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Corporate reputation [edit]Reputation management Main article: Reputation management Many businesses have public relations departments dedicated

to managing their reputation. In addition, many public relations firms describe their expertise in terms of reputation management. The public relations industry is growing due to the demand for companies to build corporate credibility and hence reputation.[citation needed] Incidents which damage a company's reputation for honesty or safety may cause serious damage to finances. For example, in 1999 Coca-Cola lost $60 million (by its own estimate) after schoolchildren reported suffering from symptoms like headaches, nausea and shivering after drinking its products."Share price is always vulnerable" at the Wayback Machine (archived May 3, 2008) Despite the rising interest in reputation, few companies have reputation officers. Although many companies[who?] will say company reputation is the job of the CEO, managing reputation is a daily function and can best be given to an individual in the organization.[citation needed] There are only a handful of people in the business world with the word "reputation" in their titles -- Dow Chemical, SABMiller, Coca-Cola, Allstate,Repsol YPF, Weber Shandwick, and GlaxoSmithKline (although no longer). Hoover's has a list of officers with the term "reputation" in their titles. Foro de Reputacin Corporativa is a group of 11 companies in Spain that has reputation officers. Despite the great interest in reputation, there only remains 25 or fewer people as reputation officers.[citation needed] Some[who?] would argue reputation-building and protection is the job of the CEO and not any direct report. Others[who?] would say that the CEO has too many responsibilities to focus on reputation. [edit]Reputation as capital Main article: Reputation capital According to Joachim Klewes and Robert Wreschniok, reputation can be managed, accumulated and traded in for trust, legitimisation of a position of power and social recognition, a premium price for goods and services offered, a stronger willingness among shareholders to hold on to shares in times of crisis, or a stronger readiness to invest in the company's stock. Therefore, reputation is one of the most valuable forms of "capital" of a company. "Delivering functional and social expectations of the public on the one hand and manage to build a unique identity on the other hand creates trust and this trust builds the informal framework of a company. This framework provides "return in cooperation" and producesreputation capital. A positive reputation will secure a company or organisation long-term competitive advantages. The higher the Reputation Capital, the less the costs for supervising and exercising control."[1] [edit]Building reputation through stakeholder management The stakeholder theory says corporations should be run for the benefit of all "stakeholders," not just the shareholders. Stakeholders of a company include any individual or group that can influence or is

influenced by a company's practices. The stakeholders of a company can besuppliers, consumers, employees, shareholders, financial community, government, and media. Companies must properly manage the relationships between stakeholder groups and they must consider interest of each stakeholder group carefully. Therefore, it becomes essential to integrate public relations into corporate governance to manage the relationships between these stakeholders which will enhance the organization's reputation. Corporations or institutions which behave ethically and governed in a good manner builds a reputational capitalwhich is a competitive advantage. According to Fombrun, a good reputation enhances profitability because it attracts customers to products, investors to securities and employees to its jobs. Company's reputation is an asset and wealth that gives that company a competitive advantage because this kind of a company will be regarded as a reliable, credible, trustworthy and responsible for employees, customers, shareholders and financial markets. In addition, according to MORI's survey of about 200 managers in the private sector, 99% responded the management of corporate reputation is very (83%) or fairly (16%) important. Reputation is a reflection of companies culture and identity. Also, it is the outcome of managers' efforts to prove their success and excellence. It is sustained through acting reliable, credible, trustworthy and responsible in the market. It can be sustained through consistent communication activities both internally and externally with key stakeholder groups. This directly influences a public company's stock prices in the financial market. Therefore, this reputation makes a reputational capital as a strategic asset and advantage for that company. As a consequence, public relations must be used in order to establish long lasting relationships with the stakeholders, which will enhance the reputation of the company.[2] [edit]Causes corporate reputation consequences Kevin Money and Carola Hillenbrand (2006) recognise that there are many different and often conflicting models of reputation. Terminology such as reputation, branding, image and identity is often used interchangeably, or to distinguish differences between related constructs. Much of this confusion has been alleviated by recent work integrates reputation models in terms of underlying psychological theory. According to Money and Hillenbrand reputation models can be placed in a framework that relates to reputation, its causes and its consequences. In this approach it is important not only to understand reputation, but also identify the causes of reputation and its consequences. Causes of reputation are seen to reside in stakeholder experiences. Stakeholder experiences relate to a company's day-to-day business operations, its branding and marketing and noise in the system, such as the media and word of mouth. Reputation is seen to reside in the beliefs that stakeholders hold about a company (the cognitive element)and the feelings that stakeholders have about a company (the affective element). While the cognitive element of reputation can reflect the uniqueness of a company or products in terms characteristics such as brand attributes (whether an organisation is delivering high quality products, is international, friendly etc.), the affective element is always evaluative. In other words, it gives an indication of whether stakeholders like, admire or trust a company and its attributes. A unique and distinctive cognitive evaluation of a company only has value if this results in a positive affective evaluation and positive consequences of reputation

The consequences of reputation reside in the behaviors (supportive or otherwise) that stakeholders demonstrate towards a company. Behaviors such as advocacy, commitment and cooperation are key positive outcomes of a positive reputation. [edit]Reputation recovery This section is written like a personal reflection or essay rather than an encyclopedic description of the subject. Please help improve it by rewriting it in an encyclopedic style. (June 2010) The convergence of globalization, instantaneous news and online citizen journalism magnifies any corporate wrongdoing or misstep. Barely a day goes by without some company facing new assaults on its reputation. Reputation recovery is the long and arduous path to rebuildingequity in a company's good name. Research has found it takes approximately 3.5 years to fully recover reputation (Safeguarding Reputation[1]). James C. Collins of Good to Great fame says it takes a company seven years to go from good to great. The path is clearly long. The reason reputation recovery has risen in importance is that the "stumble rate [2]" among companies has risen exponentially over the past five years. In fact, 79% of the world's most admired companies have lost their number one positions in industries in that time period. Companies which were once heralded as invincible no longer are. [edit]Online reputation This article's tone or style may not reflect the formal tone used on Wikipedia. Specific concerns may be found on the talk page. See Wikipedia's guide to writing better articles for suggestions. (December 2011) See also : Reputation system, Reputation management and Online identity Online reputation is a factor in any online community where trust is important. It affects a pseudonym rather than a person. Examples includeeBay, an auction service which uses a system of customer feedback to publicly rate each member's reputation. Amazon.com has a similar reputation mechanism in place and merchants develop their reputations across different dimensions.[3] One study found that a good reputation added 7.6% to the price received.[4] In addition, building and maintaining a good reputation can be a significant motivation forcontributing to online communities. To begin developing an online reputation, consider how your personal or company brand should be perceived.[5] What is your brand identity / what is your value proposition / selling point / unique voice? Once you have developed the image you would like your constituencies to perceive, develop a strategy to build your brand. Are you seeking credibility in the marketplace (consider blogging, answering questions onLinkedIn), gain market leadership (create innovative tools for your industry) or connection (build a network of contacts in professional and/or social sites).

Once you have begun developing an online reputation it is important to try and protect it. One strategy that many people employ to ensure that they keep up with their online reputation is monitoring. Given the number of sites on the internet, it is impossible to try and manually monitor the entire internet for pages that may affect your online reputation. Tools such as Radian 6 and Google Alerts can help you to keep tabs on your online reputation[6] Another way to look at online reputation is how well it's being managed.[7] This form of reputation is usually called web or digital reputation to distinguish it from the online reputation. Indeed, Digital of Web reputation does not concern the virtual on-line reputation only, but the whole real reputation of a person or a company as it is affected by the Web. Nearly seven out of 10 global business executives see their reputations online as vulnerable. This high estimate reflects executive anxiety over reputation erosion in a fiercely competitive and unpredictable business environment. [3] An online reputation is the perception that one has on the Internet based on their digital footprint. Digital footprints accumulate through all of the content shared, feedback provided and information that created online. People aspire to have a positive online reputation. If someone has a bad online reputation, he can easily change his pseudonym. This is why new accounts on eBay or Amazon are usually untrusted. If a person or a company want to manage his web reputation, he will have many more difficulties. This is why a merchant on the web having a physical shop (with real name, real address) is usually more trusted.[citation needed] The greatest reputation threat online to companies is negative media coverage (84% say so). The next two greatest threats are customer complaints in the media or on grievance sites online (71%)and negative word of mouth (54%). This negative word of mouth could be from dissatisfied customers but from employees as well. Leaders also worry about confidential leaks which seem to be growing at a rapid pace online. [4] Employers have begun using the online reputations of job applicants to help their hiring choices.[8] By checking on your social networking profiles on sites such as Facebook, Twitter and MySpace, employers gain insight into how they believe you will fit into their business.[9] Some unscrupulous individuals have hired reputation management companies to attempt to hide truthful but unflattering information about themselves. A recent alleged example is that of Dr. Anil Potti, who resigned in disgrace from Duke University after it was discovered that he had misrepresented himself on his resume and became the subject of a scientific misconduct investigation.[10] [edit]Reputation as extension of ego Concern over reputation is sometimes considered a human fault, exaggerated in importance due to the fragile nature of the human ego.William Shakespeare provides the following insight from Othello: Cassio: Reputation, reputation, reputation! O! I have lost my reputation. I have lost the immortal part of myself, and what remains is bestial. My reputation, Iago, my reputation! -Shakespeare, Othello, the Moor of Venice Act II. Scene III, 242-244.

Iago: As I am an honest man, I thought you had received some bodily wound; there is more offence in that than in reputation. Reputation is an idle and most false imposition; oft got without merit, and lost without deserving: you have lost no reputation at all, unless you repute yourself such a loser. -Shakespeare, Othello, the Moor of Venice Act II. Scene III, 245-249.