Many countries have regulations that require firms to engage in minimum levels of corporate social activities in areas such as the environment and social welfare. In this paper, we argue that changes in a firm’s compliance with CS regulations are reflected in its reputation for corporate social responsibility, which affects the firm’s performance. The performance impacts depend on whether the firm’s CSR reputation in the current and prior periods is positive, neutral, or negative. Our theoretical framework draws on (...) the reputation literature and on the concepts of recency bias, which weights the present more heavily than the past, and negativity bias, which weights negative assessments more heavily than neutral or positive assessments. We test our hypotheses on a sample of 7317 banks over 1992–2007 where we compare a bank’s return on assets with its current and prior compliance ratings under the U.S. Community Reinvestment Act. We find that changes in CSR reputation have predictable, asymmetric, and sizeable impacts on firm performance. For example, for an average bank with $1 billion in assets, gaining a positive CSR reputation translates into a rise in profits of 4.04%; gaining a negative CSR reputation results in a drop in profits of − 7.8%. (shrink)

This paper analyzes the determinants of corporate reputation within a sample of large UK companies drawn from a diverse range of industries. We pay particular attention to the role that philanthropic expenditures and policies may play in shaping the perceptions of companies among their stakeholders. Our findings highlight that companies which make higher levels of philanthropic expenditures have better reputations and that this effect varies significantly across industries. Given that reputational indices tend to reflect the financial performance of organizations (...) above other factors (Fryxell, G. E. and J. Wang: 1994, Journal of Management 20, 1–14) and that elements of the literature emphasise that discretionary aspects of social responsibility, including corporate donations, may not be in the financial interests of organizations (e.g. Friedman, M.: 1970, “The Social Responsibility of Business is to Increase its Profits”, New York Times Magazine, September 13), this is a significant finding. It suggests that philanthropic expenditures may play a significant role in stakeholder management and may, in particular, lead to stakeholders holding more positive impressions of philanthropic corporations. (shrink)

Management scholars have paid close attention to the construct of organizational or corporate reputation, particularly in the applied business ethics and corporate social responsibility fields. Extant research demonstrates that CR is one of the key mediators between CSR and important organizational outcomes, which ultimately improve organizational performance. Yet, hitherto the research focused on CR construct has been plagued by multiple definitions, conflicting conceptualizations, and unclear operationalizations. The purpose of this article is to provide theoretical ground for positioning of CR (...) as an assessment construct that is modeled as a second-order factor affecting individual first-order dimensions, and to provide methodological and empirical support toward such conceptualization. We assert that intangible, socially complex, and causally ambiguous CR can be accurately estimated through its individual measurable dimensions. Using survey data from Peru, we empirically test the hypothesized second-order reflective model within a hierarchy of nested and non-nested models, and compare its model fit and predictive power with alternative conceptualizations. Modeling CR as a second-order reflective construct relies on a set of theoretical propositions and yields several methodological advantages, including strong conceptual interpretability and parsimony when tested within a nomological context. We explicitly demonstrate positive organizational outcomes of CR: customer trust, corporate identification, in-role behavior, and extra-role behavior. Then, we demonstrate that the shorter scales of CR can be used as a good proxy for the full construct measure. The paper concludes by highlighting theoretical insights, and methodological and managerial implications of the findings. (shrink)

Ethical or ‘socially sustainable’ sourcing mechanisms mandating labour standards among the suppliers and subcontractors that organisations source goods and services from are becoming more common. The issue of how labour activist groups such as trade unions can encourage organisations to adopt and strengthen these mechanisms within domestic production networks is largely unexplored. Using three cases of domestic sustainable sourcing campaigns developed by unions in Britain, the strategies used by labour activists, the characteristics of the organisations targeted and the motivations of (...) lead firms for improving sourcing practices are analysed. The article makes a significant contribution by demonstrating that organisational susceptibility to reputational risk is a key factor influencing the capacity of activist groups to convince and compel their targets to improve sourcing practices. It argues that different types of organisations are susceptible to reputational damage in different ways, that risk events provide opportunities for unions to strengthen their leverage against target organisations, and that the multidimensional nature of corporate reputation needs to be better considered for understanding how campaigns are framed and executed. (shrink)

This article introduces the special issue on “Corporate Reputation: Being Good and Looking Good.” Three of the five included articles help to reinforce a conclusion that “being good” and “looking good” are not dichotomous, mutually exclusive conditions. Rather, the two dimensions are linked in some kind of causal relationship for which continuing conceptual and empirical research is desirable. A fourth article concerns the reputational effects of the stock-option backdating scandal. The fifth article offers a critique of conventional approaches to (...) defining and measuring reputation. (shrink)

This paper examines the association between board characteristics and the ethical reputation of financial institutions. Given the pivotal governance role of the board of directors and the value-relevance of ethical corporate behavior, we postulate a positive relationship between ethical reputation and board features that foster more effective monitoring and oversight. Using a sample of large financial institutions from 13 different countries, we run several alternative panel regressions of ethical reputation on board characteristics and firm-specific controls. Our results (...) demonstrate that the ethical reputation of financial institutions is positively associated with board size, gender diversity, and CEO duality, while being negatively related to the busyness of the board members and a composite index reflecting poor monitoring. Nevertheless, inconsistent with our hypothesis, we also document that financial institutions with less frequent board meetings have better ethical reputation. Overall, our empirical findings suggest that stronger board oversight may promote ethical behavior in the financial industry. (shrink)

Banking scandals, accounting fraud, product recalls, and environmental disasters, their associated reputational effects as well as company response strategies have been well reported in the literature. Reported crises and scandals typically involve one focal company for example BP and the 2010 Deepwater Horizon accident. As business practices change and company supply chains become more complex and interlinked, there is a greater risk of collective crises where multiple companies are associated with the same scandal. We argue that companies are likely to (...) behave differently in a group setting compared to when faced with a crisis individually. Using an inductive approach, we examine the case of the Rana Plaza building collapse. We find that organizations with a history of similar crises adopt defensive strategies and communicate much later compared to organizations which adopt accommodative strategies. Contrary to the individual case, in a collective crisis accommodative strategies result in more negative reputational damage and a higher burden of responsibility. We propose that the relationship between crisis response strategy and organization reputation is moderated by the crisis setting. We extend the logic of crisis management and corporate reputation to incorporate the case of a collective crisis. (shrink)

Assumed benefits from improved reputation are often used as motives to drive corporate social responsibility (CSR) initiatives. Are improved cost efficiencies among these reputation benefits? Cost efficiencies and cost management have become more relevant as revenue streams dry up in these tough economic times. Can a good reputation aid these efforts to develop cost efficiencies specifically when managing labor costs? Prior research hypothesizes that good reputation can create labor productivity and efficiency benefits. The purpose of this (...) study is to empirically investigate reputation's relationship with labor efficiency, labor productivity, and labor cost. Using a sample of highly reputable firms from Fortune's America's Most Admired Companies list and a corresponding matched sample of firms, we find that reputation is associated with improved labor efficiency and labor productivity. However, we do not find a significant association between reputation and reduced labor costs. Our study contributes to current research hypothesizing and finding efficiency benefits associated with good reputation. Documenting these potential reputation benefits has important implications for CSR activities and initiatives. It supports recent work that incorporates reputation into a more developed model of the relationship between CSR and performance (Vilanova et al.: 2009, Journal of Business Ethics 87, 57-69). This work is useful to businesses and supports strategies focused on "doing well by doing good" and maintaining healthy reputations. (shrink)

The authors describe the intensity and orientation of the corporate social responsibility reporting in four Spanish industries and explore the relationship that exists between both concepts and an independent measurement of reputation for CSR. The results demonstrate that the CSR reporting is especially relevant and useful in the finance industry. Finance companies report significantly more CSR information than most industries in Spain, and this reporting is more closely linked to their CSRR than the CSR reporting of basic, consumer goods (...) and services industries. (shrink)

This paper describes an exploratory study of corporate responsibility, corporate reputation, and stakeholder support in Norway, Sweden and Denmark—countries recognized worldwide as providing an institutional climate uniquely conducive to responsible business practice. Conducting a secondary analysis of Scandinavian data from Reputation Institute’s extensive global research on corporate reputation and responsibility, we examine four key questions: First, do Scandinavians agree with external observers that firms in their countries demonstrate superior levels of corporate responsibility? Second, relative to other (...) class='Hi'>reputation drivers, to what extent does corporate responsibility predict corporate reputation for the countries in our dataset? Third, to what extent does corporate responsibility predict stakeholder intent in these countries to engage in supportive behavior toward the firm? Finally, are stakeholder perceptions of and responses to corporate responsibility sufficiently similar across Norway, Sweden, and Denmark to justify claims for a monolithic “Scandinavian approach” to CSR? Previous research examining the relationship of corporate responsibility to corporate reputation and stakeholder support is reviewed, analytical methods are described, results presented, and implications discussed. The article concludes with analysis of study limitations and directions for future research. (shrink)

A compelling exploration of how reputation affects every aspect of contemporary life Reputation touches almost everything, guiding our behavior and choices in countless ways. But it is also shrouded in mystery. Why is it so powerful when the criteria by which people and things are defined as good or bad often appear to be arbitrary? Why do we care so much about how others see us that we may even do irrational and harmful things to try to influence (...) their opinion? In this engaging book, Gloria Origgi draws on philosophy, social psychology, sociology, economics, literature, and history to offer an illuminating account of an important yet oddly neglected subject. Origgi examines the influence of the Internet and social media, as well as the countless ranking systems that characterize modern society and contribute to the creation of formal and informal reputations in our social relations, in business, in politics, in academia, and even in wine. She highlights the importance of reputation to the effective functioning of the economy and e-commerce. Origgi also discusses the existential significance of our obsession with reputation, concluding that an awareness of the relationship between our reputation and our actions empowers us to better understand who we are and why we do what we do. Compellingly written and filled with surprising insights, Reputation pins down an elusive subject that affects everyone. (shrink)

We analyze whether audit partners suffered damage to their professional reputations with the demise of Zhongtianqin, formerly the largest audit firm in China, after an audit failure enabled a major client, Yinguangxia, to fraudulently exaggerate its earnings in a high-profile scandal resembling the Andersen–Enron events in the US. This involves evaluating whether the reputational damage sustained by partners implicated in the scandal spreads to other partners in the same audit firm. We isolate whether impaired reputation impedes partners who were (...) not complicit in the ZTQ–YGX events from attracting new clients or keeping existing ones. Our evidence implies that the market shares of these partners fell after ZTQ’s collapse, supporting that guiltless partners’ reputations were tarnished. We also find that these partners are less likely to be employed by reputable audit firms. The clients of these partners tend to have lower earnings response coefficients, implying that investors downgrade the perceived quality of their audits. Moreover, compared to a matched sample, the former ZTQ partners tend to charge lower audit fees after the firm’s collapse. Finally, we exploit the unique structure of ZTQ to provide evidence consistent with the prediction that the former partners from the branch that handled the YGX audits experienced worse damage to their reputations. In a setting with minimal auditor discipline stemming from civil litigation, our results lend support to the intuition that partners’ reputation concerns motivate them to protect audit quality by closely monitoring other partners in the firm. (shrink)

This chapter analyzes the philosophical import of the notion of reputation along two main axes: (1) reputation as a motivation for action, and (2) reputation as a special kind of social information. Is reputation a rational motive of action? Can it be an ultimate aim or is it always reducible to some kind of self-interest? Is reputation a rational means to extract information from the social world? Should we rely on other’s evaluations? By reconstructing the (...) philosophy of reputation in the history of thought and analyzing the contemporary approaches to reputation in philosophy, the chapter also provides also some rudiments of an “epistemology of reputation.”. (shrink)

From an evolutionary point of view, the function of moral behaviour may be to secure a good reputation as a co-operator. The best way to do so may be to obey genuine moral motivations. Still, one's moral reputation maybe something too important to be entrusted just to one's moral sense. A robust concern for one's reputation is likely to have evolved too. Here we explore some of the complex relationships between morality and reputation both from an (...) evolutionary and a cognitive point of view. (shrink)

What are the consequences of the tendency for ubiquitous online reputation calculation to lead not to more precise expressions of reputation capital but, rather, to greater reputational instability? This article contrasts two conceptions of online reputation, which enact opposing attitudes about the relation between reputation and the calculable. According to an early online reputation paradigm – reputation capital – users strove to achieve high scores, performing the presumption that reputation could be incrementally accumulated (...) and consistently measured within relatively stable spheres of value. Yet, ubiquitous calculation led not to more precise measurements of reputation, but rather to the increasing volatility of online reputation. Thus, a second online reputation paradigm – reputation warfare – has become increasingly prevalent, in which strategic actors indirectly capitalize on systemic volatility produced by reputation’s ubiquitous online calculation. Steve Bannon’s 2016 Trump campaign strategy, which mobilized trolls, exemplifies the indirect optimization of online reputation, placing an option on reputational volatility. (shrink)

While organizations today make extensive use of complex algorithms, the notion of algorithmic accountability remains an elusive ideal due to the opacity and fluidity of algorithms. In this article, we develop a framework for managing algorithmic accountability that highlights three interrelated dimensions: reputational concerns, engagement strategies, and discourse principles. The framework clarifies that accountability processes for algorithms are driven by reputational concerns about the epistemic setup, opacity, and outcomes of algorithms; that the way in which organizations practically engage with emergent (...) expectations about algorithms may be manipulative, adaptive, or moral; and that when accountability relationships are heavily burdened by the opacity and fluidity of complex algorithmic systems, the emphasis of engagement should shift to a rational communication process through which a continuous and tentative assessment of the development, workings, and consequences of algorithms can be achieved over time. The degree to which such engagement is, in fact, rational can be assessed based on four discourse-ethical principles of participation, comprehension, multivocality, and responsiveness. We conclude that the framework may help organizations and their environments to jointly work toward greater accountability for complex algorithms. It may further help organizations in reputational positioning surrounding accountability issues. The discourse-ethical principles introduced in this article are meant to elevate these positioning contests to extend beyond mere adaption or compliance and help guide organizations to find moral and forward-looking solutions to accountability issues. (shrink)

Unlike the supergame model assumes agents in exchange situations will normally not be perfectly informed on past behaviour of their partners. Also, they will be able to choose their partners to a certain extend. A formal model is presented that attempts to take account of these facts. It is supposed that for any actor the probability of finding a partner for a lucrative exchange depends on his past behaviour. A model of reputation formation is presented as a formal description (...) of this interdependency. Based on this model it is shown that under certain conditions only co-operative conduct will pay in the long run. Thus it is confirmed that - given the mechanism of trust - rational agents may act trustworthy. (shrink)

Industry reputation crises trigger producers and consumers to switch to certification as a signal of quality, especially in a weak institutional environment. In this paper, we posit that firm certification as a signaling mechanism involves the co-evolution of firms and consumers. We investigate the impact of industry reputation crises on firm certification as a response strategy. Feedback between producers and consumers causes producers to seek more certifications over time to differentiate themselves from competitors. However, the proliferation of certifications (...) may dilute their credibility and reduce the effectiveness of the signal. Competition from imports that command higher trust from consumers exacerbates the problem in developing countries. We conduct empirical tests using firms in China’s dairy industry after an industry reputation crisis. The findings support our hypotheses. This study provides insights on the certification mechanisms through which producers and consumers interact and the effect of institutional environments on this interaction. It also offers implications for managers on how to better respond to industry crises and for policymakers on how to manage the certification market. (shrink)

This paper examines how and why information moved or failed to move within transatlantic botanical networks in the late eighteenth century. It addresses the problem of how practitioners created relationships of trust, and the difficulties they faced in transferring reputations between national contexts. Eighteenth-century botany was characteristically cross-cultural, cosmopolitan and socially diverse, yet in the 1770s and 1780s the American Revolutionary Wars placed these attributes under strain. The paper analyses the British and French networks that surrounded the Philadelphian plant hunter (...) William Young (1742–1785), to show how botanists and plant collectors created and maintained connections with each other, especially when separated by geographical and cultural distance. It highlights in particular the role played by commercial plant traders, and demonstrates how practitioners used objects to transmit social as well as scholarly information. The transnational circulation of information and knowledge in the Enlightenment was determined by culturally specific judgements about trust, confidence, communication and risk. Despite the prominent role played by material culture within these networks, scholars continued to place high value on face-to-face contact as a means of judging the trustworthiness and cooperation of their agents. (shrink)

Much work on intellectual humility has focused on its epistemic benefits. We suggest that displaying (or failing to display) intellectual humility also has effects on how others perceive us and that, as a result, intellectual humility can serve reputation management purposes, in at least four ways: (i) Intellectual humility can be used to signal we are a good source of information; (ii) Intellectual humility can be used to signal we are competent through countersignaling; (iii) Intellectual humility can be used (...) to make sure others do not believe we are overclaiming superiority; (iv) lack of intellectual humility (or intellectual arrogance) can be used to signal dominance. The evidence suggests that intellectual humility (or lack thereof) can have each of these effects. Seeing intellectual humility as (inter alia) a reputation management tool predicts that people will be more or less likely to display intellectual humility in some contexts. For instance, people in a position of power might stand to lose less if they fail to be intellectual humble; accordingly, evidence suggests that they tend to display less intellectual humility. In conclusion, we speculate that understanding intellectual humility as reputation management could help construct environments more conducive to displays of intellectual humility. (shrink)

Given the food challenges that society is facing, we draw upon recent developments in the study of how food reputation affects food preferences and food choices, providing here a starting standard point for measuring every aspect of food reputation in different cultural contexts across the world. Specifically, while previous attempts focused either on specific aspects of food or on measures of food features validated in one language only, the present research validates the Food Reputation Map (FRM) in (...) Italian, English and Chinese over 2,250 participants worldwide. Here we successfully measure food reputation across 23 specific indicators, further grouped into six synthetic indicators of food reputation. Critically, results show that: (a) the specific measurement tool of food reputation can vary across cultural contexts, and that (b) people's reputation of food products or categories changes significantly across different cultural contexts. Therefore, in order to understand people's food preferences and consumption, it is important to take into account the repertoire of cultural differences that underlies the contexts of analysis: the three context-specific versions of the FRM presented here effectively deal with this issue and provide reliable context-specific insights on stakeholders' interests, perspectives, attitudes and behaviors related to food perceptions, assessment, and consumption, which can be effectively leveraged to foster food sustainability. (shrink)

The concept of reputation has hardly been analyzed by philosophers. My analysis presents a puzzle: reputation is a portrayal of who one is. However, it is dependent on others. This description contradicts David Oderberg’s analogy between reputation and property. I discuss the relation of reputation to gossip and conclude that we should take spreading information seriously. We should go back to the original meaning of gossip: the term “Godsib,” meaning godfather. In our global village we are (...) all entrusted with other’s identities. We should pave our way with that information in a manner that would manifest great care. But this does not mean that these people are exempt from responsibility: the chain that ends in reputation starts with how you behave. It is your very identity that you entrust to other people—make sure to behave in a way that would result in the reputation you want to deserve. (shrink)

This paper explores the relationship between accountability, trust and corporate reputation building. Increasing numbers of corporations are mobilising themselves to put more and more information out into the public domain as a way of communicating with stakeholders. Corporate social accounting and stakeholder engagement is happening on an unprecedented scale. Rather than welcoming such initiatives, academics have been quick to pick faults with contemporary social auditing and reporting, claiming that in its current form it is not about demonstrating accountability at (...) all, but rather about building corporate reputation. Academics argue that ‘accountability should hurt’, that if accountability is an enjoyable process, then the organisation isn’t doing it right. For organisations that are currently engaging with stakeholders and ostensibly becoming more transparent about their corporate social performance, this kind of critique is likely to be bewildering. This paper argues that central to the notion of accountability and to contemporary social accounting practice is the concept of trust. Accountability is based upon a distrust of corporate management, whereas corporate reputation building is about strategically seeking to establish trust in stakeholder relationships in order to negate formal accountability requirements. Using a split trust continuum, the paper seeks to explain and synthesise what seem to be two very different paradigms of organisational transparency. (shrink)

Sociologists and social psychologists have long seen reputation management as an important human motivation. More recently, evolutionary analyses have helped understand the function of reputation management, demonstrating the fitness consequences of being thought of as dominant, moral, or competent. Here, I argue that reputation management likely plays an important, but understudied, role in cultural evolution – whether one takes the perspective of dual inheritance theory or of cultural attraction theory. I illustrate the importance of reputation management (...) through its role in the spread of non-actionable beliefs – beliefs which have few or no behavioral consequences, but which constitute a large part of culture. (shrink)

Previous experimental and observational work suggests that people act more generously when they are observed and observe others in social settings. However, the explanation for this is unclear. An individual may want to send a signal of her generosity to improve her own reputation. Alternately (or additionally) she may value the public good or charity itself and, believing that contribution levels are strategic complements, give more to influence others to give more. We perform the first series of laboratory experiments (...) that can separately estimate the impact of these two social effects, and test whether realized influence is consistent with the desire to influence, and whether either of these are consistent with anticipated influence. Our experimental subjects were given the opportunity to contribute from their endowment to Bread for the World, a development NGO. Depending on treatment, “leader” subjects’ donations were reported to other subjects either anonymously or with their identities, and these were reported either before these “follower” subjects made their donation decisions. We find that “leaders” are influential only when their identities are revealed along with their donations, and female leaders are more influential than males. Identified leaders’ predictions suggest that are aware of their influence. They respond to this by giving more than either the control group or the unidentified leaders. We find mixed evidence for “reputation-seeking.”. (shrink)

This article explores three literature bases in some depth: strategy, stakeholder/ social issues, and the newly emergingworks in reputation. The focus is on the potential research and practical overlaps that exist in these literatures. A model of reputation is developed that highlights these research opportunities for scholars in all three endeavors. Amodel of reputation formation is developed that can be used for further study and action. Throughout the analysis, various research avenues are suggested for active consideration.

Reputation is a commercially valuable asset. This book focuses upon how enhanced reputation can contribute to commercial asset management through increased share price premium and competitive performance, while reputation loss can significantly erode the ability of the business to successfully retain market share, maximize shareholder value, raise finance, manage debt, and remain independent. It provides practical models and checklists designed to plan reputation management and risk communication strategies.

Corporate Reputation (CR) has become an increasingly important topic in the social responsibility literature. In this exploratory study we relate reputation to crisis management by implementing an experimental survey in which respondents indicate how strongly they feel about a potential crisis. Findings reported here indicate that respondents’ reactions to the potential crisis varied according to the industry in which the firm operated.

We investigate how negative news coverage of borrower’s impacts on climate change affects bank loan contracting. Using a sample of publicly traded US firms for the period 2000–2016, we show that loans initiated following negative news coverage about firm’s adverse climate-related incidents have significantly higher spreads, shorter maturities, more covenant restrictions, and a higher likelihood of collateral security requirements. We find no changes in client firm’s credit fundamentals after such incidents, indicating that lender’s reputational concerns rather than the longer-term environmental (...) impacts of their borrower’s actions are the primary drivers of these changes. This observation highlights the need for increased scrutiny of banks’ lending practices to ensure that they are genuinely committed to sustainability rather than merely engaging in symbolic actions. (shrink)

In the aftermath of scandals such as those at Enron and WorldCom, there is a growing suspicion of the corporate world. For this reason it is more important than ever for firms to maintain a good reputation. In Building Reputational Capital, Kevin T. Jackson offers a practical guide to taking the high road--the only path that leads to lasting success. Based on extensive research and real-world experience, Building Reputational Capital reveals basic principles of integrity and fairness with which firms (...) can build an enduring reputation. More than image, a firm's reputation is a form of capital often neglected in the boardroom and overlooked in conventional analyses of financial statements. Speaking directly to the work experience of real people in practical business settings, Jackson couples each principle with straightforward actions that drive management systems, and he provides tested strategies--from downsizing techniques to e-commerce tips--that cultivate the hidden power of a good reputation. He outlines the advantages of a superior reputation, describes the vital role the firm's leader must play, offers ways to build and protect your reputation on the Internet, and shows how to rescue your reputation once disaster hits. Perhaps most important, he shows how to strike the right balance of virtues like authenticity, honesty, responsibility, and stewardship of the environment, employees, and the economy. Highlighted with real-life success stories--from giants like Hewlett-Packard to small firms like Thanksgiving Coffee Company, Building Reputational Capital offers a simple but effective guide for executives, managers, entrepreneurs, legal professionals, and corporate consultants. (shrink)

Reputational rankings aggregate the diverse assessments of corporate constituents and compare firms to one another. In so doing, they effectively gauge a company's relative success at fulfilling societal expectations. By improving how corporate reputational rankings are constructed, audited, and reported, we argue that society stands to inherit a powerful democratic mechanism for guiding the corporate sector's economic and social activities.

Reputation detection in traditional distributed systems relies heavily on the factor of interaction reputation, which can be derived from direct interactions between agents through bidirectional relationships. However, in the current information diffusion in social network systems, the characteristic of the unidirectional relationship between agents and the decay property of diffusion will result in lacking direct interactions; therefore, interaction reputations will be difficult to be obtained by agents in a distributed manner. To solve this problem, a novel distributed (...) class='Hi'>reputation detection model following the pattern “from path to individual” is proposed, which can provide a new reputation factor as an alternative to interaction reputation in such environments. The main idea is that the positive observation of an information diffusion process increases the belief of the corresponding diffusion path, which further increases the reputation of each involved agent. Thus, the reputation of a target agent can be assessed by the superimposition of reputations of multiple paths on which this agent has participated in past information diffusion processes. Furthermore, being aware of agent’s limited capacity for reputation detection in SNS, we then propose the enhanced FPTI model, which simplifies the detection source to reduce detection costs and achieve the approximate performance as FPTI. Theoretical analyses and experimental evaluations validate the efficiency and effectiveness of our models and also show several properties of the models, for example, the robustness for dynamic environments. (shrink)

This study investigates whether the market valuation of the two summary accounting measures, book value of equity and net income, is higher for firms with reputation for sustainability leadership, when compared to firms that do not enjoy such reputation. The results are interpreted through the lens of a framework combining signalling theory and resource-based theory, according to which firms signal their commitment to sustainability to influence the external perception of reputation. A firm’s reputation for being committed (...) to sustainability is an intangible resource that can increase the value of a firm’s expected cash flows and/or reduce the variability of its cash flows. Our findings are according to expectations and show that the net income of firms with good sustainability reputation has a higher valuation by the market, when compared to their counterparts. (shrink)

By using social media, corporations can communicate about their corporate social responsibility (CSR) to the public without having to pass through the gatekeeping function of the news media. However, to what extent can corporations influence the public’s evaluation of their CSR activities with social media activities and if the legacy news media still act as the primary agenda setters when it comes to corporate reputation have not yet been thoroughly analyzed in a digitized media environment. This study addressed this (...) research gap by looking at the effect of CSR communication through Facebook and news media coverage of CSR on corporate reputation in Switzerland. The results of this longitudinal study show that the salience and tone of news media coverage of CSR were positively related to corporate reputation, even though the news media coverage about CSR was predominantly negative. Thus, reputation was still strengthened even in the face of negative publicity. No effect of CSR communication through Facebook on corporate reputation was found. The results suggest that legacy news media still were influential in determining how the public evaluates corporations in the digital age. (shrink)

We propose a construct, the Trust Triangle, that highlights three primary mechanisms that provide ex post accountability for opportunistic behavior and motivate ex ante trust in economic relationships. The mechanisms are a society’s legal and regulatory framework, market-based discipline and reputational capital, and culture, including individual ethics and social norms. The Trust Triangle provides a framework to conceptualize the relationships between trust, corporate accountability, legal liability, reputation, and culture. We use the Trust Triangle to summarize recent developments in the (...) empirical finance literature that examine how trust is formed and how trust, or its absence, affects financial markets, firm performance, and the incidence of financial fraud. To date, most studies examine only one leg of the Trust Triangle in isolation. The evidence, however, indicates that all three legs of the Trust Triangle have first-order effects on a wide range of financial outcomes and that they are interrelated. Attempts to model trust and trustworthiness that do not incorporate all three aspects of the Trust Triangle will therefore miss essential aspects of the basic economic problem of how counterparties overcome the risks of moral hazard, asymmetric information, and opportunism to engage in mutually beneficial exchange and production activities. We focus especially on culture-related mechanisms, a recently developed area in empirical finance research that has potential to influence the more established research on laws and reputation. (shrink)

This article identifies four themes that dominate the literature on corporate reputation and attempts to further distinguish the linkages between the concepts of identity, image, and reputation. Four dimensions of corporate identity are characterized. Arationale for comprehensive measurement of the components of reputation is provided, and a preliminary framework for measuring various dimensions of corporate identity, image, and reputation is developed. Finally, reputation-related questions intended to assist various decision-makers in predicting future business performance are posed (...) in order to focus future advances in the usefulness of the construct of corporate reputation. (shrink)

The current study is designed to propose and test a model about the ethical reputation of a target manager who must decide whether to engage in earnings management. We employ an experimental approach to examine the potential negative reputation effects within the internal labor market of a firm that occur as a consequence of earnings management. We examine participants’ responses to a hypothetical (target) manager when both the target’s behavior and the corporate incentives were manipulated. Participants assessed how (...) ethical they believed a target manager to be, based on the target’s decision regarding earnings management and the nature of the corporate incentives. Participants also assessed the target’s managerial ability. Participants’ judgments regarding the target’s morality were significantly affected by the target’s behavior, but were not affected by the incentive structure. Ability judgments were significantly and positively related with morality assessments. Further analysis indicates that morality assessments mediate the relationships between the target’s behavior and the participants’ willingness to extend work-related opportunities to the target. Implications of these results for management control systems design and for future research are discussed. (shrink)

The interest in ethical leadership has grown in the past few years, with an emphasis on the mechanisms through which it affects organizational life. However, research on the boundary conditions that limit and/or enhance its effectiveness is still scarce, especially concerning one of the main misconceptions about ethical leadership, its incompatibility with effectiveness . Thus, the present study examines the relationship between ethical leadership and organizational deviance via affective commitment to the organization, as a reflection of the quality of the (...) employee–organization relationship and proposes this relationship is conditional on the supervisor’s personal reputation for performance . Using a sample of 224 employees and their respective supervisors from 18 organizations, we confirmed our hypotheses . Our findings suggest that ethical leadership is positively related to employees’ affective commitment to the organization, particularly when supervisor’s reputation for performance is high, which in turn is associated with decreased organizational deviance. The theoretical and practical implications of these findings conclude the paper. (shrink)

We develop a model of ideals-based accountability which we have witnessed at work in several long-thriving family businesses. The owners and managers of these firms eschew individualism and materiality in the pursuit of ethical ideals such as supporting democracy and bettering the human condition. Although accountability is to these ideals, not for outcomes such as profitability or even reputation, IBA has resulted in outstanding reputations for some firms. We characterize IBA according to its missions, leadership, culture, and stakeholder relationships. (...) We also contrast it with traditional forms of accountability and differentiate IBA from related stakeholder, stewardship, and CSR perspectives. Finally, we examine its manifestations within five long-lived family enterprises, in the process generating propositions to advance the concept. (shrink)

There is a tension between the reasonable desire not to be judgmental of other people’s behaviour or character, and the moral necessity of making negative judgments in some cases. I sketch a way in which we might accommodate both, via an evaluation of the good of reputation and the ethics of judgment of other people’s character and behaviour. I argue that a good reputation is a highly valuable good for its bearer, akin to a property right, and not (...) to be damaged without serious reason deriving from the demands of justice and the common welfare. Rash judgment wrongfully damages reputation and is sometimes a seriously immoral act. Rashness is not merely about lack of evidence, but involves lack of charity and is to be avoided even in some cases where the evidence of bad character or action is epistemically sufficient for judgment. I argue that the desirability of a good name for its holder, whether the reputation is deserved or not, means that in all but a relatively narrow range of cases it is always wrong to think badly of someone, even if they are bad. (shrink)

Limited air strikes present an attractive “middle-ground approach” for policymakers, as they are less costly to coercers than deploying troops on the ground. Policymakers believe that threatening and employing limited air strikes signal their resolve to targets. In this essay, as part of the roundtable on “The Ethics of Limited Strikes,” I debunk this fallacy and explain how the same factors that make limited air strikes attractive to coercers are also those that undermine their efficacy as a coercive tool of (...) foreign policy. The limited nature of these air strikes undermines the ability of coercers to effectively signal their resolve. In turn, coercive threats of limited air strikes are less likely to be credible, creating a vicious cycle: policymakers threaten to employ air strikes because they are less costly but then often need to follow through on those threats as target states fail to acquiesce to their demands, precisely because limited air strikes are less costly for the coercer. Limited air strikes, therefore, can actually be a source of conflict escalation and lead policymakers to engage in military action that they would prefer to avoid. I further explain why failing to follow through on such coercive threats can undermine a leader's reputation for resolve and lead to future crisis escalation. Finally, I discuss what this quagmire means for the ethics of the threat and the use of air strikes, particularly for the principles of right intention, likelihood of success, and probability of escalation. (shrink)

The emerging market companies (EMCs) play important roles in business, but they often face criticism about their low reputations. Amid the current trend of worldwide attention on environment, social, and governance (ESG), we ask the questions: does EMCs’ ESG rating help improve their reputation? If yes, to whom is the effect stronger? Applying the discourse theory, this paper theoretically analyzes the effects, including the contingencies of ESG reports’ auditing and the company’s ownership. Using data from official and publicly available (...) sources about Chinese listed companies between 2015 and 2021, we found support for the hypotheses. The findings indicate that the companies’ ESG ratings positively influence next year’s reputation. In addition, the effect is stronger when the companies’ ESG report is audited than when it is not audited; the effect is also stronger for non-SOEs than for SOEs. The paper contributes to literature by extending the theoretical perspective studying reputation and methodological innovation in the measurement of reputation. In practice, this paper recommends EMC executives perform well in ESG practice and have their ESG reports audited. (shrink)

The study of reputation has often focused on the creation of good reputations rather than on the varied means by which reputations are modified, or shifted, and the factors affecting such shifts. This paper develops a theory of reputation shifting and identifies five basic reputational actions, the types of strategic responses that can be taken to manage reputations.

Peter Vanderschraaf. Reputational Enforcement of Covenants.

Multi-national corporations (MNCs) have been criticised for not behaving ethically in some situations, which could have a negative effect on their reputation. This study examines the ethics of a large MNC in its relationship with its suppliers. A brief literature review of corporate identity, business ethics and buyer–supplier relationships is undertaken. The views and perceptions of the buying staff and the suppliers to a large South African MNC are obtained and discussed. The results indicate that this MNC has a (...) good corporate reputation among both its suppliers (an important stakeholder) and its own buying department. The existence and implementation of formal codes of ethics was found to be a necessary, but not sufficient condition for good ethical practice. Candid relationships with suppliers emerged as a second and important factor. Ethical perceptions of buyers by suppliers are driven by the management of corporate identity, through the elements of ethical standards and candid relationships. We present a model of corporate identity/reputation in Buyer–Supplier Relationships. (shrink)

A normative criterion identifying the conditions for a desirable corporate reputation, “reputational optimality,” or “reputational bliss,” is described, and a case developed for its utility and reasonableness as a criterion to apply to real world phenomena. The paper discusses some behavioral patterns under alternative moral positions taken by observers and the firm, critiques some alternative moral principles, and considers some dynamics of moving toward, defending and maintaining, and breaching or breaking reputational bliss.

Direct reciprocity, indirect reciprocity, and reputation are important interrelated topics in the evolution of sociality. This non-mathematical review is a summary of each. Direct reciprocity (the positive kind) has a straightforward structure (e.g., "A rewards B, then rewards A") but the allocation might differ from the process that enabled it (e.g., whether it is true reciprocity or some form of mutualism). Indirect reciprocity (the positive kind) occurs when person (B) is rewarded by a third party (A) after doing a (...) good deed towards somebody else (C) — with the structure "A observes B help C, therefore A helps B." Here too, the allocation differs from the process: if there is underlying cognition, then indirect reciprocity is based on some ability to keep track of the reputations of others (to remember that "B helped C"). Reputation is a kind of social impression based on typicality, derived from three channels of experience (direct encounters, bystander observation, and gossip). Although non-human animals cannot gossip verbally, they can eavesdrop on third parties and learn vicariously. This paper ends with a proposal to investigate the topic of social expertise as a model for understanding how animals understand and utilise observed information within their social groups. (shrink)

This chapter presents a comprehensive framework for corporate reputation management, conceptualizing reputational capital as a stock variable that fluctuates over time due to positive and negative flows influenced by stakeholder perceptions, firm actions, industry context, and external events. The chapter identifies key determinants of reputation, distinguishing between proactive strategies, such as communication and stakeholder engagement, and reactive strategies, such as risk management and crisis response mechanisms. The framework also integrates insights from resource-based theory, legitimacy theory, and signalling theory, (...) emphasizing the strategic importance of corporate reputation in sustaining competitive advantage. (shrink)

Using data from China’s public debt markets, we study the value of corporate reputation and how it interacts with legal and cultural forces to assure accountability. Exploring lawsuits that change corporate reputation, we find that firms involved in lawsuits experience a decrease in bond values and a tightening of borrowing terms. Using the heterogeneities in legal and social capital environments across Chinese provinces, we find the effects are more pronounced for private firms, firms headquartered in provinces with low (...) legal protections, and firms headquartered in provinces with high social capital. The results show that lawsuits that allege misconduct are associated with reputational penalties and that such penalties serve as substitutes for legal protections and as complements to cultural forces to provide ex post accountability and motivate ex ante trust. (shrink)

This chapter provides a comprehensive analysis of the corporate reputation concept, examining its evolution and definitional challenges. It systematically reviews the literature from the past 50 years, categorizing studies into three distinct periods. It highlights the transition from viewing corporate reputation as a strategic asset to a relational approach focused on stakeholder perceptions and, more recently, to an integrative perspective that incorporates both. The chapter also discusses corporate reputation as a source of competitive advantage, drawing on theoretical (...) frameworks such as the resource-based view, signalling theory, and institutional theory. Additionally, it explores corporate reputation’s classification as an intangible asset and the challenges associated with its measurement under accounting standards. By synthesizing various disciplinary perspectives and theoretical frameworks, this chapter sets the stage for subsequent discussions on reputation management and its impact on firms. (shrink)