Corporate reputations: don't give them something to talk about; observing the pummeling of many brands and reputations, smart companies are valuing their assets and designing programs to minimize negative fallout following a disaster--and reduce possibilities that one will occur.

• Author: Quinn, Lawrence Richter
• Position: Risk management

Don't mess with the Arm & Hammer brand name. That's the message coming from the board of Princeton, N.J.-based Church & Dwight Co. Inc., owner of the Arm & Hammer logo, one of the most recognized worldwide. The company is maker of an increasingly wide variety of consumer products under that trademark and logo, including its signature baking soda, toothpaste, laundry detergent and (a product not often associated with its others) "Super Scoop Clumping Cat Litter."

Just as important, since its acquisition of Carter-Wallace, it's also manufacturing a growing variety of products that don't utilize the Arm & Hammer brand name. Among them: Arrid antiperspirant, First Response Home Pregnancy and Ovulation Test Kits, and NAIR Depilatories.

Arm & Hammer's "don't mess with us" message is intended not only for senior executives and other employees but for any stakeholder or others who might want to take advantage of the company's reputation or damage it in any way.

"Reputation and risk management has been on our board's agenda ever since I joined it in 1969," says Dr. Rosina (Nina) B. Dixon, director and chairman of the company's compensation and organization committee. "Ours is one of the 10 most recognizable brands worldwide."

Adds John O. Whitney, who also sits on Church & Dwight's board as well as that of privately held giant Turner Construction, "Reputation risk management is incredibly important to us. The first concern is consumer reaction; the second is the Street's reaction. We're looking at reputation as an important asset of the company. It's not an agenda item every time during board meetings, but it's always present as an issue. It has been that way for 100-plus years. When a company has so many products, you have to be ready for the worst," adds Whitney, who authored The Economics of Trust: Liberating Profits and Restoring Corporate Vitality.

Indeed, the company, with roots dating back to 1846, has always shown interest in protecting the reputation of both the Arm & Hammer name and its overall reputation. Now, in the aftermath of the past two years of accounting, auditing and governance scandals, the company has become even more aware of the value of its brands and corporate name, reinforcing a long-held view that reputation is the company's most important asset.

To date, the organization has been fortunate to not have dealt with any major fiascos; it has worked hard to head off problems. And, despite its growing concern about keeping its stellar reputation, it makes clear that it's not afraid to continue taking risks, even though Whitney worries that, for many U.S. corporations, that may be one unfortunate result of legislation like Sarbanes-Oxley. "I think companies have got to be careful that they don't get so afraid of things that they no longer take chances or risks," he says.

Board's Burgeoning Concerns

Church & Dwight isn't alone...