputation is critical for the success of any firm. Firms must use compliance management mechanisms to help improve their brand reputation. Thus, even if the firm is not facing any compliance or brand reputation issues now, ignoring the significant benefits of compliance management as lifted above could prove to be disastrous for the firm in the long run.

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