Reputation Economy

Reputation is one of the great intangible assets of a company. It is the totality of how a company is perceived by its stakeholders in all dimensions. Reputation is the result of perceptions in the past. And thus influences future behavior.

 

Reputation is not a 'nice-to-have' - it is an economic factor.
Because: companies with a good reputation

  • do better business,

  • are economically more successful,

  • are preferred by customers,

  • attract better talent,

  • are more interesting for investors and

  • enjoy greater public trust.

 

It may come as no surprise that a good reputation is linked to good business. However, it was not until the 1990s that Dr. Charles Fombrun succeeded in proving this connection scientifically. And it took numerous other studies conducted worldwide to find out which elements define and explain reputation.

Reputation economy today, however, has another dimension of significant importance: The digital traces we leave on the web and social media every day; all kinds of ratings of companies, organizations, products or individuals lead to a "social score", a digital reputation - reputation as an online currency in the digital society. 

 

Reputation-managed companies know how they are perceived by the decisive interest groups. They know how they are rated in the individual reputation dimensions and where to focus. They decide on the relevant communication topics based on facts and figures. They recognise the connections between reputation and behaviour.

 

And they are convinced that an actively managed reputation leads to better business results and higher corporate value.

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