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Ans. Reputation management is the process in which the firm or the organization tries to build its image in the minds of the customers who may be potential as well as current. Reputation management is needed to increase sales as the increase in the reputation of the organization in the minds of the customers helps in increasing the sales of the organization. Reputation also needs to be managed so as to build credibility and trust amongst the customers for the brand or the business. When the good and strong reputation of the organization is maintained, the skilled and qualified professionals can be easily attracted towards the organization. This helps in maintaining an efficient and effective workforce in the organization. Effective reputation management is based on five principles. The principle is to manage risk, be transparent, create strategic goals, plan for the worst, and be social media savvy. These principles must be well in place in order to implement effective reputation management in the organization.
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