In today’s globalised world, where differentiation in the products and services of companies is becoming increasingly less important, Corporate Reputation has become a fundamental element that allows us to differentiate ourselves from our competitors and create a psychological link or engagement with our public of interest: consumers, workers, suppliers, shareholders, etc., which guarantees the sustainability of our organisation over time.
Different definitions have been given to reputation, but a simple way of defining it would be, “the perception that our public has of us”. This apparently simple definition is based on three axes that define us both individually and corporately: The first axis is defined by “What We Are”; the second by “What We Do”; and the third by “What We Say”. These three axes have to be completely aligned in order to have a good reputation. Thus, for example, if a construction company agrees to carry out a work in a specific time, with the commitment to pay a penalty for the delay, and finally does not comply with it, there is a drop in reputation, showing that they are not a serious or formal company.
This case we have just shown can be found in many situations in our daily lives, and consumers, suppliers, workers, etc., in most cases distrust those promises that companies make, or in their case, seek through Social Networks the opinion of other publics, which in an interested way or by misinformation can carry out a negative prescription towards our business.
The search for solutions to these problems is constant for companies and researchers, trying to find ways to increase trust and therefore the reputation of our organisation. This is where Navas & Cusi proposes the use of so-called smart contracts, or Smart Contracts, as a technological solution that can help to differentiate us from our competitors and make our company more sustainable over time.
Smart Contracts are a programme with legal value, where the parties to a contract commit themselves to certain terms or obligations, which will be executed automatically. Thus, for example, the contract can oblige the client to pay an amount as the work progresses, so that the client deposits the amount established in the smart contract at the beginning of the work, and it will be this contract that will be executed automatically as the clauses are fulfilled. On the other hand, if the company does not comply, the contract will also be executed automatically, returning the agreed amounts in the event of non-compliance.
Smart Contracts, which are implemented on Blockchain technology, can be applied in multiple situations, in a secure way by achieving the immutability of the contract “no one can modify it”, and storing it in a distributed way “no one has total control over it”.
Smart Contracts and Corporate Reputation, a synergy to make our company more competitive and sustainable.