Reputation Quotient: Measuring the Reputation of Business Firms

1. Explain the concepts of reputation capital, corporate identity and the four elements of the expanded reputation formula of Doorley and Garcia (2015)

Corporations are encouraged to conduct their activities in an ethically responsible manner, however neither the corporate world nor academia has produced a single – all encompassing definition of corporate social responsibility (CSR). The basic problem is that there are too many self-serving definitions that often lean toward the specific interests of the entities involved (Van Marrewijk, 2003). There has even been a quantitative study conducted on the many definitions of the term (Dahlsrud, 2006).

On the other side, as the legal personality of the corporations evolved in the 1800s, enterprises were no longer responsible for serving the public interest. Consequently, any social welfare was symbolic and procured from the economic function of organizations (Banerjee, 2008). Furthermore, it seems that corporations are using CSR strategies as a window to present favorable images and obtain economic benefits. Historically the relationship between revenues and investment in CSR programs is a controversial issue. Furthermore, the power of the economic CSR rhetoric lies in the ability to validate particular ideologies to consolidate the power of larger corporations (Banerjee,

CSR is the commitment of a company to behave ethically and to improve its employee’s quality of life, while contributing to economic development. Companies are expected to work with CSR and it can be rewarding for both customers and companies. However, CSR can be damaging for a company if it is performed incorrectly. For example, if the organization`s CSR efforts are focused on areas

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

As argued by economist Milton Friedman, business's social responsibility is only to increase its profit with the use of its resources in a free market competition. Friedman also believes that companies have no obligation to exercise social responsibility to society (Friedman, 1970). However, studies have shown that when CSR is implemented it benefits the company financially, enhances reputation and attract

In doing things better the next time and in accordance to campaign assessments, organizations are safeguarding their reputations. Reputation is a core asset of an organization and creates barriers to competitive threats (Schreiber, 2011). Established reputations hinder competitive mobility and deliver returns to organizations because they are difficult to emulate (Schreiber, 2011). A solid reputation evokes that the products and/or services offered by the organization are of higher quality (Carmeli & Tisler, 2005) and that the firm is

CSR lacks universal methods. The United Nations Industrial Development Organization (UNIDO) mentions that it is important to draw a distinction between CSR as part of strategic business management concept and charity, sponsorships or philanthropy. The latter applications make valuable social impacts that enhance the reputations of the companies, however, CSR is a continual effort instead of an instance. A few features that CSR should focus on are: eco-efficiency, employee and community relations, environmental management, gender balance, responsible souring, anti-corruption, stakeholder engagement and human rights. Utilizing some of these key features a company can bring competitive advantages into the market place. Increased sales and profits from operational cost savings as well as improved reputation and brand image and customer loyalty can result from a well-defined CSR strategy.

Their report show consistent with the hypothesis that a positive reputation as an employer has value to a firm. The positive excess return to such firms indicates that attaining a good employer ranking can be viewed as a positive managerial action. The announcement could be providing the market information and assurance about managerial skills. A good reputation should allow a firm to attract talented employees and reduce employee turnover. The excess returns for our

There are several factors that a company must have to prosper and sustain and one of them is maintaining reputation (Haywood, 2005). Haywood claims that reputation is gradually perceived as a company’s asset and good reputation

Quality has a big impact on an organization 's reputation. The internet today can make or break a firm. It does that because it gives shoppers the ability to share information about a product or service they have received. On the internet, there are now survey websites. Then there are people who may purchase a product and make a video of them reviewing the Quality of it and that can damage a company’s reputation. In the business world social media play a major role because the potential buyer can share their dislikes and likes about a product and they use networking sites such as Facebook, twitter, and Instagram. A solid reputation for quality can be a vital differentiator in the business

A voluntary approach that a business enterprise takes to meet or exceed stakeholder expectations by integrating social, ethical, and environmental concerns together with the usual measures of revenue, profit and legal obligation (BNET Business dictionary) by the definition of CSR its cleared that corporate should meet the society expectations by doing ethical measures, but in this scandal they fall from that basic line, they fraud with the basic product, they provide wrong information, they just consider their revenue and also neglect legal

Often consumers are drawn to a business due to an intangible factor of a successful reputation, primarily from other sources as it sparks a strong customer reaction. This is due to a successful marketing strategy leading to good publicity of the business. This begins for a company once its first product/service has effectively penetrated the market segmentation, and therefore established itself within its market niche of internal and external stakeholders. Each stakeholder will have a different opinion of the association depending upon personal experiences and the impact of other peer reviews. Although, reputation is not the main focus for many, as they concern themselves with matters such as advertising or sales. It is however a crucial matter for many companies/organisations, such as consulting firms and universities for instance KPMG and Cambridge University. Notably, organisations with a renowned brand are able to price products/services at a premium due to a positive reputation increasing its corporate worth. This leads to higher sales, as more customers will trust the reliable brand name. Therefore when marketing is done well to build a

This widespread transmission of a corporation’s misconduct will then have significant ramifications for their reputation and profitability. The case of Shell in Ogoni (Niger Delta, Nigeria), the Brent Spar in the UK as well as Nike’s sweatshop saga in Asia in the 1990s are good examples of how the social conducts of a corporation can affect their reputation. However, the tension between CSR concepts and CSR practices remain and this has led some to

Reputation is an intangible asset , it often is difficult to measure precisely its impact on the bottom line . However , a superior , if indirect , gauge of reputation can make a huge impact on a company’s financial results . Maxwell can make a good use of its superior reputation by using it as a motivation to improve itself . A good reputation provides a company goal for which to keep striving . Besides , Maxwell can use its superior reputation to increase its business opportunities . A company’s reputation is just like a magnet . It attracts not only customers but also attention of interested future investors and business partners . A superior reputation generates many possibilities for business growth and expansion .