Why Is A Firm 's Corporate Reputation Important?

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Why is a firm’s corporate reputation important? Explain how a company can quickly lose their positive corporate reputation. How can a company regain a positive reputation after it has been tarnished? A firm’s reputation is important because it is the description of the overall company. For a company to be successful it needs a good reputation where stakeholders can put and trust their money into the company, and where customers can trust buying products or services. The reputation of a firm enhance the credibility of the business, and build connections with the public. Customers always give description of the firm and that is how companies’ reputations are built, customers will or will not recommend the company. Good reputation will attract more customers, it will help the firm’s competitive advantage, and it will add value to the firm. It is very easy for a company to lose their reputation, a small mistake can bring many consequences to a company. For example, one happy customer might tell one or two person about its good experience buying a product or service with the company; however, an angry or disgusted customer will make sure that everybody in the world knows about its bad experience at the company, and that is how the reputation is created. Another example, we have the company Chipotle, in the begging of the past year Chipotle was one of the top companies growing fast and being very successful; however, after the discovered of e coli infection in few people

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