Reputation: An Important Component of Corporations' Value

Abstract

Corporate reputation may also be a critical factor in responding to a crisis.Reputation may be seen to arise as an output of different activities in the professions.Reputation is a set of collectively held beliefs about a company's ability to satisfy the interest of its various stakeholders.Corporate reputation also is: Observers' collective judgments of a corporation based on assessments of the financial, social, and environmental impacts attributed to the corporation over time.The organization which doing a good job managing their corporate reputations stressed the factors as distinctiveness, focus, consistency, identity, and transparency.Corporate reputation has more benefits such as to raise financial and equity market performance, to affect a firm's workforce composition, to support the persistence of above-average profits, to increase firm's performance, and so on.Without a clear and commonly agreed upon definition, however, it is difficult to move forward in this field of study.Corporate reputation can be a key contributor to an organization's success and it can just as easily be a contributing factor to an organization's failure.

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