Corporate reputation is the sum of all the views and beliefs held about the company based on its history and its future prospects, in comparison to close competitors. Toward a comprehensive understanding of corporate reputation. Lebow college of business drexel university philadelphia, pennsylvania, usa elliot. The paper examines the consequences a company may suffer when brand reputation is threatened by crisis situations and the possibilities of brand reputation rebuilding after a crisis. Actually, the corporate reputation is a multidimensional concept, since the aspects of a company which define or affect its own reputation are diverse for this reason, several of the existing models and tools which. For example, fombruns 2001 comprehensive definition of corporate reputation includes reputation as an economic asset reputation capital, a representation image and a judgment reputation. For example, many businesses assess corporate reputations using financial soundness, quality of management, products and services and market competitiveness as. There is a problem of identifying strategic resources in comparison to nonstrategic ones, therefore it is best to say.
This is the essential companion for undergraduate and postgraduate students studying corporate reputation, branding, corporate communication and public relations. The idea of organizational reputation is intuitive and simple in its common usage. Aligning identity, corporate branding and reputation. Pdf the significance of corporate reputation management. People are likely to have different views about the cr of a firm. Its articles provide definitions of corporate reputation. Introduction in contemporary business environment organizations are paying much more attention to the facets of corporate social responsibility. Corporate reputation as a strategic asset international journal of.
Mar, 2017 the most important drivers of corporate reputation, ranked march, 2017 the difference between a good and bad reputation can have a huge impact on consumers purchase and recommendation likelihood, according to the latest annual global reptrak 100 report download page from the reputation institute. A companys board of directors is the primary force influencing corporate governance. Building corporate reputation through corporate governance. The corporate reputation can be defined as an aggregation of opinions, perceptions and expectations that various relevant stakeholders have on a certain company or organization. Actually, the corporate reputation is a multidimensional concept, since the aspects of a company which define or affect its own reputation are diverse. Securities analysts and the formation of corporate reputation securities analysts play a critical role in mediating investors perceptions and evaluations of corporate actions fombrun, 2002. The authors analyzed studies that involve the relationship between corporate reputation and organizational performance. Corporate image is mostly focused on marketing and includes factors such as brand recognition and the feeling associated with your customer experience. Corporate reputation is the collective beliefs or opinions that communities, customers, employees, partners and regulators hold about an organization. Hence, the mission to develop a clear, straightforward definition of corporate reputation has become even more challenging. The pms desire to address what she refers to as the unfairness and injustice that divides the uk is a direct response to the publics call.
The authors also discuss how they are interrelated in the management literature. Research object is a definition of corporate reputation and its interpretations varying in different disciplines. It is also a growing focus for business and media attention. Reputation management is the process of identifying what other people are saying or feeling about you or your business. Corporate responsibility or sustainability is therefore a prominent feature of the business and society literature, addressing topics of business ethics, corporate social performance, global corporate citizenship, and stakeholder management. We draw on bibliographic data of 5885 publications published until 2016, inclusively, and combine cocitation. The final sample of 54 articles and one book consists of wellcited papers, and papers in journals that have published high quality work in corporate reputation. Corporate governance is the structure of rules, practices, and processes used to direct and manage a company.
Corporate reputation may also be a critical factor in responding to a crisis. Corporate social responsibility csr, corporate reputation, image, stakeholders, cements industry of pakistan. Studies that focus on corporate identity ci, corporate branding cb and corporate reputation cr research typically are conducted within one of three domains. Advertising advertising has become one of the most important weapon for an organisation in today. Resourcebased value theory classifies corporate reputation. A good corporate reputation is vital for an organization to perform well. However much of the research on the significance of corporate reputation management has been largely inclined. Apr 24, 2012 reputation influences the value of your companys equity, your ability to attract and retain talent, and your fun damental licence to operate among other things. Corporate reputation vs corporate image simplicable. Corporate reputation and organisational performance. A companys corporate reputation is the sum of all the views and beliefs held about the company based on its history and its future prospects, in comparison to close competitors. In fact, all of these elements will define reputation and therefore reputation management is a reflection of an integrated communications strategy. Powerful corporate reputation management for brands.
All business owners know that their reputation is important, but they dont always know why it is important, or just how important it is. With the latest insights from the world of communication studies into the nature of corporate reputation, this new addition to wileyblackwells series of handbooks on communication and media reflects the growing visibility of large businesses ethical profiles, and tracks the benefits that positive public attitudes can bring. A companys corporate reputation is the sum of all the views and beliefs held about the company based on its history and its future prospects, in comparison to the close competitors 7. Successful communications strategies for reputation. To define corporate reputation, we can say that it is basically the overall estimation of the company or any organization that is held by the stakeholders of the internal and the external market. On the base of retrospective analysis of definitions of corporate reputation, some trends in development of the definition are presented and the principal keywords.
In some cases, customers may be less influenced by reputation factors such as financial stability than image factors such as a stylish design. Kim, kyungran by simple definition, reputation is the mindset of stakeholders toward the firm as it could be good or bad. Corporate reputation has been defined in different ways, reflecting the different uses of the term in various literatures. Around 40% of a public companys market performance can be attributed to nonfinancial factors associated with its corporate reputation, according to analysis by the reputation institute in 2016. But before we can go deeper into the theories of reputation management, we have to define what is reputation. Reputation is the sum values that stakeholders attribute to a company, based on their perception and interpretation of the image that the company communicates over time john dalton reputation is the principal means through which a market economy deals with consumer ignorance professor john kay. From these, the report identifies the following principal.
Many definitions of corporate reputation literally encompassed aspects of these other constructs. So its no surprise that damage to reputation and brand consistently ranks near the top of companies identified risks in the aon global risk management survey re port. Corporate social responsibility and sustainable business. Oxford handbook of corporate reputation oxford handbooks. Corporate reputation refers to peoples collective opinion regarding a corporation or enterprise. What 2016 has taught us about corporate reputation is that the public is in the mood for change. This paper examines the construct of corporate reputation, first by untangling the terminological problems that have been caused by the interdisciplinary nature of much of the earlier work in the area. This chapter outlines the definitions of the concept of reputation and shows how they derive from different disciplines.
In simpler words, corporate reputation is the impression that significant people have about your business. A leadership perspective reputation conference 2008 henley business school john madejski centre for reputation november 25, 2008 elliot s. The study of reputation figures prominently in management research, yet the increasing number of publications makes it difficult to keep track of this growing body of literature. The research goal is to examine existing online corporate reputation management initiatives, reported in the literature, as a way to develop a set of three guiding principles for organizations to use in support of online corporate reputation management. Reputational risk can occur through a number of ways. Corporate reputation essentially relate to competition or comparing a company its past actions. However, it is surprisingly complex when employed and investigated in management research, as evidenced by the multiple definitions, conceptualizations. Both definitions and data are found to be lacking, and it is argued that many deficiencies in definition and data can be attributed to the fact that theory development related to corporate reputation has been insufficient. The paper explored the development of the management of corporate reputation in relation to two groups of concepts, first, communication, identityimage and trust and the second concept is communication, identity and image. Corporate social responsibility and corporate reputation. There are lots of different definitions of what corporate reputation might consist of. There are several important factors that go into a firms reputation. Corporate reputation is the overall estimation in which an organization is held by its internal and external stakeholders based on its past actions and. Jan 23, 2017 every business also has a reputation, which is how people actually perceive your business.
Research has shown that corporate reputation management is taking centre stage as a key business issue in most organisations the world over. The purpose of this paper is to discuss the different approaches to the corporate reputation construct, in order to identify a comprehensive definition that can be used for measurement purposes, gaps identified by previous literature identified. Reputation meaning in the cambridge english dictionary. Cr is a relative assessment which is somewhat fuzzy and subjective by definition. The authors analyzed studies that involve the relationship between corporate reputation and organizational performance, and the attributes of. The rest of the discussion in this chapter then aims to clarify the operationalisation of the corporate reputation construct in this study. Our strategies are custombuilt for each client, but we often draw from the following tactics to address search issues. Develop skills by writing and proposing a strategic communication plan focused on corporate reputation plan, including situation analysis, formative and evaluative research, strategy, and tactics. The collective assessments of a corporations past actions and the ability of the company to deliver improving business results to multiple stockholders over time. Recognizing the tangible value and goodwill created by a companys reputation, corporate reputation.
Jan 14, 2011 while the communications profession touts the importance of reputation and wants to lead these efforts within organizations, there is little universal agreement within the profession on the definition of reputation, how one goes about building a reputation, and the role of communications with regard to reputation management. The sample is then analyzed and the three fundamental problems in the reputation literature are addressed the need for a comprehensive and wellaccepted. Corporate image and communication tom watson1 and philip j. Pearson corporate reputation, brand and communication. A corporate and product communications strategy must relate to the advertising, sales and branding strategies so that there is consistent messaging throughout the company. The oxford handbook of corporate reputation intends to bring definitional clarity to these issues, giving an account of extant research and theory, and offering guidance about where scholarship on corporate reputation might most profitably head. Corporate reputation has attracted interest from a wide range of academic disciplines.
Every single move, decision taken and each isolated event that involves a company or public figure, is scrutinised, documented and publicised globally, compounding the task of reputation managers. Corporate brand reputation rebuilding after the companys crisis summary. Jul 14, 2006 while interest in the concept of corporate reputation has gained momentum in the last few years, a precise and commonly agreed upon definition is still lacking. Definition of public relations and corporate image corporate image is defined as the overall idea left in the buyers mind as a results of experiences, accumulative feelings, attitudes and ideas with the organization, memory stored are transformed into a. All in all reputation management is a very debated matter, its definition is not fully agreed on, but it has rapidly become a popular subject in corporate management literature and strategies. Finally, section 6 includes notes on the literature that forms the basis of sections 2 to 5. Reputation, as distinct from image, is the process and the effect of transmitting a target image. By examining existing definitions and data sets, this article explores the current state of efforts intended to measure corporate reputation. It is also an invaluable resource for students studying for professional marketing qualifications, most notably the managing. Reputation is closely linked to an organizations perceived capacity to produce highquality goods or services. Section 5 looks at empirical and practical aspects of reputation and trust. Introduction in todays highly competitive, dynamic and turbulent business environment, companies strive to search for ways. A working definition of corporate reputation as conceptualised by this researcher for the purpose of this study is first provided. Whilst there may be a weight of opinion to an overall position, there will.
Activities performed by individual or organization which attempt to maintain or create a certain frame of mind regarding themselves in the public eye. These factors included financial analyst recommendations, social performance doing well on expert ratings of csr and. Definition public relations is the management function that establishes and maintains mutually beneficial relationships between an organization and the publics on whom its success or failure depends. We propose a definition of corporate reputation based on a number of academic sources as well as work by practitioners. And now it has a government that is not just willing to enact change, but one that must pay attention. Its based on such features such as search engine results, news coverage, and the publicized.
Companies that know how to unleash the power of reputation intelligence are better able to navigate the reputation economy and to outperform the competition. The most important drivers of corporate reputation, ranked. Reputational risk is a threat or danger to the good name or standing of a business or entity. Pdf abs tract the management of corporate reputation requires a. Fombrun and s hanley, 1990, a popular definition is identified as a perceptual repr esentation of a. Being reputation ready requires business intelligence. Kitchen2 1 bournemouth university 2 hull university business school introduction never do anything you wouldnt want to be caught dead doing. It is less about ideas and more about visual and emotional appeal. Actor john carradine advising his actor son, david. Reputation is used to describe ideas as opposed to visual symbols and emotional impressions that are also part of a firms corporate identity. A company can try to forge and carve their image, however, whether that image will lead to a favourable reputation which is aligned with the image, and therefore. In order to remedy this problem, the following definition is presented.
The handbook of communication and corporate reputation. Problems and issues facing organisations, both in the private and public sectors. Business intelligence is grounded on an understanding of the what, why, and how to drive key business kpis. Corporate reputation is a relative assessment which by definition is fuzzy and variable. Corporate reputation is a concept with exceptional multidisciplinary richness, which brought about increase in the number of scholars researching corporate reputation as well as growing sophistication in definition of corporate reputation. Definitions offered for the term corporate reputation by marketing academics and practitioners are therefore merged into two dominant schools of thought. The main point is that corporate reputation has to be earned. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. What 2016 has taught us about corporate reputation pr week. Emergent practice in capstone report online corporate. To be more precise, we call reputation transmission a communication of an evaluation without the specification of the evaluator, if not for a group attribution, and only in the default sense discussed before. This api provides a semantic tagging of multilingual content for corporate reputation analysis purposes.
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