Managing reputational risk in an economic downturn: The case of Banco Santander

One of the fields most affected by the crisis is the financial sector. Nevertheless, Spain's banks have so far held up relatively well, and this article's examination of one of the leaders, Banco Santander, shows. The authors argue that the Bank's current strong position is not just attributable to Spanish regulations for conservative lending practices, or to the fact that Spanish banks did not invest in U.S. subprime mortgage products, but also to their well-established Reputational Risk Management programs. The article illustrates Banco Santander's management of reputation and proposes the bank as a paradigmatic case for the importance of dialogue and reputation in these times of turbulence. Because of this focus, the approach is largely uncritical, rather than balanced, in concentrating on how Banco Santander offers evidence of a paradigm shift in action that offers a model for effectively addressing the economic downturn. The article concludes by suggesting the key role for public relations in managing reputational risk under contemporary conditions.